Meralco secures 170-MW power supply for dry season via CSP

Manila Electric Co. (Meralco) on Wednesday announced it has secured a supply of 170 megawatts of peaking power from South Premiere Power Corp. (SPPC), a unit of San Miguel Corp., through a competitive selection process (CSP).

In a statement, Meralco said the SPPC submitted the lowest bid for the supply contract for February 26, 2022 to July 25, 2022 during a CSP held on February 2, 2022.

The latest CSP round is part of Meralco’s preparations to ensure that there will be sufficient, reliable, and cost-competitive supply for the dry season when demand is historically high, the company said.

SPPC’s offer of P6.8198 per kilowatt-hour (kWh) was declared as the best bid by the Third-Party Bids and Awards Committee (TPBAC), which was way below the P7.2989 per kWh reserve price set for the bidding.

Meralco said Global Business Power Corp., through its subsidiaries Panay Energy Development Corp., Toledo Power Co., and Panay Power Co. submitted a P9.7777 per kWh offer, exceeding the reserve price set for the CSP.

Therma Luzon Inc. initially expressed interest but withdrew its participation in this CSP round, Meralco said.

The company added that TPBAC’s findings were based on a pass/fail assessment of the qualification documents for completeness.

TPBAC will conduct a post-qualification evaluation prior to the issuance of the notice of award, according to the power distributor.

“The TPBAC complied with its mandate to conduct the bid in an open and transparent manner to achieve the least cost of electricity, in accordance with the Department of Energy’s (DOE’s) Department Circular No. 2018-02-0003 on CSP, as amended by Department Circular No. 2021-09-0030,” said TPBAC chairman Atty. Ferdinand Domingo.

“Upon the issuance of a notice of award, Meralco will enter into a PSA (power supply agreement) with SPPC, which will then be submitted for approval by the Energy Regulatory Commission (ERC). This PSA will help ensure availability of supply, which is especially critical in the upcoming dry months and the National and Local Elections,” said Meralco head of Regulatory Management Office Atty. Jose Ronald Valles.

Meralco said it is also awaiting the DOE’s approval of the Terms of Reference for another CSP covering 180-MW of baseload supply needed this coming summer.—AOL, GMA News