CAGAYAN DE ORO CITY — Kagay-anons and Misamisnons being serviced by the Cagayan Electric Power and Light Company (Cepalco) are expected to celebrate the holidays with more hours in darkness, following the curtailment imposed by the Power Sector Assets & Liabilities Management (PSALM) Corp. despite an already existing shortfall in Cepalco’s energy supply.
Cepalco Christmas Tree in Plaza Divisoria unlit as rotating brownouts hit the city. (photo by Froilan Gallardo)
Jaime Rafael U. Paguio, Cepalco senior vice president, said the distribution utility (DU) had no choice but to extend the brownout periods per district, following the 18MW curtailment and the pending approval of its provisional authority for the purchase of an additional 10MW from a new modular diesel power plant operated by its affiliate Mindanao Energy Systems, Inc. (Minergy).
Cepalco filed last Sept. 15 an application for provisional authority with the ERC and was expecting this to be approved last week since it was already within the 75 day actionable period for the agency. However, ERC officials said this is not always the case.
“Even if there has already been an action or decision before the 75 day period expires, the preparation may take some time such that actual issuance of the order already happens beyond the period,” said Atty. Francis Saturnino Juan, ERC executive director.
Cepalco has a peak demand of 150-170MW within its franchise area covering Cagayan de Oro, and the Misamis Oriental towns of Tagoloan, Villanueva and Jasaan.
Besides its curtailed allotment of 58 MW from PSALM, Cepalco can also call on an additional 50MW from its embedded generators operated by affiliate Minergy from bunker diesel, hydro and solar sources. On top of this, it can still tap an additional 23 MW from its partner establishments through its Interruptible Load Program (ILP).
Sources from Cepalco said the utility is contracting short term power supply agreements with various generation companies (gencos), which are now in the final stages of approval with the Energy Regulatory Commission (ERC).
A 10MW diesel power from Minergy is reportedly available and ready to operate since August, but power utilities still don’t have the provisional approval from the ERC to operate.
Cepalco can generate an additional 55MW from embedded independent power producers within its franchise area on a mix of diesel, hydro and solar power. This was further boosted with the operation of the first phase of the Kirahon Two Energy Corporation (KTEC) solar power plant in Villanueva, Misamis Oriental last October.