Can Capiz be spared from the looming power shortage?
Aware of the NAPOCOR–CAPELCO contract expiration on December 25, 2009, Governor Vic Tanco called for a meeting with CAPELCO GM Edgar Diaz in his office on September 15, 2009. He discussed the matter with him and Diaz admitted that CAPELCO has no definite source of power yet. The Governor asked him to look into the highly probable power crisis situation and implement emergency measures if necessary.
The Governor’s Assistant for Energy Mike Corro and his Executive Assistant, Doy Tanco, also met with the CAPELCO Board, it’s President, Oca Acolentaba and the GM in Timpas on September 25 to discuss the same issues. However, CAPELCO president Oca Acolentaba did not believe that there will be a power crisis. Corro asked the board to consider a “what if you’re wrong and it happens situation” and strongly suggested that the board prepares for such an eventuality.
Dilemma
This coming Dec. 25 NAPOCOR’s contract with CAPELCO ends. To date, no contract has been signed yet with an independent power producer (IPP). Salcon Power Corporation (SPC), the foreign owned profit corporation who now owns the old Panay Diesel Power Plant (PDPP) in Dingle may not offer a new contract to CAPELCO. No communication has been received by CAPELCO from SPC who may prefer to supply their 45 megawatts power to the Iloilo Grid. If SPC makes the offer to CAPELCO, it will be a 5-year contract at P2/kWh more than that of Global Business Power Corporation’s (GBPC’s) power cost. GBPC is currently under construction and operates in October 2010.
Since only 10 months remain from December 25, 2009 until the October 2010 start of operations of GBPC power plant, why sign a 5 year contract with SPC when GBPC can allocate 15 megawatts for CAPELCO in 10 month’s time only? It will not serve the best interests of the people of Capiz to subject them with a higher power cost for 5 years. The Lopez acquired Palinpinon Geothermal Power Plant in Dumaguete can provide CAPELCO additional power in a year or two also at lower cost per kWh. Common sense tells us not to sign the contract for 5 years with the IPP, right? However, no contract means no power for Capiz. Hopefully, the National Grid Corporation’s (NGC) new interconnecting submarine cable will also be operational by that time. The existing one cannot handle the additional power required.
Actual situation
The total power demand of Panay Island is 230 megawatts. 121 megawatts are produced by island-based power plants in the 4 provinces. Power Barges 101, 102 and 103 augments around 60 megawatts of power to the Panay grid, thus the total power supplied is around 181 megawatts for Panay Island. A power deficiency of around 49 megawatts is being experienced currently and resolved by rotating brownouts in the municipalities and cities of Panay Island. Cebu and Negros are also experiencing moderate power deficiency and cannot be considered for sourcing electrical power for Dec. 26. The Cebu-Negros interconnection grid power flows through submarine cables to Panay on off-peak hours only (1-7 a.m.) and is unable to supply power during peak hours, when it is badly needed.
NAPOCOR’S unreliability
The National Power Corporation (NPC) was never able to serve the Power Cooperatives, (CAPELCO, AKELCO, ANTECO, ILECO 1, 2 and 3 and PECO all their power needs resulting in frequent power outages. All of these Power Cooperatives will attest to NPC’s unreliability even while NAPOCOR owned the power plants in Cebu, Negros and Panay. Therefore, NPC would be more untrustworthy now because all its assets in these islands have been sold and privatized.
In addition to this, NPC provided CAPELCO a 15 megawatt modular power plant in Timpas, Capiz on June 20, 2008 to resolve the power shortage but pulled the units out this year because the 1 year contract expired in June 2009.
WHAT CAN BE DONE TO SPARE CAPIZ AND AKLAN FROM THE POWER CRISIS?
Where can CAPELCO and AKELCO get the electric power supply after December 25, 2009? The following is the analysis of the Governor Tanco’s Office for Energy:
The power source alternatives.
- National Power Corporation (NPC) – Unreliable track record in the past, more so now because its assets in Cebu, Negros and Panay have been sold and privatized.
- Salcon Power Corporation (SPC) – Has a 40-45 megawatt power plant in Dingle, Iloilo and honors NPC contract with CAPELCO till Dec. 25. May be willing to sell power to CAPELCO on Dec. 26 provided that it is a 5 year contract at a power cost of P9-P10/kWh. Seems like the best option but Capiz will be subjected to high power rates for 5 years. However, SPC may not want to supply to the Capiz grid. No negotiations are ongoing.
- OTHER IPP’s
Other IPP’s will get in to augment Panay Islands power soon. However, these future IPP’s cannot operate by December 26, 2009 to resolve the problem. - A TRANSPORTABLE 15 MEGAWATT POWER PLANT – This can be brought in as a temporary solution to the Capiz and Aklan power dilemma for 1 to 2 years. Maybe the best solution but the drawback is that it will need 2.5 to 3 months time to mobilize and prepare until ready for operations.
Can Capiz and Cklan be spared?
“What would you do if the decision was yours to make in the CAPELCO or AKELCO board”, Corro asks the readers of “The News Today” in these Provinces?
Option 1. Do nothing and just trust old unreliable NAPOCOR to supply the power after Dec. 25, 2000. Option 2. Sign a contract with SPC at a cost of P9-10*/kWh for 5 years. [P11-12/kWh* for home users.]
Option 3. Mobilize and operate the 20 megawatt Rental Power Modules at a cost of P9.50- to P10**/kWh for 1 year only. [P11.50 to P12/kWh** for home users].
Note: * and ** – are estimated costs only.
“If anyone needs wisdom, let him ask from God who gives it freely without finding fault. (James 1:5)
Governor Tanco asserts that this is not about re-election or politics but about working together to protect the best interests of the people and the economy of Capiz.
Mike Corro said the recommended solution for the looming power crisis had been submitted and discussed with CAPELCO in their board meeting on Sept. 25, 2009. Governor Vic Tanco awaits the finding’s of CAPELCO’s review and study for a decision on whether they expect a power crisis or not, and whether they will implement the solution or not. Corro said that with Oca Acolentaba as its president, CAPELCO will reach a decision soon that would best serve the needs of Capiz.
The Governor’s energy office challenges the president and members of the Board of CAPELCO and AKELCO to issue a public statement ASAP on their position on the December 26, 2009 possible power dilemma in both Provinces.
“DOES CAPELCO AND AKELCO BELIEVE THAT THERE WILL BE NO POWER CRISIS ON DEC. 26, 2009 AND ARE THEY DOING THEIR BEST TO PROTECT THE BEST INTERESTS OF THE PEOPLE AND ECONOMY OF CAPIZ AND AKLAN?”
ONLY ___ DAYS REMAIN TILL DEC. 25, 2009.
(NOTE: The purpose of publishing this article in is so the people of Capiz and Aklan will know what can happen if nothing is done by CAPELCO and AKELCO to prevent or lessen the duration of the very likely severe power shortage on Dec. 26, 2009. We simply want the truth known and would expect those who think we are wrong to react by proving us wrong.
The truth often hurts those affected but the truth sets everyone free from brown-outs!
For comments and questions: Email us at: CapizPowerFeedback@live.com or text only to 0916-729-5472)