MANILA, Philippines - 1590 Energy Corp. (1590EC), a unit of publicly listed Vivant Corp., is extending an interim power supply agreement (IPSA) with Meralco for the latter’s purchase of 140MW from the company’s Bauang diesel power plant (BDPP).
Located in Bauang, La Union, 1590EC’s BDPP has a total capacity of 190MW. With the IPSA’s extension, 140MW of BDPP’s output would be available to Meralco. Aside from helping ensure reliable power supply for the coming summer months, the deal would help reduce Meralco customers’ exposure to price volatilities in the Wholesale Electricity Spot Market.
The IPSA’s extension was prompted by tight power supply for the period January to July 2015 projected by system operator National Grid Corp. of the Philippines. Based on NGCP’s 2015 power situation outlook, it expects reserve capacity to dip below the required contingency reserves due to scheduled maintenance shutdowns and forced outages of major base load coal-fired and gas-fired power plants in Luzon.
The agreement was signed by Vivant Corp. chairman Dennis Garcia and Meralco chairman Manuel V. Pangilinan. The event was also attended by 1590EC executives led by its president Arlo G. Sarmiento; VP external affairs Juan Eugenio Roxas; and GM Abet Badillo; Meralco COO Oscar Reyes; Al Panlilio, Meralco SVP and head of customer retail services, corporate marketing and communications; Theo C. Sunico, AVP marketing and trading; and Nixon Hao, VP and head of energy management networks.