ERC penalizes FGP Corp.

MANILA, Philippines — The Energy Regulatory Commission (ERC) has penalized Lopez-led FGP Corp. for breaching the maximum allowable outage days in 2021.

In a 12-page decision issued on March 2, the ERC found FGP liable for having incurred unplanned outages more than the days allowed by the power regulator.

The commission directed FGP to pay the administrative penalty of P246,600 for incurring 10.75 days of unplanned outages of the San Lorenzo Unit 50, which is in excess of the 7.7 days allowed for gas-fired power plants.

The San Lorenzo Unit 50, which has a rated capacity of 265 megawatts (MW), went on forced shutdown from March 10 to 21, 2021 due to the replacement of lube oil and rectification of high bearing vibration, and eventually problems with the steam turbine clutch.

FGP alleged that while it was replacing the lube oil and fixing the high bearing vibration, it discovered problems with the steam turbine clutch and this required an extension of the emergency shutdown.

It said the observance of social distancing, use of personal protective equipment, and time barrier work arrangements resulted in longer time to complete repair works.

However, the ERC found FGPs explanation unjustified and without merit since it failed to provide proof that the Department of Energy (DOE) was notified of the emergency shutdown.

The company also failed to present the turbine oil investigation report and the work order when it extended the emergency shutdown.

Earlier, the ERC had warned generating companies (gencos) from exceeding unplanned outage as the dry months and election period approaches or face penalties.

The ERC promulgated Resolution 10, Series of 2020 titled A Resolution Adopting the Interim Reliability Performance Indices and Equivalent Outage Days Per Year of Generating Units,setting the maximum or cap for annual unplanned outages per generating plant technology.

Last year, the ERC investigated 17 gencos that breached the maximum allowable unplanned outage. Of the 17 gencos, six were penalized.

The ERC has imposed a total of P15.5 million in penalty on erring gencos that were found to have breached the maximum allowable unplanned outage days for the year.

The concerned gencos use varying energy technologies, particularly circulating fluidized bed, coal-fired, hydroelectric, diesel, geothermal, and oil-fired thermal.

Under the rules, the ERC has determined the benchmark/standard planned and unplanned outages, for the different generating plant technologies.

For coal plants, pulverized coal plants are only allowed to have 27.9 days of planned outages, and 16.8 days of unplanned outages while circulating fluidized bed (CFB) coal plants are allowed 15.4 days of planned and 16.9 days of unplanned shutdown.

For gas plants, combined cycle plants can go on scheduled maintenance for 12.5 days and 7.7 days of unplanned shutdown, while gas turbine plants are allowed 6.5 days of planned maintenance and 22.7 days of unscheduled outage.

Diesel plants can go on planned outage for five days and unplanned outage for 22 days. Oil fired thermal plants have longer outage with 30.8 days of planned and 27.8 days of unplanned.