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FINALLY! AKELCO ON ASPA

By: Rence Necesito-Oczon
AKELCO Public Information Officer

After a quite long wait, the petition was finally granted and the verdict was given.

The Aklan Electric Cooperative, Inc. (AKELCO) proudly announces as per Energy Regulatory Commission's (ERC) decision, that the 2 million Minimum Energy Off-Take (MEOT) on the GBPC Nabas Power Plant is suspended for three years.

 

For everyone's understanding, the said MEOT is the energy contracted from the Global Business Power Corporation (GBPC) Nabas Power Plant purchased by AKELCO which has been suspended because of the ASPA. This is the effect of the Approved Ancillary Services Procurement Plan (ASPA) between the TRANSCO (now NGCP) and AVON (or GBPC/Mirant/PPC). To give us a full view of the picture, TRANSCO and AVON entered into a Memorandum of Agreement (MOA) wherein an ancillary service must be provided by AVON Nabas Power Plant as; Contingency (Spinning) Reserve; Reactive Power Support Service; Back-up Reserve Service; and Black Start Service. The said MOA was brought about by the power deficiency in the Cebu-Negros-Panay Grid likewise the inevitable rise in power demand in the Visayas Grid in the coming years. The Ancillary Services are therefore beneficial to the load consumers by way of reliable, continuous and sufficient supply of power within the grid at a reasonable price. 

In this regard, TRANSCO is mandated to act as system operator thus it is responsible for determining, acquiring and dispatching the capacity needed to supply the required Grid Ancillary Services. Moreover, GBPC Power Plant's generation will be supplied directly to the grid and will be delivered to load consumers including AKELCO through the NGCP lines. During interruptions, NGCP will have the sole control of dispatching the necessary power in affected areas.

Below is an example of simulated rate with ASPA showing a decreasing result to the Billing Rate.

Customer Type

Existing September 2009 Rates

Simulated Rates w/ ASPA

Effect of ASPA

(decrease in rates)

RESIDENTIAL

9.1124

8.4230

(0.6894)

LIFELINE RESIDENTIAL

6.4098

5.8969

(0.5129)

COMMERCIAL

7.6908

7.0014

(0.6894)

INDUSTRIAL

7.9190

7.2296

(0.6894)

PUBLIC BUILDINGS

8.1548

7.4653

(0.6894)

STREET LIGHTS

11.3846

10.6952

(0.6894)

*The rate may vary/dependent on the billing rate per month.

Indeed, the ASPA is good news for all Aklanons. It only proves that AKELCO doesn't turn its back from criticisms and appeal but instead listens to everybody's call for lower rates. Through the combined efforts of the coop's management and the local officials, ASPA was initiated and ultimately won.
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