PSALM turns over administration of Sual, Pagbilao power plants to IPPAs

11 Nov 2009

The Power Sector Assets and Liabilities Management Corporation (PSALM) has formally turned over the administration of the contracted capacities of the National Power Corporation in the coal-fired Sual and Pagbilao power plants to their new independent power producer administrators (IPPAs), San Miguel Energy Corporation (SMEC) and Therma Luzon Inc., respectively.

Sans the fanfare, the turnover was held a few months after PSALM successfully conducted last 28 August 2009 the second round of bidding for the appointment of IPPAs to administer the contracted capacities of National Power in the Sual and the Pagbilao power facilities.

The turnover of the management of the contracted capacity of the Sual power plant was conducted at 12 midnight of 06 November 2009 in Pangasinan through a meter reading of the power generation and an inventory of the coal and oil supply as stipulated in the Administration Agreement. The meter reading was held to verify the quantity of electricity delivered by the IPP to the grid reckoned from the time SMEC, as administrator, took over the management of the contracted capacity of the Sual facility.

The same procedure was carried out at the Pagbilao plant in Quezon at 12 midnight of 01 October 2009.

Both activities were witnessed by officials and representatives from the National Grid Corporation of the Philippines, SMEC for Sual, Therma Luzon for Pagbilao, National Power, and PSALM.

The turnover grants SMEC and Therma Luzon the authority to administer the trading of the power produced by their respective power facilities in the Wholesale Electricity Spot Market (WESM), thereby spurring competition in the electricity market.

Aside from trading their power output in the WESM, SMEC and Therma Luzon will be responsible for procuring coal and other fuel for their power plants, and closely coordinating with the plant operators to ensure that the power they generate matches their respective bids.

With the successful appointment of the Sual and Pagbilao IPPAs, PSALM is set to bid out National Power’s contracted capacities in the 345-MW San Roque Multipurpose Hydroelectric Power Plant, the 70-MW Bakun Hydroelectric Power Plant, and the 30.75-MW Benguet Mini-Hydro power plants, which are all located in Northern Luzon. Nine bidders are expected to participate in the bidding scheduled on 11 December 2009.

PSALM aims to transfer the management and control of at least 70% of the total energy output of the IPP power plants under contract with National Power to the IPPAs by 2010. PSALM has so far achieved 34.66% of this target.

Strategic Communications and Partnership Division
Tel. No. (632) 9029067