11 Feb 2011
We write to express our concern regarding the article entitled "PSALM DIRECTED TO EXPLAIN ITS SUPPLY CONTRACTS VIOLATIONS" written by Ms. Myrna M. Velasco and published in the Manila Bulletin on 02 February 2011.
The Power Sector Assets and Liabilities Management (PSALM) Corporation would like to take this opportunity to point out some items that need to be clarified.
PSALM did not commit any supply contract violations. The Energy Regulatory Commission (ERC) order received by PSALM on 16 December 2010 requested PSALM and National Power Corporation (NPC) to explain their failure to file for approval the extensions of the terms and conditions of the transition supply contracts entered into with various distribution utilities. Neither PSALM nor NPC was accused of violating any supply contract.
The actual failure to submit, as PSALM explained to the ERC in its answer dated 03 January 2011, was due to PSALM's honest belief that the ERC approval was not required in executing an extension of the original Contract for the Supply of Electric Energy (CSEE) already earlier approved by the Commission. It was PSALM's understanding, at that time, that considering the duration of the extension, which was only for three months, and the fact that there was really no change in the terms and conditions of the original CSEE already earlier approved, no refiling was necessary.
It must also be pointed out that PSALM has no existing CSEEs between the buyers of the Panay-Bohol plant and the Amlan plant that could be subject to an extension.
We hope this letter clarifies matters.
At any rate, PSALM has already submitted the subject letter of agreement between PSALM and Peninsula (Bataan) Electric Cooperative Inc. together with its answer/explanation dated 03 January 2011. We would also like to assure you of our standing commitment to uphold and faithfully comply with the Electric Power Industry Reform Act, the ERC rules, orders and regulations, including this most recent order of the Commission.
PSALM fully supports your commitment to unfailingly provide accurate and unbiased information to the public. In this regard, we reaffirm our readiness and willingness to cooperate and provide you information within our means and authority to assist you in delivering fairer and more balanced reports.
Strategic Communications and Partnership Division |