Green Core Geothermal Inc. (GCGI), a subsidiary of geothermal leader Energy Development Corporation (EDC) and the Capiz Electric Cooperative, Inc. (CAPELCO) signed an amendment to their Power Supply Agreement (PSA) extending the existing contract until December 2040. GCGI and CAPELCO agreed on a new price pursuant to the re-pricing provisions and market-based price structure in their original ten-year PSA, which was signed in August 2010.
Based on the amended PSA, GCGI reduced its price in 2015 by approximately P0.30 per kilowatt-hour. CAPELCO has saved for its member consumers PhP 140 Million annually in generation charges. GCGI and CAPELCO agreed on a new price pursuant to the re-pricing provisions and market-based price structure in their original ten-year PSA, which was signed in August 2010 and has been extended until December 2040.
GCGI President Richard Tantoco said that GCGI’s price structure gives CAPELCO the benefit of stable and predictable prices. “With power supply in Panay coming from imported fossil-fuel based sources, GCGI effectively helps CAPELCO minimize their risk from unpredictable foreign exchange rate fluctuations and volatile global fuel price movements. This is a major benefit for CAPELCO granted that, historically, coal price movements have swung wildly,” Tantoco added.
GCGI in the amended contract also agreed to increase supply from 12 MW up to 15 MW of power for one year starting September 2014 to September 2015, and up to 18 MW starting September 2015 until December 2040.
“We are delighted that CAPELCO and GCGI have mutually decided to move forward with the partnership. More than just being business partners, we now consider our relationship as having gone to the next level. Tayo ay tunayna mag-Kapamilya. We assure CAPELCO that we will continue to provide clean, reliable, and competitively priced power with utmost dedication. We will continue to give customized energy solutions, fair pricing, competent technical assistance, and dedicated & responsive customer support at all times, ”Tantoco said.
For his part, Edgar Diaz, CAPELCO general manager, expressed satisfaction over the new agreement: “CAPELCO was very pleased with the results of the re-pricing endeavors with GCGI given that its benefits will be directly felt by our member consumers. In CAPELCO’s experience, GCGI has been a reliable power supplier which offers very competitive rates. We look forward to more years of partnership with GCGI, in line with our commitment to provide adequate, affordable and quality electric services to our member-consumers,” Diaz said.
GCGI operates the 112.5-MW Tongonan geothermal plant in Leyte and the 192.5-MW Palinpinon geothermal plants in Negros Oriental.
CAPELCO is one of the electric cooperatives in Panay and supplies power to 17 cities and municipalities in Capiz.
The Energy Development Corporation (EDC) is a pioneer in generating 100% clean, renewable, and reliable power as an electricity supplier in the Philippines for over 40 years. With power plants all over Visayas and Mindanao, the company is one of the biggest producers of geothermal energy in Asia and is expanding its reach in the international market, allowing it to offer customers affordable energy rates. EDC also strives to provide the best customer service it can to all its clients by having helpful salespeople and easy to understand contracts. Because of all of this, it is poised to become the premier supplier of electricity for the Philippines’ Green Energy Option Program. EDC takes its mission as a renewable energy provider seriously and goes beyond sustainability by investing in programs that enhance the environment and empower its partner communities, thereby fostering regenerative development. The company has also been working toward being carbon-neutral by improving its energy efficiency, as well as implementing various greening projects to ensure that its mission to provide future generations with a better life remains intact.