ArchivesDecember 2010Noreco 1 joins Noreco 2 in Green Core deal

Noreco 1 joins Noreco 2 in Green Core deal


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Electric power of the two electric cooperatives in Negros Oriental will soon be supplied by the geothermal power plants of Green Core and the Energy Development Corporation upon the expiration of their contracts with the National Power Corporation by December 26.{{more}}

This scenario unfolded after both the Noreco 1 and Noreco 2 joined four other members of the Association of Visayan Electric Cooperatives (AVEC) have finally agreed to ink a power supply agreement with the Green Core Geothermal, Inc. after several months of negotiations this year mostly on what they had described then as high rates offered by the geothermal firm.

The other AVEC members who have agreed to sign up with Green Core are the Negros Occidental Electric Cooperative (NOCECO), the Victorias Rural Electric Service Cooperative, Inc. (VRESCO), all in Negros Island; and the Don Orestes Romualdez Electric Cooperative (DORELCO 4), Leyte Electric Cooperative (LEYECO) and LEYECO 5, all in Leyte.

This developed on Tuesday following a final consultation conference between the AVEC member-cooperatives and the GCGI and spearheaded by the Energy Regulatory Commission.

The ERC had called for that hearing to finally settle the issues between both parties, just a few weeks ahead of the December 26 expiry date of contracts by the same electric cooperatives with the National Power Corporation-Power Sector Assets and Liabilities Management (PSALM) Corporation.

Earlier, the Negros Oriental II Electric Cooperative also agreed to the power supply agreement for a 25-MW base load from GCGI, with a contract signing being scheduled hopefully by next week once a few minor kinks in the agreement have been ironed out.

The Bacolod-based Central Negros Electric Cooperative, Inc. (CENECO), however, has opted out of the deal package being offered by GCGI as it is asking a 10-MW base load supply which GCGI could no longer deliver after having sold part of its power allocation to other clients.

“We cannot wait forever for them to decide,” said Ramon Diaz de Rivera, manager of the Steam Sales Department of the Energy Development Corporation-GCGI.

Last month, GCGI officials had announced that it had 40MW of power set aside as priority allocation for the electric cooperatives in host areas where their geothermal plants are located but the firm also warned that it could be giving the same power supply to other interested clients.

As of today, GCGI can only offer 29MW to the six AVEC-member cooperatives as 11MW had already been committed to other electric cooperatives, Rivera said.

According to Rivera, Tuesday’s meeting focused on clarifications of the GCGI package offered to the electric cooperatives, but nothing has changed in the provisions, even the selling rate of P4.70/KWH which was initially being opposed by the cooperatives.

Rivera said GCGI has asked AVEC to request its member cooperatives to have their respective Boards come up with a resolution giving authority for their officials to enter into an agreement with Green Core soon.

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