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Order, ERC Case No. 2016-085 RC

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IN THE MATTER OF THE APPLICATION FOR THE APPROVAL OF THE POWER SUPPLY AGREEMENT(PSA) BETWEEN ISABELA II ELECTRIC COOPERATIVE, INC. (ISELCO II) AND ANDA POWER CORPORATION (ANDA) ERC CASE NO. 2016-085 RC ORDER On 29 April 2016, Isabela II Electric Cooperative, Inc. (ISELCO II) and Anda Power Corporation (ANDA) filed their Application for approval oftheir Power Supply Agreement (PSA). In support of said Application, ISELCO II and ANDA alleged, among others, the following: 1. Joint Applicant ISELCO II is an electric cooperative duly organized and existing under Philippine law, with principal office at Brgy. Alibagu, Hagan City, Isabela. It was granted an exclusive franchise issued by the National Electrification Commission (NEC) to operate an electric light and power distribution service in the City of Hagan and the following municipalities in Isabela: Aurora, Benito Soliven, Burgos, Cabagan, Delfin Albano, Gamu, Mallig, Nagui.lian, Quezon, Quirina, Roxas, San Manu;!, d San Pablo, Sta. Maria, San Mariano, Sto. Tom/ f ERC CASE NO. 2016-085 RC Order/5 August 2016 Page 2 of 14 Tumauini, Divilacan, Maconacon, Palanan, and Dinapigue; the coastal towns of Divilacan and Maconacon were however waived for a Qualified Third Party (QTP). 2. Joint Applicant ANDA is a power generation company duly organized under Philippine law, with principal office address at TECO Special Economic Zone, Bo. Bundagul, Mabalacat, Pampanga. Copy of ANDA's Articles of Incorporation, Certificate of Incorporation and latest General Information Sheet are attached to the Application as Annexes "A", "B" and "C", respectively; 3. Applicants may be served with orders and other processes of the Commission through respective counsels; NATURE AND SCOPE OF THE APPLICATION 4. Applicants are jointly filing the Application for the approval of their PSA pursuant to Rule 20 (B) of the ERC Rules of Practice and Procedure. A copy of the PSA is attached to the Application as Annex "D"; COMPLIANCE WITH PRE-FILING REQUIREMENTS 5. In compliance with Rule 6 of the ERC Rules of Practice and Procedure, Applicants have furnished the legislative bodies of each of the local government units (LGUs) where they principally operate a copy of the present Application with all its annexes and accompanying documents. Proofs of receipt by the LGUs are attached to the Application as Annex "E"and its submarkings; 6. Furthermore, Applicants have caused the publication of the present Application in its entirety in a newspaper of general circulation within the franchise area. Copies of the newspaper and oorrespondingaffidavitof publicationare attaoy ERC CASE NO. 2016-085 RC Order /5 August 2016 Page 3 of 14 to the Application as Annexes "F" and "G", respectively; STATEMENT OF FACTS 7. ISELCO II currently sources the bulk of its power requirements from San Miguel Energy Corporation (SMEC) and the rest from the volatile Wholesale Electricity Spot Market (WESM); 8. ISELCO II received unsolicited offers from First Gen, GN Power, and ANDA. In order to reduce its WESM exposure, ISELCO II followed up on these unsolicited offers; 9. ISELCO II was informed that the supply from First Gen and GN Power would only be available in 2019. Considering that only the supply from ANDAwould be immediately available, ISELCO II decided to directly negotiate with ANDA; 10. On 28 April 2016, ISELCO II and ANDA entered into a PSA whereby ANDA will initially supply to ISELCO II up to 5 MW of power for the first three (3) years of the contract, which will be increased to 10 MW thereafter; 11. The contracted capacity is justified by the expected demand and available supply of ISELCO II, as substantiated by its Distribution Development Plan (DDP), Average Daily Load Curve and Demand- Supply Profile, copies of which are attached to the Application as Annexes H, I and J, respectively; 12. For the future, ISELCO II undertakes to submit a Demand Side Management (DSM) program for approval by the Commission and implement the same; ABSTRACT OF THE PSAAND RELATED INFORMATION 13. Salient Features of the PSA. The PSA is a take and pay contractwhe,ebyANDA,hall ,npy ERC CASE NO. 2016-085 RC Order/s August 2016 Page 4 of 14 electricity to ISELCO II up to the contract capacity from the initial delivery date for a period of thirteen (13) years from Effective Date, unless earlier terminated in accordance with the provisions.' 14. Allowable Downtime. ANDA shall be allowed downtime not to exceed its Maintenance Allowance. Beyond the downtime allowance, ANDA shall have the obligation to source replacement power to fulfill the Minimum Contracted Energy, which shall be at ANDA's cost: Maintenance Allowance (kWh) = Contracted Capacity (10,000 kW) x 40 days x 24 hours = 9,600,000 kWh 15. The Generation Facility. ANDA has a coal-fired power plant located at TECO Special Economic Zone, Bo. Bundagul, Mabalacat, Pampanga and will have available power it could supply and sell. It is a one unit generating facility that has an installed capacity of 82 MW and a dependable capacity of 72 MW. It is projected to have a plant efficiency rate of 89% and an annual capacity of 561,600,000 kWh. a. In connection with this planned 82 MW coal- fired power plant, Asia Pacific Energy Corporation (Asia Pacific for brevity) was initially issued an Environmental Compliance Certificate (ECC) by the Department of Environment Natural Resources (DENR). The said ECC was subsequently transferred to ANDA based on the confirmation letter issued by the DENR dated February 18, 2014. Copies of the ECC issued to Asia Pacific and the Confirmation of Transfer to ANDA are attached to the Application as Annexes "K" and "K-1", respectively; b. ANDA was also issued a Certificate of Registration by the Philippine Economic Zone Authority (PEZA) as an Ecozone Utilities Enterprise. Copy of the Certificate from PEZA is. ______ a_tt_a_c_h_ed_tothe Applicatioo as Annex "'7 Section 14.1, PSA. ERC CASE NO. 2016-085 RC Order/5 August 2016 Page 5 of 14 c. ANDA has been issued a Certificate of Compliance (COC) by the Energy Regulatory Commission (ERC). It has also already secured a Transmission Service Agreement (TSA), Metering Service Agreement (MSA), and Connection Agreement (CA), as certified by the National Grid Corporation of the Philippines (NGCP). Copies of the COC and the NGCP Agreements are attached to the Application as Annexes "M" and "N", respectively; and d. The Department of Energy (DOE) also issued a Certificate of Endorsement certifying "that the 82 MW CIRCULATING FLUIDIZED BED COAL FIRED POWER PLANT to be located in Mabalacat, Pampanga, owned and operated by the ANDA POWER CORPORATION is consistent with the Power Development Plan (PDP) of the government." A copy of the Certificate of Endorsement is attached to the Application as Annex "0"; 16. Basic Energy Charge (BEC) for the 82 MW Coal-Fired Power Plant. The Computation of the BEC which was attached as Annex "D" to the PSAshall be as follows: Tariff Rate. Tariff Components Rate CRF (Php(kWh - Month) 2.5199 FixedO&M Fixed PESO O&M (Php(kWh) 0.2132 Fixed USD O&M (USD(kWh) 0.0072 Variable O&M (Php(kWh) 0.1654 Fuel Fee (Php(kWh) *1.5184 *Indicative Fuel Fee Fuel Fee will be Actual Fee Cost, which includes among others, freight, logistics cost and applicable taxes and duties. All market-related, transmission and distribution charges incurred for the supply of electricity to BUYER such as but not limited to Line Rental from WESM and Transmission Charges shall be for the BUYER's account. Tariff Rate shall b~ exc~ve of value-added tax, which shall be born, byth, BUYER~ ERC CASE NO. 2016-085 RC Order/5 August 2016 Page 6 of 14 ENERGY FEE AND ADJUSTMENTS The Energy Fees to be made in each Billing Period is the sum of Capacity Payment, which consists of Capital Recovery Fee and Fixed O&M, and Energy Payment, which consists of Fuel Fee and Variable O&M, multiplied to the Minimum Monthly Contracted Energy or actual kWh delivered for the billing period, whichever is higher. Energy Fee = [(CRF + Fixed O&M + Variable O&M + Fuel) * E] Load Factors of 100% Fixed 0 &M US_CPlActual] [" PhiLCPlActual] = [Fixed O&MUSD x S C x Forex + FIxed O&Mphp x h"l C U _ PIBase P l _ PISase Phil CPlAc,ual] Variable Cost = [Variable Cost x h"{ C P l _ PIBase Fuel Fee = [(COal Price + Freight Cost) x Forex) + Transport Cost 1 Coal Consumed in kg ] 1000 x [Total Net Generation in kWh Where: CRF = Capacity Recovery Fee = 2.5199 per kWh Fixed = Peso-based O&M Fee = 0.2132 per kWh O&MPhp Fixed = USD-based O&M Fee = 0.0072 per kWh O&MusD Variable = Variable Cost = 0.1654 per kWh O&M Fuel Fee = Actual Fuel Cost Philippine Consumer Price Index (CPr) for all items for the Current Month as Published by the National Statistics Office United States Consumer Price Index (CPI) for all items for the Current Month as = Published by the Bureau of Labor Statistics, US Department of Labor = Base Philippine CPI= =140-40 (2006=100) July 2014 = Base US CPI ERC CASE NO. 2016-085 RC Order/5 August 2016 Page 70f14 _ Reference exchange rate on the meter reading date, as published by the Bangko Forex - Sentral ng Pilipinas. (Php per USD) E = Minimum Contracted Energy or Actual Energy Delivered, whichever is higher Freight Cost = Actual Freight Cost in USD per metric ton Transport = Actual Transport Cost in Php per metric ton Cost 17. Prompt Payment Discount. ISELCO II shall be entitled to a discount at the rate of 3% of the Capital Recovery Fee, which discount will be reflected as a rebate in a credit memo, provided that such payment was made in full and on or before the 10th day from receipt of the billing invoice, and provided further that ISELCO II does not have any overdue payment of any applicable amount under this Agreement and that the ERC has approved this Agreement including the fees and pricing structure contained herein; 18.
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  • HISTORICAL DEVELOPMENT of the MUNICIPALITY of SAN PABLO, ISABELA Philippine Copyright © 15 January 2018

    HISTORICAL DEVELOPMENT of the MUNICIPALITY of SAN PABLO, ISABELA Philippine Copyright © 15 January 2018

    Republic of the Philippines Province of Isabela ISABELA TOURISM OFFICE HISTORICAL DEVELOPMENT OF THE MUNICIPALITY OF SAN PABLO, ISABELA Philippine Copyright © 15 January 2018 In recorded history, the oldest existing pueblo of the Province of Isabela since its foundation up to present time is the town of San Pablo. The territory of what is now the Municipality of San Pablo, Isabela was originally incorporated in the territory then known as La Irraya. Irraya (Addaya and Yrraya in other manuscripts) region comprised the vast area from Tuguegarao in Cagayan province up to the present Gamu town in Isabela province. Irraya was also the term used for the native’s name and their dialect. Irraya is an Ibanag word which means “upriver”. In the Gaddang dialect, the term “dirraya” also means “upriver”. In 1607, the provincial chapter of the Holy Rosary Province (or Dominicans) ordered Frays Luis Flores and Francisco Minaio to the Irraya speaking Pilitan (now a barangay of Tumauini town) and its adjoining communities, to exert all efforts that the natives must learn to speak Ibanag and to minister to them in the said language. In short, Ibanag (Ybanag) was made the official language in the valley. Ultimately, the distinct Irraya area, its people and the dialect became extinct with the whole area, its residents and tongue now known in the modern world as Ibanag. Only a handful from barangays Tallag and San Bernardo in Cabagan town can still remember some Irraya phrases. As a result of the historic Irraya Revolt on November 8, 1621, a new town was organized by Dominican missionary, Fray Pedro de Santo Tomas, gathering the Irrayas from the former Christian missions of Pilitan, Abbuatan, Bolo and Batavag and named it “Maquila” which was situated at the junction of the Cagayan and Pinacanauan Rivers of Tuguegarao.