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Ralph Paguio, executive vice-president of Cepalco, said in a text message to this paper that ERC has an approved procedure on how to compensate the ILP volunteers including a recovery mechanism.
"The P.8-centavo per kWh is the recovery for March when the power shortage started and Steag plants failed in February. Without the ILP we would have started having rotating power interruptions in March," Paguio said. Paguio said the ILP cost is temporary and voluntary. "We should be grateful that we have civic minded industries and businesses who volunteered to generate power for us." He said the higher the shortage the longer will be the generation hours and thus the more is needed to shell out for the energy "our ILP volunteers generated."
Rafael Paguio, vice president of the Cagayan Electric Power and Light Company, Inc. (CEPALCO), said the utility received only 10MW from Steag's supply on Thursday, the morning after the coal plant went back online.
Paguio said the additional 10MW mean that 30 minutes were shaved off from the 7.5-hour scheduled brownout in Cagayan de Oro. "We are breaking again the schedule brownouts into two groups to ease the consumers because we have been receiving many complaints," he said. Paguio said CEPALCO received a total of 39MW Thursday morning. He said the city requires 140MW of electricity every day. He said CEPALCO is presently drawing 42MW from its Minergy power plant; 2MW from the Bobonawan River run off project ; and 1MW from its solar plant in Barangay Indahag. "We are still on the deficit. That is the reason why we cannot ease the brownouts," Paguio said.
Rafael Paguio, vice-president of Cepalco, said the company is drawing 42MW from its Minergy power plant; 2MW from the Bubunawan River run off project; and 1MW from its solar plant in Barangay Indahag.
"We are still on the deficit. That is the reason why we cannot ease the brownouts," Paguio said.
Ralph Paguio, Cepalco's senior vice president, said Minergy generates 43.0 MW, the Cabulig hydro with 8.0 MW and the Cepalco Solar and First Gen Bukidnon Power Corp with 1.0 MW each.
Paguio said some 24.6 MW is also taken from Cepalco customers who share in the interruptible load program (ILP) that supplies energy during peak hours. These are Alwana, 1 MW; Cagayan Corn Products, 2 MW; Coca Cola,1.3 MW; Del Monte Phils., 2 MW; Gaisano City, 3.5 MW; LimKetKai Center, 7 MW; LimKetKai Milling, 1 MW; Mitimco, 1 MW; Pilipinas Kao, 2 MW; RI Chemicals, 1.8 MW; and SM City with 2 MW. "These customers did help a lot. Mora kita naay planta o back-up," Paguio said.
Cepalco Executive Vice President Ralph Paguio said the power firm can source out additional power supply from the diesel-fed power plant owned by Minergy, an independent power producer (IPP).
In case the IPP could not provide sufficient energy to meet the city's power needs, Paguio said Cepalco will have to implement the so-called Interruptible Load Program (ILP) set by the Energy Regulatory Commission (ERC). Under this scheme, big companies in the city have to curtail half of their power supply consumption and then use their standby generators to continue their daily operations. "So far, we have several volunteer companies. In fact, we have a total of 23 megawatts nga naka-stand by gikan sa ila in case magkaproblema gyud and we are thankful sa ilang response," Paguio told Sun. tar Cagayan de Oro. He emphasized, however, that the fuel cost of these companies to be paid by the consumers will automatically reflect in their monthly billings, but the increase of the power rate will be dependent on the fuel price. Paguio said power reduction is an expected occurrence especially during summer season. Cepalco assured that power interruption will not happen during the elections this May. "With our independent power producers particularly Minergy and other standby power sources, I am confident that Cagayan de Oro will not experience rotational brownouts, hopefully," Paguio added.