ESA Between FICELCO and SUWECO

The Energy Regulatory Commission (ERC) decision on Electric Supply Agreement (ESA) between First Catanduanes Electric Cooperative, Inc. (FICELCO) and Sunwest Water and Electric Company, Inc. (SUWECO) last January 19,2009.

ERC CASE NO. 2008-021 RC - DECISION

On April 15, 2008, First Catanduanes Electric Cooperative, Inc. (FICELCO) and Sunwest Water and Electric Company, Inc. (SUWECO) filed an application for approval of their Electricity Supply Agreement (ESA).

In the said application, FICELCO and SUWECO alleged, among others, the following:

After a series of negotiations, an ESA was executed sometime in 2007 for the supply of electricity to the captive customers of FICELCO based on the following premises:
  1. The Province of Catanduanes has long been experiencing inadequate and unreliable power supply from the existing oil based power generating plants;
  2. FICELCO desires to have an adequate and reliable power supply in its franchise area and to distribute the same to the residents, members and consumers within its service area at affordable rates;
  3. SUWECO has responded to the call and motivation of the national government through the promulgation of Republic Act No. 7156 to develop renewable energy sources as one of the country's solution to mitigate the adverse impact of continuing increases in the prices of oil, and has taken the initiative to study and plan a number of mini-hydroelectric (mini-hydro) power projects in Catanduanes;
and SUWECO shall finance the whole undertaking and shall build, own and operate the mini-hydro plants and shall finally sell the energy output of these plants to FICELCO.

The salient features of the ESA are as follows:

Initial Batch of Mini Hydro Sites - SUWECO shall build, own and operate an initial batch of mini-hydro plants (MHP) in the order of priority or ranking for implementation as follows:

Project Site/LocationCapacityEstimated Annual GenerationPlant FactorYear of Operation
Solong MHP, Solong River, San Miguel Catanduanes
2,300kW11.37 GWH56%2010
Hitoma 01, Lower Cascade, Hitoma River, Obi, Caramoran Catanduanes1,500kW6.92GWH53%2010
Hitoma 02, Upper Cascade, Hitoma River, Obi, Caramoran Catanduanes1,575kW7.64GWH55%2010
Total5,375kW25.93
Capipian MHP, Brgy. Paraiso, San Miguel Catanduanes2,600kW12.5GWH55%2013 (indicative year of operation)

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