ERC approved the renewal of the Certificate of Compliance (COC) of Bantayan Island Power Corporation’s (BIPCOR) and ORMECO

The Energy Regulatory Commission (ERC), on 10 October 2011, approved the renewal of the Certificate of Compliance (COC) of Bantayan Island Power Corporation’s (BIPCOR) 6.64 MW Diesel Power Plant located in Brgy. Bantigue, Municipality of Bantayan, Bantayan Island, Province of Cebu and the issuance of a provisional COC to Oriental Mindoro Electric Cooperative, Inc.’s (ORMECO) 1.6 MW Dulangan Mini-Hydroelectric Power Plant located in Brgy. Paitan, Municipality of Naujan, Province of Oriental Mindoro. BIPCOR is a stock corporation which was registered with the Securities and Exchange Commission (SEC) in February 2004 with the primary purpose of designing, developing, constructing and operating diesel generating plants. It is presently 60% owned and operated by Beacon Power, Inc., a Philippine corporation. BIPCOR operates in a Small Power Utilities Grid (SPUG) area and has a Connection Agreement with the Bantayan Island Electric Cooperative, Incorporated (BANELCO). The 6.64 MW plant is directly connected to the 13.2 KV transmission system of BANELCO. The Power Supply Agreement (PSA) with BANELCO is on a Build- Operate-Own (B-O-O) scheme with a 15-year cooperation period that started in June 2004. Said PSA was approved by the ERC in February 2006. The B-O-O includes the maintenance and management of a 2 x 3 MW Bunker C Fired Diesel Power Plant that will be utilized as base load source of power. Additional smaller units that support the power plant include 2 X 340 kW Volvo Diesel engine generating sets that will serve as peak load source of power.

ORMECO is a non-profit, non-stock rural electric cooperative which was incorporated and registered with the National Electrification Administration (NEA) in February 1973. It owns and operates the Dulangan Mini-Hydroelectric Power Plant (MHEPP) which was commissioned in December 1989. The 1.6 MW (composed of 4 units, each rated at 400 kW) plant is a run-of-river type hydroelectric power plant located along the Dulangan River of Naujan. Acting on the urgent request by ORMECO and upon consideration of the merits of the case, a provisional COC was granted. However, the final COC renewal will be granted only upon the submission of the Memorandum of Agreement (MOA) with the Department of Energy (DOE) regarding the Benefits to Host Communities under Energy Regulation 1-94 and the Environmental Compliance Certificate (ECC), among others.

BIPCOR and ORMECO’s generating plants are operating in isolated grids and are not connected to the high voltage transmission system. Both generating plants are, thus, not subject to the 30% and 25% market share limitations per Grid and National grid, respectively.

The renewal of a COC is required of Generation Companies and must be filed at least six (6) months prior to the COC’s expiration pursuant to the Revised Rules for the Issuance of COCs for Generation Companies/Facilities promulgated by the ERC and which took effect in April 2010.

"To protect the welfare of the electricity consumers, the renewal of COCs is required by the ERC to ensure that Generation Companies are still operating, and can maintain operating for another 5 years at the environmental, financial and technical standards required by law. The provisional grant to ORMECO was premised on the urgent economic need for electricity. Further, even in the absence of a MOA with the DOE, ORMECO has been providing benefits such as tree planting projects, employment, medical missions and scholarships to the host community,” ERC Chairperson Zenaida G. Cruz-Ducut stated. - https://www.affordablecebu.com/