ERC renews COC of Asia Pacific Energy Corp.’s 52 MW CFB Power Plant

The Energy Regulatory Commission (ERC) approved on 12 September 2011 the application for the renewal of the Certificate of Compliance (COC) of Asia Pacific Energy Corp.’s (APEC) 52 MW Circulating Fluidized Bed Co-Generation Power Plant (CFB) located in Baranggay Bundagul, Mabalacat, Pampanga.  The approval of the COC renewal was based on APEC’s compliance with the set financial, technical, operational safety and environmental required standards. APEC is an independent power producer (IPP) that incorporated and registered with the Philippine Securities and Exchange Commission in March 1996.  It is a private corporation majority owned by Formosa Heavy Industries Corp. (FHIC) of Taiwan.  Its primary purpose is to engage in the business of generating and supplying electricity and other forms of thermal energy such as heat or steam to distribution utilities (DUs) and end-users using a co-generation facility.  It is also into construction, development, testing and commissioning of power plants and all other works necessary to make the power plant fully operational, such as fuel receiving and storage facilities, and other site development work including the actual operation of the engines and equipment necessary for converting fuel to energy.  The construction of the plant started in June 2003 and its commissioning took place in the last quarter of 2005.

APEC has an existing Power and Steam Supply Agreement (PSSA) between Formosa Power Supply Corp (FPSC) and the Trust International Paper Corp. (TIPCO).  The PSSA requires APEC to provide the power and steam requirements of the existing and future locators in the TIPCO Estates Corporation Special Economic Zone (TECO-SEZ) located in Bundagul  and Paralayunan, Mabalacat, Pampanga.

The ERC’s evaluation disclosed that APEC is financially capable to operate the plant during the term of its COC considering that it has no long-term debt to service for the next four (4) years.  APEC also submitted Sworn Statements that:  (1)  its Generating Facility complies with the Philippine Grid and Distribution Codes; and (2) stated its commitment to continue complying with the WESM Rules for the duration of the COC.  Also, APEC submitted a copy of its Occupational Health and Safety Manual as part of its continuing program to provide safety information to its personnel, contractors, and visitors.  The ERC conducted an ocular inspection of APEC’s power plant on 10 to 12 August 2011 and had verified compliances to standards as to the operating condition of the plant.

"The ERC needs to periodically monitor the operation of generation companies, such as APEC, to ensure its adherence to the financial, technical, and environmental standards contained in the Certificate of Compliance (COC).  The ERC requires the renewal of a COC every five (5) years,” ERC Chairperson Zenaida G. Cruz-Ducut discussed.

29 September 2011 - Reference: www.erc.gov.ph
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