Ormeco inks 57 MW power supply agreement

CALAPAN CITY — The Oriental Mindoro Electric Cooperative (Ormeco), the lone power distributor in the province, has signed power supply agreements (PSAs) with six independent power producers (IPPs) for a 57-megawatt (MW) dependable capacity power supply.

The ceremonial signing event was held on Monday in Sta. Isabela this city.

Based on the agreement, DMCI Power Corp. will provide Ormeco 15 MW of electricity, RMS Technology and Waste Management 14 MW, East Paramount Energy Corp. 10 MW, Green Force Energy Corp. 11 MW, Ormin Power Inc. 4 MW, and Power Pioneer JW&D 3 MW.

Ormeco General Manager Humphrey Dolor said that the signing of the PSAs signals that the cooperative is addressing the power supply deficiency and, once it becomes operational, will also address higher cost of power rates.

"Since all of these PSAs had undergone the competitive selection process as mandated by the Energy Regulatory Commission and the National Electrification Administration, the power rates would be subsidized by the national thereby reducing the generation cost," Dolor said during the press conference after the signing ceremony.

Ormeco is currently under an emergency power supply agreement due to the limited capacity provided by its contracted power providers that made the power rates higher.

Dolor said the impact on the cost and supply would be felt by consumers beginning the month of July. He projected that the generation would be approximately P7.39/kWh (kilowatt hour), much lower than the current P13.1159/kWh.

Gov. Humerlito Dolor, who acted as witness to the signing, said that the additional 57 MW is important to address the growing electricity needs of the province, especially during the summer season.

The signing ceremony was also attended by the members of the Ormeco board and some politicians in the province.