AboitizPower subsidiary bags Davao del Norte Electric deal

By Paul Anthony Isla, Business Mirror

Posted at Oct 21 2010 08:47 AM | Updated as of Oct 21 2010 04:47 PM

MANILA, Philippines - Listed AboitizPower Corp. said its subsidiary Therma Marine Inc. (TMI) has inked a supply contract with Davao del Norte Electric Cooperative (Daneco).

Daneco, with its head office in Tagum City, serves the provinces of Davao del Norte and Compostela Valley.

“Our supply of power to Daneco, our host community for the Mobile 1 power barge (formerly Power Barge 118), will serve as a form of insurance to meet the needs of the rapid growth of the Tagum area. Because diesel power is more expensive than the current supply from Mindanao hydros, we structured the contract to have a fixed and a variable portion,” Luis Miguel Aboitiz, AboitizPower senior vice president for sales, trading and marketing, said.

This way, the more expensive energy is drawn only when needed, thus minimizing its impact on Daneco’s consumers, Aboitiz explained.

The agreement will be effective for one year, starting on the date when the Energy Regulatory Commission will approve the proposed rate and AboitizPower can begin supplying power.

AboitizPower commits to provide Daneco up to 10 megawatts (MW). Power supply will be sourced from TMI’s power barge in Maco, Compostela Valley, which currently has a capacity of 100 MW.

“Our contract with TMI aims to normalize the power supply needed by Daneco. In the same way, it will continue to propel the development momentum of Davao del Norte and Compostela Valley provinces. Daneco, through the initiative of its management and board of directors, is making this bold move to be the First Cooperative in Mindanao to sign with TMI and work toward finding a solution to our power supply problems,” Dean Briz, Daneco board president, said.

TMI owns and operates the power barges in Maco, Compostela Valley and Nasipit, Agusan del Norte. These power barges deliver 200 MW of electric power to the Mindanao grid which can supply electric power to some 200,000 households.