Meralco seals 3 power supply deals

Meralco entered into power supply agreements with three major generating firms involving an initial total capacity of 1,720 megawatts.



Meralco said it had signed an eight-year power supply deal with South Premier Power Corp for the full 1,180-MW net capacity of the Ilijan natural gas power plant in Batangas, south of Manila.

It also sealed a seven-year power supply deal with a wholly owned unit of Semirara Mining Corp, the country's biggest coal producer, for an initial volume of 210 MW.

The contracted volume under the deal with Semirara's SEM-Calaca Power Corp unit, which owns a 600-MW coal-fired thermal power plant in Batangas, will increase to 420 MW when another power plant unit begins commercial operation.

The deals assure Meralco of a steady supply over the next seven to eight years.

The contracted volume could be increased up to 2,030 MW, with the deals open for a possible extension for another three years, Meralco told the stock exchange.

Meralco will also buy an initial 330 MW capacity from Masinloc Power Partners Co Ltd, which will increase to up to 430 MW by Dec. 26, 2015. Masinloc owns and operates a 630 MW coal-fired power plant in Zambales, north of Manila.