NORECO2, GCGI Ink Deal to Lower Power Rate, Extend Power Supply

Dumaguete City (PIA) — The Negros Oriental Electric Cooperative (NORECO) 2 has signed an amendment in the power supply agreement today with Green Core Geothermal Incorporated (GCGI) for a 25-megawatt power supply until 2020 and a power rate reduction.

According to NORECO 2 Board chair Atty. Fe Marie Dicen-Tagle, the amendment contract provides the assurance of clean power supply of 25MW but also a reduction of rates of P0.49 per kilowatt.

The reduced power rate is pursuant to the re-pricing provisions and market-based structure in the original ten-year power supply agreement.

Tagle said the basic energy charge was already reflected in the member-consumers’ November billing statement.

“With the renewal of contract with Noreco2 for the 25 MW, we believe this is the best solution for the member-consumers for reliable power supply because the geothermal power plant is so close by and the risk of loses with power cable lines going down may be reduced,” said GCGI chief operations officer and president Richard Tantoco.

Tantoco said with the reduction of power price, the franchise area will immediately receive P30 million savings which will be passed on to the electric consumers.

GCGI, which operates the 192.5MW Palinpinon geothermal power plants in Valencia, and the 112.5 MW Tongonan geothermal power plant in Kananga, Leyte, is the power arm of Energy Development Corporation (EDC), the country’s leading producer of geothermal energy.

NORECO2 is one of the electric cooperatives in Negros Oriental which distributes power to its coverage areas in 14 cities and municipalities in the province. (rmn/JCT/PIA7-Negros Oriental)