A power generating unit of listed Vivant Corp. signed Tuesday a one-year power supply agreement (PSA) with Manila Electric Co. (Meralco).
In a statement, 1590 Energy Corp. (1590EC) said the PSA covered 170 megawatts of firm contract capacity from Feb. 26 to July 25, 2016 and 170 MW non-firm contract capacity from July 26, 2016 to Feb. 25, 2017.
The PSA would be implemented upon securing the Energy Regulatory Commission’s provisional approval. The one-year contract would automatically be extended for another year, unless earlier terminated by the parties, the company said.
The PSA was concluded after the Swiss challenge conducted by Meralco in compliance with the government’s mandate to conduct a competitive selection process in the procurement of its power requirements.
Last month, 1590EC submitted a proposal to Meralco for the supply of 170 MW for peaking power in the summer months of 2016 with trading intervals of 10 a.m. to 9 p.m., representing peak demand hours, from Mondays to Saturdays, excluding holidays.
Meralco published two invitations for price challenge and invited other power generation firms to submit better tariff proposals. But since the power utility did not receive counteroffers until the last day of the challenge period on Jan. 12, 2016, the PSA was awarded to 1590EC.
Based in Bauang, La Union, 1590EC operates and manages the energy output of its 215-MW Bauang bunker oil-fired diesel engine power plant.