Treñas calls for immediate signing of TSA between Peco, Transco
Time is of the essence in the signing of the Transmission Supply Agreement (TSA) between Panay Electric Company Inc. (Peco) and National Transmission Commission (Transco), particularly now that Mirant Global-Panay Power Corporation, supplier of power to Peco, is encountering operational problems.
City Mayor Jerry Treñas last week said he will push for the signing of the TSA between Peco and Transco as soon as possible to ease the power supply shortage in Iloilo City.
Treñas' statement was in response to the present rotating brown outs effected by Peco after Engine No. 4 of the Mirant-PPC encountered mechanical problems last week. A minor fire occurred in the engine but was extinguished. The mechanical trouble affected the PPC's capacity to supply power to Peco.
According to a Mirant-PPC advisory the repair of the damaged engine will take three days. The normal power supply will be restored Wednesday.
In an interview with Bombo Radyo, Treñas said blackouts and power shedding should have not happened if Peco could already get power from National Power Corporation (NPC).
The signing of the TSA between Peco and Transco will automatically allow Peco to interconnect with NPC. This after Peco and NPC signed a Power Supply Agreement (PSA) last May 5, 2006.
Treñas said he also informed Department of Energy (DoE) Secretary Raphael Lotilla about the recent incident which affected the power supply in the city.
Treñas added that he is helping Peco to iron out problems that seem to hamper the signing of the contract. One of the problems that cropped up in the deal is that Transco required Peco to deposit P3 million for the interconnection.
The chief executive said he is coordinating with Dr. Allan Ortiz, Transco president on the possibility of waving the P3 million deposit they are asking from Peco.
He said the interconnection is also expected to lessen the price of the power purchased by the consumers.
Napocor sells power for P3.3654 per kilowatt hour and additional charges of P1.15 per kilo hour for wheeling charges from Transco for a total of P4.5154 per kilowatt hour, a price or rate much lesser compared to what being paid by city consumers to PECO.
Nevertheless, Treñas said he asked the Peco management to issue advance advisories to the consumers while Mirant-PPC is undergoing repairs on its damaged engine.
Treñas is worried with the impression the city would get if the power interruptions continue especially among the visitors. He cited that a national convention for cultural heritage will be held here this week.