Republic Act No. 9136 or the Electric Power Industry Reform Act (“EPIRA”) has transferred ownership of the undisposed Main Grid generating assets of NPC to the Power Sector Assets and Liabilities Management (PSALM) Corporation. To date, these include the Agus and Pulagi Complexes, the Angat Hydroelectric Power Plant and Power Barges 101-104. Taking the cue from Section 47 (f) of the EPIRA, NPC was mandated to continue operating these undisposed generating assets prior to their privatization by PSALM.
The responsibility of operating and maintaining these undisposed assets is handled by two (2) functional groups in NPC. NPC currently operates and maintains the Agus and Pulangi Hydroelectric Plants in Mindanao through Mindanao Generations (MinGen) under Vice President Rudy P. Brioso while the Angat Hydroelectric Plant in Norzagaray, Bulacan, Power Barges 101, 102, 103 in Iloilo and Power Barge 104 in Davao is handled by the Resource Management Services (RMS) under Senior Department Manager Manuel Luis B. Plofino.
Out of the five (5) generating assets handled by RMS, only Power Barge 104 is yet to be privatized. The Supreme Court has validated the sale of the Angat Hydroelectric Plant to KWater Resources Inc. in October 2012 and PSALM is targeting the closing of said transaction by end of 2013. Power Barges 101, 102 and 103 have been successfully bidded out last 30 October 2013 but the transaction was put on hold as a result of the damage sustained by Power Barge 103 during the onslaught of super typhoon “Yolanda”. On the other hand, the bidding for Power Barge 104 has failed again. Meanwhile, NPC will continue operating and maintaining these assets until actual turnover to their new owners.
IPP Contracts Management
Section 51 of the EPIRA also empowered PSALM to take title to and possession of the NPC Independent Power Producer (IPP) contracts and to appoint, after public bidding, qualified independent entities who shall act as the IPP Administrators. NPC remains to be the counterparty in said IPP Contracts but the Corporation’s management and implementation of said IPP Contracts is being done for and in behalf of PSALM. The responsibility of paying for the related obligations has been transferred to the latter pursuant to EPIRA. Out of fifteen (15) active IPP Contracts, five (5) are being handled by MinGen and the remaining ten (10) falls under the responsibility of RMS.
Bakun Hydro-Electric Power Plant
Botocan Hydro-Electric Power Plant
Caliraya Hydro-Electric Power Plant
Ilijan Combined Cycle Power Plant
Pagbilao Coal Fired Thermal Power Plant
San Roque Multi Purpose Project
Sual Coal Fired Thermal Power Plant
The IPP Contracts Management (IPPCM) Department under RMS has expediently processed all IPP billings resulting in zero (0) interest charges/surcharges. Last August 27, 2013 IPPCM was also able to successfully bid out and implement the Botocan-Kalayaan 115kv restoration which will enable NPC to transmit the 20MW capacity of the Botocan Hydroelectric Plant to the Luzon Grid.
As an integral part of NPC’s management of the IPP Contract covering the 1200MW Ilijan Combined Cycle Power Plant, NPC also manages the Gas Supplyand Purchase Agreement (GSPA) executed with the Malampaya Consortium to supply natural gas to the Ilijan Plant. Pursuant to said GSPA, NPC operates and maintain the Ilijan Natural Gas Receiving Facility (Ilijan NGRF) which is also responsible for the 14.6km long natural gas pipeline from Tabangao to Ilijan, Batangas. NGRF has successfully maintained its “no outage” record thereby ensuring that the Iljan Plant, which accounts for 15% of the Luzon Grid power requirement, is always available for dispatch.
There are two (2) IPP power plants whose contracts were concluded but are yet to be privatized by PSALM. Operation and Maintenance Service Contracts (OMSCs) have been entered into by PSALM with Salcon Power Corporation to operate both the Naga Power Plant Complex and the Malaya Thermal Power Plant. NPC assists PSALM in administering said OMSCs through RMS’ IPP Contracts Management Department.
Naga Power Plant Complex
Malaya Thermal Power Plant
RMS, through its Asset Preservation Department (APD) is also responsible for the preservation, maintenance and upkeep of mothballed and de-commissioned plants prior to the privatization of these assets by PSALM. These mothballed plants include the Sucat Thermal Power Plant and the Bataan Thermal Power Plant.
Bataan Thermal Power Plant
APD also manages assets which were excluded in the sale of generating assets in Navotas, Talavera, Aplaya and General Santos. These assets include de-commissioned gas turbines located in Malaya and Bataan.
NPC also performs preservation and maintenance activities for the mothballed Bataan Nuclear Power Plant pursuant to Executive Order (EO) Nos. 55, s.1986 and 265, s.1995, respectively signed by Former Presidents Corazaon C. Aquino and Fidel V. Ramos. These EOs designated NPC as caretaker of BNPP to undertake the necessary preservation, maintenance and security of facility.
See List and Status of NPC IPP Projects