erc case no. 2010-o97rc
DESCRIPTION
PANAY ELECTRIC COMPANY, INC. Expository Presentation Application for Approval of PECO – PEDC 2010 EPPA. ERC Case No. 2010-O97RC. 9:00 AM, September 09, 2010, Iloilo Business Hotel, Small Ville Complex, North Diversion Road, Iloilo City. PECO –Franchise Holder - ILOILO CITY. - PowerPoint PPT PresentationTRANSCRIPT
ERC Case No. 2010-O97RC
Expository Presentation Application for Approval of
PECO – PEDC 2010 EPPA
Expository Presentation Application for Approval of
PECO – PEDC 2010 EPPA
9:00 AM, September 09, 2010, Iloilo Business Hotel, Small Ville Complex, North Diversion Road, Iloilo City
PANAY ELECTRIC COMPANY, INC.
PECO –Franchise Holder - ILOILO CITY
PECO –Franchise Holder - ILOILO CITY
Panay Electric Company is the Franchise Holder for the distribution of electricity in the City of Iloilo by virtue
of NEC License Number 158 issued on January 19, 1994 by the National Electrification Commission.
PECO’s Franchise – City of IloiloPECO’s Franchise – City of Iloilo
PECO Serves Its Franchise Through 4 Main Substations
PECO Serves Its Franchise Through 4 Main Substations
Substation capacity – Location Available Capacity
10 MVA Substation – Jaro 10 MVA
25/30 MVA Substation - Mandurriao 30 MVA
25/30 MVA Substation – Molo 30 MVA
20 MVA Substation – City Proper 20 MVA
TOTAL RATED CAPACITY 90 MVA
PECO is connected to its power suppliers through its 69 kV Sub-
Transmission (Loop) system
PECO is connected to its power suppliers through its 69 kV Sub-
Transmission (Loop) system
PECO’s Forecasted Supply Requirement
PECO’s Forecasted Supply Requirement
2010 (See explanation *) - 78.3 MW
2011 5% growth rate
- 82.2 MW
2012 7% growth rate
- 88.0 MW
2013 5% growth rate
- 92.3 MW
2014 5% growth rate
- 97.0 MW * 2010 Load Adjusted to remove Impact of El Nino
Existing PECO Supply ContractsExisting PECO Supply Contracts1) PECO – PPC 1997 PPA - 72 MW (Diesel Contract)
This contract is for 25 Years and will end on 2023
2) PECO – GCGI 2010 (Non-Firm) – 10 MW (Geothermal)
July to December 2010
Supply Available During
Off Peak Period Only
(Cheap power but mostly not available when needed)
Problems Encountered by PECO with Existing PECO Supply
Contracts
Problems Encountered by PECO with Existing PECO Supply
ContractsConsidering the volatility of Diesel Prices as
influenced by world crude prices, PECO’s Generation Charge Rate is restrictive (If this is pure diesel without low cost NPC Supply, this is higher than P9 / kWh).
The total Diesel Plant Capacity of 72 MW is now lacking when compared to the total load of PECO (The 78.3 MW is the load recorded at PECO’s sub-stations but in terms of total required plant output, this is already beyond 82 MW) This results to load shedding during PECO’s Peak Hours (10 AM to v4 PM)
PECO’s Typical Daily Load CurvePECO’s Typical Daily Load Curve
Typical May 2010 Daily Loading
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
Mon 44897 43180 40894 39600 38058 37728 38036 44035 57939 68569 74944 76664 76035 80598 81973 77196 72208 64105 68888 63918 59612 58482 53514 49583
Tue 46402 43935 41712 40172 39048 38653 38406 43323 56863 67089 75921 76873 76050 80669 77049 76725 72713 65310 67505 66369 59776 57542 53668 50086
Wed 46293 43609 41369 39666 38705 38100 37666 44896 59727 66329 73336 74107 74021 78052 77789 75483 72367 64295 67107 63414 58886 56408 54247 49473
Thu 49331 46666 44015 42397 41167 40204 39043 44446 56103 69857 76487 77235 76818 80498 80337 75910 70165 64399 68334 64066 60192 57776 53870 50308
Fri 46467 44595 41904 39785 38794 38432 37185 42954 56938 68749 75777 76709 76444 77595 78607 74142 70719 63937 68214 66004 60224 57326 54032 49915
Sat 46590 44008 41349 39862 38054 36287 35350 39173 49000 60992 66610 67605 66799 69270 68554 65944 62398 59059 63523 61032 57206 54218 52125 49451
Sun 45801 43163 39897 38189 37290 35671 34248 36509 40512 48247 53558 54041 56218 57774 58476 56380 54225 53289 60620 59964 56751 54425 51419 47371
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Problems Encountered by PECO with Existing PECO Supply
Contracts
Problems Encountered by PECO with Existing PECO Supply
ContractsDue to lack of Power Supply, PECO consumers are now experiencing 2
hours of rotational outages in around 6 to 8 of its 19 feeders during the 10 AM to 5 PM time slot. During emergency
shutdowns of one of the 6 units of PPC plant number 1, these outages extend
up to 9:30 PM (Interruption report from May to August of 2010 attached to my
judicial affidavit would provide specifics of these rotational outages).
What benefits will signing a contract with PEDC have for PECO
consumers?
What benefits will signing a contract with PEDC have for PECO
consumers?Signing a contract with the PEDC Coal
Fired Power Plant and getting ERC approval for the same would bring the following advantages to Iloilo City:
1) Lower Electricity Prices – Coal pricing is lower than the cost for diesel generation. The impact of Diesel price fluctuations will be greatly reduced considering that the sister company of PEDC, PPC, has agreed to reduce our diesel contract from 72 MW to 15 MW. The amended and restated PPC-PECO diesel contract is now being finalized.
What benefits will signing a contract with PEDC have for PECO
consumers?
What benefits will signing a contract with PEDC have for PECO
consumers?
Furthermore, having an embedded generator will provide savings in terms of Transmission Charges and this will give Iloilo City customers an edge over other consumers relying 100% from NGCP to connect to their suppliers.
What benefits will signing a contract with PEDC have for PECO
consumers?
What benefits will signing a contract with PEDC have for PECO
consumers?2) Enhanced Reliability – Power interruptions can come from various sources. Mostly, they are attributable to Supply / Generation Problems, Transmission Problems or Distribution Problems.
By introducing a new power plant with a higher capacity and bigger generators, we will eliminate generation tripping significantly. Also, since this huge generator is embedded within our franchise, we eliminate the effects of transmission faults to our system. This is a very solid power plant only 2.5 kilometers away from PECO’s 69 kV Loop system.
What benefits will signing a contract with PEDC have for PECO
consumers?
What benefits will signing a contract with PEDC have for PECO
consumers?Furthermore, PEDC is installing two
units of 82 MW each at the PEDC power plant. This reduces the risk of loosing all of the 65 MW that we have contracted considering that there is a pro-rata reduction provision in the PEDC contact to all its customers during maintenance.
Procurement ProcessProcurement Process
Other options for PECO’s Power Supply Requirements:
• Green Core Geothermal
Corporation• ASEA One Power Corporation• SNRE Corporation• Salcon Power Corporation
Procurement ProcessProcurement Process
Green Core Geothermal – Rates are acceptable but the issues are a) Reliability because of distance, b) Timeliness of available supply since what they can offer now is just non-firm supply c) They cannot displace the PPC Diesel contract and contracting with them and maintaining the PPC Diesel Contract would drive PECO’s prices higher.
Procurement ProcessProcurement ProcessASEA ONE Power – Renewable source
but no real indication as to when they will start the power plant. Also, rates are subject to increments in transportation costs still driven by diesel prices to a huge extent. A major concern as well would be the sourcing of the fuel supply, at the rate of consumption projected during their presentation, we have questions on the sustainability of fuel supply. Also they could not displace PPC Diesel. Can only provide minimal capacity
Procurement ProcessProcurement Process
SNRE Corporation – Also a renewable source of supply that provided an offer to PECO and actually signed an agreement to construct a Biomass power plant in Ingore but failed to deliver. This agreement was signed in 2008 but never prospered. This has limited capacity (only for 5 MW) and apparently lacks financing to push the project through.
Procurement ProcessProcurement Process
Salcon Power Corporation – Rates are diesel rates even more expensive than PPC (Sells at P 9.50 / kWh). This will not solve Iloilo City’s dependence on high cost diesel. Also, considering the plant location, we will have to add P 1.00 / kWh more or less for the NGCP charges to bring their supply to PECO. Reliability also suffers due to NGCP transmission limitations.
Procurement ProcessProcurement Process
After considering all offers given to PECO, It is very clear that only PEDC can provide higher reliability considering its location and lower costs considering its offer to amend and restate the existing PPC Diesel contract from an existing obligation of 72 MW to a revised value of only 15 MW in consideration of the coal contract that we signed.
URGENCY of GIVING PECO and PEDC a PROVITIONAL APPROVAL of
this APPLICATION
URGENCY of GIVING PECO and PEDC a PROVITIONAL APPROVAL of
this APPLICATIONThe PECO – PEDC contract provides for the
supply of power on a non-firm basis from the commissioning phase of the Power Plant which is expected to commence on the first week of October 2010. Providing a PA on this application would afford PECO the chance to cover its daily peaking requirement from the output of the Coal Plant starting next month. This will minimize the recurring rotational outages in the city and will also bring down prices of electricity.
End of Presentation