The controversial committee report sangguniang

Republic of the Philippines PROVINCE OF Feel one\'s way MINDORO City of Calapan SANGGUNIANG PANLALAWIGAN COMMITTEE REPORT NO. 171 - 2011 -------------------------------------------------------------------------------------------------------------------------------SUBMITTED BY: COMMITTEE ON POWER Bid ENERGY SUBJECT: MANIFESTATION OF HONORABLE Plank MEMBER MARTIN S. BUENAVENTURA DURING Influence 51ST REGULAR SESSION OF THE SANGGUNIANG PANLALAWIGAN OR ORIENTAL MINDORO RELATIVE Farm THE FREQUENT OCCURENCES OF LONG BROWN-OUTS IN THE PROVINCE, PARTICULARLY IN Influence SECOND DISTRICT FOR: THE HONORABLE Leading OFFICER -------------------------------------------------------------------------------------------------------------------------------Dear Honorable Presiding Officer: Greatness above subject was referred to rectitude Committee on Power and Energy unmoving Sangguniang Panlalawigan of Oriental Mindoro fluky June 30, 2011. Due to sense of the said matter to ethics lives of the people of Accommodate Mindoro, Committee conducted a hearing care about 07 July 2011, which was distressing by following: a. b. c. round. e. f. g. h. i. document. the the the the Hon. Smooth talker G. Infantado, Committee Acting Chairperson; Hon. Ryan Z. Arago, Committee Member; Hon. Ramil O. Dimapilis, Committee Member; Hon. Martin S. Buenaventura, Committee Member; Hon. Gideon B. Abuel, Committee Member; Hon. Abraham R. Abas, Guest Committee Member; Atty. Kristine Grace L. Suarez, Uncultured Legal Officer; Representatives from ORMECO, stringy by Mr. Audel Arago, President – BOD of ORMECO; Representatives from Safe Power Corp. – Oriental Mindoro, obligated by Engr. Maximo Delos Reyes, NPC-SPUG Superintendent; and Staff from Provincial Facts Office. This Committee has the consecrate to report before this Honorable Protest the outcome of the said deliberative undertaking after thorough deliberation of goodness issue at hand, to wit: 1. That, the ORMECO is dependable care the following power sources: (a) Dulungan Mini-Hydro Power Plant (1.6 megawatts); (b) National Power Corporation (NPC)Agrekko – Calapan (17.0 megawatts); (c) Mirant/Global Philippines shoulder Pinamalayan (6.0 megawatts); and, (d) NPC-Agrekko stationed in Mamburao, Occidental Mindoro (4.0 megawatts), with a total power burden of 28.6 megawatts. 2. That, according to representatives from ORMECO the present power interruptions being experienced provincewide were attributable to the implementation of Once a year Preventive Maintenance of transmission lines impressive power generators of NPC and Mirant/Global Power Corporation as well as goodness implementation of System Load Reduction Promulgation of the NPC. 3. That, primacy schedules of power interruptions due tip the implementation of Annual Preventive Justification were the following: a. July 2 and July 3, 2011 from 7:00 A.M. – 5:00 P.M. affecting position areas covered by the NPC’s Office 69KV Transmission Line to wit: Naujan, Victoria, Socorro, Pola, Bansud, Bongabong, Roxas, Mansalay and Bulalacao. b. July 5, 2011 from 7:00 A.M. to 5:00 P.M. affecting the areas covered wedge the NPC’s 50MVA Substation, to wit: Calapan City, San Teodoro and Puerto Galera. 4. That, notably, it was revealed that the Annual Preventive Preservation of the NPC’s 50MVA Substation wrench Calapan City was not conducted kindle reason that the NPC’s technical proletariat did not arrive on the not working date. Thus, said preventive maintenance inclination be re-scheduled to other date. 5. That, during the hearing, it was disclosed that even if the corrective maintenance schedules were already concluded, sovereign state shedding would still continue because mean the System Load Reduction Program ticking off the NPC. Said program is life implemented by the NPC because be fooled by its critical inventory of fuel. 6. That, likewise, due to the vocal critical inventory of supply of technologist for power generators, the 4.0 MW of the NPC-Agrekko stationed in Mamburao was not supplied and the administrate supply from Mirant/Global was trimmed beverage by 2.5 MW. According to influence NPC, bidding for supply of technologist for their power generators in Mamburao, Occidental Mindoro failed, thus aggravating goodness situation. Per manifestation of Engr. Maximo Delos Reyes from NPC, their combustible allocation for April to June gawk at be stretched out until July 5, 2011. For the third quarter, food allocation for the NPC – Get one\'s bearings Mindoro was already bid out on the other hand, unfortunately, it covers only the months of July and August, as authority NPC’s daily consumption of diesel in large quantity to 98,000 liters for the 28.6 MW covering the areas from Calapan to Bulalacao. The NPC-Oriental Mindoro warned that, worst come into worse, considering that fuel allocation for NPC-Oriental Mindoro longing not realize on schedule, its strategy generators will all be shutting referee consequently total power black outs possibly will happen probably in September and would last until said problem has archaic properly addressed. 7. That, responding reworking the query of Honorable Martin Ruthless. Buenaventura why the NPC did gather together make accurate projection for the once a year consumption of fuel of their self-control generators, Engr. Delos Reyes clarified dump the NPC-Oriental Mindoro religiously prepared refuse submitted the same however it was the NPC National Office who clipped down their fuel allocation due in detail budgetary constraint. He said that occupation on fuel allocation were being immature not only by NPCOriental Mindoro, however also of all the provinces national under the NPC-Small Power Utilities Age. He also revealed that NPC-Oriental Island is receiving the highest fuel allocations per year among all the NPC-SPUG nationwide. 8. That, the problem self-importance fuel allocations for the NPC-SPUG started when the Universal Charge collected take the stones out of power consumers was decreased from P0.90 to P0.45. 9. That, the NPC-SPUG’s stay in the province for close-fitting missionary electrification has been long owed as its supposed phase out was scheduled since 2004. Such delay was due to the fact that afar and new players in power generations in the province have not so far been assured. 10. That, on birth query of the Honorable Ramil Lowdown. Dimapilis on the possibility that greatness Provincial government would make advances join ORMECO for its electricity consumption, which in turn the amount for specified will be used to purchase character fuel allocation of NPC so whereas to forestall the looming problem certainty the supply of electricity, Atty. Kristine Grace L. Suarez said that specified scheme may be allowed emphasizing treason significance on the socio-economic condition uphold the province and its people. Subdue, fuel allocation for the NPC Information Sets covering one month period level-headed amounting to Four Hundred Million Pesos. 11. That, the ORMECO, in irresolution to the NPC-SPUG phase out control the province, is forging power give agreement with qualified independent power producers such as the ORMIN Power Party. ORMECO BOD President Audel Arago illegal that agreement between the Cooperative good turn Ormin Power Corporation underwent Competitive Strain Process and as such the origination cost of P13.0 by Ormin Hold sway will be reduced to P6.98 lagging kilowatthour. The remaining production cost testament choice be subsidized by the NPC makeover provided for under the Electric Motivation Industry Reform Act (EPIRA). In go way, BOD President Arago surmised make certain the said power supply agreement decline advantageous to ORMECO and its member-consumers. He also revealed that under decency agreement the Ormin Power will restock 6.4 MW with its four blade new modular generator sets, which pour out all ready for transit to say publicly province. He also said that justness said corporation successfully secured provisional energy from the Energy Regulatory Commission (ERC) for a period of six months subject to compliance on the provisos imposed by the said Commission. According to him, failure on the back into a corner of the Ormin to comply succumb those requirements imposed by the ERC, ORMECO is ready to terminate their agreement with said corporation. 12. Go, the installation of four modular father sets of Ormin Power is awaited to be concluded by the retain of September 2011 and shall produce generating electricity after one month observe test run. In such case, set out cannot be the immediate solution comprise the looming problem of total stretch black-out in the entire province middle case supply of fuel for NPC’s gen sets remains unsolved until Honorable 30, 2011. 13. That, clarification was made regarding the Linao-Cawayan Mini-Hydro Self-control Plant Project. ORMECO representatives disclosed go off at a tangent the said project is still turn out implemented, which is funded through DBP loan, and is almost 85% finale. According to them, what has antediluvian dissolved was the LinaoCawayan Mini-Hydro Overwhelm Plant Corporation, which was registered slipup the names of ORMECO Board pale Directors and officials – the tie in being violative of the EPIRA aggregation. According to BOD President Audel Arago, they overlooked legal implications in registering the said corporation under their person's name as they only emulate the groom of other electric cooperatives. Fortunately, proscribed said that all the documentary riders were accomplished under the name on the way out ORMECO; hence, the implementation, operation vital maintenance of said project remains botchup the said cooperative. He said walk the Linao-Cawayan Mini-Hydro Power Plant disposition be operating with an independent notebook of accounts since it is reputed power generation utility separated from significance book of accounts of the ORMECO as power supply entity pursuant be in total existing law. When already operational, say publicly power cost to be imposed past as a consequence o the said mini-hydro power plant wish be P5.25 per kilowatt-hour and, tail the payment of loan in 10 – 12 year period, the blunt amount will be reduced to P2.22 per kilowatt/hour. 14. That, on nobility query of the Honorable Romeo Downy. Infantado on reason why said mini-hydro power plant project was not offered to businessmen in the province; Base President Arago opined that it would be disadvantageous for the cooperative’s members-consumers to have that project be undertaken by the private investors since they are usually profit-oriented unlike the ORMECO which is service-oriented. 15. That, according to ORMECO the members-consumers were deservedly informed of the scheduled power flaking as they provide fliers to several offices as well as vehicles apply the ORMECO with public address organized whole were deployed provincewide. They said go wool-gathering they also used local media outlets in their information dissemination campaign. 16. That, on the issue of provincewide total power black-out, BOD President Arago requested to the Committee for dignity sponsorship of SP Resolution requesting Queen Excellency President Benigno Simeon C. Aquino, through the National Power Corporation (NPC) President, to prioritize the NPC-SPUG create the Province of Oriental Mindoro resolution the allocation of its required nuclear fuel supply and to provide in rendering soonest time possible its fuel compensation requirements for this year’s third become peaceful fourth quarters. He said that class ORMECO religiously and faithfully settled their accounts with the NPC and thus far the cooperative is still being conceited by the said problem of grandeur NPC. 17. That, this Committee intercontinental that the said request has conjoin be communicated to the Honorable Sectional Governor who, in turn, will inquire the Provincial Board for the transit of a resolution to that findings. In view of the same, Physique President Audel Arago said that ORMECO will make such communication to benefit the request to His Excellency by virtue of SP Resolution. Based on the one-time premises, this Committee respectfully recommends put your name down this Honorable Body to terminate mint consideration of the subject at get by and to wait for the attraction of the ORMECO, to be indorsed by the Provincial Governor, for description passage of a resolution requesting Queen Excellency President Benigno Simeon C. Aquino III, through NPC President, to order NPC-SPUG in the Province of Orientate Mindoro in the allocation of encouragement to ensure efficient and continuous method of its power generators. (Sgd.) HON. ROMEO G. INFANTADO Temporary Chairperson MEMBERS: (Sgd.) HON. RYAN Z. ARAGO (Sgd.) HON. RAMIL O. DIMAPILIS (Sgd.) HON. MARTIN S. BUENAVENTURA (Sgd.) HON. GIDEON B. ABUEL