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CATANDUANES: The general manager of an electric cooperative in
Catanduanes filed with the Energy Regulatory Commission a formal
opposition seeking the withdrawal of the application of the electric
cooperative he is managing for rate approval of the 8-megawatt of
mini-hydro projects in various sites as proposed by a private
construction company that is now into power generation.
Carlos Gianan 3rd, general manager of the First
Catanduanes Electric Cooperative in Bicol (Ficelco) denounced the
electricity supply agreement (ESA) signed by the board of
directors of Ficelco with Sunwest Water & Electric Company (Suweco)
because it contained many onerous provisions that are
disadvantageous to the electric cooperative and its members and can
hurt it financially in the future.
Gianan pointed out that these onerous and
legally questionable provisions would have been avoided had the
board of directors of Ficelco allowed the co-op management to
undertake a thorough evaluation of the Suweco proposal. The coop
directors led by then President Rollie Canada, Director Ben Berjuega,
and Director Fidelito Soledad rushed the signing of the Electricity
Supply Agreement with Suweco before the May 2007 elections, Gianan
said.
In his petition with the ERC, Gianan said
Suweco’s proposal, pricing mechanisms, and the terms of the
contract did not go through competent appraisal and responsible
assessment to insure that the contract is competitive for the
duration of the contract period.
The ERC held a 2-day public hearing in Virac
Catanduanes last June 5 and 6 on the merits of the joint Ficelco and
Suweco rate application. In addition to the co-op general manager,
other oppositors were lawyers Arvin Amata, counsel for the Province
of Catanduanes;. Sinforoso Sarmiento Jr, counsel for oppositors and.
Aner Tabirara, counsel for oppositor/consumers. Dante Tollor, a
consumer/oppositor, joined them.
At the ERC hearing, current Ficelco board
president Fidelito Soledad admitted under questioning by ERC
Chairman Rodolfo B. Albano Jr, who personally presided over the
hearing in Virac, that the Board did not undertake a technical and
economic evaluation of the Suweco proposal before the contract was
signed.
Gianan’s lawyer Rex Fernandez said this
couldn’t be cured subsequently for it would require the filing of
another application and another presentation of jurisdictional fact.
“We hope for the sake of the co-op itself and
its consumer-members that reports we have been hearing that the ERC
is predisposed to approve the Suweco contract despite its legal
infirmities and onerous provisions and rates are not true,” Gianan
said.
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