PECO, Panay Energy sign power supply deal

Panay Energy Development Corp., a power generation unit of the consortium led by Metrobank Group, on Thursday said it entered into a long-term supply contract with Panay Electric Cooperative (PECO). Under the 25-year contract, Panay Energy will supply PECO with 65 megawatts of electricity from its 164-MW coal-fired power plant that is expected to go on stream by March 2011, Panay Energy said in a filing with the Energy Regulatory Commission. This development would likely reduce electricity rates in the PECO franchise area by P1.48 per kilowatt-hour, Panay Energy and the cooperative said. The Visayas grid, particularly Panay island, does not have enough power supply. "The expected additional capacity from PEDC... [will] help alleviate this shortage," according to PECO and Panay Energy. PEDC is owned and operated by Global Business Power Corp., the consortium of Metrobank Group, Aboitiz Power Corp., Vivant Energy Corp., and Formosa Heavy Industries Corp. of Taiwan. —JE/VS GMANews.TV