PRESS RELEASE

Concrete Actions Expedited to Resolve Mindanaos Power Shortage

At a caucus called by House Committee on Energy, Chaired by Oriental Mindoro Rep. Reynaldo V.
Umali with Mindanao Congressmen, Department of Energy (DOE), concerned agencies, electric
cooperatives, and stakeholders, a consensus was successfully arrived at to take concrete steps to
hasten the implementation of measures to address the worsening power situation in Mindanao.
DOE Sec. Jericho Petilla, through Energy Regulatory Commission (ERC), submitted its strategic
plan on Modular Generating Sets and revised its Rules of Procedures on timelines for decisions to
expedite the process for Distribution Utilities who acquired or leased modular generating sets
through National Electrification Administrations facility loan program as a short term solution to the
escalating power outages in Mindanao. ERC has already approved for posting in its website a draft
resolution authorizing Mindanao Distribution Utilities to include in the calculation of their monthly
generation rates their actual fuel costs incurred by generating sets which they have leased or
acquired under the National Electrification Administration projects, capped at the Mapalad Power
Corporations approved capital recovery fee and variable O & M under ERC Case No. 2013-190 RC,
or actual, whichever is lower. This measure, when approved after the public consultation, should
respond to the issue on the approval of Modular Generating Sets. The use of modular gensets is the
immediate short-term solution to the intermediate electricity needs of Mindanao until baseload power
plants come online by 2015. Mindanao Representatives confirmed their support on the revision
made by DOE and ERC. Umali commended Petilla for directly addressing the concerns of the
Representatives from Mindanao and prioritizing efforts to solve the power problems in the region.
In addition, Umali and other Mindanao Representatives were able to convince the Power Sector
Assets and Liabilities Management Corporation (PSALM) to finally transfer its power barges from
Visayas to Mindanao to address the 377MW supply deficiency. Lanao del Sur has been
experiencing blackout for four months now while some cities and municipalities in the whole region
are suffering from the on-and-off supply of energy. With this situation, Cagayan de Oro Rep. Rufus
Rodriguez, whose city is losing P30M per hour of brownout, earnestly asked PSALM to transfer the
barges. Before the caucus adjourned, PSALM President and CEO Emmanuel Ledesma, Jr.
committed that they will do the computation on the total cost to be incurred for the transfer of barges
and asked for the support of the Committee on Energy in obtaining the approval of the PSALM
Board. As Umali said, What are important are the solutions for the benefit and welfare of the people.
Let us go beyond the mandate of financial problems. Let us not argue, instead, let us work forward in
addressing the power shortage situation.
Bryan Diosma of Mindanao Development Authority (MinDA) declared that they are continuously
collaborating with the local government units to assist in the resolution of the power shortage in
Mindanao.
This 2
nd
caucus was held on May 14, 2014 at the Sulo Riviera Hotel, Quezon City, while the first
caucus was done on May 7.