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The first coal fired power plant in this city, slated to be operational by December 2010, will lower the cost of electricity in this southern city and the rest of serviced area.

This was assured by Engr. Gil Altamira, Panay Energy Development Corp. (PEDC) manager for commercial operations recently, saying that the power rate will be reduced by P1.85 per kilowatt hour.

“While other electric utilities will increase its power rate by more than P3 per kilowatt hour next year, PEDC will honor its social responsibility to Iloilo City by lowering its power cost sold to Panay Electric Company (PECO),” Altamira said.

PECO is the sole power distributor in the city and is under fire recently for selling electricity at P13.30 per kilowatt hour to consumers, which is regarded as the highest rate in the country if not in the entire world.

Altamira said PECO is currently buying power from Panay Power Corp., a sister company of PEDC at P6.71 per kilowatt hour including load factor.

But PECO said the Energy Regulatory Commission (ERC) has allowed PECO to sell power to its consumers at profitable rate by injecting other commercial and industrial charges.

PECO recently signed a purchase power agreement with PEDC for the utilization and distribution of power in the city that will ensure enough power supply by November or December as soon as PEDC’s coal fired power plant operates.

PEDC is operating a two coal fired power plants of 82 megawatts each and one plant was fired tested last week after its construction completion. The other plant is expected to be operational by January or February 2011. (PNA)

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