San Miguel's SPPC to bag 1,200-MW deal with Meralco

San Miguel-led South Premiere Power Corporation (SPPC) is set to secure the 1,200-megawatt power supply deal with the Manila Electric Company (Meralco) after it emerged as the lowest bidder in the power distributor’s competitive bidding.

In a news release on Wednesday, Meralco said the Bids and Awards Committee for Power Supply Agreements (BAC-PSA), under a government-mandated Competitive Selection Process (CSP), named SPPC the “best bidder” after submitting the lowest offer for the power distributor’s baseload requirement.

Meralco said SPPC offered a total levelized cost of electricity rate of P7.0718 per kilowatt-hour (kWh) for the entire 1,200-MW requirement.

Two other bidders, namely, the unincorporated joint venture of Limay Power Inc. and San Roque Hydropower Inc. and First Natgas Power Corp., offered a rate of P7.1006 per kWh for 150-MW capacity and P8.44489 per kWh for 210 MW, respectively.

Following the naming of SPPC as the best bidder, Meralco said the BAC-PSA would conduct a post-qualification evaluation, submit its recommendation, and report to the power distributor’s Board of Directors for approval prior to the issuance of a Notice of Award.

Meralco said the resulting 15-year Power Supply Agreement (PSA) from the CSP will cover its future capacity requirements. — VBL, GMA Integrated News