ERC approves Meralco, First Gen power supply deal extension until 2026

THE ENERGY Regulatory Commission (ERC) has approved the request of Manila Electric Co. (Meralco) and a unit of First Gen Corp. to continue procuring power supply from a 1,000-megawatt (MW) gas-fired power plant in Batangas until Jan. 31, 2026.

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In an order dated Aug. 27, the ERC authorized the implementation of the interim extension of the power purchase agreement (PPA) between Meralco and First Gas Power Corp. (FGPC) for the dispatch from the latter’s Sta. Rita power plant.

The application was approved a day before the expiration of the PPA.

First Gen owns and operates four gas-fired power plants with a combined capacity of 2,017 MW located in Batangas. FGPC, a subsidiary of First Gas Holdings Corp., supplies electricity from the Sta. Rita plant to Meralco under a 25-year PPA.

The companies earlier filed a motion with the ERC to extend the PPA, as FGPC said it would likely be constrained to shut down the power plant due to loss of offtake.

Should the shutdown happen, they said this may further limit the availability of generation capacity and result in yellow/red alerts to the grid that will “inevitably impact Meralco’s customers.”