CEPALCO exec warns Napocor of class suit
By MARK FRANCISCO - Staff member, Gold Star Daily, March 30, 2010
THE National Power Corp. (Napocor) and the Power Sector Assets and Liabilities Management Inc. (Psalm) could be held liable in court for the power crisis in Mindanao, a senior executive of the Cagayan Electric Power and Light Co. (Cepalco) has warned.
Cepalco senior vice president David Tauli said the basis of a class suit would be the alleged breach of contract between Napocor and consumers. He said the contract requires the power-generating firm to provide a supply of 1,363 mw.
He said this even as he reiterated that the power shortage in Mindanao is due to “man-made” factors, specifically due to neglect. As of last week, Napocor was only able to generate 936 mw.
Tauli enumerated the factors: the forced lowering of water surface elevation of Lake Lanao to an abnormal level in 2009 which also reduced the operating capacity of the Agus hydropower plants, the non-operation of the Iligan diesel-fired plants and the privatization of two power barges.
“Napocor started the steady reduction of Lake Lanao on Sept. 11, 2009 and the elevation reached a year-end level of 699.55 meters,” Tauli said. “The consequent need to reduce outflow from Lake Lanao has resulted in an average capacity of the Agus hydro plants (to) 300 mw compared with their declared dependable capacity of 588 mw (or) a reduction of 49 percent.”
He added: “It is man-made and the result of a series of actions (and inaction) over many years in the operation and maintenance of the Napocor power plants connected to the Mindanao grid.”
Tauli said Napocor and Psalm also conspired to reduce the generation load so as to minimize their expenses and pay off their huge debts.
He said consumers were asked to pay for the dredging of the Pulangi River.
‘‘It was their repsponsibility but there was no dredging,’’ he said.
Tauli said this even as he assured that the current crisis is not election-related.
Tauli also said it took some time before the Napocor informed the Department of Energy (DOE) of its action to lower the water surface elevation of Lake Lanao.
“Had they informed the DOE earlier, they would have been scolded. [The power crisis] is not due to El Niño, it is man-made,” he said.
Tauli said Napocor should implement measures to end the crisis before consumers think of bringing it to court.
The following are his proposals: full operation of the two Iligan diesel plants which has a combined capacity of around 100 mw, dredging of the forebay of the Pulangi 4 hydroelectric power plant in Bukidnon to raise its capacity from 85 mw to 255 mw, repair of some Agus plants including dredging of the Balo-i Plains to increase capacity of Agus 2 and transfer of generators from Luzon to Mindanao.
