Govs defy Aquino on power plant sale

DAVAO CITY—Mindanao governors continue to oppose plans to sell hydroelectric plants in the island, insisting that solutions to the power crisis currently gripping Mindanao need not lead to higher electricity costs as President Benigno Aquino stressed during a summit on the crisis last April 13.

Davao del Norte Gov. Rodolfo del Rosario conveyed the governors’ stand to the President during the summit and reiterated last Tuesday that the governors’ position will not change.

Two major hydroelectric plants—Agus and Pulangi—would be sold to the private sector under the Electric Power Industry Reform Act (Epira). Mr. Aquino, during the summit, said this was part of the solution to Mindanao’s power crisis.

On Tuesday, the governors reiterated their opposition to the sale and insisted that amendments to Epira were among the ways out of the crisis.

The governors reiterated their position a day after the President said he was willing to dialogue further with Mindanao officials, civil society and consumer groups on the power crisis.

“Let’s shatter the myth that the Napocor (National Power Corp.) and the Agus-Pulangi complex are a losing proposition,” Del Rosario said.

If it is any indication that generating power is not a losing venture for government, Del Rosario presented what he said was Napocor’s income last year—P36.9 billion in annual gross generation revenue and an average profit margin of P73.2 billion.

Surigao del Sur Gov. Johnny Pimentel said instead of selling the power plants, the government should rehabilitate these, which is what exactly government plans to do with Agus 6 and Pulangi which might cost P9 billion and take 30 months.

Agusan del Sur Gov. Eddiebong Plaza said selling the two hydropower plants could lead to unreasonable rates and monopoly.

Agusan del Norte Gov. Erlpe John Amante said higher power costs would simply stop investments from coming to Mindanao.

“Privatizing the power plants, which currently provide us a cheaper source of power, would remove Mindanao’s advantage to attract more investments,” Amante said.

South Cotabato Gov. Arthur Pingoy said the governors are sticking to their position opposing the sale of the hydropower plants.

North Cotabato Gov. Lala Taliño-Mendoza said she was hoping the President would listen to them.

“We wish he (Mr. Aquino) would take a second look at our resolution,” Mendoza said.

Davao del Sur Gov. Douglas Cagas agreed, saying: “He already heard the sentiments of the people of Mindanao during the summit. Although he has the power to exercise as President, he must also review our resolution.”

Del Rosario said Napocor should rescind its Operational Management Agreement  with the Power Sector Assets and Liabilities Management (PSALM), which required Napocor to remit all its earnings to PSALM, including those from the Agus and Pulangui hydropower plants.

“It is high time that Napocor rescind this contract and be allowed to run its affairs,” Del Rosario said.

He said Epira has been a bane to Mindanao for the last 11 years and should be reviewed by Congress.

He said selling the hydropower plants to the private sector would simply worsen the situation.

“It is bad enough as it is. It will be intolerable once it is surrendered to the private sector,” he said.

Del Rosario also called for the reclassification of power generation firms as “utilities” and place a cap on these firms’ profits. He said some independent power producers  earn up to 50-percent return on rate base, “which is too much.”

“Just a 1-centavo per kilowatt-hour increase imposed nationally translates into a P670-million annual income,” said the governor, adding it was time for Mr. Aquino to appoint a Mindanao consumer group representative to the Energy Regulatory Commission.

Misamis Oriental Gov. Oscar Moreno said one good thing that the summit brought was to open the lines of communication between the people of Mindanao and officials who have the power to decide the future of the island’s electric supply.

“We should pursue the discussion, that is the best we can do,” Moreno said. Reports from Germelina Lacorte, Frinston L. Lim, Franklin Caliguid, Julie S. Alipala, Jeoffrey Maitem, Orlando Dinoy, Bobby Lagsa, Inquirer Mindanao