DAVAO CITY鈥擬indanao 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鈥� stand to the President during the summit and reiterated last Tuesday that the governors鈥� position will not change.
Two major hydroelectric plants鈥擜gus and Pulangi鈥攚ould 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鈥檚 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.
鈥淟et鈥檚 shatter the myth that the Napocor (National Power Corp.) and the Agus-Pulangi complex are a losing proposition,鈥� 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鈥檚 income last year鈥擯36.9 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.
鈥淧rivatizing the power plants, which currently provide us a cheaper source of power, would remove Mindanao鈥檚 advantage to attract more investments,鈥� 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 Tali帽o-Mendoza said she was hoping the President would listen to them.
鈥淲e wish he (Mr. Aquino) would take a second look at our resolution,鈥� Mendoza said.
Davao del Sur Gov. Douglas Cagas agreed, saying: 鈥淗e 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.鈥�
Del Rosario said Napocor should rescind its Operational Management Agreement聽 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.
鈥淚t is high time that Napocor rescind this contract and be allowed to run its affairs,鈥� 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.
鈥淚t is bad enough as it is. It will be intolerable once it is surrendered to the private sector,鈥� he said.
Del Rosario also called for the reclassification of power generation firms as 鈥渦tilities鈥� and place a cap on these firms鈥� profits. He said some independent power producers聽 earn up to 50-percent return on rate base, 鈥渨hich is too much.鈥�
鈥淛ust a 1-centavo per kilowatt-hour increase imposed nationally translates into a P670-million annual income,鈥� 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鈥檚 electric supply.
鈥淲e should pursue the discussion, that is the best we can do,鈥� Moreno said. Reports from Germelina Lacorte, Frinston L. Lim, Franklin Caliguid, Julie S. Alipala, Jeoffrey Maitem, Orlando Dinoy, Bobby Lagsa, Inquirer Mindanao