FGen seeks approval for continued Sta. Rita power supply to Meralco
Lopez-led First Gen Corp. (FGen) is continuing negotiations to extend its power supply agreement (PSA) with Manila Electric Co. (Meralco) following the Energy Regulatory Commission’s (ERC) decision to allow continued supply from the Sta. Rita gas-fired power plant.
Francis Giles Puno, FGen president said the company is working to get the commission’s approval for the 1,000-megawatt (MW) Sta. Rita Power Plant to continue supplying Meralco.
“You know, [the] Sta. Rita [deal] was extended up to January, but we’re hoping that will also be extended beyond. That’s a work in progress,” he told reporters. “That’s in negotiation with all stakeholders.”
Earlier this month, the ERC granted a request to extend the current power supply deal until January 31, 2026.
FGen had previously warned that without the extension, the plant might shut down, which would threaten grid capacity and disrupt Meralco’s power distribution.
The combined-cycle natural gas-fired Sta. Rita plant is owned and operated by First Gas Power Corporation (FGPC), a subsidiary of FGen, and is located in the First Gen Clean Energy Complex in Batangas. According to FGen, the plant utilizes natural gas from the Malampaya gas field.
In related news, the ERC last month granted an interim relief for a 15-year PSA between Meralco and GNPower Dinginin Ltd. Co. (GNPD).
The deal, which began on August 26, allows GNPD to supply 100 MW of coal capacity to Meralco until 2040.
This approval mandates that the contract capacity be retained; any future increase will require a new decision from the ERC. Furthermore, GNPD is required to submit a monthly report to Meralco on its fuel blend consumption to ensure compliance with ERC procurement guidelines.