The Philippine National Oil Co. Energy Development Corp. yesterday assured that, although its Northern Negros Geothermal Power Plant, with a capacity of 49 megawatts will supply the power needs of Panay, royalties and other benefits will continue to be given to its host areas.

Negros Occidental Gov. Joseph Marañon has called a meeting with PNOC EDC officials today to discuss the possibility of its selling its power in Negros Occidental at lower rates to draw in potential investors, his chief of staff, Jose Ma. Valencia, said yesterday.

President Gloria Macapagal last week said power has become a major cost to investors so she is telling them to invest in areas like Bago City and Murcia that play host to NNGPP where power rates are more competitive.

But the power that residents and businesses in Bago and Murcia currently consume does not come from NNGPP as Central Negros Electric Cooperative does not purchase power from it.

Eddie Guillem, Central Negros Electric Cooperative president, said that when NNGPP offered to sell power to CENECO several years back, the power coop had already signed a contract with Global Edison that had planned to put a coal plant up in Pulupandan town.

CENECO is currently buying its electricity from the National Power Corp. at rates lower than what the NNGPP had initially offered, he added.

Agnes de Jesus, PNOC-EDC vice president for environment and external relations, said NNGPP offered to sell power to the Negros cooperatives at P3.40 per kilowatt hour, that matches the NPC rates.

Valencia said the governor wants to know how Negros Occidental can avail of lower rates, noting that since NNGPP is located within the province transmission cost could be lower.

The governor wants to know what needs to be done so he can raise the matter with the President, Valencia added.

De Jesus said that, as in its other sites, PNOC EDC will do its share to lower the Negrenses' electricity cost through NNGPP's royalty payments and the one-centavo per kWh benefit.

Eighty percent of the royalty payments are intended as subsidy for electricity consumption in host areas, she said, and the remaining 20 percent are allocated for community development and livelihood projects.

The DOE-mandated one centavo per kWh benefit is intended for the host LGU's electrification, development and livelihood, reforestation, watershed management, health and environmental enhancement programs, she added.

While the one centavo per kilowatt hour will be immediately deducted from power sold by NNGPP, the fund will be held by the Department of Energy that will accept project proposals from the host Local Government Units for the allocation of the money, she said.

As to the royalty payments for power subsidy, she said payment will be made by NNGPP to the host LGUs after its first year of operations.

It will be then be up to the Sanggunians of Bago and Murcia to determine how the royalties for subsidy will be allocated, she said.

The local councils can decide to turn over the royalties to the power coop supplying electricity to their residents so that subsidies can be deducted from individual bills, de Jesus said.

Or it can decide to apportion a certain percentage from the royalties to give rebates to industries that invest in their areas, she added.

Murcia Mayor Esteban Coscolluela said since NNGPP only has a capacity for 49 megawatts, the royalties his town would get could only be about P7 million that is not a very big amount to make an impact as a subsidy to residents electric needs.

De Jesus said aside from the royalties and one centavo per kWh benefit, the NNGPP also has a "Balik-Biyaya Program" that goes beyond its host barangays -- Brgy. Mailum in Bago City and Brgy. Minoyan in Murcia.

About P17.4 million in health, education, environment and infrastructure benefits have been given by PNOC EDC from 1993 to 2006 in Bago City and Murcia and nearby towns of La Carlota, La Castellana, Canlaon City and San Carlos City, de Jesus said. ?

PNOC EDC's education benefits are annual high school scholarships to 180 deserving students, and annual Energy Camp for qualified high school students, sponsorship of miscellaneous fees and school supplies to over 4,000 elementary students, English refresher courses for teachers and introduction of English Awareness Day in its host schools, ?

It also provides regular health and dental outreach projects and eye surgical missions, distributes seedlings / root crops to farmers in host communities, provides community water systems, footbridges and concrete pathways and pavements, and has reforestation programs.*CPG

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