Central Negros Electric Cooperative general manager Sulpicio Lagarde Jr. said the proposal of CENECO director Roy Cordova to the Energy Regulatory Commission to allow the implementation of the alleged 22 MW power sales contract between Manta Energy Inc. and CENECO is erroneously premised and devoid of moral grounds.

In his letter to ERC chairperson Zenaida Cruz-Ducut dated June 21, 2011, Lagarde said ERC Case No. 2011-053RC, involving the power sales contract between MEI and CENECO, is not pending approval by the ERC as it is under challenge, if not disputed by CENECO.

CENECO signed a power sales contract with iN2Power, not with MEI, so there is no power sales contract with MEI to speak of, he said.

The contract has repeatedly been resolved not to be honored by the Board of CENECO, for lack of authority, technical, engineering and rate impact studies to the apparent detriment of CENECO and its consumer members, he added.

Lagarde said considering that ERC has already approved a prior contract between CENECO with Kepco-Salcon Power Corp. involving 40 MW power supply, with a provision to increase the capacity with the same rate, it will be a waste if the 22 MW will not be utilized while the case is pending.*CGS

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