Meralco (MER/MERB)

[Spyfrat]

y up? tro sa evat?

[Smoothie]

ok eto ah, negative market sentiment pero net foreign buying of 18.5m, whats cooking here anyone?

[moneyp]

ang iniisip nga eh yung pricing for a noli presidency.

[Spyfrat]

iniisip ko kasi c kalesa buying, kung baga may underlying fundy paktor yan. kung lokal sana push sa merb, pd pa e speculate reason y up merb due 2 noli prexy. pabagsak na merb c kalesa lang buying na sumasalo dyan bago pa mag july 1 (evat implementation), so ruled out na natin yung tro sa evat paktor.
kung ginagamit lang c kalesa ng local via bvi accounts, then malamang noli paktor nga. pd rin pad dahil dami ni kalesa ng shares, dapat makalabas sya ng buhay. bantay lang mabuti baka pa done tru sa iba.

[Yamada Jiro]

I think MER/MERB could make a big comeback if they could do something similar to this...

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Google Searches Power Lines

By Rich Duprey (TMF Cop)
July 11, 2005

One of the more interesting technologies to bring high-speed Internet access to the masses got a boost last week when search engine leader Google (Nasdaq: GOOG) made an investment in startup firm Current Communications, which offers broadband over power lines (BPL) in partnership with Cincinnati-based utility company Cinergy (NYSE: CIN).

Along with Goldman Sachs (NYSE: GS) and Hearst Corp. (NYSE: HTV), the group invested a reported $100 million in a bid to allow the venture to accelerate its deployment of the emerging technology beyond the small offerings it has in Maryland and Hawaii.

Internet access over power lines is one of a handful of broadband access technologies competing for critical mass. WiMax, the successor to WiFi and dubbed "broadband on steroids," has gotten most of the attention these days, particularly with Intel (Nasdaq: INTC) releasing its Rosedale chip, which supports the technology. Like BPL, it's also been slow in development despite years of promise. Another possibility for bringing broadband to rural areas is the concept of floating suborbital, lighter-than-air dirigibles called "stratellites" to broadcast signals over hundreds of square miles. A prototype has been built by tiny GlobeTel, but actual deployment is still years away.

Most analysts think Google made this investment simply to continue expanding broadband access. The more people getting onto the Internet, the more likely they'll find uses for Google's varied services.

Power line broadband access transmits radio frequency signals over low- and medium-voltage power lines. Communication networks over power lines have been contemplated since the 1950s, but early BPL equipment created interference with emergency and ham radios. However, the FCC established regulations last year to limit that interference, and the newest technology automatically adjusts power levels to reduce the potential for its occurrence. Access would be possible simply by plugging a special adapter into a typical household electrical socket. Whether BPL will actually emerge as the third alternative to DSL and cable hinges a lot on whether the utility companies themselves invest in it.

A number of utilities are looking at possible investments, including Duke Energy (NYSE: DUK) and Consolidated Edison (NYSE: ED), both of which have teamed up with ISPs such as EarthLink to provide access to high-speed data services in limited amounts. That's good news for the ISPs, which lost the high-profile Brand-X case before the Supreme Court last month as they attempted to force cable operators to open their networks. They'll need to find new partnerships to offer their services; IBM just announced a joint effort with CenterPoint Energy in Houston to test and develop the technology.

As more large corporations invest in broadband over power lines, more consumers searching for an alternative will be able to find one.

[caleb]

MERB is up! any updates?

[Yamada Jiro]

SC denies with finality ERC appeal on Meralco rate hike

First posted 12:37pm (Mla time) Aug 11, 2005
By Tetch Torres
INQ7.net

THE SUPREME Court has denied with finality an appeal by the Energy Regulatory Commission (ERC) to allow the Manila Electric Company to implement a provisional rate increase.

In its 22-page extended resolution released Thursday, the High Court maintained that the ERC committed "grave abuse of discretion" when it allowed a 0.12-peso per kilowatt-hour raise by Meralco without the necessary consultations.

“The ERC unqualifiedly committed grave abuse of discretion when it failed to give petitioners an opportunity to make an informed judgment whether they will oppose the application or file a comment…," the high tribunal said in its ruling.

"The general rule that an adjudicatory administrative decision cannot be rested upon evidence obtained without the presence of and notice to the interested parties, and not made known to them prior to the decision, applies to decisions affecting the rates of public utilities, such as Meralco," the High Court said.

The case against Meralco before the Supreme Court however has been rendered moot with the private power firm's withdrawal of its petition for a rate increase.

But the High Court noted that it was important that ERC be familiar with its responsibilities, especially in implementing the EPIRA (Electric Power Industry Reform Act) law and its implementing rules and regulations (IRR).

The High Court said the ERC was wrong when it argued in its motion for reconsideration that they were not required to resolve motions filed by consumer groups before allowing the implementation of a rate increase.

“Proceeding from the directive under the implementing rules and regulations (IRR) that any provisional order issued by the ERC should be based not only on the application and its supporting documents, but also the comments or pleadings filed by consumers, it stands to reason that the ERC should have resolved the motions for production of documents filed by petitioners to enable them to file their comments or opposition to the application, more so because Meralco did not even publish its application for rate increase and thus did not give the public sufficient notice and basis for any comment or opposition,” the High Court explained.

The High Court also took note of the ERC’s "hasty" approval of Meralco’s application for provisional increase.

“The unwarranted precipitateness and heedless rush which attended the issuance of the provisional order certainly cast a gloomy cloud over the procedure followed by the ERC,” the High Court said.

The Supreme Court last year stopped the implementation of the rate increase after Freedom from Debt Coalition president Ana Maria Nemenzo, Akbayan party-list Representative Loretta Ann Rosales, Partido Manggagawa party-list Representative Renato Magtubo, Sanlakas party-list Representative JV Bautista, and Maria Theresa Diokno-Pascual questioned the ERC’s decision granting Meralco’s request for provisional increase.

[obelix]

Manila Electric Co. (Meralco) said its residential customers would have to pay a one-time fee of at least 8,000 pesos if they opt to avail of a new metering scheme that will let them purchase cheaper electricity during non-peak hours.

In a petition submitted to the Energy Regulatory Commission, the Philippines' biggest power distributor said installing the new meters would cost 32 billion pesos. That means each of its 3.9 million residential customers will have to spend around 8,000 pesos for each meter.

The company's commercial and industrial clients would have to pay 20,000 pesos for each new meter, it said.

"The implementation of the time-of-use (TOU) electricity pricing at the retail level would require the applicant to buy electricity meters with time stamping capability or TOU programmable static kilowatthour meters," Meralco said in its petition.

It said this new pricing scheme would require it to process and store additional data, and as such would entail additional investments for the company.

"In light of the foregoing operational implications, applicant is constrained to collect incremental metering and supply charges, as well as application fee, from the customers," Meralco said.

[obelix]

LOPEZ-LED Manila Electric Co. (Meralco) on Friday criticized a power consumer welfare organization for allegedly reviving an old issue over the company’s supply contract with the National Power Corp. (Napocor) that has long been settled.

In a statement, Meralco vice president for corporate communication Elpi Cuna Jr., accused the National Association for Electricity Consumer for Reforms (Nasecore) of merely “demonizing” the company by floating allegations over Meralco’s supposed failure to purchase power from Napocor ten years ago. Under an agreement, Meralco committed to buy at least 3,600 megawatts of electricity from Napocor annually.

Pete Ilagan, Nasecore president, claimed Meralco failed to uphold its commitment “in order to give way to the electricity that it contracted from Quezon Power [QPPL], Santa Rita, and San Lorenzo,” which are Meralco-owned independent power producers (IPP).

Cuna dismissed Ilagan’s allegations as rehashed and already moot and academic since there is already an existing dispute settlement between Meralco and the government power firm. In July a settlement agreement was signed by both parties, which bound the Lopez power firm to pay Napocor P20.05 billion within five to six years. The settlement was made possible by the mediation undertaken by former ambassador and ex-justice secretary Sedfrey Ordoñez and Mr. Antonio del Rosario, past President of the World Energy Council.

“The settlement will also benefit the government as it improves Napocor’s financial condition. Since it settles a very contentious matter between two major players in the industry, its approval will certainly boost the restructuring and privatization efforts of the government in the power sector, which will facilitate the introduction of retail competition” Cuna said.
--Niel V. Mugas

[Philinvestor]

MER and MERB are looking good at current levels. Next year's earnings are looking good with the change in basis of electricity pricing from RORB.

[spartan]

BUY NA BA?

[obelix]

By Rocel. C. Felix
The Philippine Star

Manila Electric Co. (Meralco) customers will be paying lower electricity bills this month as the country’s biggest power distributor will pass on to its customers the results of trimming both its generation and systems loss charges.

Meralco customers, for this month at least, will get a reprieve from surging electricity bills with households consuming an average of 200 kilowatthour (kwh) per month getting a reduction of as much P45.84 in this month’s bill as a result of the government’s "economic dispatch" scheme.

Customers with consumption of 200 kwh per month account for 31.6 percent of total usage, the biggest block among the power firm’s residential consumers.

Economic dispatch refers to the dispatch of power plants to achieve the economic operation and maintenance of quality, stable, reliable and secure power system, resulting in the least cost to the consumers.

As a result of the economic dispatch, Meralco generated a discount of 22.92 centavos per kwh.

Under the scheme, Meralco’s independent power producers (IPPs) will be dispatched to the maximum in the next two weeks as a trial run while the National Power Corp.’s (Napocor) power plants are undergoing maintenance.

The trial run will determine the appropriate dispatch priority of the generation plants.

Of the 22.92-centavo reduction, 19.43 centavos was attributed to the generation charge resulting from the higher dispatch of Meralco’s IPPs in August.

Meralco also said its lower rates this month is a result of the lower generation and systems loss charges. This will translate into decreases ranging from 0.33 centavos to 2.57 centavos for residential and other secondary customers.

Aside from this, Meralco’s discounts to its residential customers will go up by 36 centavos per kwh from P0.1997 to P0.2033.

Moreover, the bills of lifeline residential customers or those consuming 50 kwh and below will go down by P5.82 or 11.64 centavos per kwh. Those consuming 70 kwh will get a P10.52 reduction in their electricity bills or 15.03 centavos per kwh, while those consuming 100 kwh will get a reduction of P18.41 or 18.41 centavos per kwh.

On the other hand, customers with consumptions exceeding the lifeline level will have a reduction of 23 centavos per kwh. Those belonging to the other rate classes will experience the 19.43-centavo decrease in the generation charge and decrease in the system loss charge depending on voltage plus the franchise tax impact.

"The 19.43-centavo reduction in the generation charge was due to the increased generation of the independent power producers and the National Power Corp. in August as compared to that of July," said Meralco vice president for corporate communication Elpi Cuna.

The generation charge is the component of the Meralco bill that reflects changes in the generation costs of its suppliers, namely the IPPs and Napocor.

Meralco’s IPPs include Quezon Power, First Gas Santa Rita and San Lorenzo power plants. The power distributor buys about 40 percent to 50 percent of its power requirements from Napocor while the rest is supplied by its own IPPs.

Among the factors contributing to the changes in generation costs are the level of dispatch of the IPPs, the peso-dollar exchange rate, and fuel prices. The reduction also shows the full impact of the wet-season rates of Napocor.

[Samurai]

Power users likely to shell out P20B for Meralco — ERC

The Energy Regulatory Commission (ERC) said yesterday the P20 billion cost Lopez power firm Manila Electric Co. (Meralco) will incur from a settlement with state power firm National Power Corp. (Napocor) regarding a breached contract on power purchases would be borne by consumers ERC Chairman Rodolfo Albano, in a phone interview with the Tribune, said while the ERC is still reviewing the settlement case, “it is likely that (the cost from the settlement) will be passed-on to Meralco consumers,” saying the amount accounts for generation cost.

The National Association of Electricity Consumers for Reforms (Nasecore) insisted theP20 billion settlement cost should not be treated as power generation cost but liability of Meralco to Napocor that cannot be passed on to consumers.

Albano clarified that it is not the ERC that will decide on the legality of the P20 billion settlement agreement between Meralco and Napocor adding the case was brought to the ERC due to a petition for approval on the pass-on charge to Meralco consumers of the P20 billion representing power generation costs.

Oppositors to the settlement between the two firms said the agreement was illegal due to the huge amount involving this case.

In a previous hearing, representatives of the Phippine Chamber of Commerce and Industry opposed Meralco's move to settle its huge debts with Napocor.

The P20 billion debt represents the minimum charge Napocor should have collected from Meralco as a result of its failure to pay the minimum charge component of itsmonthly billing for a 10-year contract of supply of electricity (CSE) started since 1994.