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Natural gas

First Gen Corporation Seeks 15-Year Extension of Power Plant Contract with Meralco

Strategic Insights

— 2 min read

Lopez-owned First Gen Corporation is pushing for a 15-year extension of its power purchase agreement (PPA) with Manila Electric Company (Meralco) for the 1,000-megawatt Santa Rita natural gas plant in Batangas, with the contract set to expire this month. The facility, run by subsidiary First Gas Power Corporation, has been supplying stable baseload capacity to Luzon since 2000. First Gen President and COO Francis Giles B. Puno warned that without a contract extension for the Santa Rita Power Plant, the company may explore cost-cutting measures, such as temporarily mothballing or shutting down the facility for an extended period. The expiration of the power supply deal for the Santa Rita plant follows the earlier expiration of the San Gabriel plants contract with Meralco last year.

Key Takeaways:

  • First Gen Corporation seeks a 15-year extension of its power purchase agreement (PPA) with Manila Electric Company (Meralco) for the 1,000-megawatt Santa Rita natural gas plant in Batangas, which expires this month.
  • The plant has been supplying stable baseload capacity to Luzon since 2000 and is a crucial component of the country's power supply.
  • Without a contract extension, First Gen may explore cost-cutting measures such as temporarily mothballing or shutting down the facility for an extended period.
  • The expiration of the Santa Rita plant's contract follows the earlier expiration of the San Gabriel plant's contract with Meralco last year.
  • First Gen formally sought the extension from Meralco in April 2023, more than two years before expiry.
  • The company also wrote to the Energy Regulatory Commission (ERC) on May 22 and July 1, 2025, asking for confirmation that the renewal is valid and exempt from the Competitive Selection Process (CSP) normally required for new supply deals.
  • Former ERC Chairperson Monalisa Dimalanta reiterated that a formal process is required before any ruling can be made.

Statistics:

  • 1,000-megawatt: Capacity of the Santa Rita natural gas plant.
  • 2000: Year the plant began supplying stable baseload capacity to Luzon.
  • 15 years: Duration of the proposed contract extension.
  • 2023: Year First Gen formally sought the extension from Meralco.
  • 420 MW: Capacity of the San Gabriel facility, operated by First NatGas Power Corporation.
  • 2022: Year the San Gabriel plant's contract with Meralco expired.
  • 2023: Year First Gen sought the 15-year extension for the Santa Rita plant.
  • 2025: Year First Gen wrote to the ERC asking for confirmation that the renewal is valid and exempt from the CSP.

Sources:

  • Global Data Point. (2022). First Gen Corporation Seeks 15-Year Extension of Power Plant Contract with Meralco.
  • Manila Electric Company (Meralco).
  • First Gen Corporation.
  • Energy Regulatory Commission (ERC).

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