Formerly Salcon Power Corporation, SPC Power Corporation (SPC) was incorporated on March 11, 1994. It is a venture company organized by members of the Salcon Consortium which entered into a Rehabilitation, Operation, Maintenance and Management (ROMM) agreement with the National Power Corporation (NPC) on March 25, 1994 for the purpose of undertaking the ROMM of the 203.8 megawatt (MW) Naga Power Plant Complex in Colon, Naga, Cebu. SPC has authorization to sell all of the electricity generated from the Naga Power Complex to NPC under a take-or-pay agreement.
The ROMM Agreement provides that SPC shall, at its own cost, rehabilitate, operate, maintain and manage the power complex over the cooperation period of 15 years (up to 2009). The Company shall receive fees from the NPC, its sole customer, for the conversion into electricity of fuel supplied by the latter at no cost to SPC throughout the cooperation period. Moreover, the fees are subject to an agreed energy minimum off-take (EMOT), which is the minimum guaranteed energy purchase by the NPC on a take-or-pay basis. The Cooperation Period for the Land-Based Gas Turbines (LBGTs) ended on May 29, 2009 were turned over to NPC as provided for in the Agreement. In order to ensure system stability and security of electricity supply in the Visayas grid, provide sustained power service to the public, and prevent deterioration of the LBGTs before privatization, the Power Sector Assets and Liabilities Management Corporation (PSALM) and SPC entered into an Operation and Maintenance Services Contract (OMSC) for SPC to operate and maintain the LBGTs for a period of six months from May 30, 2009. SPC shall receive service and operating fees for maintaining and operating the LBGTs as provided for under the OMSC. On October 15, 2009, the contract period of the OMSC was extended further for two months until January 29, 2010.
On January 29, 2010, SPC acquired the LBGTs for strategic purposes as these are located in the power complex that is presently occupied by SPC in its operation of the Cebu Thermal Power Plants and the Cebu Diesel Power Plants under the ROMM agreement.
SPC’s subsidiaries are Bohol Light Company, Inc., SPC Island Power Corporation, SPC Malaya Power Corporation, SPC Electric Company, Inc., and SPC Light Company, Inc. SPC also maintains equity investments in Mactan Electric Company, Inc. and KEPCO SPC Power Corporation.