AP Renewables, Inc. Issues Fifth Disconnection Notice to Abreco

AP Renewables Inc. (APRI) issued a fifth disconnection notice to Abra Electric Cooperative (Abreco) dated December 17 after the cooperative failed yet again to fulfill its commitment to the power generation company. The disconnection is scheduled at 12 noon, December 27, 2012.

Last December 10, APRI suspended its power deliveries to Abreco due to pending financial obligations amounting to P20.2 million and non‐compliance to the settlement agreement.

Power was reconnected the next day after payment for past due billing was made. An additional condition to the reconnection was for Abreco to pay its November billing via regular installment starting December 12 until December 24, and that there would no longer be any instance of non‐compliance to the agreed schedule.

However, Abreco missed the first three installments for December 12, 13 and 14.

Abreco was also supposed to process their membership to the Wholesale Electricity Spot Market (WESM) by December 15, as part of the settlement agreement. This will allow the cooperative to have an option for their power supply via the spot market. Again, Abreco failed to act on this commitment.

Moreover, the required Security Deposit that should have been posted in December 2011 per contract has not been provided for.

“As much as we want to continue supplying power to the people of Abra, the continued failure of Abreco to follow its obligations has forced us to issue this 5th disconnection notice,” APRI Senior Vice President Juan Alfonso said.

“We appeal to Abreco to abide by their commitment to APRI and once and for all resolve this recurring issue so the people of Abra will have their well‐deserved security in their power supply.”

APRI operates the Tiwi‐Makban geothermal power plants in Batangas, Laguna and Albay. It supplies one hundred percent of the power needs of Abreco, which serves the whole province of Abra.

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