GMPC gets license as Retail Electricity Supplier-ERC

ERC Chairman Rodolfo B. Albano, Jr. (center, left) awards the RES License to GMCP’s Senior Vice President Ariel Punzalan (center,right). Also present are (from left to right) Alejandro Z. Barin, Rauf A. Tan, Jose C. Reyes, and Maria Teresa A. R. Castañeda (ERC Commissioners), Mr. Steve Varberg, Project Manager, Vice President for Sales Arnel Bilaoen, and Atty. Lourdy Torres, General Counsel of GMCP.

The Energy Regulatory Commission (ERC) conferred a Retail Electricity Supplier (RES) license to GNPower Mariveles Coal Plant Ltd. Co. (GMCP) to join the three (3) earlier awarded RES licensees: GNPower, Trans-Asia Oil and Energy Development Corp.
(TA Oil), and Aboitiz Energy Solutions, inc. (AESI). The awarding ceremony was held on 09 January 2008 at the ERC Board Room.

“The entry of GMCP in the electric power industry is a welcome development as this signals the advent of customer empowerment through increased choices of suppliers,” ERC Chairman and CEO Rodolfo B. Albano Jr. said. As a licensed RES, GMCP is authorized to sell, broker, market or aggregate electricity to end-users in the Contestable Market where end-users can have a choice of a supplier of electricity.

The RES partnership is composed of GMCP as General Partner and GNPower Ltd. Co. as Limited Partner, incorporated in March 2007. GMCP was formed to engage in: (1) developing, financing, obtaining permits and licenses for constructing, owning, and operating a 2 X 300 MW clean pulverized coal-fired electric power generation facility, including any future expansion, and other assets including transmission and sub-transmission lines and jetties, in each case to be located in the Mariveles, Province of Bataan, and (2) obtaining, entering, into and performing any and all contracts and engaging in any and all transactions consistent with the foregoing purpose. GMCP intends to be the main generator or supplier of GNPower customers.

GMCP and the other RES licensees will be supplying the Contestable Market six (6) months after ERC’s declaration of commencement of Retail Competition and Open Access which can only happen upon PSALM’s completion of the two (2) remaining EPIRA (Electric Power Industry Reform Act) set conditions: (a) 70% privatization of NPC’s generating assets; and (b) transfer of 70% of the management and control of the total energy output of NPC power plants to the IPP Administrators.

“Customer choice, which is the ultimate goal of the electric power industry restructuring, will soon be realized. Electricity consumers and stakeholders should brace themselves for the demands and challenges that will come along with the new development,” Chairman Albano concluded.

January 14, 2008