History National Power Corporation

1 history

1.1 creation
1.2 revising charter
1.3 npc placed in charge of electrifying philippines
1.4 increasing capitalisation
1.5 take-over of meralco
1.6 npc takes on other power generators
1.7 increase in generator capacity
1.8 national power under epira

1.8.1 small power utilities group
1.8.2 watershed , dams management

history
creation

the national power corporation organized non-stock, public corporation under commonwealth act no. 120 approved president manuel l. quezon on november 3, 1936. law nationalized hydroelectric industry , reserved use of npc, streams, lakes , springs in philippines power may developed, subject existing rights. in 1960, under republic act no. 2641, converted wholly government-owned stock corporation capitalization of ₱100 million.

revising charter

the authorized capital stock increased ₱250 million under republic act no. 3043 passed on june 17, 1961 , further increased ₱300 million under republic act no. 4897 approved on june 17, 1967. major event in corporate existence of npc passage on september 9, 1971 of republic act. no.6395 gave birth revised charter npc. under revised charter, activities , functions of corporation decentralized , carried out 3 regional offices established in luzon, visayas , mindanao. charter, likewise, extended corporate life of npc year 2036.

npc placed in charge of electrifying philippines

with government’s aim of promoting economic welfare of country through attainment of total electrification, in rural areas, presidential decree no. 40 issued on november 7, 1972 setting of island grids central/linked-up generating facilities , cooperatives distribution of power. npc, authorized implementing agency of state, entrusted responsibility of setting transmission line grids , construction of associated generating facilities in luzon, mindanao, , major islands of country, including visayas.

in january 1974, president ferdinand marcos issued presidential decree no. 380 placing npc directly under office of president. move intended make npc more efficient implementing arm of government in conservation , utilization of water resources , in total electrification of country. decree further boosted npc’s capitalization ₱2 billion , principal indebtedness, exclusive of interest, ₱3 billion.

in december 1975, pursuant continuing effort of president make government machinery more attuned , responsive needs of service , of people, president decided attach npc department of public works, transportation , communication. transfer effected letter of implementation no.31 dated december 11, 1975, pursuant presidential decree no.830 dated november 27, 1975 extends ‘flexible , continuing authority president restructure office of president.”

increasing capitalisation

the presidential action giving added impetus corporation in implementation of power development program embodied in presidential decree no.938 issued on may 27, 1976 further increased npc’s capitalization ₱8 billion , principal indebtedness ₱12 billion. authorized npc contract foreign loans of u$4 billion. corporation’s accelerated offers tap possible sources of power, particularly entry nuclear power development, necessitated greater strength , vigor in financial capacity. on october 6, 1977, creation of department of energy under presidential decree no. 1206, npc attached new department purposes of policy coordination , integration sectoral programs.

in move underscored critical importance of power country’s economic progress, , in show of confidence in capability of npc rise challenge of times, president marcos increased capitalization of npc ₱50 billion. record-setting action of president made through issuance of presidential decree no.1360 on april 24, 1978, established npc biggest corporation in country.

the increase in npc’s capitalization ₱50 billion deemed imperative enable npc pursue accelerated power expansion program involving construction of generation facilities in luzon, visayas , mindanao , setting of appurtenant transmission line grids. under previous decree, (p.d.no.938) issued on may 27, 1976, capitalization of npc fixed @ ₱8 billion while ceiling on foreign borrowing pegged @ u$4 billion. these amounts, believed, no longer sufficient year 1987 enable npc pursue , complete power expansion program.

the increased in capitalization expected afford greater degree of corporate flexibility in implementation of power program, in corporation management. in simultaneous development, president appointed gabriel y. itchon deputy minister of energy , concurrently president , chief executive officer of national power corporation, first ever appointed in such capacity in 43-year history of corporation. under p.d. no.1360, designation of president replaced of general manager head of office. along appointment of itchon npc president appointments of top management men positions of senior vice president, vice president, , department manager part of reorganization move make corporation more responsive , attuned needs of service , demands of times.

take-over of meralco

in november 1972, when president issued presidential decree no. 40, national power corporation authorized “to own , operate, single integrated system, generating facilities supplying electric power entire area embraced grid set npc.” contemplated integrated in system meralco generating units, , began long drawn-out negotiation sale , turnover of these units government @ terms , conditions acceptable parties.

finally, on june 11, 1978, such negotiation reached successful climax signing of contract between government , meralco purchase of latter’s power-generating units @ total cost of ₱1,100 million. contract signed finance minister cesar e.a. virata, representing government, , cesar c. zalamea, chairman of meralco, energy minister , np board chairman geronimo z. velasco, energy deputy minister , npc president gabriel y. itchon, ibp assemblyman emilio m. abelo, sr. , meralco treasurer antonio ozateta witnesses.

the government purchase of thermal plants of meralco in line npc policy centralize generating capacities in luzon under operations part of unification of so-called luzon grid. such centralization aimed @ providing energy throughout philippines , building additional generating capacity electricity in pursuance of government objective of total electrification of country.

meralco units covered initial sale of malaya 1 in pililia, rizal; gardners 1 , ii , synders 1 , ii in sucat, parañaque, , fuel storage facilities in san pascual, batangas. negotiations meralco sale began in 1975 when meralco approached government assistance in view of financial problems made difficult meralco meet huge debt service requirements. consequently, inter-agency government panel formed conduct valuation studies.

on august 11, 1975, first memorandum agreement between government , meralco signed executive secretary alejandro b. melchor, jr. , former meralco chairman emilio m. abello, sr. through years, composition of government panel underwent several changes brought retirements service, shifts in assignments , appointments of technical men. representations npc started ramon r. ravanzo in 1975, conrado d. del rosario later year, , on president gabriel y. itchon.

the historic edsa revolution in february 1986 swept corazon c. aquino power becoming first woman president in asia. in 1986, npc president gabriel y. itchon retired government service. president aquino appointed former npc general manager conrado d. del rosario new npc president assumed office may 1986 november 1987. del rosario replaced ernesto m. aboitiz when latter appointed president aquino npc president in november 1987. @ same time, meralco returned lopez family ownership government removed npc control.

npc takes on other power generators

the significant achievement of npc in 1988 signing of memorandum of agreement national electrification administration (nea) takeover npc of generation facilities of electrical cooperatives in remote islands of archipelago. president aquino’s directive pegged electricity rates nationwide no more ₱2.50 per kilowatt-hour , impelled npc take on electricity production activities of cooperatives in small islands , isolated areas.

as of april 1991, npc has taken on generation facilities , technical operation of various electric cooperatives of 26 remote islands of archipelago. supportive of government’s policy of encouraging private sector investments, npc has finalized in 1989 private investors participate in electric power generation through schemes such co-generation, build operate transfer (bot), , build own operate (boo). directive bolsters national policy of encouraging active private sector involvement in major economic activities of country, recognizing private sector can partner in nation-building.

increase in generator capacity

napocor station @ binalonan, pangasinan (dusk portrait).

in addition, proposals various bot , boo proponents entertained in 1988 , in part of 1989. culminated in signing end-1988 of bot agreement between npc , hopewell energy management limited of hong kong installation of 2 110-megawatt turbine plants in luzon. gas turbines have been favored on conventional power plants due simplicity in construction, quick start capability, , ease of connection power grid , shorter installation period. ultimate goal of npc achieve total electrification before 21st century. such ambitious plan, npc envisioned interconnection of all-independent grids in luzon, visayas , mindanao through advanced system of overhead lines , submarine cables. in 1990, negros-panay interconnection project put operation. 18.3 km (11.4 mi) submarine cables interconnecting 2 islands enable npc utilize excess steam palimpinon geothermal power plant in negros. project part of master plan develop electric superhighway entire country. major component of project interconnection of luzon grid leyte large steam field of tongonan located.

hand-in-hand efforts of ensuring efficient power service, npc endeavoured assist in development of communities situated in areas power plants , transmission line facilities located. on june 13, 1991, pablo v. malixi appointed president corazon c. aquino fourth president of corporation replacing ernesto m. aboitiz named chairman of national power board.

in same year, national power corporation installed , commissioned 11 gas turbine units throughout country meet urgent power supply deficiencies, caused extended dry spell. in addition, state-owned power firm installed 768 diesel generator sets (with total capacity of 19.7 kw) serve consumers in isolated islands – in line npc’s mission bring benefits of electricity farthest corners of country. there change in npc corporate leadership in 1993. dr. francisco l. viray named new npc president. took oath of office on may 18, 1993 @ malacañang president fidel v. ramos himself administering oath.

in september 1994, 17 months after, there change in corporate leadership. guido alfredo a. delgado, banker, assumed post of npc president @ oath taking rites held in malacañang on september 28. delgado sixth president, , @ 36, youngest assume headship of npc. succeeded dr. viray designated secretary of energy, vice former np board chairman delfin l. lazaro opted retire government service. npc concluded year 1995 total generating capacity of 9,507 megawatts (mw), 4.84% rise 1995 figure of 9,068 mw. due commissioning of number of power plants during year npc , independent power producers. likewise, total of 312 circuit km (195 miles) of new transmission lines put on country.

npc’s energy production rose 33,296 gigawatt hours (gwh) in 1995, 8.7% growth on year-ago figures, while energy sales grew 7.9% 31,031 gwh. expansion in production , sales matched rising demand power during year rose 10.68% 5,328 mw. in 1996, npc commissioned 10-kilowatt wind turbine power plant. in addition, 700-mega pagbilao coal-fired power plant built hopewell under build-operate-transfer scheme commissioned operation.

on september 19, 2008, energy secretary angelo reyes confirmed september 8 resignation health reasons, of incumbent napocor president cyril del callar, effective on september 30. eduardo ermita, on september 22, formally announced appointment of power sector assets , liabilities management corp. (psalm) officer froilan tampinco new npc head. on august 1, 2013, president benigno aquino iii appointed first-ever woman president of npc, ms ma. gladys cruz-sta.rita.

national power under epira

the passage of republic act 9136 or electric power industry reform act of 2001 has changed philippine energy landscape. national power no longer same corporate entity, epira mandating privatization of generation , transmission assets, save necessary missionary electrification. in 2012, national power reported net income of ₱398 million.

small power utilities group

through small power utilities group (npc-spug), national power continues pursue mandate provide electricity in off-grid areas, particularly in areas private investors hesitate come in due lack of infrastructure , political , security concerns. in 2008, nationalpower installed diesel power plants in following areas: cuyo, palawan (500 kw); (2) siasi, sulu (1,000 kw); (3) power barge 109 in tablas, romblon (1,000 kw) , uprated 3 dpps in marinduque. installed transmission lines in occidental mindoro , catanduanes , completed 4 substation projects in palawan , catanduanes. following year, npc able install 12,718 kw of new capacities in 34 spug areas nationwide, far north cagayan down basilan , sultankudarat in southern philippines. constructed 154 diesel-fired mini grids in 102 barangays in masbate under philippine rural electrification system (“pres”) project; energizing 4,394 households in 46 barangays in masbate, camarines sur, cagayan, antique , guimaras putting 1,052 kw in new capacity. done in support of doe’s rural area electrification subsidy (“raes”) program aimed @ providing basic electricity service in remote barangays through solar home systems, pv battery charging stations, micro-hydro, wind energy, diesel , hybrid facilities. in 2010, npc able install 6,528 kw in new capacity because of serious budgetary constraints. able complete pres project in masbate,with of 154 power plants , 5,219 solar home systems installed , in commercial operation. result, npc able light 18,000 homes in 128 barangays located in 14municipalities in masbate.

in 2011, npc installed 4,365 kw in new capacity in batanes, western samar, basilan , sultan kudarat. in 2012, company installed total of 14,186 kw of new , augmentation capacities in 21 different power plants , areas nationwide. 560 kw genset added burias dpp in masbate in september 2012. in october 2012, 600 kw genset added casiguran dpp in aurora , 2 x 500 kw genset @ viga dpp in catanduanes. in masbate, 6 new mini grids aggregate capacity of 420 kw started commercial operation in second half of 2012. in samar, households in 5 areas of 3 municipalities in western samar likewise enjoyed electricity first time starting may 2012; aggregate capacity installed 306 kw. remedial measure cope power demand in 8 spug areas aging gensets, national power resorted short-to-medium-term (one 2 years) genset rental. implemented lessen effect of power shortages in areas power plants have aging gensets. in 2012, total of 11,300 kw of additional rented capacity installed in 8 diesel power plants in batanes, aurora, palawan, romblon, masbate, siquijor, basilan, , sulu.

watershed , dams management

national power continues fulfill mandate manage 11 watersheds , 22 dams under stewardship. 2008 2012, npc able rehabilitate total of 2,608 hectares (6,440 acres) in watershed areas, through reforestation , agro-forestry initiatives. continues play role in supporting government’s drive towards climate change mitigation. @ same time, npc continuously updates dam safety protocols , flood control programs in keeping international best practices.