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HomeThe RegionNorthern MindanaoMisor town taps DOE circular to get Steag’s profit share

Misor town taps DOE circular to get Steag’s profit share

The heavy equipment were purchased through Villanueva LGU's share from STEAG State Power Inc. under Department of Energy ER 1-94 guidelines. Leading the ceremony are STEAG State Power Inc. community relations manager Ma. Teresa Alegrio (second from left) and Councilor Valeriana Ricacho representing Villanueva LGU (fourth from left). PHOTO BY MARK FRANCISCO


THE municipality of Villanueva in Misamis Oriental is starting to utilize a little known Department of Energy (DOE) circular that allows it to get share of the humongous profits of STEAG State Power Inc. which has been operating a 232MW coal-fired power plant within its vicinity for 12 years now.

Speaking during the turnover of heavy equipment by STEAG State Power Inc. to the local government of Villanueva last Monday, Villanueva municipal engineer Juan Tagam said that DOE Energy Regulation 1-94 allows it to get one centavo per kilowatt hour of electricity it generated.

ER 1-94 was issued by DOE in 1994 to recognize and provide recompense for the contribution made by the host local government units (LGUs) where a power plant is operating.

In 1996, STEAG State Power Inc. began operating the 232MW coal-fired power plant in Villanueva, encompassing the barangays of Balacanas and San Martin.

Under ER 1-94, one centavo per kilowatt hour of the electricity sales shall be set aside to the host LGU, in this case, Villanueva to fund various projects such as infrastructure, environment enhancement projects, livelihood projects, reforestation and watershed management projects and health-related projects.

In this case, Tagam said that the backhoe and road roller they received from STEAG State Power Inc. will be used in the various ongoing infrastructure projects that the municipality has implemented and will continue to implement in 2019 according to their annual investment plan.

The heavy equipment, totaling P11.45 million, were received by Councilor Valeriana Ricacho and handed over by STEAG State Power Inc. community relations manager Ma. Teresa Alegrio.

Alegrio said that the municipality has already incurred P55 million worth of receivables from the power firm due to ER 1-94.

Aside from proceeds emanating from ER 1-94, Villanueva continues to enjoy other corporate social responsibility (CSR) projects from STEAG State Power Inc. such as college scholarships, Basic Education school feeding, two livelihood enterprises and a 104-hectare mangrove reforestation, among others.

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