POWER SITUATION IN DAVAO ORIENTAL

DAVAO ORIENTAL ELECTRIC COOPERATIVE, INC.

A. DEMAND – SUPPLY POWER

DORECO currently has five power suppliers, namely Power Sector Assets and Liabilities
Management Corporation (PSALM), Therma South, Inc. (TSI), FDC Misamis Power Corporation
(FDC), GNPower Kauswagan Ltd. Co (GNPK), and Supreme Power Corporation (SPC). Table
1.1 below summarizes the power suppliers of DORECO.
As of today, only PSALM provides renewable energy to DORECO. The remaining power
suppliers are coal-based fire plants and diesel-fired power plants which source out their generated
power from non-renewable sources.
DORECO is moving towards purchasing power from renewable sources. It signed a
Memorandum of Understanding (MOU) with LGS Renewable Energies for an embedded, 1 MW
Mini Hydro Power plant at Barangay Osmeña in the Municipality of Governor Generoso, which
is expected to be operational by the year 2025.
Table 1.1

TYPE MAXIMUM PSA

NAME OF POWER TYPE OF PSA END
OF MW AS PER START
SUPPLIER TECHNOLOGY
SUPPLY PSA
Therma South, Inc. Base Coal 5 09/18/2015 09/17/2040
FDC Misamis Power Base Coal 6 4/26/2016 04/25/2031
Corporation
GN Power Kauswagan Base Coal 7 12/26/2018 12/25/2039
Coal Plant Ltd
Power Sector Assets and Base Mixed 4 4/26/2021 12/25/2025
Liabilities Management
Corporation
Supreme Power Peaking Diesel 11 09/11/2023 09/10/2038
Corporation
Total Contracted 33
Demand

For the year 2023, DORECO’s peak demand has reached 33.86. Considering that the current
contracted demand of DORECO is only at 33MW, DORECO sources the excess demand from the
Wholesale Electricity Spot Market (WESM) at market price.

B. MAJOR CHALLENGES

1. Power Quality

Voltage violations were reported and verified in several far-flung areas of Davao
Oriental. This is mainly due to the overextended distribution lines throughout the
province and the low receiving voltage from NGCP at the Pintatagan Metering Point.
Based on the NGCP Transmission Development Plan for 2022-2040, the 138KV is on
February 2025. However, to this date, the construction of the transmission line has not yet
commenced.
In response, DORECO has undertaken the following initiatives:

a) Energy Supply and Transfer Agreement between DORECO and Supreme

Power Corporation
On July 20, 2023, the Energy Regulatory Commission granted an interim relief under
a Notice of Resolution for ERC Case No. 2020-002 RC to DORECO and Supreme
Power Corporation (SPC) to implement the Electricity Supply and Transfer
Agreement (ESTA) for the 11.040 MW Bunker fired power plant.
Since the start of its operations on September 11, 2023, an increase in the voltage
delivery in the Mati Substation has been noted.

b) Capital Expenditure Projects

Several capital expenditure projects have been implemented for the improvement of
the voltage delivery in the province, including the following:

a. Uprating/Upgrading of Mati Substation – Provincial Hospital Line Section

b. Uprating/Upgrading of Lupon – Banaybanay Line Section

DORECO has also proposed to ERC the following capital expenditure projects to be
implemented for the years 2023 – 2026:

a. Construction of a New 10 MVA Bitan-agan Substation and 69KV

Subtransmission Line from Mati Substation to Sitio Bitan-agan
b. Construction of a New 10 MVA Governor Generoso Substation and 69KV
Subtransmission Line from San Isidro to Governor Generoso
c. Uprating of 4.205 kms Bobon-Tamisan single phase to 3 Phase Distribution
line
d. Upgrading/Uprating of Red Cross - Manay 46.861 Kms 13.2 KV Distribution
line
e. Uprating of 5.782kms single phase line to three-phase line from Highway-
Don Salvador.
f. Uprating of 3.132 kms Dawan-Mamali from Vee Phase Line to 3 Phase
Distribution line
g. Uprating of 5.807kms Mamali - Macambol Single phase line to Three phase
Line
h. Uprating of 4.364 kms Crossing Libudon - Proper Libudon Vee Phase line to
three-phase line
i. Construction of 69 KV Sub-transmission Line from San Bitanagan to Manay
and Installation of 5 MVA Manay Substation
j. Uprating of Cateel Crossing to Aliwagwag Single Phase Line to Three Phase
Line
k. Upgrading/ Uprating of Manay to Zaragosa Three-Phase Line
l. Upgrading/Uprating of Piso to Maputi Three-Phase Line
m. Uprating of Pundaguitan to Parola Single Phase Line
2. Power Reliability

Power outages in Davao Oriental are divided into two main categories:
(1) Scheduled power interruptions and (2) Unscheduled power interruptions.

Scheduled power interruptions are typically scheduled by Davao Oriental Electric

Cooperative (DORECO) for purposes such as maintenance, vegetation clearing, line
rehabilitation, and line upgrades. There are occasions when scheduled outages are
initiated by the National Grid Corporation of the Philippines (NGCP). When NGCP
schedules power interruptions, DORECO also performs field activities on its power lines.
On the other hand, unscheduled power interruptions primarily result from obstructions on
power lines caused by vegetation. Davao Oriental has an abundance of coconut trees,
fruit-bearing trees, falcata, and other tall vegetation. Sometimes, these trees are uprooted
and impact DORECO's electrical lines, as depicted in the provided images. A small
percentage of these unplanned outages stem from equipment malfunctions. Additionally,
there are instances of unplanned outages that are transient in nature, and their exact
causes remain unidentified.

Effects of Power Outages

Power disruptions have diverse impacts on the inhabitants of Davao Oriental. Primarily, they
can lead to disruptions in business activities, particularly for enterprises requiring an
uninterrupted power supply, such as tourism facilities, manufacturing units, printing ventures,
and others. The repercussions extend to individuals engaged in online professions and
students participating in virtual classes. Furthermore, the consequences of power interruptions
are felt by consumers dependent on electricity to operate medical equipment and even for
basic everyday conveniences.
Actions Taken

a) Clearing Activities
Acknowledging the significance of maintaining a steady and dependable power
supply, DORECO has initiated numerous measures to mitigate the likelihood of
power interruptions. As part of these efforts, DORECO has significantly intensified
its vegetation-clearing endeavors in diverse areas throughout the province.

b) SUGDAN sa Barangay Program

In the sincere belief that empowerment of member-consumer-owners is critical in
total rural electrification, DORECO has initiated and signed Memoranda of
Understanding (MOU) with several barangay leaders through the “Sugilanon sa
Daghan Napasug-an sa DORECO alang sa Kalambuan sa Baryo” or SUGDAN sa
Barangay Program. The MOU seeks to empower barangay leaders and their
constituents to conduct clearing activities in their own localities. This will improve
the reliability of power and craft a stronger relationship between DORECO and its
valued member-consumer-owners.
As of date, DORECO has established barangay line-clearing partnership with the
following barangays:

 Barangay San Miguel, San Isidro, Davao Oriental

 Barangay Sto. Rosario, San Isidro, Davao Oriental
 Barangay San Maag, San Isidro, Davao Oriental
 Barangay Sudlon, San Isidro, Davao Oriental
 Barangay Maganda, Tarragona, Davao Oriental
 Barangay Libudon, City of Mati
 Barangay Mamali, City of Mati
 Barangay Sanghay, City of Mati
Aside from these, the following barangays have also signified their interest to
establish a partnership with DORECO:

 Barangay Buso, City of Mati

 Barangay Macambol, City of Mati
 Barangay Danao, City of Mati
At this time, invitation letters requesting partnerships for barangay line clearing have
already been sent to several barangays, and DORECO is currently waiting for their
responses.

c) Request for Assistance from Local Government Units

In spite of the enactment of Republic Act No. 11361, commonly known as the Anti-
Obstruction of Power Lines Act, DORECO has still encountered situations where
private landowners are reluctant to comply with DORECO's requests to trim tall
vegetation encroaching upon the clearance area of its power lines. As a response,
DORECO has sought support from local government units (LGUs) to aid in the
enforcement of this legislation. To date, the following LGUs have demonstrated their
commitment by passing resolutions to adopt R.A. 11361:
  The City of Mati has adopted R.A. 11361 through Resolution No. 135, Series of
2023.
 The Local Government Unit of Boston has embraced R.A. 11361 with the
adoption of Resolution No. 14-509-07-2021, Series of 2021.
 The Local Government Unit of Lupon has adopted R.A. 11361 through
Resolution No. 2023-256
 The Local Government Unit of Governor Generoso has adopted R.A. 11361
through Resolution No. 2023-146

3. Energization of Sitios in Davao Oriental

In line with its mandate of total rural electrification, DORECO has continually energized
sitios all over the province.
The list below shows the Sitio Electrification Program projects that were completed and
energized for the year 2023.

 Purok Kabaywa, Cabuaya, City of Mati

 Purok Tres Rosas, Cambaleon, San Isidro
 Sitio Magtunod, Mikit, Baganga
 Passby: Purok Tambinasan, Mikit, Baganga
 Sitio Hanginan, Pichon, Caraga
 Purok Kapayas, Caningag, Caraga
 Purok Canube, Santa Felomina, Cateel
 Passby: Purok Kaymito, Santa Felomina, Cateel
 Purok 7, Lukasan, Malibago, Cateel
 Passby: Purok 6, Malibago, Cateel

Whereas, the following list contains the Sitio Electrification Program projects to be
implemented in the year 2024.

 Sitio Lib-og, Barangay Mercedes, Caraga

 Purok Palscam, Barangay Mercedes, Caraga
 Purok Narra, Barangay Santiago, Caraga
 Purok Bagumbayan, Barangay San Alfonso, Cateel
 Purok Pangi, Barangay Abejod, Cateel
 Purok Magubahong, Barangay Abejod, Cateel
 Purok Tagtipdas, Barangay Abejod, Cateel
 Purok Magac, Barangay Abejod, Cateel
 Sitio Saanay, Barangay Abejod, Cateel
 Sitio Babadon, Barangay Carmen, Cateel
 Sitio Weig, Barangay Carment, Cateel
 Sitio Lusong, Barangay Maag, San Isidro
 Purok Maligaya-4, Barangay Sainz, City of Mati
 Purok Dahlia Pangyan, Brgy. Don Mariano Marcos, Lupon
 Purok Sto. Niño, Barangay Tagboa, Lupon
 Purok Madasigon, Sitio Pugadsayaw, Brgy. Maputi, San Isidro
In addition, 1,497 households in the municipality of Governor Generoso were energized last
August 2023 as recipients of the National Intensification of Household Electrification (NIHE)
Program of the Department of Energy.