The situation is significant because power being supplied by NPC-controlled power plants is relatively cheaper compared to power supplied by independent power producers (IPPs). This is because approximately 66.51% of the power supplied by NPC comes from the Agus and Pulangi Hydroelectric Power Complexes (APHC). Having a majority of its power supplied by hydro power plants enables NPC to blend their electricity rates with the other sources of power like diesel and coal, resulting to a much cheaper electricity rates for NPC transitional power supply
agreements. Lastly, the Mindanao power grid is still separate from the entire national grid. Through grid interconnection, the Luzon grid is already connected to the Visayas grid via submarine transmission cables. The Mindanao grid has yet to be connected to the Visayas grid, hence the power supply in the island is sourced solely from power plants located and connected to the Mindanao grid. Mindanao therefore has no access to the surplus power produced in Luzon or Visayas.
THE AGUS-PULANGUI HYDROELECTRIC POWER COMPLEXES Figure 2. Map of Agus and Pulangui Hydroelectric Power Complex
Source: Google Map
The Agus Power Plant Complex consists of six (6) cascading power plants snaking from the mouth of Lake Lanao in Marawi City down to the majestic Maria Cristina Falls in Iligan City. Strategically located along the Agus River, these hydroelectric power plants provide the bulk of cheap and reliable hydroelectric power supply to the Mindanao grid. These hydroelectric power plants are: Agus I, Agus II, which are located within the ARMM territory; and Agus IV, Agus V, Agus VI and Agus VII which are outside the ARMM territory. The Pulangui IV is a 255-MW hydroelectric power plant
located in Maramag, Bukidnon. With three (3) generating units, the Pulangui IV HEP is a run-off the river type of power plant using the most advanced hydroelectric power technology. It was commercially operated on December 21, 1985 and since then, it had generated more than 24,742,534 MWH. Pulangui IV, unlike the other hydroelectric plants being considered in this study is not on the Agus River and does not derive its water from Lake Lanao. It is currently outside the territory of ARMM.
Agus VII Hydroelectric Power Plant, Fuentes, Iligan City
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