SP Tabuk recommends considering BHEPP, NIA explanation on business permit suspension

Tabuk City, Kalinga – Members of the Sangguniang Panlungsod, during the August 26 regular session, has moved to file a resolution to recommend the local chief executive to ‘seriously consider’ the explanations of Bulanao Hydro Electric Power Plant (BHEPP) Manager Daniel Peckley Jr. and the updated recommendations of the National Irrigation Authority as a defense against the issues raised by a group from the Irrigators Association and rice farmers.

Councilor Dick Bal-o during the session moved for the recommendation having heard the side of the BHEPP, NIA and to include the Kalinga Apayao Electric Cooperative (KAELCO) which he said are ‘meritorious,’ that it should be taken into consideration with regards to the temporary suspension of BHEPP’s business permit.

“We must also recognize, a meritorious met daytoy argument ni Mr. Peckley, and substantially a makitak nga awan met legal basis tayo,” he said as he moved that a resolution “be enacted by the august body, addressed to the city mayor, for the mayor to seriously consider the merit of the stand or position of DPJ.”

Councilor Zorayda Mia Wacnang in the addendum, moved “for the mayor to also seriously consider the updated recommendations of the NIA” saying that “it’s not in our hands to say whether it has been complied with or not because remember, the tenor of our suspension, where we recommended the suspension of the business permit until such time that all the matters (in the NIA report) are addressed."

"Now, we have the updated NIA findings ket diyay kuma ti i-focus tayo nga ibaga ken mayor because we do not have any basis to say otherwise. This is to direct the attention of the executive, not only to the position of DPJ but the status update of NIA with regard to the problems raised by the IAs and the farmers," Wacnang said.

The SP on August 5, 2021, recommended the suspension of the BHEPP business permit having heard the allegations of IA’s and farmers.

As recalled, Peckley, in his letter dated August 14, requested the Council to consider withdrawing the resolution earlier submitted based on the fact that the recommendation was made without following “due process” with the letter being tackled by the council on August 19, they decided to refer the request of DPJ to the Mayor’s office and gave him a chance to explain his side on the issues brought by the Ais and farmers to the City Council.

Peckley, along with the NIA and KAECLO, clarified the issues during the regular session on August 26, 2021. Peckly pointed out that the complaints and petitions have already been fully addressed, based on the letter communicated by NIA CAR Regional Manager Benito T. Espique Jr. dated 16 August 2021 to Hon. Martinez T. Vicente.

Nine issues and concerns were raised during the Joint Investigation Team conference on August 25, 2021, and were also indicated in the said letter.

These include the Construction of the larger headgate of the BHEPP, Construction of perimeter fence enclosing the whole area of the power plant, Over-diversion of water to the BHEPP and Larger volume of water diverted at TSC #, Siltation along the Main Diversion Canal (MDC), Siltation along the lateral canal, Fluctuation of water diversion and Additional one (1) foot freeboard at the inlet of siphon at station 0+560, Padlock for the old TSC # headgate.

With said issues having been fully addressed by DPJ Engineers & Consultants, NIA in said letter recommended the continued operation of Bulanao Hydroelectric Power Plant (BHEPP BHEPP stating that the power plant “has no direct negative impact on the operations of Upper Chico River Irrigation System (UCRIS).”

Peckley said that it was also clarified in his letter that the allegation that BHEPP is causing reduction of irrigation water to Bulo, Agbannawag, Lacnog, and Nambaran, Tabuk City, and to Quezon and Mallig, Isabela is not true.

NIA, in the letter, explained that “The limited water discharge at the UCRIS Intake Dam during the dry season and the heavily silted irrigation facilities were the underlying facts why the supply of water cannot be fully maximized in the downstream areas.”

Here are other reasons stated by Peckley on why BHEPP’s business permit should not be suspended:

In NIA CAR RM Espique’s letter, NIA also finally realized that the imputations that over-discharge occur because BHEPP’s intake gate is bigger than the old intake of Tabuk Supply Canal-1 (TSC-1) and that the flow into BHEPP can be controlled at the intake, are WRONG. On 10 August 2021, we conducted field tests with NIA Kalinga Irrigation Management Office (KIMO) proving that flow regulation is carried out by the turbine vane/valve inside BHEPP’s powerhouse. Annex B contains scientific explanations and proof that regulation of water flow is through the turbine valve/vane. The main purpose of BHEPP’s larger intake gate is to reduce frictional (energy) losses in energy generation. It is not there to increase discharges beyond allowable into the BHEPP.

NIA also pointed out that flooding and overtopping downstream of the BHEPP in Bulanao Norte is due to surface runoffs brought by heavy rains and that the NIA cannot fully establish the connection between the operation of BHEPP and canal overtoppings.

The operation of BHEPP “significantly eases the loading” of the KAELCO 10MVA substation in Callagdao, Bulanao, “averting overloading and possible explosion of the substation” that could lead to prolonged brownouts in Tabuk City and the other service areas of KAELCO.

BHEPP generates cheaper and clean electricity for Tabukenyos. When we signed our Energy Supply Contract (ESC) with KAELCO in late 2011, the PhP5.20/kWh rate we offered was PhP0.60/kWh to PhP1.25/kWh cheaper than other suppliers.

In this contract, KAELCO shall receive 3% discount (called prompt payment discount (PPD)), when KAELCO pays within 2 weeks after we send our monthly billing. When the Energy Regulatory Commission (ERC) approved our ESC, the ERC reduced our selling rate to PhP5.0649/kWh. With the 3% discount, this rate becomes PhP4.9130/kWh. Please refer to Annex E for more information and details on the ERC approval of our ESC with KAELCO.

BHEPP delivers Free Reactive Power and Energy to KAELCO. KAELCO is at the end of the national grid and, as such, it experiences low voltages and frequency abnormalities. BHEPP produces Reactive Power (kVAR) and Reactive Energy (kVARh) that help stabilize and normalize the voltage and frequency of the electricity that KAELCO distributes.

Annually, Tabuk City receives from DPJ Engineers & Consultants around PhP600,000 to PhP700,000 as payment for Real Property Taxes, DOE ER 1-94 Benefits to Host LGU, and Business Taxes. Around half of this amount is related to the operations of BHEPP. Annex G contains proof of our payments and remittances in favor of the CLGU.

BHEPP pays annual service fees to NIA. While NIA no longer has revenues for the irrigation service it delivers to our farmers, BHEPP pays NIA between PhP400,000 to PhP600,000 thousand per annum for the use of the water to generate energy. Note that the water used by BHEPP to generate energy is neither reduced nor increased when it passes through BHEPP’s turbine.

Presently, BHEPP employs 30 personnel, most of whom are kailyans in Tabuk and Kalinga, for its 24/7 operations.

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