About Us
Company Profile:
PACERM-1 Energy Corporation was incorporated and registered with the SEC on March 4, 2013, under Registration No. CS201328892. Its primary purpose is to generate power through the use of diesel power or other non-renewable and renewable energy resources such as wind, solar, ocean and biomass energy. The Company’s principal place of business is at its plant located in Zone-1 Brgy., Kibonbon, El Salvador City, Misamis Oriental. The Company is utilizing a diesel power plant with a maximum 10.5MW capacity. This power plant is used for regional national power grid peak shaving, consisted of three 3500kw diesel generating set burning heavy fuel oil. This generator set adopts elastic installation mode, in accordance with current international trends, compared meanwhile decreases the noise and vibration during the operation of diesel generating set.
On June 13, 2013, the Company entered into a Power Supply Agreement (PSA) with its major stockholder, MORESCO-1 for the supply of its peaking load requirement consisting of 10.5 MW of diesel power generated electricity covering a term of fifteen (15) years commencing from the start of its commercial operations. This plant is embedded in MORESCO-1’s distribution system. On June 25, 2013, this contract was jointly filed by MORESCO-1 and PACERM-1 for approval by ERC. The latter provisionally approved the PSA on October 7, 2013. This includes the rates that will be regularly billed to MORESCO-1 on a monthly basis.
In consideration of this PSA, PACERM-1 amended its Articles of Incorporation on August 20, 2013, to increase its authorized capital stock from ₱ 80 million to ₱ 250 million in order to provide equity for the acquisition of the 10.5MW diesel powered plant costing around ₱ 552 million. The SEC approved this increase on July 11, 2014.
On August 27, 2014, the Company entered into a contract with Ningbo CSI Power & Machinery Group Co., Ltd, a foreign company based in the Republic of China for the Engineering, Procurement and Construction of three (3) units diesel power generating plant with all its accessories costing around ₱ 552 million. The contract provides a duration of seven (7) months for the construction of the plant and additional thirty (30) days for delivery to the Company’s plant site. The whole project was officially turned over as completed to the Company on August 30, 2016. During the remaining months up to the end of 2016, the Company undertook the testing and commissioning in preparation for the start of its commercial operation. As required by ERC’s regulation, the Company have applied for a Certificate of Compliance (COC) with the latter for it to be authorized to start its commercial operations. The COC was approved by ERC on December 26, 2016 and the Company officially started commercial operation on January 1, 2017 and started billing MORESCO-1 at power rate as already approved by ERC. The COC will be effective for the next five years and have already expired on December 31, 2021. The Company had already filed for renewal for another five years but ERC have only issued a provisional COC until August 27, 2023 pending compliance of the 15% public offering which needs to be registered and approved by the SEC.
The Company is majority owned by MORESCO-1 and Mr. Juanito Yu who collectively own 92.33% of the Company’s outstanding capital stock. MORESCO-1, is one of the pioneer electric cooperatives in the Philippines and is still a leading electric cooperative in the country after around 54 years in operation with exemplary consistent performance in terms of low system loss, high collection efficiency, among other performance standards. Mr. Juanito Yu is also an outstanding businessman as supplier of mostly electrical equipment, poles, transformers, etc. The remaining 3.56%% is owned by the public mostly present and retired MORESCO-1 employees.
