2016 ANNUAL REPORT
Hydropower is electricity generated by capturing energy from falling or moving water. In hydroelectric plants, a turbine converts kinetic energy from falling or moving water to mechanical energy, which is then converted to electrical energy through a generator.
Since they rely on water flow, hydroelectric plants do not directly emit greenhouse gases.

Subsidiaries

First Gen Hydro Power Corporation (FG Hydro), a 40 percent-owned subsidiary of First Gen, operates the 132- MW Pantabangan-Masiway hydroelectric power plant (PMHEP) complex in Nueva Ecija. The PMHEP complex is made up of two (2) cascading plants: the 120-MW Pantabangan hydroelectric plant, commissioned in 1977, and the 12-MW Masiway hydroelectric plant, commissioned in 1981.
PMHEP draws water from the Pantabangan reservoir that can hold up to three (3) billion cubic meters of water. To maximize the hydraulic potential of water for power generation, PMHEP cascades the water resource from the Pantabangan reservoir initially through its two (2) 60-MW units of Pantabangan upstream, and then through the smaller 12-MW Masiway plant downstream.
Meanwhile, the FG Bukidnon Power Corporation (FG Bukidnon), a whollyowned subsidiary of First Gen, operates the 1.6-MW Agusan run-of-river (ROR) plant, which is located in Damilag, Manolo Fortich, Bukidnon.

Pantabangan-Masiway

  • Despite lower average spot market prices, the plant’s higher dispatch and ancillary service revenues increased its revenue contribution by 21.3 percent or by PHP402.0 million.
  • The plant’s operating income increased by 40.7 percent or by PHP391.2 million due to lower costs of sales and G&A expenses, which were partially offset by higher depreciation expenses.
  • The plant’s net income increased by 59.8 percent or by PHP334.2 million, driven by higher revenues generated that was augmented by lower interest expenses due to reduced long-term debt balance and a voluntary debt prepayment of PHP1.0 billion.

Agusan

  • Due to higher generation and sales volume, the plant’s revenues increased by 4.2 percent or by PHP1.5 million.
  • The plant’s operating income slightly decreased by 1.0 percent or by PHP0.1 million due to higher G&A expenses.
  • The plant’s net income increased by 14.9 percent or by PHP0.7 million due to higher revenues.