Monday, January 16, 2017

Inequality 31, Economics, politics and forcing equality

A number of my friends have posted in facebook in agreement with this article from The Economist, "To be relevant, economists need to take politics into account." so I will post to contradict it. This article or its title is misleading if not wrong because: 

(1) It is saying that economists writing about plain economics are not relevant, so to make them relevant, they must write about economics + politics + sociology + anthropology + history + genderology + ...?

(2) Consider a simple demand-supply price equilibrium theory. A big storm damaged crops in a major food producing region that substantially supplies food in M.Manila, so the supply goes down, the price goes up since demand remains the same. No need for politics, history, anthro, sociology, gender, etc. to inject into the analysis to make it relevant.

Now comes politics, government imposes price control on food items supplied by other regions not affected by that big storm "to protect the poor." Things become awful, formal supply goes down, turns to "black market" supply. It is politics inserted into normal economic phenomena that distort things. And people think economists should always factor in politics, history, etc. in an otherwise simple situation. Lousy.

(3) Economists who comment on political issues -- politics around the world, political ramifications of federalism and parliamentarism, revamp of the constitution, etc. -- then they must insert politics, history, etc. in their analysis.

Consider this paper, "Economics versus Politics: Pitfalls of
Policy Advice" by Daron Acemoglu and James A. Robinson, Journal of Economic Perspectives—Volume 27, Number 2—Spring 2013. http://economics.mit.edu/files/10403

"Our argument is that economic policy should not just focus on removing market failures and correcting distortions but, particularly when it will affect the distribution of income and rents in society..." (last par. of the paper)

Can people, economists "remove market failures"? Wow. Only central planners would think that way. Consider these:

1. Mr. X and his friends demand a 500 GB USB that is sold for only P1,000. Demand is there but supply is zero, so market failure.

2. Mr. Y and his friends supply a rice variety that is said to cure 10 types of common diseases and sold at P800/kilo, no one buys their rice. Supply is there but demand is zero, so market failure.

Anyone, anytime and anywhere can create a market failure, as shown by 2 examples above. Some guys like economists (and politicians, etc.) think they can stop or remove that? Wow.

On inequality, it's part of nature, it's good. Otherwise people will work only few hours a day and demand that their pay, their house, healthcare, etc should be at least 1/5 that of the privileges enjoyed by Bill Gates and Henry Sy or John Gokongwei, etc. to have equality in society. The world has progressed because of respecting inequality, not forcing equality like socialist countries.

Now consider this drama by Oxfam and many other groups, institutions like the UN. https://www.oxfam.org/.../just-8-men-own-same-wealth-half...


Ok, the incomes and wealth of Bill Gates, Zuckerberg, etc. have expanded up to the troposphere, did they make people's lives, our lives, poorer and lousier? Do we have lousy and despicable lives because Zuckerberg got richer each year because of facebook?

No. On the contrary, we enjoy more comfortable, more convenient lives because of the inventions of these super rich people. If people think that Zuckerberg et al are creating a more despicable world because of their inventions and companies, they better opt out of fb, youtube, google, iphone, etc because everytime they use those things, they contribute to further enrichment of these super super rich people.

The world enjoys more comfort, more welfare because of the innovations made by these super-efficient, super-ambitious and super-rich people. Soon people will be working only 4 or 3 days a week and still get high pay because of rising productivity (and rising inequality) introduced by those super-efficient people. We should support the expansion of more super rich people instead of demonizing them. The politics of envy is only for the envious, like Oxfam and the UN :-)

The only way to stop rising inequality is via dictatorship. Put a gun on people's heads and tell them to stop being too innovative, too inventive, too revolutionary in business, to stop and limit excellence.

Central planners would clap this scenario. They get huge pay and various political perks doing all types of social engineering to force equality in the world.
--------------

See also:

Saturday, January 14, 2017

BWorld 104, Top 10 positive news in Asian trade

* This is my article in BusinessWorld last January 04, 2017.


Global trade has significantly slowed down in 2015 which is ironic because it was the start of significant oil price declines. After recovering from the 2009-2010 global financial turmoil that started in the US, global exports reached $18.3 trillion in 2011, $19.0 trillion in 2014, but declined to $16.5 trillion in 2015.

Nonetheless, there are some good news in Asian trade which battled this global trend in export decline.

Below is my list of these positive developments.

1 China, Vietnam, Hong Kong, and the Philippines did not follow this global trend. Their exports in 2015 were higher than their 2011 levels. For the Philippines, exports reached $58.6 billion in 2015, higher than 2011’s $48.3 billion.

2 Many Asian economies remain leading exporters and importers in merchandise or goods trade, led by China, Japan, South Korea, and Hong Kong.

3 Five ASEAN countries are important players in global merchandise trade with at least $150 billion in exports. The Philippines is playing a far catch up with Indonesia and Vietnam.

4 In services trade (including revenues from tourism and business process outsourcing (BPO) firms) many Asian economies still remain part of the big- and medium-size players, at par or even larger than the average European economies. The $915-billion revenues in 2015 is for all 28 EU economies.

5 Within the ASEAN, the Philippines is a medium-size services exporter while Indonesia did not belong to the top 50 in 2015 (see Table 1).


6 In some sectors, the Philippines ranked #10 globally in 2015 in the exports of telecommunications, computer, and information with revenues of $3.5 billion, and #6 in exports of computer services with revenues of $3.2 billion.

7 Of the economic blocs and free trade areas (FTAs) in the world, ASEAN is the third biggest next to the European Union and North American FTA (NAFTA). They are followed by the Gulf Cooperation Council (GCC), European FTA (EFTA), SAARC Preferential Trading Arrangement (SAPTA), and Mercado Común del Sur (MERCUSOR).

8 An expanded ASEAN + 6 (China, Japan, South Korea, India, Australia, New Zealand) under the Regional Comprehensive Economic Partnership (RCEP) will easily overtake both the EU and NAFTA in total merchandise exports. Those six partners are huge exporters except New Zealand (see Table 2).


9 The statement “this is the Asian century” in terms of trade and GDP growth will become true starting this decade. The main factor to sustain this momentum is Asia’s huge and generally young population especially in India, Indonesia, Philippines, and Vietnam, comprising 1.7 billion people with an average age of only 24-25 years old which is one-half of the average age of Japan and many developed countries in Europe.

10 The statement “If America (or Europe) turns protectionist, Asia loses” is wrong. Whoever starts serious protectionism is the loser. Free trade creates good will with other countries while expanding the choices and options for local consumers and manufacturers, which expand their productive capacity.

Should Mr. Trump proceed with his campaign promise to ditch the Trans-Pacific Partnership (TPP), it can be good news for other Asian economies that are outside of the five Asian economies that are part of the TPP. They are expected to suffer some exports decline to big markets of the US, Canada, and Japan due to trade diversion from non-members to TPP members.

Freer trade and fewer restrictions in the movement of goods and people are becoming the norm in emerging and transitioning economies of Asia than in developed Asia, Europe, and America.

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers and a SEANET Fellow. Both institutes are members of Economic Freedom Network (EFN) Asia.
---------------

BWorld 102, Top 10 news of 2016, January 10, 2016 

Energy 89, DOE not concurring with PH's Paris agreement, good

Some PH Senators declared that the Senate will ratify the Paris Agreement of more expensive, unstable electricity "to save the planet" even if the DOE did not concur with it. Portion of the report said, "32 of the 33 agencies having already submitted their certificates of concurrence to Malacañang."
(Phl to ratify Paris climate pact in July, Philippine Star, January 10, 2017)

The agency or department that did not concur with the PH (actually CCC) commitment to the Paris Agreement is the DOE, thanks Sec. Cusi.

“In the Cabinet, officially I have the only department that has not concurred in the ratification of the climate [pact].”

“I cannot concur on the ratification of the climate change [pact] because that can be used against DoE in approving the kind of power plants that we are going to have,” he said.

Mr. Cusi said the country’s pledge to cut carbon emissions by 70% means reaching a level that has already been met -- in 2015.

“What does it mean? Wala na tayong gagawin [We can’t do anything],” he said, referring to curtailing the country’s development."

Many big countries like the US, Germany, UK, have not ratified their Paris commitment. Those who ratified are mostly small countries. $100 B a year of climate money transfer from developed to developing countries has become a huge extortion project that will produce huge disappointment from beggar countries. Almost ALL developed countries are already heavily indebted, they have huge public debts, don't have enough money for their own citizens. And they will give away huge money to developing countries, many of whom are led by despots and corrupt leaders, will not happen.

The degree of climate extortion varies. While the "consensus" is $100 B a year starting 2020, some UN officials and planet saviours want $500 B a year. Less flood or no flood or more floods; less snow, no snow or more snow, that money should be given to them.


As for energy prices, Meralco generation charges for Sept-Oct-Nov 2016 below. All these power plants are using coal and nat gas, except TMO, a peaking plant that uses oil. WESM prices are cheap, down to only P2.54/kWh last Nov. Which means FIT Allowance will be high so that pampered solar and wind plants at P8 to P10+ per kWh will remain "viable" through expensive electricity imposed on all energy consumers nationwide.


Sec. Cusi's energy realism should be supported against energy alarmism by other agencies and groups.
---------------

See also:
Energy 86, Germany's RE on a wild ride, December 30, 2016 

Wednesday, January 11, 2017

BWorld 103, How to improve the RORO system

* This is my article in BusinessWorld last December 28, 2016.


The Roll-on, Roll-off (RoRo) boat system of transporting trucks, buses, and cars from one island to another is among the best inventions for archipelagic countries like the Philippines. Vehicles go inside the boat, passengers come onboard, and the boat travels to another island where it docks, unloading passengers and their cars on the way to their destinations.

My first RoRo experience was in the late 1990s when I took the bus from Cubao to Iloilo City. It was an adventure to see for the first time Oriental Mindoro outside Puerto Galera, Panay island from north to south, and the Aklan-Capiz-Iloilo provinces. It was a 25-hour trip because there were few RoRo boats that plied the Batangas-Calapan then Roxas, Oriental Mindoro-Caticlan, Aklan routes. It was exhausting but fun.

My second RoRo experience was in 2003 when I traveled by bus from Sweden to Netherlands via Denmark and Germany. Our bus entered a huge boat somewhere in Denmark, the boat traveled to and docked in Hamburg, then we boarded the bus again and traveled to The Hague, where I visited a friend.

There was a big difference between the Denmark/Germany and Philippine RoRo system of course.

First, since the boats in the former are huge, the vehicles -- once onboard -- aren’t cramped unlike in local boats.

Second, waiting time at the port in Denmark was short and didn’t take hours.

Last Dec. 21, I drove again like December last year from Makati to Iloilo City with my family, lugging cargo that weighed 300 kilos. Since it was the holiday season, there were lots of travelers who took their cars, unduly extending the waiting time for vehicles to get onboard.

Now there are only three RoRo shipping lines plying the Batangas-Calapan route: Montenegro, StarLite, and FastCat. Last year, there was a fourth player, Super Shuttle, and there was a RoRo boat plying the Batangas-Muelle/Puerto Galera route. Both are gone now.

In Roxas port, a duopoly, Montenegro and StarLite shipping lines, serve the Roxas-Caticlan route now; last year, there was SuperShuttle as the third player.

When I arrived at Roxas port, there were many cars trying to get to the next Montenegro boat while StarLite ticket office was still closed, so I drove one more hour from Roxas to Bulalacao, Oriental Mindoro, to take the Bulalacao-Caticlan route that was served only by FastCat. So FastCat is the third player to serve passengers and vehicles going to Caticlan but it’s on a different, farther seaport.

For those planning to try this adventure for the first or second time, here are the costs to bring your car to Panay island.

1. Toll fees: Makati to Batangas via SLEx, SLEx extension, STAR tollways about P320.

2. Batangas port fees: Philippine Ports Authority (PPA) terminal fee for cars P129, for passengers P30/head, children below 12 years old are free.

3. Montenegro boat: P1,920/car (jacked up from P1,500 due to the Christmas season), passengers P192/head, P120/child from 7-12 years old while children 6 years and below are free. Car driver is also free.

4. Bulalacao port: PPA terminal fee for cars P129, for passengers P15/adult, P12/child.

5. FastCat boat: P3,380/car, passengers can take the economy, premium or business classes. The latter is P500/head, P400 for students, P250 for children. Car driver is free but only for economy seat. Upgrade to business class is additional P125.

6. Fuel/diesel, Makati to Iloilo, 500+ kms, depending on car fuel consumption. My pickup consumed about P1,000.

I spent a total of P9,000 all in all, one way, from Makati to Iloilo, which is cheaper than flying for four people -- my wife, two kids, and me -- especially in December when fares are high. That doesn’t include the airport terminal fees, baggage check in charges, and taxi fares to and from the airport.

So driving a car via RoRo with about 300 kilos of cargo is cheaper.

Although long car rides tend to be inconvenient, it was nevertheless fun for my passengers, especially for my two girls who enjoyed the boat ride.

Some ugly experiences that one may encounter if driving during the holiday/Christmas season:

1. Waiting for one or two hours or more outside the gate of Batangas port as there are many cars and trucks queuing to board a boat to Calapan. Cars going to destinations other than Calapan (Abra de Ilog, etc.), they can go in anytime, no long queues for them.

2. New security bureaucracy at Batangas port. All bus passengers and car drivers must alight and go through a security check along with their hand carried bags, get the signature of an officer, go back to their vehicles and drive to the queue area for the boat ride to Calapan or other destinations. This was not done last year and previous years.

3. The Roxas, Oriental Mindoro municipal government acts like a typical extortionist. It collects P50 for each car entering and exiting Roxas port. Zero public service for visitors because the port and the roads were made by the national government, and it has a share from the various fees paid by the shipping lines. Many local governments that host ports behave this way too.

Three possible reforms to modernize the country’s RoRo system are the following.

One, consider RoRo system as a bridge, not as a seaport.

Allow unhampered movement of vehicles from one island to another as if they are just crossing a bridge and quickly proceed to their destinations. This implies that RoRo development and streamlining be put under the DPWH, not under DoTr. I heard this proposal during the Manufacturing Summit 2016 last November sponsored by the DTI and BOI.

Two, allow more shipping lines, more players to serve important routes like Batangas-Calapan, Batangas-Caticlan, Roxas-Caticlan, Sorsogon-Samar, and so on. More routes mean more options for motorists and passengers. Government should reduce the bureaucracies and taxes for new players to come in, or for existing players to expand and modernize their fleet.

Three, allow private developers, shipping lines and/or bus lines to put up their own ports, meaning deregulate and demonopolize the PPA.
-------------


Market failure vs. Government failure, Part 6

An article today in BWorld says,  
"A market failure, in the parlance of economics, means a situation in which free markets produce wasteful outcomes."


The above statement is wrong on 2 counts: 
(1) Market failure is literal, demand is there but supply is low or zero, or vice versa. So failure of the market to adjust supply and demand. 
(2) Market failure is often a parlance of politics and government, less of economics. It is a good justification for endless government intervention and expansion for people who have no or little concept of "government failure."

Anybody can create a market failure anytime, anywhere. How?

1. Mr. X and his friends demand a 500 GB USB that is sold for only P1,000. Demand is there but supply is zero, so market failure.

2. Mr. Y and his friends supply a rice variety that is said to cure 10 types of common diseases and sold at P800/kilo, no one buys their rice. Supply is there but demand is zero, so market failure also.

Given these two examples of market failures, do they justify government intervention? Like (1) using taxpayers' money to create a new govt-owned IT company to supply that 500 GB USB and sell only at P1k or less. Or (2) Govt to procure that rice and distribute for free or at high subsidies to sick people?

No. In public finance econ (Econ 151), there is one definition there, something like "Market failure is a necessary but not sufficient condition for government intervention."

Rightly so. Because (1) market failures are generally short-term and are signals for market solutions in the short- to long-term, and (2) government intervention may only worsen the original market failure and introduce its own government failure.

From the same article, it says, "Public education... make economies more prosperous, and most economists support it, but no one can point to just why the free market doesn’t educate enough people on its own."

If people pay lots of taxes, fines, regulatory fees, mandatory social contributions, etc. to both national and local governments, there is little "disposable income" left for food, clothing, housing, gadgets, appliances, travel, etc. This explains why not many parents/guardians can send their kids to private schools, majority of parents send their kids to public education.

It's like the government disabling the people with some physical attacks then govt gives them a wheelchair and expects the people to be thankful to government for the wheelchair.
------------

See also: 
Market Failure vs. Government Failure, Part 3, June 23, 2010

Market Failure vs. Government Failure, Part 4, March 22, 2014 

Market Failure vs. Government Failure, Part 5, June 16, 2015

Global warming hits Asia, Part 5

Some news reports in the first week of 2017, last week, except the report from Vietnam, mid-December 2016.


When I drove from Iloilo to Manila last week January 01, it was a wet New Year in Panay island (4 provinces of Iloilo, Capiz, Antique, Aklan), also in Oriental Mindoro on January 02. Arrived Batangas then Metro Manila in the afternoon, a bit cloudy but dry.

Cloudy whole day yesterday in M.Manila and surrounding provinces, rains from noon to evening. Today another cloudy day but no rains.

Meanwhile, here are some photos during the "Habagat" or moonsoon rains of August 2013, nearly 2 weeks of almost non-stop rains. At a flooded street in front of our gate :-)



Update on global lower troposphere temperature (LTT), RSS data.

RSS_TS_channel_TLT_Global_Land_And_Sea_v03_3.txt
---------------

See also:
Global warming hits Asia, part 2, January 20, 2011
Global warming hits Asia, part 3, February 15, 2011 

Global warming hits Asia, Part 4, January 26, 2016

Tuesday, January 10, 2017

BWorld 102, Top 10 news of 2016

* This is my article in BusinessWorld last December 27, 2016.


Since government by nature consists of force and coercion, legislation and regulation, mandatory contribution and taxation, it naturally creates division among people anywhere in the world. Those who benefit from welfarism are happy while those who are affected by endless regulations and taxation express the opposite sentiment.

Below is my list of top 10 news around the world in 2016, five international and five national/regional.

INTERNATIONAL

1 “Brexit.” British voters opted last June to exit from the European Union (EU), a regional government that allows free trade and free mobility of people and services among member-states, but also imposes various protectionism and restrictions on goods and people mobility to countries outside the EU. This combination of free trade and trade protectionism, simpler migration for fellow EU citizens but difficult migration for non-EU people, tax harmonization and prevention of tax competition among member states, among others, have created confusion and even more animosity among the British. So far nothing is definite and details of the exit may not be known until 2019.

2 Trump victory. A big businessman without past political position but employed an unconventional campaign, President-elect Donald Trump outlasted 16 Republican rivals and then a famous Democrat candidate Hillary Clinton. Not being part of the entrenched political establishment, he is known more to reverse the various regulations and high taxation policies of the Obama and Bush administrations. For instance, he plans to cut the US corporate income tax from 35% to 15%, reverse the anti-coal, anti-oil sentiments and policies, and so on.

3 Terrorist attacks in Europe. Massacres in a newspaper office and rock concert in Paris, airport bombing in Brussels, lorry attack of people in the streets of Nice, France during a Bastille Day celebration, another lorry attack of people in a Christmas shopping in Berlin. Plus some foiled attacks in other cities in Europe. To fight this kind of war, governments will need less of those deadly fighter planes, huge battle tanks and ships. Instead, they will need more drones, CCTVs, crawling small robots, cyberware. The fight is not country to country but house to house, building to buildings.

4 Syria. Endless war among many armed factions has resulted in large-scale murders and displacement by the millions. Aleppo has become the main reference point of why civil war by some proxy countries should be avoided as much as possible. The volume of civilian deaths and destruction of properties is so big.

5 Malaysia and South Korea. Big governments always invite big opportunities for big corruption and wastes, the degree just vary from country to country. In particular, the corruption scandals of Malaysian PM Najib Razak over IMDB and S. Korean President Park Geun-hye over her friend Choi Soon-sil’s involvement in government affairs have pushed their people to conduct various rallies calling for their resignations. And these leaders continue to cling to power.

PHILIPPINES

6 Duterte victory. President Rodrigo Duterte was the first Mayor to move straight to Presidency with a different campaign strategy focused on fighting criminality, drug proliferation, and corruption. Unlike the three other major candidates -- former VP Jojo Binay, Sec. Mar Roxas, and Sen. Grace Poe -- who all focused on more welfarism. And he got huge support from the poor, which shows that the poor are not exactly asking for more welfarism and subsidies, but are seeking increased peace and order to protect themselves against thieves, murderers, rapists, drug pushers, corrupt officials, and other criminals.

7 Drug deaths. From a campaign promise of killing 100,000 criminals if he wins, President Duterte later mentioned that “like Hitler, (I will) annihilate 3 million drug criminals.” The on-going “war on drugs” has resulted in several thousand murders so far, about one-third from police operations and two-third from vigilante-type of executions. The rule of law and its long process of police investigation and court proceedings have been sidestepped.

8 PI Obama, Pakyu EU. Before and during the ASEAN summit and related meetings last September, President Duterte has directly or indirectly lashed out against US President Obama who attended the event in Laos. President Obama and later the EU have voiced criticism over the high number of deaths and disrespect for the rule of law, not the drugs war per se. President Duterte and his avid supporters did not make a distinction between these two and thus, the expletives and harsh words. These were reported heavily in international media.

9 Marcos burial at Heroes’ Cemetery. The sneaky burial of former President Ferdinand Marcos at the Libingan ng mga Bayani has stirred some political upheavals that many protest rallies were held in Metro Manila and key cities in the country. Since the burial is supported by President Duterte and affirmed by the Supreme Court, the cemetery may better be renamed “Libingan ng mga Bayani at Magnanakaw” (LBM).

10 Non-assertion of territorial rights at SCS/WPS. Mid-December, the President said the Philippines and China can “share” oil in the disputed territories in South China Sea/West Philippine Sea despite an international arbitral award affirming the Philippines’ ownership in the exclusive economic zone (EEZ).

From this list, it seems that many people around the world are dissatisfied and disappointed with more government, more regulations, taxation and corruption. Authorities should deliver positive results in areas where stronger government is justified, to protect the people’s right to life, right to private property and right to liberty.
------------

Energy 88, Letter to ERC re petition by 3 wind companies for higher FIT

This is my letter to the ERC last month.
------------


28 December 2016

Hon. Jose Vicente B. Salazar
Chairman
Energy Regulatory Commission
Pasig City

Dear  Chairman Salazar,

In relation to the ERC  invitation for public comments until December 30, 2016 of the petitions by Trans-Asia Renewable Energy Corporation (TAREC), Alternergy Wind One Corporation (AWOC), and Petrowind Energy, Inc. (PWEI) that their FIT rate be raised from P7.40/kWh to P7.93/kWh, may I send the following comments.

Please say NO to their petition. Here are the reasons why.

1. Expensive electricity is never a virtue. Many of the things we do and use now require electricity and therefore, cheap and stable electricity supply should be the aim of energy producers and generating companies.

2. Cost and price dynamics – rising or falling, higher or lower than what was assumed and projected – are part of capitalism and entrepreneurship. This includes the realization by the petitioners that their actual EPC cost, switchyards and transformers, transmission interconnection cost, O&M and other related expenses are much larger than what was assumed by the ERC in its earlier ruling.

3. There is indeed a big difference between the P8.53/kWh received by EDC Burgos (Lopez group),  Northern Luzon UPC Caparispisan (Ayala group) and Northwind Power Bangui (partly Ayala), and the P7.40/kWh received by the petitioners. Then let it be known by the electricity consumers that among the reasons why Philippine electricity prices remain high, why FIT-All keeps rising from 4 centavos/kWh in 2015 to 12.40 in 2016 and up to 23 or even 25 centavos/kWh in 2017, are due to these wind farms  that get high guaranteed and escalating price for 18 more years.

4. When public backlash against more expensive electricity from wind (and solar) will rise proportionate to the rise in FIT-All in the coming years, the three petitioners will somehow be relegated in the background as public attention will be focused on the Ayala and Lopez expensive wind farms, and the big solar farms with higher FIT rates.

The environmental costs of thousands of trees murdered on the ridges and mountain tops of Nabas, Aklan and Pililia, Rizal as PWEI and AWOC constructed wide roads, flattened ridges and built those huge wind towers in the mountains are actually not included in the supposed “environmental benefits” of those wind power plants.

Capitalism and entrepreneurship is about risks and returns, expansion, break even or bankruptcy. Nothing is guaranteed except constant competition and innovation, to cut costs and produce more per unit of input. Thus, the FIT system of guaranteed price for 20 years is abdication of the spirit of capitalism and entrepreneurship, while embracing statism and forever intervention by the state in pricing and output allocation and rationing.

Ultimately, the RE Act of 2008 contradicts the spirit of EPIRA of 2001 and hence, the former should later be significantly amended if not abolished. EPIRA moved things towards competitive, cheaper electricity prices and stable power supply while the RE Act moves towards the opposite, for more expensive electricity and unstable, intermittent and brownouts-friendly power supply.

I hope you will consider the above points.

Thank you very much.

Sincerely yours,

Bienvenido S. Oplas, Jr.
President, Minimal Government Thinkers
Fellow, SEANET and Stratbase-ADRi
Columnist, BusinessWorld
-------------

Meanwhile, look at these news reports and press releases by their respective companies. Phinma says it is earning good money in TAREC.


AWOC is expanding. From the current 54 MW will add 72 MW. Also in its website, it posted,
"On October 23, 2009, Alternergy has been awarded with six exclusive Wind Energy Service Contracts by the Department of Energy based on its financial and technical capabilities. One of which is the "Pililla, Rizal" Wind Energy Service Contract which covers an area of 4,515 hectares. The Project is estimated to generate approximately 40 MW capacity."


Meanwhile, look at the site of PWEI's Nabas wind farm in Aklan overlooking Boracay island. Mountain ridges were flattened and all trees and other vegetation there were removed.

-------------




On October 23, 2009, Alternergy has been awarded with six exclusive Wind Energy Service Contracts by the Department of Energy based on its financial and technical capabilities. One of which is the "Pililla, Rizal" Wind Energy Service Contract which covers an area of 4,515 hectares. The Project is estimated to generate approximately 40 MW capacity.