Floridablanca, Bacolor, Guagua, Lubao and Santo Tomas. The AboitizPower-SFELAPCO supply contract is in line with the Renewable Energy Act of 2008 or RE Law, a landmark legislation that encourages and develops the use of the country's renewable energy resources. "AboitizPower supports the RE Law with Cleanergy," said Luis Miguel Aboitiz. "We are actively developing and offering effective energy solutions that not only meet our nation's energy demands, but equally important is our commitment to sustain Earth's resources." He added, "Energy from renewable sources are also effectively VAT zero-rated so power from these sources can be sold to distribution utilities at prices that are competitive with coal plants. During the negotiations, SFELAPCO quickly realised that the availability of renewable energy was limited, and that power from this source could be offered at a relatively predictable price - unlike coal, which is necessarily indexed to fluctuating fuel prices. This is why they decided to sign right away before all the remaining renewable capacity was committed to anyone else." The contract not only assures SFELAPCO of clean and reliable energy but also of cheaper rates. It will lead to approximately a 40-centavo reduction in rates charged to consumers on the average per kwh once the San Fernando utility's bilateral contracts are supplied with renewable energy, which is VAT exempt. "We believe that as a distribution utility, it is our primary duty to serve our customers well and at the same time to treat our environment well. By going green, we achieve both goals simultaneously," said SFELAPCO President Michael L. Escaler.