Paiton proposes lower tariff to PLN

Paiton Energy, partly owned by U.S. firm Edison Mission Energy, has lowered the electricity tariff for a project in East Java to 4.57 U.S. cents per KWh from 4.79 cents, Paiton said in statement. "PT Paiton Energy has lowered its tariff for the proposed Paiton expansion to 4.57 U.S. cents," Paiton said.

Paiton Energy has a 1,230-megawatt (MW) coal-fired power plant in East Java and plans to expand it by around 800 MW at a cost of about $580 million.

However, PLN director Ali Herman Ibrahim said: "A price of 4.57 cents is a good price but we want the price at below 4.50 cents. We are awaiting word from Paiton."

Edison Mission, a unit of Edison International , has 44 percent of Paiton. Mitsui & Co owns 37 percent and General Electric 14 percent. Local Indonesian firm PT Batu Hitam Perkasa has five percent.(*)