NEA TO ECS: ADHERE TO ERC RULES FOR APPROVAL OF CAPEX PROJECTS; FILE FRANCHISE RENEWAL APPLICATION TO THE HOUSE OF REPRESENTATIVES AS SOON AS POSSIBLE | FEBRUARY 20. 2023


In NEA Memorandum No. 2023-09, all electric cooperatives (ECs) are reminded to adhere to ERC Resolution No. 26, Series of 2009 entitled, “Resolution Amending the Rules for Approval of Regulated Entities’ Capital Expenditure Projects” to ensure the timely, appropriate, necessary, and cost-efficient CAPEX Projects.
 
The said ERC resolution includes the “Electric Cooperative Distribution Utility Planning Manual.” It serves as a guide for the ECs’ expansion and improvement of distribution facilities through the acquisition of assets necessary to respond to the needs of consumers and meet the safety, performance standards and regulatory requirements as well as their respective structural and/or institutional planning and development.
 
In addition, the NEA advised all ECs to observe the provisions of ERC Resolution No. 09, Series of 2020, on the electronic filing and initial review of applications for verification of compliance with the CAPEX Guidelines to avoid delays. Capital Projects included in the application for ERC approval must be consistent as well with those included in the Biennial Workplan submitted to NEA. ECs must submit the reportorial requirements prior to any adjustments on the Reinvestment Fund for Sustainable Capital Expenditure Projects (RFSC) as required by the ERC.
 
In a separate memorandum, the agency also advised concerned ECs to file at the soonest possible time their applications for the renewal of their distribution franchise before the Committee on Legislative Franchises, House of Representatives.
 
The 39 ECs stated in NEA Memorandum 2023-10 include DORELCO and PRESCO with franchise expiration in the year 2027. Meanwhile, the franchise of AKELCO, BASELCO, BENECO, CAGELCO I, CANORECO, CAPELCO, CASURECO I, CENPELCO, NORDECO, FLECO, LASURECO, LEYECO II, ZAMCELCO and ZAMECO I will expire in 2028. ECs with 2029 franchise expiration are ANTECO, CASURECO II, CASURECO III, CASURECO IV, COTELCO, FICELCO, ILECO II, ISELCO I, LANECO, LEYECO III, LEYECO IV, MARELCO, NORECO I, PALECO, PANELCO I, QUEZELCO I, SOCOTECO I, SOLECO, SORECO I, SORECO II, SULECO, TAWELCO and ZAMSURECO I.
 
These ECs must submit the documentary requirements which include the certified copy of the applicant’s Certificate of Registration, Certificate of Good Standing from the concerned regulatory agency and their Articles of Incorporation and by-Laws, among others.