“WASN’T Mayor Jerry Treñas a lawyer of PECO?”
Somebody asked me that question after reading my column the other day, where I opined that the mayor of Iloilo City would like Panay Electric Co. (PECO) to give way to MORE Electric and Power Corp. (MORE Power) in accordance with the law (Republic Act 11212) granting the new power-distribution franchisee to the latter.
“I don’t know,” said I.
But whether the present mayor had lawyered for PECO in the past has no bearing on the present. As head of the city, Treñas did his constituents a favor when he alerted the Energy Regulatory Commission (ERC) about the Bureau of Fire Protection’s report that the frequent fires in the city had been caused by “inadequately-maintained lines, power outages and hazardous electric posts.”
Based on that report, the ERC could terminate the temporary certificate of public convenience and necessity (CPCN) it had issued to PECO in line with the transition provision of RA 11212.
The transitory provision (Sec. 17) is meant to keep PECO functional “until the establishment or acquisition by the grantee [MORE Power] of its own distribution system.”
Sec. 10 would authorize MORE Power to sequester the distribution utility in exchange for “just compensation”. MORE Power has offered to pay PECO P481,842,450 for that.
Instead of cooperating, however, PECO – whose franchise expired on Jan. 19, 2019 yet – has engaged MORE Power in court battles that have already been well discussed in the media. To say it in a nutshell, PECO’s legal beef against MORE Power is that the law is “unconstitutional”.
But that’s now water under the bridge. The Court of Appeals (CA 18th Division), in a decision dated Oct. 3, 2019, declared that the Regional Trial Court of Mandaluyong “has no jurisdiction to restrain and/or enjoin the expropriation case.”
That decision could be basis for a lower Court to issue a writ of possession that would allow MORE Power to sequester the distribution system.
It does not make sense that PECO, which has no more franchise, is resisting expropriation. It would not profit from its position that MORE Power should build from scratch and render the abandoned posts, transformers and other facilities “wasted”.
The exodus of personnel moving out of PECO – sparked by the resignation in July this year of its vice president for operations and general manager, Randy Pastolero – must have depleted the company of indispensable technical and maintenance personnel. Hence, the frequency of brownouts.
With no more franchise to hold on to, what’s the point of PECO talking about “modernization” on a budget of P1.1 billion in the next 10 years?
It could have upgraded its system long ago had its incorporators decided to reinvest their dividends. They should have done it especially because, through the years, complaints of dissatisfied power users – ranging from dilapidated posts to “spaghetti” wirings, aging transformers and dangling “whatevers” – had piled up.
These complaints have reached the attention of the Sangguniang Panlungsod and the House of Representatives. The complainants wanted PECO out.
It was then that MORE Power came into the picture as it applied for a 25-year franchise with the House of Representatives on Aug. 22, 2018. To make the long story short, a franchise law in its favor was signed by President Rodrigo Duterte on Feb. 14, 2019.
And so, even before taking over, the new franchisee has already hired personnel, including a skeleton force now monitoring PECO power lines, electric meters and non-functional gadgets in need of replacement.
There is therefore need for PECO and MORE Power to amicably settle their dispute now. (hvego31@gmail.com /PN)
