ILOILO City – Can MORE Electric and Power Corp. (MORE Power) operate without a Certificate of Public Convenience and Necessity (CPCN) from the Energy Regulatory Commission (ERC)?
It absolutely can, said Atty. Ferdinand Menguito, MORE Power regulatory counsel.
MORE Power’s franchise does not require a CPCN prior to the exercise of eminent domain, he stressed.
A CPCN is an authority granted to an applicant legally qualified in accordance with the Constitution and Public Service Act for the operation and/or provision of public services.
MORE Power has a 25-year power distribution franchise here. It commenced its operation on Feb. 28 after taking control of the power distribution system from the previous franchisee, Panay Electric Co. (PECO)
“As rightfully recognized by the Regional Trial Court, Branch 23, it issued the Writ of Possession (WOP) to MORE Power without consideration of whether the CPCN has been issued or not,” said Menguito.
It was PECO’s legal counsel Estrella Elamparo who pointed out MORE Power’s lack of a CPCN.
“A CPCN is different from a franchise. Without it, MORE Power is unauthorized to operate,” she said.
According to Mengioto, however, the overriding directive of MORE Power’s franchise as well as the order of RTC, Branch 23 was that during the enforcement of WOP there should be no disruption in the delivery of electric services to Iloilo City.
“That franchise mandate is a justification why MORE Power needs to immediately operate. The most important thing is continued service to the people of Iloilo City,” said Menguito.
As to the question whether MORE Power violated any law by operating without a CPCN, he said, “If and when a case is brought against MORE Power because of that, we are ready to answer.”
Elamparo described MORE Power’s operation without a CPCN as “very anomalous and illegal.”
She traced this to the “haphazard, reckless implementation” of the WOP.
“MORE Power is being given control of the operation without a CPCN,” said Elamparo.
MORE Power actually has a pending application for a CPCN at the ERC. It was filed last December 2018.
Last week, Feb. 27, MORE Power furnished the ERC with a copy of the WOP with an urgent motion for the issuance of the CPCN, said Menguito.
The ERC set the hearing for this today, March 2.
Menquito said MORE Power will present evidence of its actual takeover of the power distribution assets in Iloilo City and its technical expertise and capability to operate the said assets.
“We are very confident that the ERC will issue the CPCN. MORE Power is the only duly enfranchised power distribution utility in Iloilo City,” he stressed.
Menguito also said MORE Power has four emergency power supply contracts (for one year) Aboitiz Renewables, KEPCO SPC Power Corp., PEDC Units 1, 2 and 3, Panay Power Corp.
MORE Power thus has adequate power supply during the transition period, he stressed.
During the one year period, MORE Power shall undertake an open competitive selection process of power suppliers for the long-term power supply requirements of Iloilo City, said Menguito.
“This will ensure the least cost of electricity for the people of Iloilo City as mandated in MORE Power’s franchise,” he added.
MORE Power is also a registered trading participant in the wholesale electricity spot market here it can source a portion of the power requirements of its franchise area./PN
