THERE is an end to a gentleman’s patience.
The image on our viewfinder is that of Mayor Jerry Treñas tilting the power mills of Panay Electric Co. (PECO), the 96-year-old power distributor in Iloilo City that has refused to yield to the new franchisee, MORE Electric and Power Corp. (MORE Power).
A recent news story by Alena Mae Flores of the Manila-based Manila Standard dramatized the impatience of the mayor who asked the Energy Regulatory Commission (ERC) to vet PECO’s “inadequately-maintained lines, power outages and hazardous electric posts.”
In his formal complaint, Treñas wrote, “Due to the worsening turn of events, the undersigned is obliged to take the necessary steps to address the needs of the people considering that the problems and complaints raised against PECO have direct impact not only on the property but to the lives of the residents of Iloilo City.”
The ERC probers thereafter met with representatives of the Bureau of Fire Protection (BFP) who confirmed to the dismayed mayor that the nine city fires occurring within three days (Oct. 19 to 21) had sprung from faulty electrical wirings dangling from aging poles.
Any other leader would likewise have lost his patience. How would Iloilo City “level up” with the poles falling down?
Treñas had not been so impatient many weeks ago when this columnist asked him whether he would intercede in the conflict between PECO and MORE Power.
He said “no,” knowing that PECO had contested the constitutionality of the franchise law (Republic Act 11212) before the Regional Trial Court (RTC) of Mandaluyong.
Moreover, another RTC (Iloilo City) had yet to issue a writ of possession that would authorize MORE Power to expropriate the distribution utility.
“Let the courts decide first,” he said.
The Court of Appeals has since then reversed the decision of the RTC-Mandaluyong that declared two provisions of RA 11212 “unconstitutional”.
One of them, Section 10, invokes the power of the government to expropriate: “The grantee may acquire such private property as is actually necessary for the realization of the purposes for which this franchise is granted, including but not limited to poles, wires, cables, transformers… Provided, that proper expropriation proceedings shall have been instituted and just compensation paid.”
MORE Power has stashed away in a bank the “just compensation” of P481,842,450 payable to PECO, subject to verification and approval by an RTC judge.
MORE Power’s president Roel Z. Castro thinks that’s already “bonus” because the cost of facilities of PECO are embedded in the power users’ bill.
On the other hand, Section 17 paves the way for a smooth transition profitable to both parties: “Panay Electric Company, Inc. shall in the interim be authorized to operate the existing distribution system within the franchise area, as well as implement its existing power supply agreements with generation companies that had been provisionally or finally approved by the ERC until the establishment or acquisition by the grantee of its own distribution system and its complete transition towards full operations as determined by the ERC, which period shall in no case exceed two years from the grant of this legislative franchise.”
Clearly, the temporary certificate of public convenience and necessity (CPCN) granted by ERC to PECO was aimed at ensuring uninterrupted service to consumers within two years
Judge Yvette Go of RTC-Iloilo Branch 37 has approved MORE Power’s application for a writ of possession to take immediate control, operation, use, and disposition of PECO’s power distribution system.
PECO has already earned so much ire from angry power consumers. Let it not earn some more. (hvego31@gmail.com /PN)
