PECO: NO BROWNOUT

Power franchise expires tomorrow

ILOILO City – Panay Electric Company’s (PECO) power distribution franchise is only up to 12:01 a.m. tomorrow, Jan. 19. But residents of this city need not worry. “We will not leave Iloilo City in darkness,” said Engineer Randy Pastolero, PECO vice president for operations.

Congress has not renewed PECO’s franchise and has instead given one to newcomer More Electric and Power Corp. (MORE Power).

MORE Power’s franchise bill, however, has yet to be signed by President Rodrigo Duterte.

“It’s going to be business as usual for PECO,” said Pastolero. “We were given instruction by the company president (Luis Miguel Cacho) to continue our operation.”

PECO, the sole power distributor in this city for nearly a century, has even started preparing for the Dinagyang Festival, stressed Pastolero.

The festival highlights are on Jan. 26 (Kasadyahan cultural contest) and Jan. 27 (ati-ati tribes competition).

The city’s power supply must be secured during the festivities, said Pastolero.

“We are coordinating with our power supplier. The usual naton ginaobra bala nga nagapadalagan kita spare units during Dinagyang para mapaseguro ang supply,” said Pastolero.

PECO would also be posting quick response teams at Dinagyang performance areas for power-related concerns.

MORE Power’s president Roel Castro welcomed PECO’s statement of assurances.

Ang importante the consumers are not deprived of electrical service just because there are some legal issues,” said Castro.

The Presidential Legislative Liaison Office, he said, already received on Jan. 16 the final version of MORE Power’s franchise approved by Congress.

But even if it is not signed by the President, in 30 days it would still lapse into law, Castro stressed.

The Energy Regulatory Commission (ERC) proposed a two-year transition period from PECO to MORE Power to avoid power disruptions in Iloilo City.

According to ERC, PECO may be authorized to operate for two more years until such time MORE has established or acquired its own power distribution system or has completed its transition towards full operation.

“To ensure uninterrupted supply of electricity in the franchise area, PECO shall in the interim be authorized to operate the existing distribution system within the franchise area as well as implement its existing Power Supply Agreement with generation companies that have been provisionally or finally approved by the ERC for a period of two years,” according to ERC.
ERC said it could grant PECO a Certificate of Public Convenience and Necessity (CPCN) covering such interim period.

According to Pastolero yesterday, while PECO’s franchise is expiring on Saturday, its CPCN is still valid until May 2019 and that they have applied for its extension.

He also disclosed that PECO had been summoned and informed by the Department of Energy and ERC that both of them would be coming up with an order instructing the power distribution utility to continue operating “habang hindi pa na-settle ang issue sa franchise kon sin-o gid bala ang franchise holder diri.”

Pastolero said PECO is also exploring legal remedies.

“Malawig-lawig pa nga legal battle ini,” he said.

PECO legal counsel Inocencio Ferrer previously declared, “We will go to the Supreme Court. We will use all legal remedies available.”

“Kuhaon lang daw nila ang assets sang PECO… The company will never sell its assets voluntarily. No, we will never sell our assets to a competitor,” Ferrer stressed.

The PECO legal counsel said MORE Power should prove it is qualified to distribute power in the city.

“Nga-a i-question namon? Kay kadasig-dasig sang approval sang ila franchise sa Lower House. Tan-awon ta sa Supreme Court. Pakitaan nila sang assets nila ang Supreme Court,” said Ferrer./PN

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