ILOILO City – Today the Senate Committee on Public Services chaired by Sen. Grace Poe, an Ilongga, is scheduled to hold a hearing on House Bill No. 8302 that grants MORE Electric and Power Corporation a franchise to distribute electric power to this city. Its railroading could potentially push Panay Electric Company (PECO), the sole power distributor in the city for nearly a century, out of business and put at risk electricity distribution here.
LIGHTNING SPEED APPROVAL
The speed with which House Bill No. 8302 was approved in the House Committee on Legislative Franchises is raising eyebrows. The timeline would show how fast the committee moved:
* Aug. 22, 2018 – Cong. Gus Tambunting sponsored House Bill No. 8132, entitled “An Act granting More Minerals Corporation a franchise to establish, operate and maintain for commercial purposes and in the public interest, a distribution system for the conveyance of electric power to end users in the City of Iloilo, in the Province of Iloilo”
* Sept. 5, 2018 – House Committee on Legislative Franchises chaired by Cong. Franz Alvarez held first hearing on House Bill No. 8132
* Sept. 12, 2018 – second committee hearing
* Sept. 18, 2018 – third committee hearing
* Sept. 26, 2018 – fourth committee hearing
* Oct. 8, 2018 – MORE’s Substitute House Bill No. 8302 passed on third reading and formally transmitted to the Senate
* October 10, 2018 – House Bill No. 8302 called on First Reading by the Senate and referred to the Committee on Public Services
While the House Committee on Legislative Franchises treated MORE’s franchise application with dispatch, it dillydallied on PECO’s.
PECO filed its application for renewal of legislative franchise through House Bill No. 6023 on July 22, 2017 yet.
The timeline would show how slow the committee acted on it.
* Oct. 11, 2017 – first hearing
* Nov. 22, 2017 – second hearing
As of this writing, the committee has not scheduled a third hearing.
“During our second hearing, PECO addressed all the concerns of its customers and the Energy Regulatory Commission (ERC). In turn, the ERC endorsed House Bill No. 6023’s approval and did not interpose objections to PECO’s renewal of its franchise,” said Marcelo Cacho, administrative manager and son of PECO president Miguel Luis Cacho.
Despite PECO’s compliance and submissions as required by the committee, Cacho wondered why House Bill No. 6023 was not scheduled for a third hearing.
“Only PECO filed for a franchise (renewal of its 95-year-old franchise). No other House Bill was initiated for more than one year after House Bill No. 6023 was reasonably filed on July 22, 2017,” said Cacho.
‘IRREGULARITIES’
Cacho recalled that during the second hearing on MORE’s House Bill 8132, PECO’s lawyers were kicked out of the committee, thereby depriving them of the right to oppose the bill.
“For the third hearing, on the other hand, the required three-day notice rule was not observed and stakeholders which included, among others, Iloilo City residents and electric power consumers, PECO Workers Association and business organizations in Iloilo City, were not invited,” said Cacho.
In fact, notices for the third public hearing of House Bill No. 8132 were posted on Congress’ website only the night before the intended date of hearing, he lamented.
“In effect, the stakeholders were not given a chance to air or explain their opposition,” said Cacho.
It was worse on the fourth hearing, according to the PECO official. The House Committee on Legislative Franchises recommended the approval of Substitute House Bill No. 8302 even if MORE failed to show that it owned and possessed the necessary capital and technical expertise to operate as an electric power distributor, he said.
A perusal of MORE’s incorporation history, its Certificate of Incorporation and Amended Articles of Incorporation of 2016, showed it is engaged in mining activities and never in power distribution.
MORE’s Latest General Information Sheet (GIS) showed that its paid-up capital was only P2.5 million as of July 22, 2018 when it filed its application for a new franchise (under House Bill No. 8132).
PECO principal legal counsel Inocencio Ferrer Jr., meanwhile, questioned the constitutionality of Substitute House Bill 8302.
The bill grants MORE powers to expropriate.
“This unqualified and ill-equipped entity will not only be granted a franchise despite its lack of qualifications; it will also be granted the power to expropriate any and all properties of its competitor, PECO, in clear violation of the latter’s enshrined constitutional rights,” said Ferrer.
He warned that Substitute House Bill 8302 would allow MORE to expropriate properties for vague and overbroad reasons such as “the efficient maintenance and operation of services” and to “acquire such private property as is actually necessary for the realization of the purposes for which this franchise is granted.”
‘DISASTROUS’
Cacho warned that the approval of Substitute House Bill 8302 would have disastrous consequences to residents of Iloilo City.
“MORE will not be able to fulfill its obligations as an electric power distribution utility because it is not qualified and is clearly ill equipped,” he said.
Ferrer, on the other hand, said MORE’s plan to expropriate all the assets of PECO once it is granted a franchise would fail.
“PECO will avail itself of all legal remedies to ensure that this will not take place. If MORE is granted the legislative franchise, there would be a lengthy period of time where the people of Iloilo City will not have any electricity,” he said.
On the other hand, said Cacho, “PECO is ready, willing and able to continue operating as a power distribution utility.”
He cited the following facts:
* PECO has over 95 years of experience as a distributor of electricity.
* PECO is operating and maintaining P2-billion worth of infrastructure, including transmission lines, transformer towers and a fleet of vehicles.
* PECO has qualified, experienced and trained manpower.
“PECO is more qualified than MORE to be granted a legislative franchise under the Prior Operator Rule. The continuation of its operations will serve public interest as its operations are reliable, consistent and cost-effective,” said Ferrer.
PECO was established in 1923 and has been serving the consumers of Iloilo City for over 95 years.
It has five sub-transmission line substations in as many districts: in Barangay Baldoza, La Paz; Barangay Tabuc Suba, Jaro; Barangay Bolilao, Mandurriao; Barangay Avanceña, Molo;, and General Luna Street, City Proper.
“PECO is the only operator, both as an existing and prior operator, in the electric power distribution history of Iloilo City, that built and expanded its facilities, equipment and trained its skilled technicians and employees for 95 continuous and uninterrupted years,” said Cacho./PN
