Mindanao Daily Set B (November 25, 2016)

MINDANAO DAILY SPECIAL SUPPLEMENT FOR 1ST AMRECO AGMA & SUMMIT 2016

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AMRECO holds first ever AGMA & Summit EDITOR: Mike Baños

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Friday

November 25, 2016

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By Recthie T. Paculba

AGAYAN DE ORO CITY – The Association of Mindanao Rural Electric Cooperatives, Inc. (AMRECO) in partnership with the Mindanao Development Authority (MinDA) will hold the AMRECO Summit 2016 on November 25-26 this year to come up with legislative measures that will ensure that the electricity end users will be protected whatever will be the impact of the shift of government form to the cost of electricity in the country.

Wit h t he t heme, “Federalism, its impact on Mind anao E le c t r ic C ooperatives and its m e m b e r / c o n s u m e r s ,” the event will ser ve as t he venue for ele c t r ic cooperatives in Mindanao to discuss with the political leaders the issues at hand, to be able to prepare the systems and processes ensuring Mindanao electric cooperatives can harvest the benefit of fe dera lism t hroug h reduction of electricity cost.

To e ns u re t h at t h e people in Mindanao c a n b e n e f i t f ro m t h e present administration, AMRECO President Sergio C. Dagooc said, “We would like to come up with some advocacies maximizing the leadership of a Mindanaoan.”

Thus, Dagooc is hopeful that something valuable will be produced from t h e s u m m it w h e re 3 4 cooperatives and 700 to 1,000 p ar t icip ants are expected.

For his part, Engr. Glen Jay Reston, Mindanao Power Monitoring Committee (MPMC)

officer-in-charge, said that one of the concerns of MinDA is really to attract investors so we have to maintain this competitive advantage that we have a cheaper power as compared to Luzon and Visayas.

He added that they are advocating for the non-privatization of the government-owned power plant such as the Agus and Pulangui Power Plant Complexes to make sure that the government has the control when it comes to the changes of electricity rate.

Reston said that pursuing the renewable energy will aid in ensuring cheap electricity source since it is not affected by the currency, rate exchange and oil price fluctuation.

Hence, the rate will stay the same and as of now, the generation cost of such source per kilowatt hour is less than P1 and it is sold at P2.63 compared to the P5 per KWh rate of the private industries.

Furthermore, Dagooc said that their advocacy is centered on Mindanao for the Mindanaoan and amreco/PAGE B7

AMRECO Pres Sergio Dagooc addresses a House Energy Committee Public Hearing held in Cagayan de Oro on the interim Mindanao Electricity Market. (RMB, NPN)

AMRECO champions cheap electricity for poorest of the poor Industries and systems operator can now avail of surplus power in Mindanao grid

By Mike Baños

Is it still possible to reduce the cost of electricity for residential households i n t o d a y ’s r e g i m e o f skyrocketing power rates? The Association of Mindanao Rural Electric Cooperatives believes this can be done in Mindanao.

AMRECO will ask the Mindanao Development Authority (MinDA) to request stakeholders in the Mindanao Grid to allocate the entire output of the Agus-Pulangi Hyd ro el e c t r i c Powe r C omp l e x ( A P HC ) f or residential consumers.

During a press conference held 18 October at a hotel in Cagayan de O ro t o d r u m b e at t h e forthcoming AMRECO Summit on November 2526, AMRECO President Sergio Dagooc said the association will formally re quest t he Mindanao Power Monitoring Committee (MPMC) Technical Working Group to implement measures Agus VI Hydroelectric Plant in Bgy Maria Cristina, Iligan which will make available to distribution utilities CIty (Napocor Photo)

the remaining capacity of the APHC for exclusive distribution o residential consumers.

The MPMC was created through Executive Order No. 81 as an attached special body of the M i n DA t o s p e a r h e a d and coordinate efforts of the national, regional, and local governments, and power industr y stakeholders to improve the power situation in Mindanao.

“Instead of being allocated to industries and the systems operator, the cheap power from the APHC should be allocated to the distribution utilities (DUs), whether electric utilities or private, because t he DUs are t he one s serving the poorest of the poor, who are the targets of this administration for the reduction of electricity rates,” Dagooc stressed.

“Industries can easily absorb any additional cost this may entail since power constitutes but a fraction of their production cost,” he explained. “ This is less than 20% of their

generation mix since they have had a diminishing allocation for Agus and Pulangi.”

If e ve n 1 M W f rom Agus-Pulangi is allocated to a distribution utility like Moresco or Cepalco, this can already service thousands of households.

That’s the basic idea behind this initiative, he added.

“C ongratulations AMRECO for taking this initiative to enable residential consumers in Mindanao to enjoy cheap electricity from the Agus and Pulangi hydro plants!” s a i d D a v i d A . Ta u l i , president of the think tank Mindanao Coalition o f Po w e r C o n s u m e r s (MCPC). “ It i s t h e P S A L M NPC that has the power to allocate to residential consumers the generation from Agus and Pulangi.

They can do this anytime because they have not contracted out the generation of the remaining PSALM-owned generating plants in Mindanao. So the petition to allocate the Agus-Pulangi to

re si d e nt i a l c onsu me rs should be addressed to President Duterte to order the PSALM-NPC to make the allocation, which should be placed into effect immediately and should be effected in perpetuity, for as long as the Agus and Pulangi are generating electricity,” Tauli advised.

In addition, AMRECO will also ask the MPMC to ask systems operator National Grid Corporation of the Philippines (NGCP) to source its ancillar y requirements elsewhere, so this will free up the allocation it is now getting from the hydros.

At present, Engr. Glenn Jay Reston, MPMC officerin-charge, said only the Agus IV and Pulangi IV hydroelectric plants can s upp l y t h e re g u l at i ng reserve needed by NGCP. “Under the Philippine Grid Code, the NGCP as grid operator is responsible for procuring the ancillary reserve for a particular grid. So instead of going to consumers, a big poor/PAGE B7

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Friday, November 25, 2016

MESSAGE My warmest greetings to the Association of Mindanao Rural Electric Cooperatives, Inc. as you hold your 1st Annual General Membership Assembly and Summit.

Mindanao has the potential to become the premier hub for different industries. By ensuring the constant delivery and sufficient supply of electricity, we can tap the resources of the island and foster inclusive growth that will open new business opportunities and provide jobs for our people.

I laud the different sectors, organizations, and the people behind this maiden event that shall become a platform for advancing the rural electrification of Mindanao. I also believe that this initiative will foster further cooperation among you and allow you to come up with the most fair, accessible, and affordable ways of distributing electricity that can cope with the demands of our constant economic development.

May you continue to strive to provide quality service that will reinforce and build a stable power industry that can sustain the advancement of our country. Let us stand side by side in facing any challenges and concerns that may arise before us.

Together, let us do our best to achieve real and lasting change so we can foster inclusive progress and prosperity for our people.

May you have a meaningful and successful event.

RODRIGO ROA DUTERTE President of the Philippines

MESSAGE The Department of Energy extends its warmest greetings and congratulations to the Association of Mindanao Rural Electric Cooperative, Inc. (AMRECO) as you gather for your 1st Annual General Membership Assembly and Summit.

AMRECO is a triumph of collaboration and solidarity of the Mindanao Energy Sector pivotal in improving the socio-economic conditions of thousands of communities.

As AMRECO draws from the collective will, wisdom and strength of its individual members, we congratulate what you are continuously and admirably reaping.

The D ep ar tment of Energ y supp or ts your organization’s agenda of dedicated diligent linkages with both the national and local authorities and especially your promotion of productive dialogues with all the consumers you service.

I am confident that this gathering will result to positive future plans and endeavors that surely will inspire confidence for your members to march on forward to more strong years of unified success.

For our part, the DOE will stand beside AMRECO as an ally in the accomplishment of mutually beneficial reforms and objectives for the people of Mindanao.

Mabuhay ang AMRECO at ang mga miyembro nito! Hangad ng Kagawaran ang tagumpay ng inyong samahan! Maraming salamat po!

ALFONSO G. CUSI Secretary - Department of Energy

MESSAGE

EDGARDO R. MAGSONGSONG NEA Administrator

Congratulations to the Association of Mindanao Rural Electric Cooperatives, Inc. (AMRECO) on the occasion of its 1st Annual General Membership Assembly and AMRECO Summit on November 25 to 26, 2016 with the theme, “Federalism: Its Impact on Mindanao Electric Cooperatives and the MemberConsumers.”

The call for a federalist form of government by no less than our President, Rodrigo Roa Duterte, is likewise a call for all instrumentalities not only in the government but also in the private sector, to consider the paradigm shift from a centralist viewpoint to one that is shared or subdivided. Admittedly, federalism poses a challenge to be adept at the changes it entails even as it promises the economic growth in the regions and peace in Mindanao. For its part, AMRECO, as the umbrella organization of electric cooperatives in the island, needs to seize this opportunity to take the lead in determining the impact of federalism in Mindanao’s dynamic power industry.

In the wake of federalism, I believe that AMRECO will be able to strategically define its role and contributions as a premier Mindanao-based organization dedicated to advance the rights, interests, and welfare of its member Electric Cooperatives (ECs). This will, in turn, strengthen the ECs in stepping up to the challenge of providing a reliable, affordable and sustainable electric service in Mindanao in line with the government’s agenda of service excellence and consumer empowerment.

May the 1st Annual General Membership Assembly and AMRECO Summit be a gathering of productive exchange of relevant ideas to come up with synchronized plans and responsive programs from the region’s energy sector in support to the present Administration’s quest of alleviating the Mindanao power crisis through a federal form of government.

Mabuhay!

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Friday, November 25, 2016

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Friday, November 25, 2016

Hammer & Anvil:

Serving energy needs of the poorest of the poor at the base of the pyramid Forging a Social Development Framework for the Energy Sector

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By Mike Baños

he electric power industry in the Philippines has made impressive strides in the past two decades to address the demand-supply gap that has often meant rotating brownouts, especially for the less privileged sectors of society.

The Philippine Rural Electrification Program championed by former Vice President Emmanuel Pel ae z init i ate d t he lighting up of the countr yside from a few hundred households to seven million connections which now benefits about 45 million Filipinos after 38 years. The Expanded Rural Electrification Program sought to attain 100% barangays electrification by 2008 and 90% household electrification by 2017.

Howe ver, w hi le t he Department of Energ y (DoE) claimed 100 percent of the country’s 42,036 barangays barangays now have e l e c t r i c i t y, S e n a t o r Pan f i l o L a c s on fou n d out during a recent public hearing of the Committee of App oi nt m e nt s t h at many sitios in thos e barangays still have no power (Casayuran, 2016).

In f a c t , S e n . L ore n Legarda disclosed t h e pro g r am h a s on ly electrified 89 percent of households in Luzon, 79 percent in the Visayas, and a mere 56 percent i n M i n d a n a o . Ur b a n el e c t r i f i c at i on w a s 9 4 percent, while rural electrification was only 73 percent.

She noted that most of t ho s e w ho have no access to electricity live mostly in the rural areas, (which account for 4.4 million households living in remote areas) as well a s i n t h e out s k i r t s of Metro Manila and Davao.

(Torregoza, 2016) The DoE is working on the development of a s o c i a l d e v e l o p m e nt framework for the energy

sector aimed at raising the quality of life of people at this “base of the pyramid”.

During a recent round table discussion on the development of a Social Development Framework for t he E ne rg y S e c tor at Maramag, Bukidnon, Energy Undersecretar y B enito L. R anque said the DoE is now drawing up President Duterte’s v is i on for c onsu me rs , especially lowering the rates for electricity and the eradication of brownouts.

Ranque stressed the framework is being developed in behalf of those households which cannot even afford the b enef its of electricity, whose experience has been a cycle of one disconnection after the other, because of their incapacity to pay.

Now t hat we have a president who understands the need for social development, he urged us take advantage of this opp or tunity to take up the cudgels for these unfortunates whose plight may never have been discussed in the DOE, the Energ y Regulatory Commission or Congress.

R a n q u e n o t e d h ow the Philippines’ energy industry has made billions for a few which are ironically being paid for by millions who share very little of those profits.

The social framework f o r t h e e n e r g y s e c t or seeks to define the role of government in capitalizing on opportunities present in the industry, to promote social development,

especially in the grassroots.

Energ y autonomy for Mindanao to allow Mindanaoans to determine their own energy future was a recurring theme f or t h e w i d e r a n g e of prop osals put for ward by the participants in the ensuring discussions.

D a v i d A . Ta u l i , president of the Mindanao Coalition of Power Consumers noted how ironic it was to have non-Mindanao residents deciding our energy future in Manila for so long.

Allowing us to have f i r s t d i b s at h o w o u r energy resources should be developed, distributed and priced is a huge step forward to helping more people have a say in determining their own future.

Tauli said the MCPC’s development agenda i n c l u d e s t h e c r e at i o n of the Mindanao Power C or p. (MINPO C OR) to develop large hydroelectric resources in Mindanao, and get local governments to develop small-scale RE projects, to ensure it remains cheap since the private sector players often imposes a very high rate of return.

Senate Energy C ommittee Chair S en.

Sher win Gatchalian recently filed S enate Bill 1188 (“Recoverable System Loss Act”) which seeks to lower e l e c t r i c it y r ate s by a s much as 15.67 centavos per kilowatt hour through the reduction of charges passed on to consumers by power companies.

While laudable, similar bills have languished in Congress and taken eons to navigate the legislative process, often extended by the lengthy process to draw up Implementing Rules and Regulations.

In contrast, the Association of Mindanao Rural Electric Cooperatives (AMRECO) b e l i e ve s it i s p o s s i bl e to reduce the cost of electricity for residential households in Mindanao by allocating the entire output of the AgusIf only cheaper power from Mindanao’s hydropower P u l ang i Hyd ro ele c t r i c plants were exclusively used for residential consumers, Power Complex (APHC) homes like these Samal Laut fishermen in Greater Sta for residential consumers.

Cruz Island could afford electricity. (RMN,NPN)

Should Pres. Duterte approve AMRECO’s petition, households like this one in Lubilan, Naawan, Misamis Oriental can enjoy cheap electricity from the Agus-Pulangi hydropower plants. (photo courtesy of Elmer Velasco Sayre)

Instead of being allocated to industries and the systems operator, AMRECO President Sergio Dagooc said the cheap hydro power wou l d b e a l l o c ate d to distribution utilities (DUs), electric cooperatives or private, b e c a u s e t h e D Us a r e the ones ser ving the poorest of the poor, who are t he t argets of t his administration for the reduction of electricity rates.

Ta u l i s a i d t h e President can order the PSALM-NPC to make the allocation, which should be implemented asap, and stay in p er p etuity, for as long as the Agus and Pulangi are generating electricity.

According to MCPC figures, the hydro plants generated in 2015 3,858 gigawat-hours (GWH), or 38% of the total generation of all power plants in Mindanao (10,000 GWH).

Under favorable weather conditions, power generated by the hydros can exceed 4,500 GWH. Since residential consumers only used 3,151 GWH in 2015 (31% of t ot a l c ons u mpt i on , including system loss, in Mindanao) t here is sufficient electricity f rom the hydro plants to supply the present and future electricity needs of residential consumers in Mindanao.

Residential consumers stand to have their electric bills reduced

by P1.20 per kWh (and save P120 on the monthly bills of poorer households that consume an average

If cheap electricity from the Agus-Pulangi Hydropower complex is exclusively alloted for household use, even remote homes like these Tigwahonon households can afford electricity. (RMB,NPN)

100 kWh monthly) once this is implemented.

Another way to bring down the cost of electricity for residential consumers is for systems operator National Grid Corporation of the Philippines (NGCP) to s ource its ancillar y requirements elsewhere to free up the allocation it is now getting from the hydros.

Under the Philippine Grid Code, as the grid o p e r a t o r, N G C P i s responsible for procuring the ancillary reserve for a particular grid thus, a big portion of the power m i x c o m i n g f ro m t h e Agus-Pulangi now goes to NGCP as regulating reser ve.

But now there is surplus power in the grid, NGCP can source its ancillar y reser ves elsewhere, so the cheap power coming from Agus-Pulangi can be allo cated to the co ops and private utilities serving households, who deser ve to benefit from

the island’s patrimony which rightfully belongs to the people.

Should t he p etition be approved by the president, the electricity price from thermal power plants in Mindanao is also expected to fall given the incre as e d comp etition for the surplus electricity now available from the grid (300MW) plus another 700MW that would be freed up by DU’s from their contracts with private power generating companies, making available a total of 1,000 MW to benefit industrial users and the systems operator.

Besides lowering electricity rates for re s i d e nt i a l c onsu me rs outright, this scheme can e ve n l owe r e l e c t r i c it y rates further during the rainy season in Mindanao should the DOE and ERC restore dump power rates when excess power from the island’s hydroelectric power plants are made available to coops at half the price.

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Friday, November 25, 2016

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AMRECO MANIFESTO THE 1ST AMRECO ANNUAL GENERAL MEMBERSHIP ASSEMBLY & AMRECO SUMMIT 2016 is an essential event in shaping sustainable solutions on the challenges of meeting demands for Mindanao’s power future. The conference will be held November 25 - 26, 2016 at the Limketkai Luxe Hotel, Limketkai Avenue, Limketkai Center, Cagayan de Oro City, organized by the Association of Mindanao Rural Electric Cooperatives (AMRECO) in partnership with the Mindanao Development Authority (MinDA).

With the theme “FEDERALISM: ITS IMPACT ON MINDANAO ELECTRIC COOPERATIVES AND MEMBER CONSUMERS” , the Summit will serve as the leading platform for the Mindanao Electric Cooperatives in establishing a reliable, affordable, and sustainable electric services in Mindanao in support to the present Administration’s quest of alleviating the Mindanao crisis through a federal form of government.

Commission (ERC) particularly on the full and exclusive supervision and control of the power sector participants, a part of which should be under the authority of the Department of Energy (DOE).

• PSALM to provide additional allocation/capacity to EC’s hosting Agus Hydro Electric Power Plant (e.g. LASURECO and LANECO) b. Creation of Mindanao Power Corporation (MINPOCOR)

Towards this end, AMRECO shall pursue the following legislative agenda as urgent measures to ensure competitiveness in the electric power industry and reduce cost of electricity, for immediate consideration:

AMRECO supports the passage of the bill creating the Mindanao Power Corporation as a stand-alone government owned and controlled corporation (GOCC) to place under government control the Agus-Pulangui complexes and raise sufficient funds to operate, maintain and improve such assets efficiently. The creation of MinPoCor is seen as a necessary measure to assure the full development and maximized utilization of the power resources of the region, ensure transparent and reasonable prices of electricity, protect public interest, and achieve greater operational and economic efficiency in Mindanao.

a. Review Republic Act 9136 (EPIRA)

c. Proposed Independent Market in Mindanao

AMRECO has lobbied for the amendment of certain provisions of EPIRA and has supported and will continue to push for the relevant bills to be passed in both houses of Congress in relation to such amendments, to wit:

1. As a general position, the association strongly opposed the proposal for the PEMC to manage electricity spot market in Mindanao.

• Privatization of Agus & Pulangui HEPPs. AMRECO has been consistently advocating for the perpetual non-privatization of Agus-Pulangui Hydro Electric Power Plants (HEPPs) in Mindanao and continues to hold this stand against such privatization to this day. AMRECO believes that the privatization of the said plants will result to the loss of economic competitiveness of the power supply sector of Mindanao, and the concomitant deterioration of the economic competitiveness of commercial and industrial firms in the region that are energy-intensive. Keeping these hydro plants in the government will certainly moderate any price adjustments of power as the Agus and Pulangui Plants will give a mix to the price of power that will keep it lower.

• AMRECO supports House Resolution No. 472 “A Resolution for the Deferment of the Privatization of Agus and Pulangui Hydro Electric Power Plants.

• NGCP to contract out ASAP or work for the Ancillary Service Procurement Agreement (ASPA) with various diesel plants now available in Mindanao and if possible free up the present capacity from Agus and Pulangui HEPP utilize for ancillary purposes.

• PSALM to allocate all the remaining low cost available capacity from Agus and Pulangui HEPP to all DU’s only, in consideration that the DU’s are serving the residential consumers comprising the majority of the low income families, as its cheap generation cost can substantially lower the mix generation cost of the DU’s effective rate, thereby reducing their electric bills, spreading therefore to majority of the people of Mindanao the benefits of the Agus and Pulangui HEPP. Further, continue allocating the same to industrial and directly connected customers has no significant direct benefits to low income families in Mindanao, as the main direction of the Duterte Administration is to lower the cost of electricity.

• PSALM to provide additional allocation/capacity to EC’s hosting Agus Hydro Electric Power Plant (e.g.

LASURECO and LANECO).

• Capacity ownership of generating companies. At present, generating companies are allowed to own up to 30% of the maximum demand of a particular grid, making it possible to be owned by only three (3) GENCOs which run contrary to the objective of competitiveness.

• PSALM’s renewal of CSEE’s of Mindanao EC’s should not be limited only for the year 2017, but for at least four (4) years like before (2017-2020). If the one year renewal is based on the premise that Agus and Pulangui will be privatize, the issue has already been settled in 2012 by providing the ASSIGNABILITY CLAUSE in the CSEE particularly (Section 4.8) where the PSALM’s successor will assume its responsibilities and obligations under it, while the Successor Generating Company (SGC) is given six months to negotiate with the customer for any amendment including possible tariff adjustment. This will help EC’s realistically do their long term power supply contracting plan.

• Cross ownership allowing distribution utilities to own generating companies subject to abuse in terms of obtaining supply requirements without need of competitive bidding resulting to the high generation costs passed on to electric consumers. To avoid this, a mandatory competitive selection process shall be imposed to all distribution utilities in their power supply contracts to a capacity of more than 1 MW and a reduction of the capacity allowed to owners of generating companies which has a distribution business to avoid monopoly in both the generation and distribution sectors.

• Reconsider the mandate of the Energy Regulator y

2. As a recommendation and counter proposal, AMRECO sought for a operation in Mindanao, separate and distinct from PEMC under concept/features: a. Composition of its Board of Directors are limited only to the industry players in Mindanao. b. In order to maintain a minimal market fees, each market participant will contribute at least one (1) staff that will manage the operation of the market, salaries of which will be shouldered by their respective employer. c. Power generation companies covered with Renewable Energy Payment Agreement and Renewable Energy Supply Agreement shall be excluded as market participants. d. Embedded generation of distribution utilities must not be mandatory participant to sell their capacity in the market or their participation should be voluntary in nature regardless on whether or not it is owned by the DU/EC. e. DU’s or EC’s with excess capacities on their bilateral contracts at certain hour of the day shall be allowed to sell the same in the market to fully maximise and optimize plant capacities. f. Market operator should not automatically transact in the market in behalf of the DU to any available capacity or GENCO without the approval and consent of same or participation in the market should be voluntarily instead of mandatory on the part of the DU. g. It should be a business decision of the EC/DU whether to buy power from the market or to make additional capacity nomination from its bilateral power supplier h. Price cap should be equal to the ERC approved generation cost of the power plant selling in the market and being nominated by the market operator to supply a certain DU/EC in any given time of the day. i. Clearing price should be the price bidded by the supplier at the time of nomination but not to exceed the price cap above cited. j.

That the generated capacity of NAPOCOR-MinGen particularly from Agus and Pulangui HEPP should not be considered part of the market resources or should not be traded in the market, instead it should be fully contracted out by the DU’s/EC’s. k. There should be no line rental regardless of the location of the plant being nominated by the DU/EC to supply its power requirement whether in the market or bilateral contract considering that the cost of TX facilities has already been paid by consumers in a form of ancillary charges as part of the CAPEX of the transmission operator. l. Other feature of the market rules must capture the unique situation of Mindanao Grid being not connected to Luzon and Visayas.

The effective management of market operations for the unique situation of the Mindanao grid requires understanding of the consumers’ needs and the over-all situation therein; considering that operating the market under the context of the Luzon-Visayas grids consumer profile, may not be totally responsive. The Electricity Spot Market should be separate and distinct from the WESM administered by PEMC and should only be manage by the stakeholders and market participants in Mindanao. d. Provision of an Electric Cooperatives Disaster Management Fund (ECDMF)

The frequency of disaster/calamities (natural or man-made) that batters different parts of the country every year, creates significant uncertainty and severe financial struggle for the affected Electric Cooperatives (ECS), which translates to higher electric rates to the member consumer and ultimately affects the national government’s economic development agenda.

AMRECO supports House Bill No. 3353 “An Act Institutionalizing the Electric Cooperatives Disaster Management Fund” (ECDMF) for the purpose of allocating grant/subsidy funds from the national government thereof, and streamlining the processes of availment of such funds for the implementation of mitigation measures for the immediate restoration/ rehabilitation of damaged EC infrastructure when the extent of such damages are beyond its financial capability and that of the member consumers. e. Continue and strengthen the Rural Electrification Program Carr y on and improve the government policy on rural electrification particularly the Sitio Electrification Program (SEP) and Barangay Line Enhancement Program (BLEP), and, pave the way for the development of pragmatic policies, innovative strategies for the provision of electricity access to households especially in the countryside. f. Review Republic Act 9511 There is a need to review this law which granted concession to the NGCP to operate the transmission lines of the government particularly on the different incentives it enjoys like allowing them to pass on the different kind of taxes and the level of expenditures passable made chargeable to the electric end users. g. Review Republic Act 10531 RA 10531 should be further amended by putting further provision retaining the ownership of ECs to its memberconsumers/owners instead of allowing takeover of private companies in order to ensure that the present cheap cost of Electric service provided by ECs compared to the private owned DUs be maintained. Some cases on inefficiency on few number of ECs be resolved by the step-in rights of NEA instead of take over and transfer of ownership to private investors that would definitely result to the higher distribution cost because of the fact that they are profit oriented compared to the non-stock, non-profit nature of ECs created under PD 269 as amended by RA 10531. h. House Bill No. 3351 “Anti Power Line Disturbance Act” Frequent power interruptions, bring negative impact on the nation’s economy and the loss of millions of revenue.

These power outages are mostly due to obstructions from fast-growing trees, plants and other structures constructed under or near power transmission lines.Reliability standards for transmission lines should be in place. A vegetation management program to remove all trees, shrubs and other plants that have the potential to touch the line or grow too close to a transmission line’s right-of-way for safety should be developed.

AMRECO earnestly sought for the passage of this measures to rationalize and harmonize the country’s economic development with the environment and should prohibit the introduction of plants and structures and the conduct of hazardous activities within the right-or-way of transmission lines. A vegetation management program that will remove all trees, shrubs, other plants as well as structures and improvements within the right-of-way limit of transmission lines should also be started.

I. AMRECO seek for the immediate issuance of the joint circulars by the concern government agencies to implement some provisions of R.A. 10531 “National Electrification Administration Reform Act of 2013”: a) Joint Circular of DOE and DPWH to implement Section 16, paragraph (j), or the proper compensation to EC’s for the cost of relocation of distribution lines affected by government projects. b) Joint Circular of DOE-DOF-BLGF to implement Section 32-A paragraph (c) or the Preferential Rights granted to electric cooperatives under R.A.7160 or the Local Government Code of 1991.

With these agenda in mind, the target audience/participants shall be EC leaders, representatives of electric cooperative constituencies; with resource persons coming from the prominent offices/agencies in the power industry such as the DOE, NEA and MinDA. With no less than the President of the Republic of the Philippines, President Rodrigo Roa Duterte (PRRD), and Senator Aquilino Pimentel, Jr. to grace the said event, it is hoped that the Summit shall likewise provide an effective venue for the energy stakeholders in Mindanao to derive insights on the proposed federal system of government as a key component in government reforms towards a hastened economic development, better financial mobilization and greater budget and fiscal autonomy in the regions, particularly in Mindanao.

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Friday, November 25, 2016

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SERGIO C. DAGOOC AMRECO President

MESSAGE

(SGD.)

Zamboanga del norte electric cooperative, inc.

welcomes honored guests, participants and coop members to the 1st AMRECO General Assembly and Summit 2016!

It is with great honor and privilege to convey my warmest greetings and welcome to our guest, visitors, Board of Directors, General Managers, other EC Officials and Staff to the first AMRECO Annual General Membership Assembly and Summit this 25th to 26th day of November 2016 in Cagayan de Oro City.

The year’s debut of having an annual gathering of AMRECO member EC’s is a very significant milestone at a crucial time when our nation is on its way to a dramatic change in society where numerous reforms in various sectors of our society has been introduced aimed at liberating our people from criminality, graft and corruption, drug addictions and other hindrances of socio economic upliftment.

We are all aware that the electric cooperatives sector we represented is an important catalyst of building a robust and sustainable economic fundamentals, for without electricity life in the world, our country and in particular to the people living in beloved Mindanao is unthinkable, reason why providing reliable and affordable electricity will not only brighten our homes but brought industrialization that will invigorate the livelihood opportunities of the Mindanaoans. Thus, securing the future of the next generation.

AMRECO as an association of thirty four strong members have proven its worth for several years of protecting the interest of its member/consumers/owners through strong lobbying that the promulgations

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ADELMO P. LAPUT, CEO, General Manager ZAMBOANGA DEL NORTE ELECTRIC COOPERATIVE, INC. Gen. Luna St., Central Barangay, Dipolog City Telefax: (065)212 – 1311/212-2335 Email: zanecoogm@yahoo.com

“we don’t want that the market in electricity will be governed by the people in Luzon and Visayas.”

In fact, on their meeting with MPMC on Novemb er 15, Dago o c stressed that one of the agenda is to request that the remaining capacity of the Agus and Pulangui C omplexes “should no longer be allocated to the industries; it should be focused to the distribution utilities whether electric cooperatives or private because the distribution ut i l it i e s a re t h e on e s serving the poorest of the poor, which is the target of this administration for the reduction of electricity rate.”

The First AMRECO Annual General Membership Assembly and

of laws, rules and regulations of the government needs to ensure protecting of their rights and interest.

With the new leadership’s direction headed by a fellow Mindanaoan President of liberating our country from the bondage of poverty by embracing federalism as a new form of government, it is only fitting that we EC leaders in Mindanao will throw our full support and cooperation, in considerations that we are also already advocating the same principle long before, who we wanted to manage the resources of Mindanao like Agus and Pulangui Hydro Power Plants and govern our sectors on our own without the unnecessary interference from the people of the other region, as we believed that we know our problems and its solutions better than the other people.

This gathering’s theme of “Federalism: its impact on Mindanao Electric Cooperatives and its member/consumers” is a proactive approach that as early as today, we need to start discussing with our very own great political leaders from Mindanao the issue at hand, for as EC leaders to be able to prepare our systems and processes that would ensure our respective constituency can harvest the benefit of federalism through reduction of cost in electricity.

Finally, it is my wish that through our active participation in this exercise we can come up and implement intervention that are responsive to the needs of time.

Mabuhay ang AMRECO ug ang federalismo!

AMRECO Summit 2016 as highlighted by Dagooc, is the perfect occasion for participants to grasp the pulse of Mindanao’s power development plans in the advent of Federalism under the leadership of the new government. (RTP/PIA10)

Poor...

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portion of the power mix coming from the AgusPulangi goes to NGCP as regulating reser ve,” Dagooc explained.

“However, this only requires 55 megawatts (MW),” Reston explained. “ The 300MW ancillar y reserve the system operator is required t o m a i n t a i n d o e s n’ t necessarily have to b e contracted from AgusPulangi and can now be easily sourced from other sources given the surplus in supply in Mindanao

grid.”

“Now there’s a surplus of power in the grid, we w i l l a s k NG C P to ge t their ancillary reserves elsewhere, so the cheap power coming from Agus-Pulangi can be allocated to the coops and private utilities serving h ou s e h o l d s , w h o b e s t deserve to benefit from the island’s patrimony which rightfully belongs to the people,” Dagooc said.

Should the AMRECO petition be approved by the president, the price for plants from thermal power plants in Mindanao is likewise expected to fall given the increased competition for the surplus electricity now available from the grid, b e n e f it t i n g i n du s t r i a l us ers and t he systems o p e r a t o r, i n d u s t r y analysts noted.

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Friday, November 25, 2016

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