Annual Report 2017

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2017 Annual Report

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he strength of an electric distribution utility lies in the resolve of its frontliners. Foremost of them is the lineman, the man on the pole oblivious of the danger, the heat, the rain, and the strain the job itself entails. These men endure the weather, the terrain, the tides, even the ire of angry consumers.

The difficult task of bringing light to the nation vested upon the electric cooperatives and utilities lies on these fearless men on the line. For SURSECO-I, its gallant roster of linemen is its pride and honor. No poles could stand tall, no wires could stretch to bounds, no light could flicker in every home. There is no SURSECO-I without the men who make all these possible.

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TABLE OF CONTENTS OUR THEME “Advancing Change for Significant Progress” Change seems to be the mantra of the Filipino nation today. The ideology makes all levels of the society look into the future with positivity. With change shall come better living conditions and a better life as a whole.

For service-oriented entities such as the Electric Cooperatives, channeling the fruits of change from the highest echelon of the land to the grassroots level through improved and empathic public service is the industry’s valuable move for positive changes to be felt.

Rural electrification, the ultimate mandate of the ECs is where we score in our contribution to nation-building and development. We seize this moment and take change as an anchor in our hopes to provide the basic need of light thereby significantly paving the path towards progress and growth of the communities we are relentlessly serving.

PUBLICATION COMMITTEE CHAIR LINDY A. PEREGRINO, MBA MEMBERS HANNAH A. MEJIA/ ANDIE C. LASALA / KATRINA M. CONCHA, CPA BELLA M. LUGSANAY, MBA / KIMBERLY C. LACSON, CPA | SAHLEM S. FUDALAN ELIKA SHUA A. SUMAMPONG, CPA / JAKE A. PEREZ | RODERICK P. CORDERO ROLINE ANGEL B. DIVINO / KERRO RADEN T. ACMA, REE | WEIRY A. TIONKO, REE ERBERT C. SOBERANO, REE/| RODEL S. PORTILLO, MEEE EDITORIAL ASSISTANT CHARISSE MAE A. BAO ADVISERS MELODY A. PATIÑO, CPA, DBM FIDELINA R. LUMANTAS CHARISSE MAE A. BAO ROMEO L. AVILA, REE CONSULTANT GM JOCELER M. MORALDA

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2017 Annual Report

CORE VALUES Integrity We shall uphold the virtues of fairness, honesty and transparency in all our transactions and act under the highest standards of ethics.

MISSION To provide efficient and reliable electric service to SURSECO-I member-consumers and forge strong and meaningful partnerships with its stakeholders towards economic development in the entire coverage area.

VISION A leading power distribution utility acclaimed for its excellent customer service by 2020.

Commitment to Service We shall serve with utmost dedication and passion, putting the welfare of SURSECO-I and of our stakeholders above our own interests.

Excellence We shall strive for excellence in the performance of our duties; we shall not settle for mediocrity.

Solidarity

We shall work in unity with our colleagues and stakeholders, sharing the same purpose of uplifting the economic and social well-being of the communities we serve.

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MESSAGE

Republic of the Philippines OFFICE OF THE PRESIDENT Malacañan Palace, Manila

My warmest greetings to the Surigao del Sur I Electric Cooperative, Inc. (SURSECO-I) on the occasion of its 39th Annual General Membership Assembly.

For more than three decades, SURSECO-I has been a reliable provider of electricity to communities and businesses in Surigao del Sur and has ensured that every household and industry within its locality is connected to the national grid. We in the government are thankful for your commitment to this endeavor and laud your significant contributions to the marginalized areas of Mindanao.

May this gathering be an avenue to create sustainable and innovative solutions that not only address the challenges of our times, but also cater to the evolving needs of your stakeholders. We look forward to our continuing partnership in uplifting the lives of our countrymen towards a more inclusive and progressive nation for future generations.

Republic of the Philippines DEPARTMENT OF ENERGY Energy Center, Meritt Road, Fort Bonifacio, Taguig

Let me express my warmest greetings to the Board of Directors, Officers and all Member-Consumers of Surigao del Sur I Electric Cooperative, Inc. (SURSECO-I) as you gather for your 39th Annual General Membership Assembly(AGMA) with the theme, “Advancing Change for Significant Progress.”

Congratulations to SURSECO-I for consistently and dedicatedly providing sustainable and affordable electricity services to the second district of Surigao del Sur for over four decades. Laudable too is your sterling track record of being able to electrify 100% of your covered barangays.

Forge on and continue maintaining a very low level of systems loss while always aiming for a high collection efficiency.

Your efforts are admirable especially when you signed an agreement on clean and renewable energy supply from hydro power plants.

I wish everyone a productive and meaningful gathering.

We urge you to use this year’s AGMA as a platform to build on your past achievements while introducing also innovative programs and projects for the welfare of your consumers.

rodrigo roa. duterte President

Rest assured that DOE will continue to be a reliable partner to SURSECO-I’s endeavors.

Maraming Salamat at Mabuhay!.

ALFONSO G. CUSI Secretary

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MESSAGE

Republic of the Philippines ENERGY REGULATORY COMMISSION Ortigas Center, Pasig City

Republic of the Philippines NATIONAL ELECTRIFICATION ADMINISTRATION Diliman, Quezon City

On behalf of the Energy Regulatory Commission (ERC), I extend my warmest greetings to the memberconsumer-owners of Surigao del Sur I Electric Cooperative, Inc. (SURSECO-I) on your 39th Annual General Membership Assembly (AGMA).

My warmest greetings to the Member-Consumer-Owners (MCOs), Board of Directors, Officials and Employees of Surigao del Sur I Electric Cooperative, Inc. (SURSECO-I) as you celebrate your 39th Annual General Membership Assembly (AGMA).

Your theme, “Advancing Change for Significant Progress” shows SURSECO-I’s profound ability to adapt to the challenges that are taking place in the electric power industry. Indeed, you are steadfast in your commitment to deliver electricity in the farthest part of your community. A well-lighted street gives a sense of security and peace of mind to your member-consumers.

Today, as you stand as one of the most successful implementers of the Rural Electrification (RE) Program, I wish to congratulate you for committing yourself in providing reliable, quality and efficient electric service in the province of Surigao del Sur. Indeed, you have been a dependable partner of NEA in achieving the goals of rural electrification, and through the years, you have demonstrated how far our alliance can go in truly serving the needs of the poor and underserved communities in the country.

In line with this, I commend SURSECO-I for your adherence to the Nationwide Intensification of Household Electrification (NIHE) program implementation wherein you were able to energize the beneficiary households in your area. A salient feature of the NIHE Program is the One-Stop-Shop for application processing and documentary compliance for the smooth implementation of household energization.

Seize the AGMA as a platform to celebrate your achievements and gather and harmonize the diverse inputs of officials and member-consumers in charting strategic measures towards the success of SURSECO-I’s upcoming plans and programs.

May the gathering reinforce teamwork and unity as you ensure a reliable and affordable electric service.

The ERC will always support your endeavors towards this end. Let us work together to enable the delivery of long-term benefits that contribute to sustained economic growth and an improved quality of life.

The theme of your occasion today, “Advancing Change for Significant Progress,” expressly underscores your crucial role as a catalyst of countryside development in your coverage area. Electric Cooperatives (ECs) like SURSECO-I, as an agent of change, must take the lead and initiate programs that will not only uplift the lives of the people, but also empower them to become deeply involved in the affairs of the EC. With the strong partnership we have forged over the years, I am hopeful that SURSECO-I will continue to take on the challenge of creating more meaningful transformations in the lives of our fellowmen. I am confident that with the alliance and solidarity we have, together with your MCOs, we can do more to serve the country and bring about progressive and sustainable rural development.

I wish SURSECO-I all the best. Mabuhay!

I wish you all a productive and meaningful assembly.

agnes vst devanadera

EDGARDO R. MASONGSONG NEA Administrator

Chairperson and CEO

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MESSAGE

Republic of the Philippines ASSOCIATION OF MINDANAO ELECTRIC COOPERATIVES, INC. Cagayan de Oro City

Congratulations to SURIGAO DEL SUR I ELECTRIC COOPERATIVE, INC. (SURSECO-I) for celebrating its 39th Annual General Membership Assembly on May 26, 2018! Your numerous achievements deserve to be commended to inspire you further in realizing your vision and mission. It is indeed another milestone for your member-consumer-owners to celebrate.

The theme, “Advancing Change for Significant Progress,” fittingly describes your determination to become a world-class electric distribution cooperative by providing consistent, efficient and dependable electric service. Your humble beginning, which dates back on July 20, 1971 has progressed into remarkable achievements worth celebrating. Be proud of becoming a Top Performing Electric Cooperative (Classified as Category A+). Your quality service and outstanding performance has finally paid off as you received several citations and awards such as Best in Collection Efficiency, Outstanding General Manager in the Philippines for Large Coop Category, Member of Hall of Fame - Region XI Award, and Special Citation Award conferred by NEA. All these signified your competitiveness within the power industry, as well as in promoting the best interest of your member-consumer-owners (MCOs).

With this, we assure you that AMRECO, Inc. will be there to support you in the achievement of your goals and objectives as one of the electric cooperatives whose vision is “A leading power distribution utility acclaimed for its excellent customer service by 2020.”

Once again, on behalf of AMRECO, Inc., may we express our utmost gratitude to your continuous support to the Association. We assure you that we will reciprocate them in the way we are expected, and to the best of our capabilities and resources necessary to sustain SURSECO I’s level of quality of service.

Republic of the Philippines HOUSE OF REPRESENTATIVE 1st Comsumers Alliance for Rural Energy (1-CARE) Partylist Constitutional Hills, Quezon City

Greetings to Surigao del Sur I Electric Cooperative, Inc. (SURSECO-I) as you hold your 39th Annual General Membership Assembly (AGMA)!

One challenge that we are facing now is sustainability - ensuring that the gains you have achieved be further nurtured. Your theme, “Advancing Change for Significant Progress” manifests the capability of your electric cooperative to meet the challenge of the ever-growing demand for electricity. This shows your utmost commitment to continuously improve service reliability and cost reduction of electricity.

The work of SURSECO-I having energized 100% of the barangays in your area while having a collection efficiency of 98% is truly commendable. This enabled your cooperative to be current in your payment to National Electrification Administration (NEA) and to your power suppliers. This exemplary work was recognized by the NEA when you were given a Triple A (AAA) Performance Rating.

To General Manager, Joceler M. Moralda and Board President, Pacinta F. Saligumba, I would like to recognize your efficient leadership on SURSECO-I, which made this success possible. I would also like to applaud the efforts of the management team and the rest of the employees of SURSECO-I, who work tirelessly to guarantee excellent and reliable service. Sustainability and further improvement of excellent and reliable service is our goal now. Let us work hand in hand to achieve our goal.

Let it be the motivation of everyone that providing electricity is essential in improving quality of life. Let us continue to strive on providing sustainable excellent and efficient service.

May you have a fruitful and engaging AGMA. Mabuhay and more power!

FELIX G. VERGARA JR. President

Carlos Roman L. Uybarreta 1-CARE Representative

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MESSAGE

Republic of the Philippines NATIONAL ASSOCIATION OF GENERAL MANAGERS OF ELECTRIC COOPERATIVES, INC. Quezon City

The National Association of General Managers of Electric Cooperatives, Incorporated (NAGMEC) wishes to extend its heartfelt greetings to the Board of Directors, Management, Employees and Member-Consumer-Owners of Surigao del Sur I Electric Cooperative, Inc. (SURSECO-I) on the occasion of its 39th Annual General Membership Assembly comes May 26, 2018.

Electricity in this highly computerized world becomes a replacement of almost every basic need that we knew in the past, as those needs are only products of electricity.

Thus, power and energy becomes the number one basic requirement of a human being in the modern world in order to survive.

It is heartwarming to know that every year SURSECO-I remains to be in the roster of top performing electric cooperatives in the country under the sterling leadership of their General Manager ably supported by their Board of Directors, a proof that in molding unity among leaders and stakeholders, sound decisions can be made that would result to benefit everybody particularly the consumers.

Republic of the Philippines TECHNICAL EDUCATION AND SKILLS DEVELOPMENT AUTHORITY East Service Road, Taguig, Metro Manila

I cheerfully join you in celebrating another year of community-oriented service. My toast to the members, owners and to the consumers of the Surigao del Sur I Electric Cooperative, Inc. (SURSECO-I).

I hope that this special occasion, the 39th Annual General Assembly of SURSECO-I, will allow you to reflect on how much SURSECO-I has been carrying on its vision of public service and catering to one of the most basic needs of its constituents.

The main thrust of TESDA’s partnerships and linkages initiatives is public-private cooperation. These partnerships are essential to the country’s technical vocational education and training system as they provide TESDA with ample grasp of the everchanging needs of the industry. Consequently, the Authority’s affiliation with SURSECO-I has produced much needed qualified human resource to the region, lending further credence to your theme for the event, “Advancing Change for Significant Progress.”

On behalf of TESDA, again, Congratulations with our hope for the best and more success.

On behalf therefore of your ever proud NAGMEC family, my ardent hope for your fruitful yearly activity and meeting of minds for the continued success of SURSECO-I. More power and God Bless SURSECO-I!

GUILING “GENE” A. MAMONDIONG President

SERGIO C. DAGOOC President

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MESSAGE

Republic of the Philippines CARAGA RURAL ELECTRIC COOPERATIVES ASSOCIATION San Francisco, Agusan del Sur

I would like to extend my deepest congratulations to the Member-Consumer-Owners, Board of Directors, and Management Staff of Surigao del Sur I Electric Cooperative, Inc. (SURSECO-I) for the successful conduct of your 39th Annual General Membership Assembly (AGMA).

The AGMA that you are conducting is a proof of your exceptional achievement in providing better life through electrification. With everything that has been said and done – the 5-point Agenda of President Rodrigo R. Duterte; the 7-Point Agenda of the Department of Energy; and the 10-point Agenda of the National Electrification Administration, the ultimate goal is providing inclusive, effective, and efficient service that is globally competitive in all aspects.

It is certain that electric cooperatives like SURSECO-I still exist today because of the Member-Consumer-Owners and their unwavering faith and support to us. “We are not here without them.” Cliché as it may seem but an irrevocable dogma it is.

As the President of the Caraga Rural Electric Cooperatives Association, I have high hopes that your cooperative will continue to prosper and attain more success in the future and will sustain radiating rural development through missionary electrification in the community. With all of these, rest assured that the CRECA will always be at your back supporting whatever endeavor SURSECO-I will undertake in the future. For we know that you are one with the organization in its vision of creating a better future for the people of Surigao del Sur in particular, and Caraga in general.

Finally, may we always be reminded by the lines of the great William Churchill, “Success is not final; Failure is not fatal; It is the courage to continue that counts.”

Kudos! God bless and more power SURSECO Uno!

EMMANUEL B. GALARSE CRECA President

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2017 Annual Report

Republic of the Philippines PROVINCE OF SURIGAO DEL SUR Office of the Governor Provincial Capitol, Tandag City

My heartfelt greetings to the member-consumers, officers and staff of the Surigao del Sur I Electric Cooperative, Inc. (SURSECO-I) as you hold your 39th Annual General Membership Assembly (AGMA) on May 26, 2018 with the theme, “Advancing Change for Significant Progress.”

Serving 138 barangays covering the southern municipalities, SURSECO-I is one of our partners and development accelerators in bringing sustainable development in the Second District of the Province of Surigao del Sur. Rural electrification as a modern source of energy promotes equity and development in rural areas like our province. It is essential and indispensable to development. Without access to electricity, development is very slow. Rural electrification serves many purposes: it improves business and farm productivity, eases the burden of household tasks and provides more efficient lightning for rural families. In short, electricity improves the quality of life and increases economic activity.

It is my hope the SURSECO-I will continue to provide efficient and reliable electric service to its member-consumers and continue to support my economic endeavors under its franchise area.

Finally, I also hope that each one of the member-consumers of SURSECO-I will emerge even stronger and more united from this AGMA as you continue to nurture your electric cooperative to be the “Development Accelerator for Rural Communities.”

VICENTE T. PIMENTEL, JR. Provincial Governor

MESSAGE

Republic of the Philippines HOUSE OF REPRESENTATIVES Quezon City, Metro Manila

From its humble institutionalization in July 1971, SURSECO-I indeed has blazed a trail that has gone a long way. This multi-awarded electric cooperative has brought light through the Sitio Electrification Program even to the remotest part of the barangays of the 2nd District of Surigao del Sur. And to date SURSECO-I continues to serve the homes of almost 75,000 connections it has established.

The national recognition bestowed upon SURSECO-I as one of the most outstanding electric cooperatives of the country is an eloquent reflection of efficiency and dedication of the men and women behind the operation of the electric cooperative. It has brought honor and pride not only to the cooperative but also to the whole province of Surigao del Sur. On its 47th year of exemplary performance, let me extend my admiration and gratitude for being an effective partner in development for the communities of the 2nd District. Typhoons Sendong and Pablo have challenged it to come out with its best and indeed, it has proven its worth by its sterling efforts in effecting rehabilitation of power in devastated areas the soonest possible.

On the occasion of its 39th AGMA on May 26th, let me congratulate SURSECO-I for a job well done!

I am confident that “Idealist” General Manager Joceler M. Moralda, supported by its dynamic BOD, will make Surigao del Sur proud with reports of laudable achievements once again. The thriving agri-tourism economic activities of your localities owed much to your advocacy of “Advancing Change for Significant Progress” to places however remote, for installation of the much needed power.

More power SURSECO-I!

Republic of the Philippines PROVINCE OF SURIGAO DEL SUR City of Bislig Office of the City Mayor

My warmest greetings to the Surigao del Sur I Electric Cooperative, Inc. (SURSECO-I) as you hold your 39th Annual General Membership Assembly.

This year’s theme, “Advancing Change for Significant Progress,” is very timely and relevant in today’s society.

In fact, in his first inaugural speech, President Rodrigo R. Duterte emphasized his call for change. He said, “Change must start with us and in us…. We have become our own worst enemies, and we must have the courage and the will to change ourselves.” Indeed, change won’t come easy; but in these trying times, we must remain compassionate and committed to carry out our mission so that we could achieve our deep aspirations.

The electric cooperative sector is essential to the development of our nation. With the enhanced electrification programs, most of the rural communities already have access to basic necessity. Over the years, you have been contributing much to the improvement of the lives of Bisliganons by providing reliable, quality and affordable services. I hope that you continue to bolster your efforts as we light more communities. With relentless innovations and proper allocation of resources, you will surely be able to accommodate the increasing needs of the clients you serve.

Looking forward to a continuing partnership with you as we further our endeavors towards sustainable development.

May you have a purposeful and harmonious gathering.

Thank you and Mabuhay tayong lahat!

LIBRADO C. NAVARRO City Mayor

JOHNNY T. PIMENTEL

Congressman, 2nd District, Surigao del Sur

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MESSAGE

Republic of the Philippines PROVINCE OF SURIGAO DEL SUR MUNICIPALITY OF LINGIG Office of the Municipal Mayor

It has been another year of bringing change towards growth and innovation to all electric consumers.

One of these consumers is our Municipality wherein Lingiganons are very grateful and delightful for being given the chance to receive your continuous support and commendable services.

The Local Government Unit of Lingig, Surigao del Sur would like to express its deepest appreciation and congratulations for a job well done to Surigao del Sur I Electric Cooperative, Inc. (SURSECO-I) on your 39th Annual General Membership Assembly with the theme, “Advancing Change for Significant Progress.“ It has been a strong partnership between the LGU and SURSECO-I all through the years since the Cooperative has been a loyal stakeholder of our Municipality. Both agencies are inspired with the same goal towards the betterment and improvement to the day-day life of every Lingiganon. Thus, Lingig is blessed to be part of the change that SURSECO-I has instituted to make life of its constituents better and easier.

Kudos to all the personnel and staff of SURSECO-I for doing their best to improve and transform their services efficiently and productively and thus benefit all their valued member-consumer-owners. Furthermore, may you continue providing excellent services to all and the LGU will always be on your side in prompting progress and development in our Municipality.

Mabuhay and God bless us all!

EMELITA C. BALINGAN Municipal Mayor

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Republic of the Philipines PROVINCE OF SURIGAO DEL SUR MUNICIPALITY OF HINATUAN Office of the Municipal Mayor

My warmest greetings to the management, staff and cooperators of Surigao del Sur I Electric Cooperative, Inc. (SURSECO-I) on your 39th Annual General Membership Assembly.

This Annual Assembly is reflective to the needs of time with your theme, “Advancing Change for Significant Progress.” The theme is also in recognition to inevitable change gearing towards advancement. I commend the relentless effort of the management of SURSECO-I for providing avenue for the co-cooperators in expressing their views, opinions, and making their voices be heard and suggestions be considered.

The Municipality of Hinatuan joins you in this yearly undertaking and extends its utmost Congratulations to all the cooperators of SURSECO-I in your willingness to move towards carrying out new programs, common action and cooperation.

I wish you more blessings and achievements this year.

SHEM G. GARAY Municipal Mayor

MESSAGE

Republic of the Philippines Province of Surigao del Sur MUNICIPALITY OF TAGBINA Office of the Municipal Mayor

For many years SURSECO-I is a potent partner in achieving our goals towards development. Many projects and programs implemented for the benefit of our constituents couldn’t be simply realized without the power that SURSECO-I provides. Our partnership is proven by the test of time. We have grown stronger each year, inspired by our noble principles of service to our people. Though we are tested by evil elements but we stood strong and true in order to continue the services needed by our people.

The Local Government Unit of Tagbina is one with you in celebrating your 39th Annual General Membership Assembly. We are committed to support and be an active partner in furthering the provision of energy to far-flung areas of our Municipality. We are glad for the accomplishment of Nationwide Intensification of Household Electrification (NIHE) Program in this Municipality, which reached 80% at the middle of the first quarter of 2018. Our partnership is vital and critical in the delivery of public service, thus, more cooperation, coordination and support is expected to respond to the high demand of excellent public service.

Indeed, your services has improved and commendable, worthy for praise and respect. We have seen the constant change towards a more competent and reliable source of electricity. The outcome of our good partnership is evidently seen almost everywhere. Tagbina is thankful and proud of SURSECO-I.

Republic of the Philippines PROVINCE OF SURIGAO DEL SUR MUNICIPALITY OF BAROBO Office of the Municipal Mayor

Greetings to the member-consumers of Surigao del Sur I Electric Cooperative, Inc. as it celebrates the 39th Annual General Membership Assembly on May 26, 2018.

This year’s theme, “Advancing Change for Significant Progress” is a timely statement in this age of Information Technology Advancement as Electrification plays a vital and major role in socio-economic development. And with the unprecedented advances in Technology, almost anything and everything can be done through the use of Electricity.

As we partake together with the employees and officers of Surigao del Sur I Electric Cooperative, Inc. in making this event a successful one, I am urging every member-consumer to commit yourself in upholding loyalty to protect the interests of the Electric Cooperative so it could provide a far more better service.

God Bless Us All!

JOEY S. PAMA Municipal Mayor

Congratulations, and MABUHAY!!!!

GENEROSO L. NARAISO Municipal Mayor

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THE PRESIDENT’S AND THE GENERAL MANAGER’S REPORT

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he Management & Staff of SURIGAO DEL SUR I ELECTRIC COOPERATIVE, INC. (SURSECO-I) is deeply indebted and thankful for your presence in our 39th Annual General Membership Assembly (AGMA) with the theme “Advancing Change for Significant Progress.” Your overwhelming attendance in both venues of our assembly vividly demonstrates your sincere commitment to our Cooperative.

The untiring support that you bestowed to SURSECO-I continues to inspire the Cooperative to work harder and advance progressive change to strategic aspects of our operations. As a result, we were able to maintain our “AAA” rating from the National Electrification Administration (NEA), the highest rating category conferred to an Electric Cooperative for excellence in performance. Apart from this, we also received various accolades from government agencies for having a Majority Female Board of Directors and a Fully-Liquidated NEA Subsidy Funds for the Sitio Electrification Program (NEA), for being a Top Remitting and Top Reporting Employer (PhilHealth), and for being the Regional Winner in Medium Industry for Productivity Olympics 2017 (DOLE-Region 13). These recognitions positively illustrate our true strength as one dynamic organization.

As SURSECO-I advances significant change in the delivery of it services, it never fails to own its responsibility to its people in the performance of its Corporate Social Responsibility (CSR) projects. The Cooperative continues to serve the academe sector by providing free electrical materials and labor services to another 32 beneficiary-schools in its 2017 implementation of “Ambag ng Kooperatiba para sa Brigada Eskwela” initiative, with the help of 14 volunteer electricians who are fresh graduates of the SURSECO-I Training and Assessment Center (STAC). Our strong partnership with the Aboitiz Power Corporation had enabled us to donate 10 units thin client computer sets, with multifunctional printer and a DLP projector to San Fernando Central Elementary School to help equip its pupils for digital age. Under our campaign for academic excellence, we have conferred medals and cash gifts to six top performing students; three of whom from the Simon Edgar A. Garay Elementary School in Kahayag, Bislig City, and the other three from Lingig Central Elementary School. Ten schools from Senior High School responded to our invitation as participants of our symposium and quiz bowl, who later on pledged to be part of our information agents.

Embracing change means reaching out to more CSR beneficiaries for SURSECO-I especially those in need. It is under this principle that the Cooperative provided food and care assistance to 100 differently-able children during their annual camping dubbed as Kamparaiso 2017.

Seventy-seven (77) inmates from Bislig City Jail and forty-five (45) parolees from the Second District of the Province of Surigao del Sur have received grocery and snack packs from SURSECO-I during its Prison Visit on its anniversary month. All the students in Trinidad Elementary School, one of the remotest school in Tagbina, were given Christmas presents and Jollibee Kiddie Meals while being entertained by the Jollibee mascot during our December outreach. The Medical and Dental Mission of the Cooperative in partnership with the Aboitiz Power Corporation has rendered free medical, dental, eye checkup and consultation, tooth extraction and blood typing, with free medicine and vitamins to four hundred seven (407) individuals from Barobo district. Such would have not been possible without the help of 3 doctors, 5 dentists, 1 optometrist, 1 medical technologist, 14 medical and dental aides from the districts of Bislig, Hintuan, Tagbina and Barobo. In addition, SURSECO-I’s desire to provide better training and assessment services to TESDA scholars for Electrical Installation Maintenance NC II and Electric Power Distribution Line Construction NC II pave the way to the construction of its new STAC building that we inaugurated this year.

Part of the Cooperative’s endeavor to be more all-encompassing in the performance of its social responsibility is through its involvement in various national and sectoral advocacies. Its active participation in the activities of the

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Bureau of Fire Protection during Fire Prevention Month; its support in the celebration of the Women’s Month; its observance of the Independence Day; its support to the significance of ASEAN community; its engagement in the activities honoring the Consumers Welfare, Cooperatives, Senior Citizen, and Indigenous People; and its commitment towards environmental protection through tree planting and organic agriculture activities are manifestations of its desire to provide inclusive quality service.

Among the important changes that SURSECO-I embarked on to attain significant progress in its operation were the uprating of the Tabon Substation (M3) and the rehabilitation of the San Fernando Substation (M1). Despite the technical challenges that the Cooperative had met in the implementation of the projects, the two stations are now capable and reliable enough to accommodate the forecasted demand of power in the coming years. These projects are huge boosts to the confidence of the Cooperative in terms of the reliability of its distribution infrastructure. On the other hand, SURSECO-I may have ended its power supply contract with the Aboitiz’ Therma Marine Incorporated, but engaging the services of HedCor Bukidnon, to augment the power supply need by the Cooperative for its coverage area, is a positive step since the latter offers a cheaper energy cost. Reliability of our distribution system and the availability of a cheaper power supply will certainly give a positive impact to the lives of our member-consumers.

This year, SURSECO-I family continues to grow bigger. With the on-going implementation of the Sitio Electrification Program (SEP) of the National Electrification Administration (NEA) and the Nationwide Intensification of Household Electrification (NIHE) of the Department of Energy (DoE), the Cooperative has energized 1,555 households and enlisted 3,794 new members adding to a total of 75,955 service connections and 65,672 memberships as of December 2017.

Notably, despite the increase in the number of energized households, there is a decrease in the energy sales from the Public Buildings, Street Lights, Industrial and Residential consumers. However, its impact has been neutralized by the increase in the energy sales from the Small and Large Commercial consumers that still posted our Energy Sales at its all-time high record of 55,963,316 kWh in 2017, a marginal growth of 0.02% from the previous year. The continuous growth in our KWh sales consequently translates into an increase in our Gross Operating Revenue from PhP 490,362,837.00 last year to PhP 544,215,905.00 this year, a significant growth of 10.98% equivalent to PhP 53,853,032.00. The growth in our Kwh Sales and Gross Operating Revenue are complemented with the reduction of our System Loss and positive outcome of our collection efforts. This year, we nailed a single-digit System Loss at 9.9988% compared to 10.40% unbilled energy in 2016.

And, our Collection Efficiency has surpassed last year’s rating from 98.20% to 98.42%, the new highest recorded rating for the last six years. Our positive performance in System Loss and Collection Efficiency are results of our concerted effort to penalize the pilferage violators, ensure reliability of our distribution system and to provide convenient mechanisms for our member-consumers to pay their bills.

Inspired by our hopes and aspirations as an Electric Cooperative with the grace from our God Almighty, SURSECO-I prays that the unwavering support and cooperation of our member-consumers, Multi-Sectoral Electrification Advisory Councils, Barangay Power Associations, Deputized Meter Readers and Collectors, Building Wiring Electricians, national and local government officials shall continue to grow stronger as the dedication and commitment of the Coop employees, Management and Board of Directors grow deeper and firmer towards the achievement of our Vision and Mission.

Let us all be the Change that we wish to see… Maraming Salamat at Mabuhay tayong lahat!

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KEY PERFORMANCE STANDARDS

PERFORMANCE

STANDARD

ACTUAL

WEIGHT

FINANCIAL LIQUIDITY RATIO 2.1

Quick Ratio

At least 1.00x

1.39

4

Up to 0.60x

0.32

4

At least 1.20x

4.61

4

LEVERAGE 1.1

Debt Ratio

1.2

Debt Service Ratio

EFFICIENCY 3.1 3.2 3.2 3.3 3.3

Supplier/ Payment to Power Supplier/Transmission Transmission Payment to NEA Payment to NEA Average Collection Period Average Collection Period

PROFITABILITY (25%)

Current Current Current Current Not more than more 45than days45 days Positive Positive

Current Current 37 Positive

Current Current 37 Positive

5 4 4 5

5 4 4 5

SUB-TOTAL30% 30%

SUB-TOTAL INSTITUTIONAL HUMAN RESOURCE a. Good Governance 1.

Performance Rating of BOD

Compliant

Compliant

5

2.

Performance Rating of GM

Very Satisfactory

Very Satisfactory

4

3.

Audit Rating Blue

Blue

2

Unqualified

Unqualified

1:350

1:400

1

c. Capacity Building

One (1) Training Per Employee Per Year

118

1

Funds availability based on updated or periodic actuarial study (at least 5 years)

Balance of 4,059,289.90

1

d. Retirement Fund

Within one (1) day upon receipt of the application

Within 1 day

2

Within two (2) days

Within 2 day

2

Within four (4) hours after receipt of the report

Within 4 hrs.

2

Within twenty-four (24) hours after receipt of the complaints

Within 24 hours

2

At least three (3) days before scheduled interruption

3 days

2

Within thirty (30) minutes

Within 30 minutes

2

Within twenty-four (24) hours

Within 24 hours

2

NEA Audit External Audit b.Employee-Customer Ratio

STAKEHOLDERS a. Customer Service

16

1.

Processing/Approval of applications for service connections (with complete requirements)

2.

Service-drop connection

3.

Restoration of service after line fault on the secondary side, including service drop/lateral

4.

Response time on customer complaints (Billing, Payment and Meter Complaints)

5.

Time frame in informing customer on scheduled power interruptions

6.

Response time to emergency calls

7.

Response time to reconnection of service due to disconnection

2017 Annual Report

KEY PERFORMANCE STANDARD

PERFORMANCE

STANDARD

ACTUAL

WEIGHT

b. Members’ Participation/Involvement 1.

2.

Annual General Membership Assembly (AGMA) District Election

c. Information, Education & Communication Technology

5% of total member-consumers

7.22% or 3,011 of the member-consumers

3

sole candidate for Hinatuan District and Bislig-II District elections conducted on August 27, 2016 and November 26, 2016, respectively.

2

Website, Short Messaging System, Hotline for Complaints, Automated Meter Reading, Billing & Collection, On-line Tellering

2

SUB-TOTAL

35%

30 Interruption-Consumer-Year (Unplanned Interruption)

23.17

7.50

45 Hour-Year (Unplanned Interruption)

3,023.67

7.50

Within the Cap

10.40%

12

90% and above (Lagging)

97.12%

3

SUB-TOTAL

30%

January 25, 2017

1

January 27, 2017

1

January 27, 2017

1

Every April 15th of the succeeding year

April 12, 2017

1

1st Quarter of succeeding year

1st Quarter of succeeding year

1

SUB-TOTAL

5%

5% of total members (except for districts with unopposed candidates)

Website, Short Messaging System, Hotline for Complaints, Automated Meter Reading, Billing & Collection, On-line Tellering

TECHNICAL POWER RELIABILITY a. SAIFI (System Average Interruption Frequency Index) b. SAIDI (System Average Interruption Duration Index) SYSTEM EFFICIENCY a. System Loss Cap b. Power Factor

REPORTORIAL REQUIREMENTS COMPLIANCE 1. Monthly Financial & Statistical Report (MFSR) 2. Performance Standard Monitoring Report (PSMR)

Every 30th of the succeeding month (per NEA Memo No. 2013-028)

3. Monthly Engineering Report (MER) 4. Audited Financial Statement 5. Enhanced-Integrated Computerized Planning Model (e-ICPM)

GRAND TOTAL

S

100%

URSECO-I takes pride in obtaining a perfect rating in its Overall Performance for three consecutive years since 2015, a manifestation that it has remarkably passed the stringent requirements and conditions set by the National Electrification Administration on its financial, institutional and technical performance as a distribution utility.

2017 Annual Report

17

Municipal Hall of Lingig

Sabang Bridge

Sabang

Fishing in Sabang

18

2017 Annual Report

T

he Municipality of Lingig is approximately 29.8 kilometers away from the City of Bislig and borders the province of Surigao del Sur from Davao Oriental. This laidback locale boasts of verdant rice fields, dense forested lands and hidden stretches of white sand beaches and isles.

Farming and fishing are the main sources of living for many of the Lingig locals in the rural area and coastal barangays, respectively. Because of the locality’s potential in the field of aquaculture and fisheries, Lingig was among the municipalities being tapped by the national government to create multi-species marine hatcheries by virtue of Republic Act 10787.

Although the Municipality of Lingig has the lowest service connections at 8,020 households as of December 2017, SURSECO-I still strives to continuously provide efficient electric service even to the most remote interior barangays of the town. It is in these parts of the society and of the franchise that service is very much appreciated for if not for the national government’s rural electrification program, these households would not have seen the possibilities of light.

Water Pumping Station Poblacion

2017 Annual Report

19

FINANCE SERVICES DEPARTMENT (FSD)

20

2017 Annual Report

2017 Annual Report

21

INDEPENDENT The Board of Directors SURIGAO DEL SUR I ELECTRIC COOPERATIVE, INC. San Fernando, Bislig City, Surigao del Sur

AUDITOR’S REPORT

Opinion We have audited the accompanying financial statements of SURIGAO DEL SUR I ELECTRIC COOPERATIVE INC., which comprise the statements of financial condition as at December 31, 2017 and 2016, and the statements of operations, statements of changes in equity and statements of cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the financial statements present fairly, in all material respects, the financial position of SURIGAO DEL SUR I ELECTRIC COOPERATIVE INC. as at December 31, 2017 and 2016, and its financial performance and its cash flows for the years then ended in accordance with the Philippine Financial Reporting Standards (PFRSs).

Basis for Opinion We conducted our audit in accordance with Philippine Standards on Auditing (PSAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the Philippines, the Code of Ethics for Professional Accountants in the Philippines, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with PFRSs, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with PSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements As part of an audit in accordance with PSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•Obtain an understanding of internal control relevant of the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

•Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists relate to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainly exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtain up to the date of our auditor’s report. However, future events or conditions may cause the Company cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Report on the Supplementary Information Required Under Revenue Regulation 15-2010 Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on taxes, duties and license fees in Note 28 to the financial statements is presented for purposes of filling with the Bureau of Internal Revenue and is not a required part of the basic financial statement. Such information if the responsibility of management. The information has been subjected to the auditing procedures applied in our audit of the basic financial statements. In our opinion, the information if fairly stated in all material respects in relation to the basic financial statements taken as whole.

L.C BONGUYAN & CO. BOA Registration No. 0354, valid up to December 31, 2018 NEA Accreditation No. 2016-04-00031, valid to May 20, 2019 TIN no. 004-426-918-000

22

2017 Annual Report

LUIS C. BONGUYAN Partner CPA Registration No. 24107 TIN 103-160-073 BIR A.N 19-005233-001-2017, issued on March 14, 2017; effective until March 14, 2020 PTR No. 99064464, issued on January 3, 2018, Davao City

STATEMENT OF FINANCIAL POSITION

DECEMBER 31 2017

2016

ASSETS Noncurrent Assets Utility Plant

441,142,672

419,559,159

Restricted Funds

66,542,792

47,536,067

Other Noncurrent Assets

14,948,114

10,694,323

522,633,579

477,789,549

Cash

13,454,046

15,538,055

Accounts Receivable

87,302,009

67,912,927

Materials and Supplies

23,961,439

19,686,737

731,228

826,644

Total Current Assets

125,448,721

103,964,362

TOTAL ASSETS

648,082,299

581,753,911

Members' Equity

412,357,816

378,883,031

30,539,712

15,377,802

Other Noncurrent Liabilities

112,961,239

109,591,020

Total Noncurrent Liabilities

143,500,951

124,968,823

30,539,712

15,377,802

112,961,239

109,591,020

67,903,013

51,901,732

Current Portion of Long Term Debt

4,609,289

5,892,899

Accrued and Other Current Liabilities

7,354,180

6,750,376

Notes Payable

12,357,050

13,357,050

Total Current Liabilities

92,223,532

77,902,057

648,082,299

581,753,911

Total Noncurrent Assets Current Assets

Prepayments

Noncurrent Liabilities Long Term Debt

Current Liabilities Long Term Debt Other Noncurrent Liabilities Accounts Payable

TOTAL LIABILITIES AND EQUITIES

2017 Annual Report

23

STATEMENT OF OTHER COMPREHENSIVE INCOME

DECEMBER 31 2017

2016

REVENUES SALES OF ENERGY Residential Regular

236,174,720

198,933,753

23,218,087

22,893,275

259,392,807

221,827,028

518,785,614

443,654,056

Small Commercial

46,961,301

41,782,949

Large Commercial

4,458,386

4,301,549

23,068,980

20,313,744

8,250,366

7,678,757

82,739,033

74,076,999

Large Commercial

70,820,185

63,724,381

Public Buildings and Facilities

25,968,650

20,704,076

Industrial

12,718,840

22,308,281

SUB-TOTAL

109,507,675

106,736,738

Total Energy Sales

451,639,515

402,640,765

Prompt Payment Discount

2,811,741

1,603,618

Miscellaneous

5,573,096

3,924,373

460,024,351

408,168,756

344,357,688

305,500,131

General and Administrative Expenses

37,431,120

35,464,998

Distribution Expenses

33,891,117

30,291,259

Consumers' Account Expenses

23,454,335

23,130,716

Depreciation

18,991,918

16,622,049

Finance Cost

2,830,683

2,054,852

460,956,860

413,064,005

(932,509)

(4,895,249)

209,288

388,537

(723,221)

(4,506,712)

-

-

(723,221)

(4,506,712)

BAPA Resale SUB-TOTAL Low Voltage

Public Buildings and Facilities Street Lights SUB-TOTAL High Voltage

Gross Revenue EXPENSES Purchased Power

NET INCOME / (LOSS) TOTAL COMPREHENSIVE INCOME (LOSS) Items not to be reclassified to profit or loss in subsequent period Actuarial Gains (Losses) TOTAL COMPREHENSIVE INCOME (LOSS) BEFORE TAX INCOME TAX EXPENSE TOTAL COMPREHENSIVE INCOME (LOSS) AFTER TAX

24

2017 Annual Report

NON-POWER EXPENSES

DISTRIBUTION EXPENSES

DECEMBER 31 2017 2016

SALES OF ENERGY Operation Supervision & Engineering

2,385,287

2,631,424

Consumers' Installation Expenses

2,292,401

1,964,912

Station Expenses

1,907,104

1,497,298

Overhead Lines

3,170,723

2,792,275

Street Lighting and Signal System

1,834,873

1,429,321

Load Dispatching

1,666,382

1,271,808

Meter Expenses

1,150,720

1,077,916

Miscellaneous Distribution Expenses

2,531,457

2,194,392

16,938,946

14,859,346

Overhead Lines

8,863,860

6,998,148

Station Equipment

1,561,026

1,563,980

Line Transformer

1,682,970

1,414,960

Meters

1,330,040

1,351,676

SUB-TOTAL MAINTENANCE

Supervision and Engineering

2,081,414

2,701,779

Street Lighting & Signal System

1,354,271

1,324,814

78,590

76,556

SUB-TOTAL

16,952,171

15,431,914

TOTAL DISTRIBUTION EXPENSE

33,891,117

30.291.259

Miscellaneous Distribution Plant

CONSUMERS’ ACCOUNT EXPENSES Consumers’ Records and Collection Expenses

11,188,185

9,869,743

Demo and Selling Expenses

6,686,615

6,403,024

Meter Reading Expenses

3,617,856

3,844,514

Supervision

1,897,574

2,951,829

64,105

61,607

23,454,335

23,130,716

11,599,493

12,630,413

Office Supplies Expense

3,816,982

3,711,060

Outside Services Employed

4,500,623

3,611,653

Maintenance of General Plant

2,496,644

2,813,315

742,182

767,758

Miscellaneous General Expenses

14,275,196

11,930,799

Total General and Administrative Expenses

37,431,120

35,464,998

94,776,572

88,886,973

Provision for Uncollectible Accounts Total Consumers' Account Expenses Salaries, Wages and Allowances

Taxes on Properties

TOTAL NON POWER EXPENSE

2017 Annual Report

25

FINANCIAL HIGHLIGHTS RESULT OF OPERATION

S

URSECO-I’s operation in 2017 showed improvement on its finances compared in the previous year. Albeit resulting to a net loss at PhP 723,221.00, this figure indicates a significant improvement against 2016. While the Cooperative may have incurred losses, it has improved its services through the rehabilitation of its distribution system and the acquisition of additional logistics.

Figure 1. Results of Operation

Consolidated energy sales reached 55,963,316 kWh in 2017, a marginal growth of 0.02% over the previous year.

Contributing to the sales improvement is the increased consumption of Small and Large Commercial segments which neutralize the decreased energy sales of the Public Buildings, Street Lights, Industrial and Residential segments. In terms of percentage share, residential segment registered the highest energy sales at 53.91%. Large Commercial segments posted the second highest sales at 18.36% followed by the Public buildings, Street Lights and Industrial segments at 16.52% and by the Small Commercial at 11.22%.

The sales increase in 2017 was fueled by robust economic growth and the flourishing eco-tourism across the franchise area coupled with the government’s electrification projects.

Figure 2. Energy Sales in kWh per Customer Class

26

2017 Annual Report

COST AGAINST REVENUE The increase in 2017 kWh sales translated to an increase of gross operating revenue at PhP 544,215,905, a significant increase by PhP 53,853,032.00 equivalent to 10.98% increase from the preceding year.

544,215,905

490,362,873

344,576,544

412,751,442 305,500,131

265,422,427

2015

2016

2017

Figure 3. Operating Revenue vs. Power Cost PARTICULARS

2015

2016

2017

Operating revenue

412,751,442

490,362,873

544,215,905

Power Cost

265,422,427

305,500,131

344,576,544

TOTAL AMOUNT

DISTRIBUTION PERCENTAGE

PER PESO SHARE

Generation and Transmission Cost (NPC, TMI, TSI, MPC & NGCP)

344,597,511.05

63%

0.6332

Distribution or Cooperative Revenue

129,468,963.00

23.79%

0.2379

PARTICULARS

Government Revenue Gross Revenue

70,149,430.15

12.89%

0.1289

544,215,905.00

100.00%

1.0000

Government Revenue 12.89%

Distribution Revenue

23.19%

63.32%

Power Cost (NPC, TSI, TMI, Mapalad Power Corp. & NGCP)

Figure 4. Revenue Distribution With the total operating revenue of PhP 544,215,905, a substantial percentage of 63.32% was paid to power generators namely NPC-PSALM, TMI, TSI and Mapalad Power Corp. and to the transmission company, the NGCP. Meanwhile, 12.89% of the total revenue was remitted to the Government in the form of taxes and Universal Charges. With such revenue distribution, SURSECO-I is allocated with only 23.79% for its operating and non-operating expenses.

2017 Annual Report

27

FINANCIAL HIGHLIGHTS

COLLECTION EFFICIENCY

C

ontinuous improvement of collection efficiency took place as Total Collection Efficiency glides up to 98.42%. Strict observation of due dates and disconnections together with proactive collection strategy for quick, simple and practical payment of power bills keep SURSECO-I’s collection Efficiency at a constant high.

Figure 5. Average Collection Efficiency

Among the five districts served by the Cooperative across its coverage area, Bislig and Lingig Districts marked the highest collection efficiency at 98% in 2017. These districts had the lowest average collection efficiency for the past 5 years but regained its record while other districts continue to have an outstanding CE.

Figure 6. Collection Efficiency per District POWER RATE

W

hile the Therma Marine Inc. was nearing its shutdown, the Cooperative remains to operate without a fizzle with the entry of additional 4MW from the new supplier Mapalad Power Corporation on January 2017. The MPC covered up more than 1,100,000 kWh deficit allocation of NPC-PSALM on April and June, causing the significant increase in power rates on these months since it primarily uses diesel-fuel to produce energy. Another contributory factor to the notable increase in 2017 power rates were the increase of Feed-In Tariff Allowance charge by PhP 0.0590/kWh and the inclusion of additional Universal Charge Stranded Debts which amounted to PhP 0.0265/ kWh starting August. The new Real Property Tax, however, decreased by PhP 0.0025/kWh.

28

2017 Annual Report

ANTI-PILFERAGE/OPERATION SUSI SA METRO To reduce systems losses and augment the revenue of the Cooperative, the Operation Susi sa Metro Team conducted intensified checking, verification and apprehension of reported pilferers of power across the SURSECO-I coverage area. In 2017, a total of 35 consumers were apprehended for violations on the Republic Act No. 7832, otherwise known as the Anti-Pilferage of Electricity and Theft of Electric Transmission Lines/Materials Act of 1994.

The intensified efforts of the Team are expected to bring back around 2 Million Pesos in back-billing to the Cooperative’s coffers. The apprehension process is based on the standard operating procedures as stipulated on the Anti-Pilferage Act. Along with the System Loss reduction initiatives of the Technical Services Department, the Operation Susi sa Metro spearheaded by the Consumer Accounts Division complements to the drive on zero tolerance on electricity pilferages in the SURSECO-I distribution system.

COLLECTION CENTERS Consumers are now provided with enough options to pay their power bills on time. Aside from the BAPAs and Deputized Collectors in remote areas, more established centers across the franchise are added into the list of accredited collection centers that accept SURSECO-I power bill payments.

Paying consumers can drop by any ECPAy center anywhere in the country such as Princetown, Expresspay, HLhuillier, Enterprise Bank and RD Pawnshop. In 2017, MLhuillier, a prominent money remittance center in the country, was added into the list. Also, SURSECO-I indulged banking institutions such as Cooperative Bank of Bislig, Cantilan Banks in Lingig, Hinatuan and Tagbina to cater to the same payment and collection services that are aimed for a more convenient and prompt payment of power bills.

2017 Annual Report

29

Bislig City Hall

Herculano BasaĂąez Boulevard (Baywalk) Poblacion

Ocean View Park and International Dollhouse Cumawas

Tinuy-an Falls Burboanan

30

2017 Annual Report

B

islig is a city at the easternmost part of Mindanao. It lies bustling along the panoramic stretch of Bislig Bay facing the Pacific. With its rich natural resources and innate beauty that has long began etching its name in the aspect of tourism, Bislig is tagged the City of Wonders and the Booming City by the Bay.

As the locality with the highest population among all cities and municipalities in Surigao del Sur, Bislig boasts of its vision to be a Model City for Organic Agriculture in the Philippines. Despite this inclination to rustic farm living, the city has experienced an influx of businesses in the last couple of years with the establishment in Barangay Mangagoy of the Gaisano Capital and Princetown – the most common chains of department and grocery stores in the Visayas and Mindanao.

As its local electric utility, SURSECO-I is ahead on its forecasting for power supply sufficiency with the continuously growing demand for power in Bislig City. As such, it has upgraded its power equipment to cater to this emergent need.

Gaisano Capital Mangagoy

2017 Annual Report

31

INSTITUTIONAL SEVICES DEPARTMENT (ISD)

32

2017 Annual Report

2017 Annual Report

33

INSTITUTIONAL HIGHLIGHTS

S

URSECO-I continues to bring light to more households in 2017 with the additional 1,555 homes energized and 3,794 members. This results to a total of 75,955 service connections and 65,672 memberships as of December 2017.

The increase in connections and memberships is attributed to the continuing implementation of the Sitio Electrification Program and the Nationwide Intensification of Household Electrification (NIHE). Taking the lead is Bislig City with 548 service connections and 1,832 registered membership applications.

With the economic and social development throughout SURSECO-I’s coverage area, these figures will continue to rise in the coming years as SURSECO-I continues to provide reliable electric service, determined to hurdle every challenge along the way.

District

2015

2016

2017

District

To date

2016

2017

To date

Bislig

834

763

548

35,132

Bislig

644

502

1,825

28,437

Lingig

333

294

196

8,020

Lingig

212

228

418

6,584

Hinatuan

608

359

230

9,642

Hinatuan

489

194

574

9,323

Tagbina

585

361

289

10,311

Tagbina

249

202

416

9,642

Barobo

815

470

292

12,850

Barobo

539

298

466

11,686

3,175

2,247

1,555

75,955

Total

2,133

1,424

3,699

65,672

Total

Table 1. Service Connections

NO.

Table 2. Membership

Purok/Sitio

No. of HHS

1

Cablitan, Lacasa, Hinatuan

30

2

Habitat Phase 2, Loyola, Hinatuan

60

3

P5, Little Baguio, Pocto, Hinatuan

10

4

Dreamland, Cambatong, Hinatuan

30

5

Herog, Tidman, Hinatuan

30

6

Relocation Site, Sayon, Tagbina

60

7

P3 & P5, Batunan, Tagbina

30

8

P3 Sta. Fe, Tagbina

45

9

P2, Ugoban, Tagbina

25

10

P7, Manambia, Tagbina

20

11

New Relocation Site, Malixi, Tagbina

35

12

Camp Site, Tambis, Barobo

60

13

P7, Talisay, Poblacion, Barobo

40

14

P5A Abandoned Road, Campbagang, Barobo

40

15

Relocation Site, Mansailao, Lingig

40

16

Kupot to Tagpupuran, Lingig

50

17

Montero, Bonggan, Lingig

30

18

P6, Palo-Alto, Lingig

20

19

Maribojoc, Valencia, Lingig

30

20

P2, San Jose, Bislig City

15

21

P2B, San Jose, Bislig City

30

22

Linao, San Jose, Bislig City

25

23

Bagong Silang, San Jose, Bislig City

60

24

P10, Sug-ubon, Tabon, Bislig City

30

25

BCNASA Phase 2, Poblacion, Bislig City

60 TOTAL

Table 3. SEP Household Connections

34

2015

2017 Annual Report

905

BRIGHTER HOMES THROUGH SEP & NIHE

O

ne of the agenda of President Rodrigo R. Duterte is “Access to Electricity for All.” Hence, the Department of Energy (DOE) and the National Electrification Administration (NEA) are tasked to cascade the President’s vision to the power industry players such as the Electric Cooperatives. For NEA, it is now on its 7th year in implementing the Sitio Electrification Program (SEP), which focuses on the construction of new distribution line in unserved sitios.

However, there are still households within the served areas that are not yet connected to the power system due to the lack of financial capacity to apply for a connection. To serve such need, the DOE launched the Nationwide Intensification of Household Electrification (NIHE) program. This initiative provides subsidy for the house wiring materials and labor expenses for the electrical installation. The recipients of NIHE are mostly indigents and those who have availed of the DSWD’s Pantawid Pamilyang Pilipino Program. As one of the implementers of NIHE, SURSECO-I tapped the Local Government Units (LGU) in seeking further assistance through the waiving of the fees for LGU requirements such as certifications from the Engineering Office and the Bureau of Fire Protection.

For the first batch of implementation, the DOE approved a total of 2,414 beneficiaries for SURSECO-I. The Cooperative created strategies in order to fast track and closely monitor the project. Hence, the Household Electrification Committee (HEC) was created then for this purpose.

INSTITUTIONAL HIGHLIGHTS AREAS City/Municipality

Bislig

Barangay

Approved Number of Beneficiaries

Tabon

153

Mangagoy

252

Cumawas

93

Poblacion

326

San Fernando

117

Kahayag

53

San Roque

326

Maharlika

107

Poblacion

244

Aquino

73

Lacasa

137

Maharlika

41

Sto. Niño

79

Tagbina

Poblacion

203

Barobo

Poblacion

Lingig

Hinatuan

TOTAL

210 2,414

Table 4. NIHE Household Connections

The Committee coordinated with the Barangay, Sitio and Purok Officials for the conduct of the One-Stop-Shop (OSS). This mechanism provides a faster and accessible processing of the beneficiary’s application for new connection. The verification, processing and registration of beneficiaries in the system; collection of the consumer deposit and membership fee; issuance of certificate of membership and ID; issuance of Electrical Lay-out; and the Pre-Membership Seminar are all included in the OSS. Hence, SURSECO-I brings its services closer to the people.

As the energizations of the first batch continue through the early months of 2018, the documentary preparations for the 2nd batch of the NIHE subsequently rolled out. A total of 10,098 indigent households are programmed to be energized from all the rest of the barangays in the coverage. All these beneficiaries are expected to experience NIHE before the year 2018 closes.

With NIHE, the aim of lighting up the whole country is closer to reality. The Cooperative shall ensure that no one shall be left in the dark. It shall continue to work with its partners—DOE, NEA and LGUs in order to accomplish this gargantuan task.

NIHE Testimonials Finally it is the indigents’ turn to have their homes lighted as President Duterte ordered the total electrification of all unserved households across the country through the Department of Energy’s Nationwide Intensification of Household Electrification (NIHE) program.

SURSECO-I immediately subscribed to this great opportunity to serve, enlisting a total of 2,414 households for the 1st batch of beneficiaries coming from nearby barangays in the Poblacion. After the approval of the proposal in November 2017, the Coop was able to light 961 indigent homes in less than a month. If not for the beating of typhoons in December last year, more homes will have been given a delightful Christmas through the NIHE. Grateful for the opportunity to be finally lighted, beneficiaries openly expressed their appreciation to SURSECO-I and President Duterte. The following notes are the heartfelt sentiments of those people who have found joy and hope with the flicker of light in their humble abodes.

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INSTITUTIONAL HIGHLIGHTS MSEAC FEDERATION

O

fficers of the Multi-Sectoral Electrification Advisory Council (MSEAC) from the five (5) districts of the SURSECO-I franchise gathered for a meeting on 29 September 2017 at the SURSECO-I Main Office Boardroom.

To comply with the NEA directive following the confirmation of the appointed new members of the MSEAC, the meeting aimed to re-orient the MSEAC Officers on their duties and responsibilities as well as their enhanced role as complementary arm in the Cooperative’s initiatives to improve and sustain its operations.

Election of the Federation officers was also conducted.

With the intensified efforts to soon organize the SURSECO-I Member-Consumer-Owners (MCO) organization in line with the initiatives of the National Center of Electric Cooperative Consumers (NCECCO), Inc., the MSEAC, along with their respective Board of Directors, is also seen to be the Cooperative’s partner in promoting support and recognition of the said undertakings in their respective districts.

The Officers were likewise provided information on the Cooperative’s ongoing undertakings on the Sitio Electrification Program (SEP) and the Nationwide Intensification of Household Electrification (NIHE) Program of the Department of Energy.

BAPA ASSEMBLIES

T

he Consumer Welfare Services Division saw a hectic stream of activities focused on the Barangay Power Associations (BAPA) across the coverage area. BAPA assemblies were conducted and a comprehensive evaluation of the associations’ performance in collection, meter reading and disconnection was intensively undertaken to determine its impact to the overall operations of the Cooperative.

As SURSECO-I’s counterpart in the remote areas of the franchise, BAPAs are given guidance and are meticulously monitored so that its existence can be both beneficial to the barangay and SURSECO-I. A few BAPAs were converted into regular paying consumers due to recurring issues on management. These barangays, however, have so far showed a 100% collection despite the said conversion.

SURSECO-I is looking to gradually incorporating the NCECCO ideology into the BAPA for a more streamlined operations that will involve and empower the member-consumers even more.

STAKEHOLDERS’ SUMMIT

O

ne hundred sixty-four (164) participants coming from the Multi-Sectoral Electrification Advisory Council, Barangay Power Associations, Deputized Meter Reader-Collectors, and accredited Barangay Wiring Electricians became part of the 2017 Stakeholders’ Summit held on 20 April 2017 at the SURSECO-I MCO Center.

The summit apprised the participants on the SURSECO-I’s Financial, Institutional, Technical and Corporate operations for 2016, its plans of actions in the coming years and similarly oriented them about the NEA Thrusts and the NCECCO manifesto. The National Grid Corporation of the Philippines (NGCP) represented by Engr. Voltaire R. Ramos, OIC Head, District 4, MOM - Butuan City also had a special part to present

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NGCP’s programs, Anti-Pilferage campaign and Safety Tips through an interactive exchange with the participants.

As the Cooperative endeavors to address the concerns of its stakeholders, an Open Forum was held after the presentation of the reports. The event was closed with a symbolic declaration and signing of the Pledge of Partnership with SURSECO-I, strengthening therefore the solidarity of the Cooperative with its valued stakeholders towards better service to every consumer.

DISTRICT ELECTION

S

URSECO-I’s Institutional Services Department headed by its Manager, Ms. Charisse A. Bao and members of the District Election Committee (DECOM) headed by Mr. Edgar H. Banghe supervise the conduct of the whole activity. There having a lone candidate for the position, only one (1) precinct was opened at exactly 8:00 a. m. in Lingig Central Elementary School, Lingig, Surigao del Sur. Twenty two (22) member-consumers came to cast their votes in favor of Ms. Pacinta F. Saligumba. After the canvassing, the chairman of the DECOM proclaimed Ms. Saligumba as the new member of Board of Directors representing Lingig District to serve a three-year term commencing on February 2017 to 2020 February.

NCECCO SUMMIT When Mr. Edgardo R. Masongsong took the helm of leadership of the National Electrification Administration, he set out a 7-point agenda to steer the Electric Cooperatives towards the attainment of the vision and mission of the Rural Electrification Program (REP). Among his priorities is to engage electric consumers and to empower them to become catalysts of a socio-political-economic-cultural-environmental development.

With this, the leaders of the rural electrification movement— The Rural Electric Cooperatives Board of Directors Association (RECOBODA) of the Philippines, No to Excessive Authority Advocate for Consumer Owners Movement (NEAADCOM), Association of Board of Directors of Electric Cooperatives (ABDEC) and the NEA convened and established the National Center of Electric Cooperative Consumers (NCECCO).

Organized on 19-20 January 2017 at Maramag, Bukidnon, NCECCO was registered under the Securities and Exchange Commission on 03 February 2017 with Ret. Gen. Akhmad Mamalinta, SUKELCO Board President, as its National Chairman.

To show NCECCO’s force and the support to this national movement, 5,000 electric consumers from all over the country assembled in Tagum City, Davao del Norte on 26 April 2017 for its first National Summit with the theme, “NCECCO: An Electric Consumers Movement for Change.” Two hundred thirty-five SURSECO-I member consumers participated in this historic gathering of the REP advocates.

Chairman Mamalinta expressed his gratitude to all who joined in this noble cause. He emphasized the vital role of the Member-Consumer-Owners (MCOs) in advancing its aspiration for cheaper electric services and the protection of rights of the electricity consumers. He also assured that NCECCO shall strongly support all the ECs in their undertakings in partnership with NEA and the energy sector. Through NCECCO, the ECs could unite in its collective aim for the benefit of its MCOs.

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A

total of 2,694 member-consumers from the whole coverage area attended the 38th Annual General Membership Assembly held on 27 May 2017 at the Mangagoy Barangay Gymnasium. This was despite the fear for everyone’s safety with the declaration of Martial Law in Mindanao just a few days before the assembly.

Present during the gathering was Congressman Johnny T. Pimentel, Bislig City Mayor Librado C. Navarro, Hinatuan Municipal Mayor Shem G. Garay, the 75th IB Commanding Officer, Lt. Col. Wilfredo P. Amoma and the Cooperative’s associates, the Multi-Sectoral Electrification Advisory Council, Barangay Power Associations, Deputized Meter Readers and Collectors, and Building Wiring Electricians, which clearly manifested the solidarity of all stakeholders and partners.

The AGMA highlighted an awarding ceremony wherein SURSECO-I conferred special awards to outstanding and best performing service partners in recognition of their great contribution to the Coop’s operations. Five (5) BAPAs were identified as the best performing BAPAs namely: BAPA Union, Sikahoy, Tidman, Kauswagan and Sta. Cruz II. BAPA Tidman was hailed the most

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outstanding association among them all. The Best Deputized Meter Reader/Collectors (DMRC) from all districts were also recognized, and out of the awardees, Mr. Marvel F. Tionko, DMRC of Caguyao, Bislig City was awarded as the Most Outstanding DMRC. And for reaching a remarkable high collection efficiency rate for the year, Lingig District was also acclaimed as the Most Improved District in Collection Efficiency. All distinctions were accorded with corresponding cash prizes and certificates.

Also, the re-elected member of the Board of Directors, Dir. Pacinta F. Saligumba of Lingig District and the new Director for Hinatuan District, Dir. Charlita P. Yparraguirre were inducted to office Cong. Johnny T. Pimentel during the program, along with the appointed members of the Multi-Sectoral Electrification Advisory Council.

In his message, Bislig City Mayor Librado C. Navarro expressed his appreciation to SURSECO-I for its accomplishments and its contribution to the economic progress in the areas under its coverage. He also cited SURSECO-I for its continued support to the Local Government through the implementations

38TH ANNUAL GENERAL MEMBERSHIP ASSEMBLY

of the government’s projects and encouraged the member-consumers to support the upcoming international Organic Farming event to be held in the City.

Cong. Johnny T. Pimentel, as the Keynote Speaker, also rendered his message and expressed his commendation to SURSECO-I’s Management and Staff for being one of the organized and well-managed cooperatives in the entire country and its relentless effort to implement the rural electrification program in collaboration with the national government.

Plaques of Appreciation were awarded to the City of Bislig for its invaluable support and assistance to the Cooperative in its pursuit of total electrification while the same recognition was also given to the Provincial Government for its continued support and assistance in the implementation of the Sitio Electrification Program and Nationwide Intensified Household Electrification.

the member-consumers for their active participation despite the circumstances surrounding the event.

Stakeholders’ active participation has been instrumental in the consistent achievement of the Cooperative as a Triple A Cooperative, the highest award accorded by the National Electrification Administration to ECs. GM Moralda assured to lead SURSECO-I towards its bid to be acclaimed as a leading power distribution utility in the country by 2020.

The Business Meeting followed afterwards with the GM and the BODs presentation of the reports on the Financial, Institutional, and Technical operation, accomplishments and challenges of the Cooperative for 2017. The voice of the member-consumers was also heard as issues and concerns were thoroughly discussed and appropriately addressed during the Open Forum.

Several lucky participants went home with their win from the Raffle Bonanza that capped the successful annual gathering.

General Manager Joceler M. Moralda closed the assembly with an expression of gratitude and recognition to the stakeholders and partners for their support and cooperation. He was also grateful for all 2017 Annual Report

39

PERSPECTIVE OF THE HEADQUARTERS

PERSPECTIVE OF THE HEADQUARTERS

M

onths from now we shall unveil the most tangible legacy of electrification in this part of the SURSECO-I franchise. Here where electric dreams have started and continue to unfold shall rise the state-of-the-art two-storey SURSECO-I Main Office building.

With an ambitious plan to fully renovate the whole SURSECO-I compound and pull off a headquarters complete with amenities, the SURSECO-I Main Office building will replace the old offices that have been the fortresses for employees and consumers for more than four decades now.

The construction of the new Main Office Building amounting to PhP 30M makes it one of the biggest projects of the Cooperative as part of its 2018-2020 Capital Expenditures (CAPEX) Plan submitted to the ERC for approval.

The new building shall showcase aluminum clad walls and reflective glass exteriors at par with latest architectural designs. It shall put in place customer service, information and payment counters to appropriately accommodate consumers and visitors. All departments and offices shall be housed within the widely-spaced edifice complete with meeting and conference rooms to hold gatherings, records room, kitchen and pantry, among others.

This inspiring endeavor is something we can look forward to as the Cooperative envisions to be an excellent provider of electric service in the Second District of Surigao del Sur.

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INSTITUTIONAL HIGHLIGHTS TRAININGS 2017

S

URSECO-I has always been keen in supporting the development of its workforce as it aims towards the delivery of excellent service. Every year, all employees are given opportunities to attend seminars and trainings that will keep them equipped for their respective work assignment and thus, become more motivated, effective and responsive to the demands of power industry. These capacity building activities are expected to encourage innovations and promote the quality of work, in general.

TRAININGS/SEMINARS

SPONSORING AGENCY

Workshop on the Liquidation of Subsidy Funded Projects

National Electrification Administration

Kick-Off/Cluster Meeting/Workshop for SEP/BLEP 2017 Projects

National Electrification Administration

Workshop on the Mindanao Dispatch Protocol

Department of Energy

2017 Distribution Development Plan (DDP) Deliberation

Department of Energy

Seminar-Workshop on the Online Submission of the Distribution Utility Reports

Association of Mindanao Electric Cooperatives, Inc.

Launching of the Large Taxpayers Division Office (LTDO)Davao

Bureau of Internal Revenue

Workshop for the Review of the 5-Year Regional DRRM Plan (RDRRMP) 2013-2017

Regional Disaster Risk Reduction and Management Council

Capacity Development Seminar for the Bislig City Information Communication Technology Council Members

Office of the Sangguniang Panlungsod-LGU Bislig City

Course on Distribution System Modeling and Analysis (CPD1) – UP-NEC

National Electrification Administration

Basic Wholesale Electricity Spot Market (WESM) Training

Philippine Electricity Market Corporation (PEMC)

Capacity Development Seminar for the Bislig City Information Communication Technology Council Members

Office of the Sangguniang Panlungsod-LGU Bislig City

Business Community Planning

Bislig City Chamber of Commerce & Industry Foundation, Inc.

NEA's & Electric Cooperatives' Web Portal and BI System Implementation

National Electrification Administration

TVET Program Planning, Supervision and Development

Mindanao TVET

EPIRA 202: Distribution Utility CAPEX-OPEX Planning & Rate Making

National Electrification Administration

Electrical Safety Training

National Grid Corporation of the Philippines

Capability Building Program for EIM NC II & NC III Assessors

TESDA CARAGA

Tax Reform for Acceleration and Inclusion (TRAIN) and Benchmarking Roadshow

Bureau of Internal Revenue

Seminar-Workshop on EC's Vulnerability And Risk Assessment (VRA) and Emergency Restoration Planning (ERP)

National Electrification Administration

Updates on Labor Law And Jurisprudence Seminar/The End of Endo: How to Legally Employ and Terminate Contractual Workers and Non-Regular Employees

Atty. Apollo X.C. Sangalang

(Business Lawyer & Legal Coach)

42

MINDA Renewable Portfolio Standards (RPS) Workshop & E-Power Mo: Energy Investment Forum and Stakeholders Conference

National Electrification Administration and Department of Energy

WESM Trial Operations Workshop

Mindanao WESM

Workshop on Guidelines and Procedures for Online Report Submission of Distribution Utilities System Loss Segregation and Reliability Interruption Data

AMRECO, INC.

Power Supply Contracting and Optimization Workshop

AMRECO PSAG CORP.

Sitio Electrification Program (SEP P2) Summit

National Electrification Administration

Seminar-Workshop on Wholesale Electricity Spot Market Basic (WESM 101) for Mindanao Electric Cooperatives (Batch 2)

National Electrification Administration

Warehouse and Inventory Management Seminar

Global Business Standard Philippines

2017 Annual Report

TESDA TRAININGS

T

he SURSECO-I Training Assessment Center (STAC) in coordination with the Technical Education and Skills Development Authority continues to add to its roster of electricians and linemen as it implements Electric Power Distribution Line Construction (EPDLC) and Electrical Installation and Maintenance (EIM) under the Training for Work Scholarship Program (TWSP). In 2017, STAC has served a total of 90 trainees for the two (2) qualification programs with the following training periods and batches:

COURSE PROGRAM/BATCH NO.

NO. OF TRAINEES AND GRADUATES

TRAINING PERIOD

EIM NC II Batch 13

10/18/2017

01/09/2018

20

EIM NC II Batch 12

09/29/2017

12/20/2017

25

EIM NC II Batch 11

02/21/2017

05/29/2017

25

EPDLC NC II Batch 2

05/08/2017

07/05/2017

20

Total

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INSTITUTIONAL HIGHLIGHTS

R

eaching forty-six years is a milestone and SURSECO-I made sure its anniversary month of July is full of noteworthy events to boot.

The Anniversary Program themed in sweet pastel colors was particularly celebrated with a spectacle of talents from the different departments of SURSECO-I, as well as SURSECO-I’s homegrown talent groups such as the SURSECO-I Chorale, the 3rd Fret band and the SURSECO-I Dance Troupe. Spectators and guests to the anniversary party were no less than the NEA Administrator Edgardo R. Masongsong, DOE Undersecretary Benito L. Ranque, sister Coops ASELCO, SURSECO-II and SURNECO, MSEAC Members, contractors and other stakeholders.

A showcase of narratives recounted through audio-visual presentations highlighted the SURSECO-I’s innovative undertakings on its substation upgrading projects, the charitable ventures through its Corporate Social Responsibility Programs, the SEP/BLEP effect to its beneficiaries and the making and launching of the second Coffee table book of the Cooperative. Equally

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worthy of celebration was the ceremonial switch-on of the SEP/BLEP landscape model of the whole SURSECO-I franchise area showcasing all the sitios and puroks energized since the launch of the electrification program.

The anniversary party likewise gave tribute to all employees who have stayed with SURSECO-I for 20, 25, 30 and 35 years. Special citations were conferred to outstanding employees and departments for their commendable performance that greatly helped the Coop operations.

Amidst pastel-colored party complements, the SURSECO-I MCO Center burst in joyous celebration of the Cooperative’s 46 years of unremitting service made possible by the solidarity of everyone from the employees, service-partners, member-consumers and stakeholders.

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INSTITUTIONAL HIGHLIGHTS CONVOCATION

T

he 9th of February rolled out with love and sweetness as the SURSECO-I employees gathered for the 1st Semester Employees’ Convocation themed in red, white and pink.

The first major event of the year was hosted by the Office of the General Manager in coordination with the Institutional Services Department.

Hearts, balloons and a LOVE standee adorned the MCO Center. Chocolates with hugot lines were given out to each employee while every lady in the hall received a beautiful rose.

The halls exploded in fun & laughter as the team building games were conducted. To celebrate the love month, the turnover of the crowns of the King & Queen of Hearts and the Prince & Princess Valentines also highlighted the occasion.

Amidst the busy work schedules, the Employees’ Convocation provides a refreshing and enjoyable respite for everyone in the SURSECO-I family.

DECEMBER AFFAIRS GIANT CHRISTMAS TREE SWITCH- ON

T

he year ’s Christmas Tree was lighted on 08 December 2017 revealing a slim and colorful structure standing tall along the Mangagoy Rotunda just across the Mangagoy Sub-office.

The usual preps for the event included a fun and exciting program that featured talents from the SURSECO-I Third Fret Band and the SURSECO-I Dance Troupe. Songs were also rendered from the audience to add some zest to the event specially prepared for the member-consumers in the yuletide season.

As soon as the tree was lighted, the sky flickered with vibrant lights from the blasts of the fireworks display. Raffle prizes were once again given away to prompt-payors all over the coverage area as SURSECO-I’s Christmas tribute to all its valued member-consumers.

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2017 SPORTSFEST Summer is the best time to sweat out and play under the sun’s brilliant heat. Demonstrating high spirit of festivity, SURSECO-I Employees paraded around the SURSECO-I Main Office grounds during the Opening of Sportsfest 2017 on the 16th of March 2017.

The competitive teams in their God and Goddesses moniker: Red Thetis, Green Nike, Yellow Apollo and Blue Kratos, contended to the cheering competition and the fun parlor games. A revitalizing Zumba session was also conducted bringing out the employees grooves.

The games such as basketball, volleyball, badminton, table tennis, lawn tennis, chess and darts are scheduled every Friday afternoons from March and culminating in July.

EMPLOYEES’ PARTY SURSECO-I’s year-ender party was a touch of elegance and beauty as everyone came on full royal fashion. The event was graced by TESDA OIC-Provincial Director, Mr. Allan S. Millan, MAED who served as the program’s honored guest and inspirational speaker.

Meaningful presentations that depicted the SURSECO-I journey were highlighted along with departmental presentations themed in royal mode. The ISD grooved with their modern cotillion dance; the TSD rumbled with a fun square dance; the FSD danced the Havana jazz and the OGM showcased the story of Jesus’ birth in an interpretative number. Gifts abound as wrapped goodies were raffled away for all in attendance.

The Christmas party was attended by employees and their families as well as the members of the MSEAC from all the districts of the franchise.

The party ended with a videoke sing and dance and a disco dancing in the hall. Everyone happily went home with a Christmas gift or two from the event’s Kris Kringle.

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SERVICE AWARDEES

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I

n the 46 years of SURSECO-I’s existence, loyalty is definitely paid a higher price. As such, along with its joyful celebration is a tribute to its loyal employees who have been with the Cooperative as it first ventured into the unfamiliar world of rural electrification of yester years up to its pursuit for excellence in service today.

During its 46th Anniversary in 20 July 2017, eleven (11) employees were given the highest regard for their service to the Cooperative for 20, 25, 30 and 35 years, respectively. Though a gold ring, a plaque or a monetary prize are not enough to pay tribute to these individuals’ commitment and dedication to SURSECO-I, recognizing them is the Cooperative’s own way of acknowledging their significant contribution to its success throughout the years.

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Cambatong

Municipal Hall of Hinatuan

DOST-PAGASA Radar Poblacion

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Source: http://www.flickriver.com/photos/34129433@N05/7049620891/

/

Rock Island Resort Cambatong

T

he Municipality of Hinatuan rings a bell to many nature wanderers and travelers alike. Enchanted seems to be the label synonymous to this modest but progressive town because of the fame of the mystic Enchanted River.

But there’s more to Hinatuan than what meets the eye.

Hinatuan’s natural bounty of scenic white beaches, seafood wonders and the world-renowned Enchanted River is being added up with its prominence in the field of weather. This is because Hinatuan is home to one of the only two Doppler radars in Mindanao where weather conditions in the southeastern section of the archipelago are being tracked.

Capitalizing on this rare resource, Hinatuan prides itself to be a self-sustaining municipality and a Hall of Famer both in the municipality and barangay level in the aspect of disaster management.

This promise of the Municipality of Hinatuan makes it more a challenge for SURSECO-I to cater to its growing power needs. With sufficient and adequate power, the LGU is able to provide the services its constituency need and promote sustainable progress in the locality.

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TECHNICAL SERVICES DEPARTMENT (TSD)

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TECHNICAL HIGHLIGHTS System Loss

T

he year 2017 ended with a single-digit System Loss pegged at 9.9988% or an equivalent of 6,217,339.37 kWh unbilled energy from the 10.40% in 2016. SURSECO-I’s successful attainment of the reduced SL charges that consumers pay on their monthly bill is due to the Cooperative’s determined efforts to improve efficiency of electric service through SL reduction activities such as replacement of defective and inefficient kWh meters, and kWh meter clustering in identified areas with high probability of pilferages.

Apprehension of pilferers was intensified through the continuous conduct of inspection and apprehension on illegal users of electricity by the Operation Susi team.

Load Factor A distribution utility with the bulk of end-users are residential loads is expected to have a load factor of 50% to 60% with a one-time peak incident. For SURSECO-I, 2017 reflected a decrease of kW demand operating during off-peak hours obtaining a 60% Load Factor at yearend. The reduction in this aspect of technical operation is due to the reduced usage of SURSECO-I’s major consumer, the CORONET Wood Industry, as well as the installation of solar energy panels of GAISANO Capital. While we are at a border line, the varying electricity use of big load consumers during peak and off-peak periods signifies the economic activity in the franchise which continues to augment the SURSECO-I operations.

Power Factor SURSECO-I obtained a Power Factor drop in 2017 from 97.28% in 2016 to 97.18%. This represents the effect of increased inductive loads coming from Industrial and High Voltage Commercial Customers.

Inductive loads pull a lot of current upon energization affecting voltage and contributing to the drop in Power Factor value. SURSECO-I strives to address these issues through power quality improvement projects.

System Demand The Cooperative’s distribution system peak demand for 2017 went a notch higher at 11,840 kW or an increase of about 251 kW compared to 2016. The addition of household connections brought about by the Sitio Electrification Program (SEP) and the Nationwide Intensification of Household Electrification (NIHE) is the attributive factor to this increase.

With continuous monitoring and forecasting, SURSECO-I lays appropriate plans on power supply sufficiency. With prudent power contracting, member-consumers are assured of an adequate power supply at reasonable power rates.

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To guarantee the Cooperative’s valued member-consumers with reliable and efficient power line distribution and services, the Technical Services Department personnel carried out system improvement activities, ranging from fixing of low vertical clearances, relocation and/or replacement of poles, to extension or correction of lines.

In 2017, SURSECO-I implemented the following System Improvements projects: • Conversion of Single Phase to Three Phase at Poblacion, Hinatuan • Revised Replacement of Rotten Pole at Cumawas (Near Cejoco Ice Plant) System Improvement • Correction of Octopus Connections fronting Barangay Hall, Tumanan, Bislig • Replacement of Rotten Pole for Tapping Point for Hemperoso Rice Mill • Conversion of Secondary to Primary Line at P4, Cauntuan, Bislig • Relocation of Anchor-Guy Assembly at SFED Substation due to the ongoing construction • Replacement of Rotten Stud Pole at P1, Maharlika, Hinatuan • Relocation of Primary Pole affected by on-going construction at Malixi, Tagbina • Rerouting of Sagged Secondary Line at P3, Magsaysay, Tagbina • Replacement of Rotten Pole at Talisay, Barobo to Supply Credo Ricemill • Relocation of Rotten Pole at Plaza Gym, Tabon, Bislig • Replacement of Rotten Pole at P6, Amaga, Barobo • Replacement of Rotten Pole for Tapping Point of Hinatuan Southern College • Relocation of Poles affected by DPWH Widening at San Jose, Bislig • Relocation of Secondary Line traversing the Covered Court of Maligaya, Hinatuan • Retirement of Pole at Cumawas, Bislig • Installation of 2-40 Ft. Pole from Gantry to Feeders 1 and 2 of SFED Substation • Rerouting of Primary Line Supplying Tabok, Hinatuan • Correction of Low Vertical Clearance at Mansailao, Loyola, Hinatuan • Extension of UB Line at Kapilayan- Bigaan, Hinatuan • Extension of Secondary Line at P5 & P7, Sto. Niño, Hinatuan • Relocation of Secondary Pole at Sta. Cruz 2, Tagbina • Extension of Secondary Line to Supply Transient Vendors at New Terminal, Tagbina • Additional Materials for Rerouting of Line at Tabok, Hinatuan • Relocation of Secondary Line at Baculin, Hinatuan • Correction of Secondary Line Vertical Clearance & Replacement of Rotten Pole at P11, Guava Junction, Bislig • Uprating of Common Transformer from 15kva to 37.5 kva at Loyola, Hinatuan • Relacement of Rotten Pole at BLISS, Mancarogo, Bislig • Construction of Temporary Rerouting of Tabon Substation, Bislig • Relocation of Secondary Line affected by Covered Court Construction at Mahayahay, Lingig • Installation of Intermediate Pole at Labisma to Correct UB Line Vertical Clearance, Bislig • Rerouting of Secondary Line at P3, Lacasa, Hinatuan • Replacement of Rotten Pole at P3, Cumawas, Bislig • Relocation of Primary Line at Valencia, Lingig • Relocation of Primary Line Traversing the On-Going Covered Court Construction at Bonggan, Lingig • Relocation of Secondary Line at BCNASA, Core Shelter, Bislig • Retirement of Anchor Assembly at Maharlika, Hinatuan • Relocation of Secondary Pole at John Bosco District, Bislig • Transfer of DT 438 to Post P05427 located at Marca, Hill, Post 23, Tabon. Bislig • Extension of Secondary Line for NIHE Beneficiaries at P11, Guava, Junction, Bislig • Correction of Octopus Connection at P1, Tagasaka, Hinatuan • Extension of UB Line at Upper Mahabo, Mahayahay, Lingig • Relocation of Stud Pole at John Bosco District, Bislig • Rerouting of Line, Installation of Crossarm and Anchor-Guy at Burboanan, Bislig • Extension of Secondary Line at Sto. Niño, Tagbina • Retirement of Secondary Pole at P4a, Poblacion, Tagbina • Installation of 1-30 Ft. Secondary Pole at Km. 3, Tabon, Bislig • Extension of UB Line at Bitoon, Hinatuan • Replacement of Rotten Pole at Poblacion, Tagbina • Extension of Secondary Line at Riverside District, Mangagoy, Bislig for NIHE Beneficiaries • Relocation of Secondary Pole at P3, Gamaon District, Mangagoy, Bislig • Additional Poles at Tabok, Hinatuan • Extension of UB Line at P11, Maharlika, Bislig for NIHE Beneficiaries • Extension of Secondary Line at P6, Barobo for NIHE Beneficiaries

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SUBSTATIONS REVAMP: A STEP TOWARD MODERNIZATION

T

o be capacity ready in the light of the projected surge of power demand up to the year 2024, SURSECO-I embarked on the uprating of the Tabon Substation and the rehabilitation of the San Fernando Substation.

After the uprating of the 5MVA Power Transformer to 10 MVA, the Tabon Substation recorded a peak demand of5.083 MW consistent with the load forecast showing a rise in the demand of power with the additional load from business establishments, GAISANO CAPITAL and PRINCETOWN MALL. The timely realization of the project precluded the possible total shutdown of the substation operation that may be brought by a load versus demand slip.

Moreover, the forty year old structures of the San Fernando Substation were finally brought down withamajor rehabilitation project. This translates to an improved level of confidencein terms of Substation operation of SURSECO-I in the field of safety, reliability and theprospectiveinnovation and automation capability. The newly constructed 69 KV and 13.2 KV gantries together with the improved substation control room ensure system stability in terms of safety in operation.

The San Fernando Substation and the Tabon Substation are now protected by a 69 KV SF6 Dead-Tank Circuit Breakers which is compliant to the standards set by the Philippine Grid Code or PGC. The circuit breakers have a wide range of applicability in terms of protection and versatility for automation.

Also, the San Fernando Substation is now uprated to 10MVA capacity with the transfer and addition of the old 5MVA Tabon power equipment. This increase in the equipment’s rated capacity shall guarantee sufficiency of power in case of demand growth in areas supplied by it or of unforeseen shutdown of the Tabon substation.

On top of all these, the major revamps made on the Coop’s power equipment is in preparation for the upcoming modernization of the distribution system in line with the Coop’s plan to revolutionize its operations and the main office infrastructure.

After more than a year of meticulous technical work, both projects were inaugurated on 20 July 2017 during the SURSECO-I’s 46th Anniversary celebration. The inauguration was witnessed by the NEA Administrator, Edgardo R. Masongsong and the DOLE Undersecretary Benito L. Ranque along with the select personnel of NEA.

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INNOVATIONS

FIBER OPTIC CABLING

C

ongruent to its vision towards becoming a leading electric distribution utility by 2020, SURSECO-I has implemented the Fiber Optic Cabling across its coverage area. Through such technology, the Coop’s Billing & Tellering System in the Main Office, Barobo Area Services Department, Mangagoy Area Services Department and partner payment centers is now assured with real-time connectivity as well as speedy and secured data transmission, thereby addressing the delayed delivery of data and the alarming internet hacking.

One component of the Fiber Optic Network and Services is the Utility Billing Management System (UBMS). This new billing system is comprised of Metering, Consumer Records and Tellering and accords improved meter reading mechanisms through customized applications installed in android phones, easier tellering works and accessible and comprehensive customer records.

This innovation is not limited to cater to the Billing & Tellering Systems but also in preparation to the automation of the distribution systems interface or the more advanced SCADA in the future. The project was made possible through the partnership of SURSECO-I and DCTech Micro Services.

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MEMBER-CONSUMER-OWNERS CENTER

W

hat used to be an Employees’ Dormitory constructed in a lot measuring about 885 sq. meters inside the SURSECO-I premises in San Fernando becomes an edifice dedicated to the Cooperative’s valued member-consumers. It is now known as Member-Consumer-Owners Center (MCOC) in recognition to the member-consumers who have been the inspiration of SURSECO-I’s existence.

With its spacious and welcoming hall, the MCO Center has now become a sought-after venue for conferences, trainings and other affairs not only of SURSECO-I but of various organizations in its coverage area. Since its inauguration, it has also hosted an event participated by delegates across the Mindanao Island and another from across the country.

The MCOC’s construction is a result of the generosity of APEC Party List Representative, Edgar L. Valdez and Congressman Florencio C. Garay. NEA Administrator, Edgardo R. Masongsong has also been instrumental in the completion of the MCOC as he allotted a huge chunk of his congressional funds during his stint as 1-CARE Representative. The MCO Center’s inauguration on 20 July 2017 has become more meaningful with the presence of NEA Admin Masongsong and staff as well as the DOE Undersecretary, Benito L. Ranque.

The MCO Center shall always serve as a testament of the solidarity and partnership between SURSECO-I and of its valued member-consumers. And as long as its picturesque view is there to behold, MCO Center shall always inspire SURSECO-I to muster all its strength and remain steadfast to deliver no less than excellent service to its consumers.

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Libuacan Cold Spring Maglambing

T

he Municipality of Tagbina is the town that connects the municipalities of Hinatuan and Barobo. This segment in the southern part of the Province of Surigao del Sur was once composed of jungle territory where warriors of indigenous tribes thrive. Now, it has become one of the fastest-growing units in the Second District of Surigao del Sur because of the influx of large industries such as banana plantations and coffee bean farming.

Tagbina with its rich agricultural lands is home to rice and corn mills which contribute most to its headway as a second class municipality. In addition to rice and corn, bananas and coffee are its major products that are currently earning some reputation in the agricultural industry in the country. The Tagbina coffee plantation in Villaverde produces approximately 80% of Nestle Philippines supply in Mindanao.

Coffee Produce Villaverde

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The service SURSECO-I brings to these income-generating industries is an essential factor to sustain the production of their crops. Despite the distance of these plantations and production sites from the main roads, SURSECO-I line maintenance is crucial so as not to hamper services and livelihood in the area.

Municipal Hall of Tagbina

SUMIFRU Philippines Sta. Fe

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OFFICE OF THE GENERAL MANAGER (OGM)

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OGM HIGHLIGHTS

S

URSECO-I translated its 46th Anniversary theme, “Embracing Change towards Service Excellence,” into concrete tangible actions through project implementation and community involvements in carrying out its Corporate Social Responsibility (CSR) Programs.

In the year 2017, the Cooperative endeavored to be more inclusive in embracing vulnerable sectors in the society as beneficiaries of its various CSR activities.

Thirty-two (32) beneficiary-schools, mostly from far-flung areas, have received assistance from SURSECO-I in the form of free electrical materials and electrician’s labor services during this year’s Brigada Eskwela Program of the Cooperative dubbed as “Ambag ng Kooperatiba para sa Brigada Eskwela.” With the help of fourteen (14) Electrical Installation and Maintenance NC II (EIM-NC II) graduates from the SURSECO-I Training and Assessment Center, the Cooperatve’s Brigada Eskwela initiative has served a total of 6,920 students this year by fixing the electrical connections and installing free electrical materials to the beneficiary schools.

SURSECO-I believes that by ensuring the reliability of the school’s service connection and providing well-lit classrooms, the Cooperative is contributing to the creation of a learning-conducive environment that will motivate the students to study well.

Six (6) top performing students namely Sharmaine R. Abrahano, Vrinth C. Sino and Jehoia Marga Conde of Simon Edgar A. Garay Elementary School in Kahayag, Bislig City; and Ann Margarette S. Crespo, Jojhana L. Badang, and Angel Mae P. Gabi of Lingig Central Elementary School, have received medals and cash gift from SURSECO-I during the their Graduation Rites for being the awardees of the Cooperative’s “Bright Child, Bright Future” program. The initiative seeks to inspire and encourage more students to strive for academic excellence as an advantage towards achieving a better and brighter future.

Ten (10) units of thin client computer sets with tables and chairs, one (1) multifunction printer and one (1) Digital Light Processing (DLP) projector were donated to the San Fernando Central Elementary School in Bislig City through the Computerization Program of SURSECO-I and Aboitiz Power Corporation. This is a strategic and significant CSR partnership of the two companies aimed at capacitating the schools in arming and helping their students thrive in the era of digital age.

Ten (10) schools from Senior High in the City of Bislig with 10-members delegation each, participated in the Symposium and Quiz Bowl dubbed as “Electricity 101: NEA & SURSECO-I Convergence” organized by the Cooperative for its Information & Education Campaign. Lectures on SURSECO-I, the NEA, power bill & prompt payment, energy conservation, electrical safety and anti-pilferage were presented to inculcate a comprehensive understanding and stimulate

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OGM HIGHLIGHTS appreciation on SURSECO-I’s business identity as an electric distribution utility. Learnings from the Symposium topics were assessed through the conduct of the Quiz Bowl where all the participating schools competed until one school emerged as the Champion, the De La Salle John Bosco College (DLSJBC). Cash prizes and tokens were given to the winners, but everyone received their certificates and badges in recognition of their inclusion as among the SURSECO-I’s Information agents.

One hundred (100) differently-abled children received goodies, snack packs and ice cream from SURSECO-I Team on 29 June 2017 during the 13th Kamparaiso activity at Bro. Miguel Center in Forest Drive, Bislig City. The event is an annual 3-day camp of the Loving Presence Foundation in partnership with some private and public institutions to raise awareness on the special needs of these children and promote acceptance on their role and value in the community. SURSECO-I’s mere presence in the camp, interaction with the kids, and its sharing of blessings are simple demonstrations of its sincere love and support to them as they struggle to live their lives like any other normal kids in the society.

Seventy-seven (77) inmates from the Bislig City Jail and forty-five (45) parolees across the 2nd District of Surigao del Sur have received grocery packs and snacks from SURSECO-I during the Evangelical Prison Visit on 12 July 2017. In partnership with some religious organizations, SURSECO-I extended its compassion and care to those who live behind bars and those who are trying to regain their place in the community. The Cooperative believes that it also has to serve all marginalized sectors as it offers its CSR services to the society.

Four hundred seven (407) individuals from Barobo district have benefited from the Medical and Dental Mission of SURSECO-I and Aboitiz Power Corporation on 7 July 2017 at the Barobo Municipal Gym. Free medical, dental, eye checkup and consultation, tooth extraction and blood typing, with free medicine and vitamins were provided by the team of 3 doctors, 5 dentists, 1 optometrist, 1 medical technologist, 14 medical and dental aides from the districts of Bislig, Hintuan, Tagbina and Barobo. It is at the very core of the Cooperative’s mission to contribute to the well-being of the communities it serves aside from just providing reliable electricity to its member-consumers.

All the students of Trinidad Elementary School in Trinidad, Tagbina indulged in Jollibee meals and other foodies plus a handful of presents prepared according to grade levels during SURSECO-I’s Christmas Outreach on 14 December 2017. This is one of the Cooperative’s way of sharing the Christmas Spirit to less privilege kids in far flung places of its coverage areas, which was even made more exciting with the presence of the famous mascot, Jollibee.

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OGM HIGHLIGHTS

A

side from SURSECO-I’s self-initiated projects and partnership CSR programs, the Cooperative strengthened its advocacy on reaching out to various sectors in the society through its active engagement to community involvements.

Committed towards raising awareness on Fire Safety and Prevention, SURSECO-I Volunteer Fire Brigade once again actively participated in the activities of the Bureau of Fire Prevention (BFP) in celebration of the Fire Prevention Month on March 2017. With the theme, “Buhay at Ari-arian ay Pahalagahan, Ibayong Pag-iingat sa Sunog sa Sariling Pamamahay ay Simula,” SURSECO-I joined in the Unity Walk on 01 March 2017 as a kick-off activity of the month’s fete. On 25 March 2017, the Cooperative’s Volunteer Fire Brigade competed in the 2017 Fire Olympics of the BFP together with nine other volunteer fire brigades in Bislig City.

SURSECO-I may not have retained its Championship title this year, but the Cooperative’s brigade was nevertheless content in mastering its firefighting skills and fostering camaraderie with its fellow fire brigades.

Believing in the important role and essential rights of women in the society, SURSECO-I extended its support to this year’s 2nd District Women’s Month Alliance Celebration. The Cooperative provided assistance and serve as one of the judges in various competitions during the celebration on 30 March 2017 where all the women’s group in the 2nd District of Surigao del Sur have gathered in Bislig City Sports and Cultural Center for this purpose.

As a staunch advocate of peace and unity, SURSECO-I took part in the Bislig City’s celebration of the 119th Declaration of the Philippine Independence dubbed as KALAYAAN 2017 with a theme “Pagbabagong Sama-samang Babalikatin” on 12 June 2017 at Bislig City Sports and Cultural Center. With the on-going war in Marawi, this year’s Independence Day was celebrated in form of “Prayer for Peace” where leaders from various religious denominations in the City of Bislig offered prayers for peace and unity in the country especially in the Mindanao region.

As an agent for environmental protection, SURSECO-I once again joined the Citywide Tree Planting initiative of

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the Local Government of Bislig City under its greening program called Living Investment in Bislig (LIB) Tree Project on 29 June 2017. The SURSECO-I delegates, together with the other planters from various institutions and sectors, visited their respective adopted tree planting sites to maintain the area and plant more trees. The Cooperative’s dedication and commitment to care for the environment was lauded when the City of Bislig and the Department of Environment and Natural Resources conferred SURSECO-I a commendation for having the highest survival rate of planted seedlings based on the previous year’s tree planting activity.

Recognizing the significance of being part in the ASEAN community, SURSECO-I joined LGU-Bislig’s ASEAN Landmark Lantern Lighting at the Herculano Basanez Boulevard (Baywalk), Poblacion, Bislig City on 8 August 2017 in celebration of the 50th ASEAN Founding Anniversary with the theme, “Under One Light, We Are One ASEAN.” The lighting of the ASEAN Landmark Lanterns among the fifty (50) key cities of each ASEAN member country seeks to raise awareness and appreciation on the relevance of Association’s existence in improving the quality of life of the people of its member nations.

Being a rights advocate, SURSECO-I participated in the unified celebration of the City of Bislig in honoring the Consumers Welfare, Cooperatives, Senior Citizens and Indigenous Peoples’ rights on 2 October 2017 at the Bislig City Sports and Cultural Center. SURSECO-I supports the statement of the Department of Trade and Industry Provincial Director for Surigao del Sur, Mr. Romel M. Oribe, that as the industries and business sector maximize the use of digital technology in the production of goods and delivery of quality services, the same technology should be used by all stakeholders in the promotion, protection and strengthening of the rights of the Consumers, Senior Citizens and Indigenous Peoples.

From self-initiated projects to collaborative efforts, this year’s Corporate Social Responsibility (CSR) Programs of SURSECO-I have proved to be encompassing and extensive as the Cooperative strived to reach out to many vulnerable sectors in the society to effect positive change in the lives of these people.

OGM HIGHLIGHTS

POWER SUPPLY CONTRACTING

T

o ensure sufficient and reliable supply of electricity in its coverage area, SURSECO-I has inked a deal with the Hedcor Bukidnon, Inc. for a 2MW capacity as it executed the Renewable Energy Supply Agreement (RESA).

The Hedcor maintains and operates a 2 Unit Hydro generating power plants with a total capacity of 68.8 MW; 43.4MW for Manolo Fortich 1 and 25.4MW for Manolo Fortich 2 located in Barangay Santiago and Dalirig, Manolo Fortich, Bukidnon, respectively.

Currently, SURSECO-I outsourced and purchased power from NPC – PSALM with a contracted capacity of 2MW; Therma South, Incorporated (TSI – Coal Fired Power Plant) – 3MW; and Mapalad Power Corporation (MPC – Diesel Power Plant) – 4MW. GN Power, a Coal Fired Power Plant, on the other hand, is expected to commence its full commercial operation and dispatch the full 8.3MW contracted capacity of SURSECO – I by 2019.

For the year 2017, SURSECO-I’s average peak demand reached 10.805MW and is expected to even increase due to the newly established Gaisano Capital, indicative commercial establishment in Bislig City, and the implementation of the government electrification programs particularly the Nationwide Intensification of Household Electrification (NIHE) and Sitio Electrification Program (SEP).

In the midst of power crisis in Mindanao viz-a-viz its commitment to provide sufficient and affordable power supply, SURSECO-I has exercised prudence in contracting with additional power suppliers, assuring its valued member-consumers against power supply shortage or unreasonable power rate increase that results from either over or under contracting.

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OGM HIGHLIGHTS

S

URSECO-I has always been compliant to the requirements set by the Energy Regulatory Commission to be transparent in its operations particularly the holding of Public Hearings on cases that would directly affect the consumers. In 2017, SURSECO-I undergone three public hearings: Two on the Application for the Tariff Glide Path (2011-2013 and 2014-2016) and one on the Application for the Capital Expenditures (CAPEX) program for 2015-2017.

On Tariff Glide Path Tariff Glide Path Rules was issued, adopted and promulgated by the Energy Regulatory Commission in line with its goals to a) develop a tariff-setting methodology that would be responsive to the needs of the electric cooperatives, b) encourage reforms in the structure and operations for greater efficiency and lower costs and c) introduce the framework that will allow efficiency gains to be shared between the cooperative and the member-consumers. The TGP is determined by the following formula: Tariff x (1 + Index “I” – Efficiency Factor “X” + Performance Incentive “S”) The Index “I” is an escalation factor to be used in adjusting rates to reflect the combined impact of the inflation and load growth; the Efficiency Factor “X” is to account for the operational efficiency of the ECs in setting their rates; the Performance Incentive “S” is to reward or penalize the EC for above or below the standard performance, respectively. The outcome would be the new Distribution, Supply and Metering (DSM) rates for the cooperative which may increase or decrease.

Sometime in 2014, SURSECO-I filed its TGP A Application covering the years 2011-2013 to the Energy Regulatory Commission (ERC). Three years later, on 28 March 2017, a public hearing was conducted by the representatives from the Commission to evaluate the need for the increase and to hear the opinion of the member-consumers on the matter.

Following the formula, the table below shows the rate adjustment for TGP A. had to say about it. Following the formula, the table below shows the rate adjustment for TGP A. "I"

"X"

"S"

TGP A

TGP A (excluding S)

YEAR 2012

0.00%

0.00%

1.50%

1.50%

0.00%

YEAR 2013

0.00%

0.00%

1.70%

1.70%

0.00%

YEAR 2014

0.00%

0.00%

1.70%

1.70%

0.00%

4.90%

0.00%

TOTAL

Further, on July 2017, SURSECO-I filed its TGP B Application covering the years 2014-2016. And in November of the same year, another public hearing was conducted. The table below shows the rate adjustment for TGP B. "I"

"X"

"S"

TGP B

TGP B (excluding S)

YEAR 2015

3.71%

0.00%

1.30%

5.01%

3.71%

YEAR 2016

0.00%

1.59%

1.30%

-0.29%

-1.59%

YEAR 2017

0.00%

1.94%

0.30%

-1.64%

-1.94%

3.08%

0.18%

TOTAL

Both applications, TGP A and TGP B, show an increase in the DSM rates by 7.98%. This only goes to show that SURSECO-I’s existing rates are insufficient to defray the operating costs. The increase would be spent on the improvement of manpower and improvement of technical reliability by doing certain activities on a regular basis since due to financial constraints these are done only once or twice a month.These activities include line clearing, rehabilitation of distribution lines, operation susi, replacement of low accuracy and defective meters as well as overloaded and low efficiency transformers. The minimal increase in the total power bill of the consumers is immaterial cost compared to the huge benefit that they would be getting from the improved operations of the cooperative.

On CAPEX 2015-2017 On 24 November 2017, another public hearing was conducted by the ERC on SURSECO-I’s Application on CAPEX 2015-2017. With a total cost of PhP 173,141,917, CAPEX 2015-2017 is composed of 15 projects on system improvement, substation uprating, infrastructure development and etc. Despite the huge amount, the existing Reinvestment Fund for Sustainable CAPEX (RFSC) rate of PhP 0.4004 per kWh is sufficient to cover the costs of the project the member-consumers a since. Thus, the consumers are spared from power rate increase.

Being an electric cooperative regulated by the Energy Regulatory Commission, a government agency, SURSECO-I could not just directly implement changes in its DSM and RFSC rates without due process. Thus, SURSECO-I has to submit all necessary documents and comply all requirements to gain the approval of the Commission, which is still pending as of now. With such stringent procedures, the consumers are assured that SURSECO-I shall not impose unreasonable power rate increase while it continue to improve its services.

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OGM HIGHLIGHTS CAPEX 2018 – 2020: WHAT THE FUTURE HOLDS FOR SURSECO-I As SURSECO – I gears towards fulfilling its vision to be a leading power distribution utility acclaimed for its excellent customer service by 2020, it has identified another set of Capital Expenditure (CAPEX) projects to be implemented in 2018 – 2020. At a total cost of PhP 332,428,575.11, these projects are categorized as Capacity, Safety, Reliability, Efficiency, Non-Network and Other Network assets and will be financed through the low interest rate and less stringent loan package of the National Electrification Administration.

Upon approval by the Energy Regulatory Commission, there will be a minimal increase of PhP 0.1046 per kWh in the Reinvestment Fund for Sustainable CAPEX to meet the financial obligations brought about by the implementation of the projects.

The CAPEX 2018 – 2020 beckons the direction of SURSECO-I in the next three years. The various projects are envisioned to bring the Cooperative’s service to a higher level of excellence and efficiency, operating at par with the leading power players in the country.

PROPOSED PROJECTS

COST

No.

Title

2018

1

Relocation of Barobo 5 MVA substation

21,470,436.65

2

Procurement of Engineering Analytical Software

3

Replacement of Rotten Poles and Aged Line Accessories

4,500,000.00

4

Procurement and Installation of 1 unit 69KV dead tank circuit breaker for Barobo Substation

2,700,000.00

5

Replacement of defective and overloaded Distribution transformers

2,511,500.00

6

Uprating of San Fernando Substation from 5MVA to 10 MVA

14,425,000.00

7

Procurement of KHW meter and Service drop wire for new connection

8

Construction of 69KV line & Installation of 5MVA Tagasaka Substation

9

Extension of Primary and Secondary line

10

Sitio Electrification Program

11

Upgrading of Selected Primary Lines from Bare to Insulated

12

Conversion of Feeder 1 backbone line structures

13

Contingency & Buffer Stock

3,000,000.00

14

Installation of Underground Cable

2,000,000.00

15

Replacement of Inefficient and defective KWH meters

3,000,000.00

16

Distribution Systems Automation

17

Relocation of NGCP metering from Tabon Substation to the Substation connection point

18

Logistics and Supports

19

Infrastructure Development

2019

2020

Total 21,470,436.65

1,500,000.00

2,619,560.00

4,500,000.00

1,500,000.00 4,500,000.00

2,700,000.00 2,050,000.00

4,079,650.00

3,661,570.00

3,922,750.00

1,500,000.00

10,203,880.00 38,023,448.30

1,500,000.00

33,940,379.86 8,000,000.00

8,641,150.00 14,425,000.00

38,023,448.30 1,500,000.00

13,500,000.00

4,500,000.00 33,940,379.86

6,000,000.00

5,000,000.00

10,195,640.30

19,000,000.00 10,195,640.30

4,000,000.00

7,000,000.00 2,000,000.00

3,000,000.00

3,000,000.00

9,000,000.00

10,000,000.00

10,000,000.00

20,000,000.00

4,500,000.00

4,500,000.00

48,713,040.00

1,615,600.00

50,328,640.00

41,500,000.00

17,000,000.00

3,000,000.00

61,500,000.00

Grand Total PhP 332,428,575.11

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Municipal Hall of Barobo

Citrus Hill Plantation Amaga

Cabgan Island Rizal

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T

he bustling main roads of the Poblacion in Barobo are as busy as its adjacent barangays, all with each of its livelihood that abound in the borough.

Barobo is a hectic town with farming in the rural expanse of the locality, fishing in the coastal areas, tourism in the relaxing and picture perfect shorelines and islands and gold mines in the mineral-rich soils of the town.

It is no wonder that people seem to come and go as the town hurries through the day. This once dozy town seems like a sleeping giant that has awakened with the thundering ingress of commercial businesses and trades. With its fast-paced developments, SURSECO-I takes a step ahead to provide the services these growing industries need.

Tropics Hotel and Inland Resort Campbagang

Beldad Rice Mill Bahi

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MANGAGOY AREA SERVICES DEPARTMENT (MASD

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2017 Data Membership Turn-On/ Service Connections System Loss Collection Efficiency

1,102 526 7.94% 98.46%

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BAROBO AREA SERVICES DEPARTMENT (BASD)

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2017 Data Membership Turn-On/ Service Connections System Loss Collection Efficiency

987 581 10.21% 98.38%

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BOD AT WORK

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