First Regular Session

House Bill No. 4473

Introduced by HON, REYNALDO V, UMALT

EXPLANATORY NOTE,

On June 8, 2001, Republic Act (R.A.) No. 9136, otherwise known as the “Electric
Power Industry Reform Act of 2001” or EPIRA was enacted and envisioned to bring
down electricity rates and to improve the delivery of power supply to end-users by
encouraging greater competition and efficiency in the electricity industry

The law’s declared and policies and objectives were clearly spelled out, to wit

a) To ensure and accelerate the total electrification of the countr

b) To ensure the quality, reliability, security and affordability of the supply of
electric power

©) To ensure transparent and reasonable prices of electricity in a regime of free and
fair competition and full public accountability;

4d) To enhance the inflow of private capital and broaden ownership base of the power
generation, transmission and distribution sectors:

¢) To ensure fair and non-discriminatory treatment of public and private sector
entities in the process of restructuring the electric power industry;

£) To protect the public interest as it is aflected by providers of electric power.

Almost thirteen years from its enactment the objectives of the law have not yet been
fully realized, especially if measured against the stated policies. Certain ERC rulings may
even be called to question as measured against the mandate to promote consumer interest
Even the institutional and structural reforms have not yet resulted in the envisioned
changes on the energy sector.

Thus, our country remains to have the highest electricity rates in the region and the 9"
highest in the world.

We
8-10 hour blackouts

II have power shortages and power rates hike which resulted in the horrendous
nd power outages in the Mindanao that has negatively impacted on

business and economy in the region and compounded the suffering of the people of

Mindanao.

We recently experienced shocking power rates hikes in Metro Manila last November
and December of 2013, which shook the confidence of the people in the wisdom and
promises of energy deregulation and privatization.



In addition, our country remains to have one of the lowest per capita consumption of
energy in the world because of our lack of energy infrastructures.

Sadly, EPIRA appears to have fallen short of its promise of reliable and affordable
supply of electric power when it was passed by the 11"" Congress, as the solution to the
chronic shortages in power supply and the answer to the unstable and high power rates.

Indeed, even the objectives of privatization of NAPOCOR power generation plants
and other assets were never attained as can be seen for the last thirteen years since the
EPIRA took effect. Such privatization resulted to constant increase of electricity rate
brought about by the spike in the WESM and the government hands are tied to mitigate
the situation because it is left with no authority to contract out capacity to stabilize the
market price.

The healthy market competition envisioned by EPIRA thru asset p ation did not
happen because only a limited number of private investors had the financial capability to
acquire NAPOCOR assets.

As to the intent of mitigating the huge financial obligation of the government due to
its subsidizing the financial losses of NAPOCOR by privatizing the NAPOCOR assets,
the objective failed. This is because the proceeds of privatization were partly used in the
operation of PSALM aside from the fact that the purchase price of disposed assets were
paid on the basis of a long term contract where the buyer can even use its income while
operating the power plants during the payment period.

Clearly, we must take a closer look at the need for government to retain ownership
and control of the remaining assets of NAPOCOR and the call for it to re-assume its
fundamental responsibility to provide for its people by engaging in power generation to
produce only ancillary supply and to stabilize market price.

Today, the situation necessitates a diligent and thorough review and serutiny of
EPIRA, with all stakeholders engaged and with all its aspects, including the grant and
situs of regulatory powers, revisited, especially amid growing calls for government to get
into power generation once again and to re-evaluate its power assets privatization plan,
This review must be made with conerete proposals in mind to plug loopholes and other
oversights in the law. It must address important issues involving cross ownership, the
need to require competitive bidding of bilateral contracts, and the grounds for suspending
market operation and imposing mitigating measures, the future role of government in
power generation, together with an in-depth study and reassessment of the present rules
and regulations of WESM and ERC, as well as, the Implementing Rules and Regulations
of EPIRA itself.

It is for this reason that this measure proposing arpendments to EPIRA is being
camestly put forward. Today is the right time to addresshe deficiencies of the law and
thus, the early deliberation and passage of this bill isAirgéntly sought

NALDO V. UMALI
2™ District, Oriental Mindoro


Republic of the Philippines

HOUSE OF REPRESENTATIVES

Quezon City

SIXTEENTH CON!
First Regular

RESS
ion

House Bill No.

Introduced by HON. REYNALDO V. UMALI

AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 9136,
OTHERWISE KNOWN AS AN ACT ORDAINING REFORMS IN
ELECTRIC POWER INDUSTRY OR EPIRA AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Section 2 of Republic Act No, 9136, otherwise known as the
“Electric Power Industry Reform Act of 2001” is hereby amended by adding a new
paragraph (e) to read as follows:

“Sec. 2. Declaration of Policy. ~ It is hereby declared the policy of the State:
XXX,

(ce) TO ENSURE TIMELY COMPLETION OF POWER
PROJECTS FOR ENERGY SECURITY AND MINIMIZE COSTS BY
CONSIDERING POWER PROJECTS AS PROJECTS OF NATIONAL
SIGNIFICANCE AND/OR ARE IMBUED WITH PUBLIC INTEREST,”

Subsequent paragraphs are hereby re-lettered accordingly.
SECTION 2. Section 6, paragraph $ is hereby reinstated and modified to read:
“SEC. 6. Generation Sector. - X XX.
PURSUANT TO THE OBJECTIVE OF LOWERING
ELECTRICITY RATES TO END-USERS, SALES OF GENERATED

POWER BY GENERATION COMPANIES SHALL BE EXEMPT
FROM VALUE-ADDED TAX (VAT).”

SECTION 3. Section 22 is amended to read:
“SEC. 22. Distribution Sector. ~X XX.
SALES OF ELECTRICTY BY DISTRIBUTION UTILITIES TO

THE END-USERS SHALL BE EXEMPT FROM VALUE ADDED TAX
(VAT).


SECTION 4. Section 23 is amended to read:
“SEC. 23, Functions of Distribution Utilities. —X X X:

A distribution utility shall have the obligation to supply electricity
in the least cost manner to its captive market THROUGH A PUBLIC
AND COMPETITIVE SELECTION PROCESS OR SWISS
CHALLENGE PROCEDURE, AS THE CASE MAY BE, subject to the
collection of retail rate AT SUCH AMOUNTS AND IN SUCH MANNER
AS PROVIDED HEREIN, duly [approved] AUTHORIZED by the
ERC[.]; PROVIDED, THAT THE ERC, WITHIN THREE (3) MONTHS
FROM THE EFFECTIVITY OF THIS ACT, SHALL PROVIDE THE
PARAMETERS FOR THE CONDUCT OF A PUBLIC AND
COMPETITIVE SELECTION PROCESS OR SWISS CHALLENGE
PROCEDURE AS THE CASE MAY BE; PROVIDED, FURTHER
THAT, ALL DISTRIBUTION UTILITIES SHALL BE REQUIRED TO
FULLY OR ADEQUATELY CONTRACT THEIR CURRENT AND
FUTURE ENERGY AND DEMAND REQUIREMENTS FROM
BILATERAL POWER SUPPLY CONTRACTS AS DETERMINED BY
ERC BASED ON MARKET CONDITIONS AND IN ACCORDANCE
WITH SUCH RULES AND REGULATIONS TO BE PROMULGAT
BY THE COMMISSION. FOR THE PURPOSE OF THIS SECTION,
“ENERGY AND DEMAND REQUIREM! SHALL MEAN THE
AMOUNT OF ELECTRICITY THAT IS REQUIRED FOR THE
DISTRIBUTION UTILITY TO SUPPLY THE ELECTRICITY
REQUIREMENTS OF ITS ELECTRICITY END-USERS AT ANY
GIVEN TIME.

TO ENSURE LEAST COST SERVICE TO ITS CUSTOMERS,
ALL DISTRIBUTION — UTILI IN ITS POWER SUPPLY
CONTRACTING, SHALL ENSURE THAT THE BASE LOAD, MID-
MERIT AND PEAK LOAD REQUIREMENTS IN ACCORDANCE

WITH CONTRACTS BA‘ ON THE LOAD PROFILE, SHALL BE
FULLY OR ADEQUATELY COVERED BY BILATERAL
CONTRACTS.”

SECTION 5. Scction 30, last paragraph is amended to read:

“SEC. 30. Wholesale Electricity Spot Market. ~X X X.

In cases of national and international security emergencies or
natural calamities, OR SUCH OTHER CASES OR REASONS WHICH
MAY AFFECT THE DELIVERY OF ADEQUATE SUPPLY OF
ELECTRICITY IN ANY PARTICULAR GRID, the ERC is hereby
empowered to suspend the operation of the wholesale electricity spot
market or declare a temporary wholesale electricity market failure.”

SECTION 6. Section 31 is hereby amended to read:

“SEC. 31. Retail Competition and Open Access. ~X XX.

Upon the initial implementation of open access, the ERC shall
allow all electricity end-users with a monthly average peak demand of at
east one megawatt (I MW) for the preceding twelve (12) months to be the
contestable market, Two (2) years thereafter, the threshold level for the
contestable market shall be reduced to seven hundred fifty kilowatts
(750kW). At this level, aggregators shall be allowed to supply electricity


to end-users whose aggregate demand within a contiguous area is at least
seven hundred fifty kilowatts (750kW). TWO (2) YEARS
THEREAFTER, THE THRESHOLD LEVEL SHALL BE FURTHER
REDUCED TO FIVE HUNDRED KILOWATTS (500 KW).
Subsequently and every year thereafter, the ERC shall evaluate the
performance of the market, On the basis of such evaluation, it shall
gradually reduce threshold level until it reaches the household demand
level. In the case of electric cooperatives, retail competition and open
ess shall be implemented no earlier than five (5) years upon the
tivity of this Act.”

ON 7. Section 37 is hereby amended by adding a new paragraph (p) to
read:

‘SEC. 37. Powers and Functions of the DOF. ~ X X X.

(p) SUPPORT THE MODERNIZATION OF THE ELECTRIC
GRID INFRASTRUCTURE BY FORMULATING POLICIES AND
PROVIDING INCENTIVES TO PROMOTE ADOPTION OF SMART
GRID TECHNOLOGIES, PRACTICES AND SERVICES TO IMPROVE
RELIABILITY, EFFICIENCY, DEMAND RESPONSE SUPPORT,
INTEROPERABILITY AND INTEGRATED AUTOMATION OF
GENERATION, TRANSMISSION AND DISTRIBUTION LINES,
ELECTRICITY TRADING AND CUSTOMER ~~ LOAD
MANAGEMENT.”

Subsequent paragraphs are hereby re-lettered accordingly.
SECTION 8. Section 38 is hereby amended to read:
“SEC. 38. Creation of the Energy Regulatory Commission. —
XXX.

The Commission shall be composed of a Chairman and [four (4)]
EIGHT (8) members, DIVIDED INTO THREE (3) DIVISIONS,
DESIGNATED FOR LUZON, VISAYAS AND MINDANAO,
CONSISTING OF THREE (3) COMMISSIONERS EACH, WITH THE
CHAIRMAN SITTING IN THE FIRST DIVISION, to be appointed by
the President of the Philippines, The Chairman and the members of the
Commission shall be natural-born citizens and residents of the Philippines,
persons of good moral character, at least thirty-five (35) years of age, and
of recognized competence in any of the following fields: energy, law,
economics, finance, commerce, or engineering, with at least (three (3)]
FIVE (5) years actual and distinguished experience in their respective
fields of expertise: Provided, That out of the [four (4)] EIGHT (8)
members of the Commission at least one (1) shall be a member of the
Philippine Bar with at least ten (10) years experience in the active practice
of law, [and] one (1) shall be a certified public accountant with at least ten
(10) years experience in active practice, AND THREE (3) SHALL BE
ENGINEERS WITH AT LEAST TEN (10) YEARS EXPERIENCE IN
ACTIVE PRACTICE, WHO WILL SIT IN EACH DIVISION.”

XXX

The presence of at least [three (3)] FIVE (5) members of the
Commission, sitting en banc, shall constitute a quorum and the majority


vote of [two (2)] THREE (3) members in a meeting where a quorum is
present shall be necessary for the adoption of any rule, ruling, order,
resolution, decision, or other act of the Commission en bane in the
exercise of its quasi-judicial functions; Provided, That in fixing rates and
tariffs, an affirmative vote of {three (3)] FIVE (5) members shall be
required.

CASES OR MATTERS HEARD BY A DIVISION SHALL BE
RESOLVED WITH THE CONCURRENCE OF AT LEAST TWO (2)
MEMBERS. WHEN THE REQUIRED NUMBER IS NOT OBTAINED,
THE CASE SHALL BE DECIDED EN BANC; PROVIDED THAT NO
DECISION RENDERED EN BANC OR IN DIVISION MAY BE
MODIFIED OR 'ERSED EXCEPT BY THE COMMISSION
SITTING EN BANC.

FOR THIS PURPOSE THE COMMISSION SHALL DEFINE
THROUGH ITS INTERNAL RULES CASES OR MATTERS THAT
SOLVED BY A DIVISION AND THOSE THAT SHALL
BE RESOLVED SITTING EN BANC,

THE BRC SHALL ADOPT AN — EXPANDED
ORGANIZATIONAL STRUCTURE AND PLANTILLA POSITIONS
NECESSARY TO CARRY OUT AND SUPPORT THE POWERS AND
FUNCTIONS UNDER THIS ACT.”

SECTION 9. Scction 41 is amended to read:

SEC. 41. Promotion of Consumer Interests. ~ “The ERC shall
handle consumer complaints and ensure the adequate promotion of
consumer interests.

FOR THIS PURPOSE THE ERC SHALL CREATE A
CONSUMER ADVOCACY OFFICE, WHICH SHALL ACT AS
REPRESENTATIVE FOR AND IN BEHALF OF THE CONSUMERS,
FOR PURPOSES OF EITHER PROSECUTION OR DEFENSE, IN ANY
PROCEEDING, CASE OR MATTER BEFORE THE ERC. THE
CONSUMER ADVOCACY OFFICE SHALL BE UNDER THE
ORGANIZATIONAL STRUCTURE OF THE ERC ONLY FOR
PLANTILLA AND COMPENSATION PURPOSES, THE SAID OFFICE
SHALL ACT INDEPENDENTLY OF THE COMMISSION AND
SHALL BE HEADED BY A CHIEF ADVOCACY OFFICER WHO
SHALL BE A MEMBER OF THE PHILIPPINE BAR WITH AT LEAST.
TEN (10) YEARS EXPERIENCE IN THE ACTIVE PRACTICE OF
LAW.

THE CHIEF ADVOCACY OFFICER SHALL BE ENTITLED
TO THE SAME SALARY, ALLOWANCE AND BENEFIT AS THAT
OF A REGIONAL TRIAL COURT JUDGE. THE REST OF THE
OFFICERS UNDER THE CONSUMER ADVOCACY OFFICE
SHOULD LIKEWISE BE MEMBERS OF THE PHILIPPINE BAR
WITH AT LEAST (5) YEARS EXPERIENCE IN THE ACTIVE
PRACTICE OF LAW WHO SHALL BE ENTITLED TO THE SAME
SALARIES, ALLOWANCES AND BENEFITS AS THOSE OF THE
METROPOLITAN TRIAL COURT JUDG!

THE ERC SHALL, IN ITS RULES OF PRACTICE AND
PROCEDURE, DEFINE THE PROCEEDINGS, CASES OR MATTERS


UNDER WHICH THE CONSUMER ADVOCACY OFFICE IS
ALLOWED TO PARTICIPATE.”
SECTION 10, Section 43, paragraph (t) is amended to read:

SEC. 43. Functions of the ERC. ~ XX X.

“() Perform such other regulatory functions as are appropriate in
order to ensure the successful restructuring and modernization of the
electric power industry, such as, but not limited to, the rules and
guidelines under which — generation companies, EXCLUDING
RENEWABL RGY AND OTHER GENERATION FACILITIES
GENERATING SMALL CAPACITIES OF NOT MORE THAN
TWENTY (20) MEGAWATTS OF INSTALLED CAPACITY,
distribution utilities which are not publicly listed shall offer and sell to the
public a portion not less than fifteen percent (15%) of their common.
shares stocks: Provided, however, That generation companies, distribution
utilities or their respective holding companies that are already listed in the
PSE are deemed in compliance. For existing companies, such public
offering shall be implemented not later than five (5) years from the
effectivity of this Act. New companies shall implement their
public offerings not later than five (5) years from the issuance of their
certificate of compliance; and”

SECTION 11. Section 45 is hereby amended to read:

“SEC. 45. Cross Ownership, Market Power Abuse and Anti-
Competitive Behavior. ~ No participant in the electricity industry or any
other person may engage in any anti-competitive behavior including but
not limited to, cross subsidization, price or market manipulation, or other
unfair trade practices detrimental to the encouragement and protection of
[contestable markets] TRICITY END-USERS[.J, PROVIDED
THAT, TRANSMISSION AND DISTRIBUTION SECTORS SHALL
REMAIN THEIR NATURAL MONOPOLY BUSINESSES AND,
THEREFORE, CROSS-OWNERSHIP SHALL NOT BE ALLOWED;
PROVIDED HOWEVER, THAT NOTHING IN THIS SECTION SHALL
BE HELD TO AFFECT OR IMPAIR ANY RIGHT, PRIVILEGE OR
INTEREST HERETOFORE LEGALLY ACQUIRED.

AS USED IN THIS ACT, CROSS OWNERSHIP SHALL Rv
TO THE HOLDING OF ANY INTEREST, IN WHATEVER FORM,
DIRECTLY AND INDIRECTLY, BY ANY ENTITY ENGAGED IN
THE GENERATION, SUPPLY, DISTRIBUTION OR TRANSMISSION
OF ELECTRICITY, IN OR WITH ANOTHER ENTITY SIMILARLY
ENGAGED IN THE GENERATION, SUPPLY, DISTRIBUTION OR
TRANSMISSION OF  E& TRICITY, ACCORDINGLY, NO
ELECTRIC INDUSTRY PARTICIPANT, SUCH AS A GENE! ION
COMPANY, SUPPLIER OF ELECTRICITY, DISTRIBUTION
UTILITY OR TRANSMISSION COMPANY OR ITS
CONCESSIONAIRE, AND THEIR RESPECTIVE  AFFILIAT!
SUBSIDIARIES, INCLUDING ANY OF ITS STOCKHOLDERS
DIRECTORS, OFFICERS, EMPLOYEES OR RE! 2S WITHIN
THE FOURTH CIVIL DEGREE OF CONSAGUINITY OR AFFINITY
HALL BE ALLOWED TO HOLD ANY INTEREST, IN WHATEVER
FORM, DIRECTLY OR INDIRECTLY, IN OR WITH ANY OTHER
ENTITY SIMILARLY ENGAGED IN THE GENERATION, SUPPLY,
DISTRIBUTION OR TRANSMISSION OR ITS CONCESSIONAIRE,
AS PROVIDED IN THIS ACT.



No generation company, distribution utility, or its respective
subsidiary or affiliate or stockholder or official or a generation company
or distribution utility, or other entity engaged in generating and supplying
electricity specified by the ERC within the fourth civil degree of
consanguinity or affinity, shall be allowed to hold any interest, directly or
indirectly, in TRANSCO or its concessionaire. Likewise, the TRANSCO,
or its concessionaire or any of its stockholders or officials or any of their
relatives within the fourth civil degree of consanguinity or affinity, shall
not hold any interest, whether directly or indirectly, in any generation
company or distribution utility. Except for ex-officio government-
appointed representatives, no person who is an officer or director of the
TRANSCO or its concessionaire shall be an officer or director of any
generation company, distribution utility or supplier.

XXX.

To promote true market competition and prevent harmful
monopoly and market power abuse, the ERC shall enforce the following
safeguards:

(a) No company or related groups can own, operate or control
more than [thirty] TWENTY-FIVE percent [(30%)] (25%) of the installed
generating capacity of a grid and/or [twenty-five] TWENTY percent
[(25%)] (20%) of the nationally installed generating capacityl.],
REGARDLESS OF THE ENTITY OR ENTITIES CONTROLLING THE
TERMS AND CONDITIONS OF THE PRICES OR QUANTITIES OF
THE OUTPUT SOLD; OR THE ENTITY OR ENTITIES
CONTROLLING SUCH CAPACITY: OR IN THE CASE OF NPC AND
ITS INDEPENDENT POWER PRODUCERS, THE ENTITY WHICH
ACTUALLY CONTROLS THE QUANTITY OR DISPATCH LEVEL
GENERATED FROM THE SUBJECT POWER PLANTS AND THE
E OF ELECTRICITY OFFERED TO THE MARKET; PROVIDED
AT “INSTALLED GENERATING CAPACITY” SHALL REFER TO
THE MAXIMUM OUTPUT OR NAMEPLATE RATING LESS
PERMANENT REDUCTIONS, BUT EXCLUDING TEMPORARY
REDUCTIONS DUE TO PLANT SHUTDOWN OR TRANSMISSION
CONSTRAINTS, OR SUCH OTHER TEMPORARY REDUCTIONS OF
A PLANT'S GENERATING CAPACITY. “Related groups” includes a
"5 business interests, including its subsidiaries, affiliates, directors
‘cers or any of their respective relatives by consanguinity or affinity,
legitimate or common law, within the fourth civil degree;

“(b) Distribution utilities may enter into bilateral power supply
contracts subject to review by ERC; Provided That such review shall only
be required for distribution utilities whose markets have note reached
household demand level; PROVIDED FURTHER, THAT SUCH
BILATERAL CONTRACTS SHALL BE SUBJECT TO PUBLIC AND
COMPETITIVE BIDDING OR SWISS CHALLENGE PROCEDURE AS
THE CASE MAY BE, UNDER SUCH RULES AND REGULATIONS
AS THE ERC MAY PROMULGATE. For the purpose of preventing
market power abuse between associated firms engaged in generation and
distribution, no distribution utility shall be allowed to source from bilateral
power supply contracts more than fifty percent (50%) of its total demand
fiom an associated firm engaged in generation but such limitation,
however, shall not prejudice contracts entered into prior to the effectivity
of this Act. An associated firm with respect to another entity refers to any



person which, alone or together with any other person, directly or
indirectly, through one or more intermediaries, controls, is controlled by,
or is under common control with, such entity; and

XXX.”
SECTION 12. Section 47 is hereby amended to read:

“SEC. 47. NPC Privatization. - Except for the assets of SPUG,
AGUS AND PULANGU] HYDRO POWER COMPLEXES AND
OTHER NPC ASSETS IN MINDANAO, the generating real
estate, and other disposable assets as well as generation contracts of NPC
shall be privatized in accordance with this Act. X XX

(0) The Agus and the Pulangui complexes in Mindanao shall be
RETAINED AND MANAGED BY THE STATE AND excluded from
among the generation companies that will be [initially] privatized, Their
ownership shall be transferred to the PSALM Corp. and both shall
continue to be operated by the NPC; (Said complexes may be privatized
not earlier than ten (10) years from the effectivity of this Act, and except
for Agus III, shall not be subject to Build-Operate-Transfer (B-O-T)
Build-Rehabilitate-Operate-Transfer (B-R-O-T) and other variations
thereof pursuant to Republic Act No. 6957, as amended by Republic Act
No. 7718. The privatization of Agus and Pulangui complexes shall be left
to the discretion of PSALM Corp. in consultation with Congress;]

ION 13. Section 71 is hereby amended to read

SEC. 71. Electric Power Crisis Provisior Upon the
determination by the President of the Philippines. AND
RECOMMENDATION OF THE DOE SECRETARY BASED ON
INDICES AND BENCHMARKS AS DETERMINED BY DOE, of an
imminent shortage of the supply of electricity, Congress, THROUGH
THE JOINT CONGRESSIONAL POWER COMMISSION OR “POWER
COMMISSION”, may authorize, through a [joint] resolution, the
stablishment BY THE PRESIDENT of additional generating capacity
under such terms and conditions as it may approve.”

SECTION 14, Section 80 is hereby amended to read

“SEC. 80. Applicability and Repealing Clause. ~ X XX. The
provision with respect to electric power of Section 1[1]2(c) of Republic
‘Act 7916, as amended, and Section 5(f) of Republic Act 7227, are hereby
repealed or modified accordingly. X X

SECTION 15, Repealing Clause. — Sections 108 (A)(ii) and 109 (1) of the
National Internal Revenue Code, as amended by Republic Act No. 9337, and Sections 24

(A) and (B) of Republic Act No. 9337 are hereby repealed. All other previous or existing
laws, decrees, executive orders, rules and regulations or parts thereof inconsistent with

this Act are hereby repealed, amended or modified accordingly.

SECTION 16. Effectivity Clause. - This Act shall take effect within fifteen (15)
days after its publication in the Official Gazette or in at least two (2) newspapers of
general circulation, whichever comes earlier.

Approved,