NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Third Regular Session
)
)
)
SENATE
Senate Bill No. 2888
24 DEC-3 P7:15
RK '>
Introduced by Senator Juan Miguel "Migz" F. Zubiri
AN ACT INCLUDING TAGUM CITY, THE ISLAND GARDEN CITY OF SAMAL, 
AND THE MUNICIPALITIES OF ASUNCION, KAPALONG, NEW CORELLA, SAN 
ISIDRO AND TALAINGOD, IN THE PROVINCE OF DAVAO DEL NORTE, AND 
THE MUNICIPALITY OF MACO, IN THE PROVINCE OF DAVAO DE ORO TO THE 
FRANCHISE AREA OF THE DAVAO LIGHT AND POWER COMPANY, INC., 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 11515, ENTITLED "AN 
ACT EXTENDING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE 
GRANTED TO THE DAVAO LIGHT AND POWER COMPANY, INC., UNDER 
REPUBLIC ACT NO. 8960, ENTITLED 'AN ACT FURTHER EXTENDING THE
TERM OF THE FRANCHISE GRANTED TO DAVAO LIGHT AND POWER 
COMPANY, INC. TO CONSTRUCT, OPERATE AND MAINTAIN AN ELECTRIC 
LIGHT, HEAT AND POWER SYSTEM IN DAVAO CITY AND THE 
MUNICIPALITIES OF CARMEN, PANABO, DUJALI, AND SANTO TOMAS, 
PROVINCE OF DAVAO DEL NORTE, FOR A PERIOD OF TWENTY-FIVE (25) 
YEARS AND FOR OTHER PURPOSES' "
EXPLANATORY NOTE
A stable and reliable electricity supply is vital in ensuring a productive and thriving 
society. As such, national electrification has always been a priority of the government, 
with a special focus on rural electrification as a bedrock for rural development.
To this end, this bill seeks to expand the franchise area of Davao Light Power and 
Company, Inc. (Davao Light) to serve end-users in the City of Tagum, the Island Garden 
City of Samal, and the municipalities of Asuncion, Kapalong, New Corella, San Isidro, and 
Talaingod, Davao del Norte, as well as the Municipality of Maco, Davao de Oro. These 
cities and municipalities are, at present, part of the franchise area of Northern Davao 
Electric Cooperative, Inc. (NORDECO).
Davao Light has long delivered affordable and reliable electric services to Davao 
City, Panabo City, and the municipalities of Carmen, Dujali, and Sto. Tomas, Davao del 
Norte. As the third largest electric distribution facility in the Philippines, Davao Light's 
infrastructure and its capacity to reliably serve thousands of households and places of 
livelihood have set a standard of service that exceeds the experience of neighboring cities 
and municipalities under a different franchise area.


The proposed expansion of Davao Light's franchise area is the result of public 
clamor, as end-users in the City of Tagum, the Island Garden City of Samal, and the 
municipalities of Asuncion, Kapalong, New Corella, San Isidro, Talaingod, Davao del Norte 
and Maco, Davao de Oro, actively sought a more reliable electric distributor, as their last 
resort against the persistent power outages and poor service that they experience under 
their current distributor.
Given Davao Light's track record of infallible electric services, they are certain to 
bring the same level of service to the expanded franchise area proposed in this bill— 
thereby empowering the new franchise area toward greater development.
In view of the foregoing, the passage of this timely measure is most respectfully
sought.
MIGUEL F. ZUBIRI


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
Third Regular Session 
)
V 1 1^ r ! ‘
24 DEC-3 P7--15
SENATE
Senate Bill No. ^^88
KtCL: ' uL
Introduced by Senator Juan Miguel "Migz" F. Zubiri
AN ACT INCLUDING TAGUM CITY, THE ISLAND GARDEN CITY OF SAMAL, 
AND THE MUNICIPALITIES OF ASUNCION, KAPALONG, NEW CORELLA, SAN 
ISIDRO AND TALAINGOD, IN THE PROVINCE OF DAVAO DEL NORTE, AND 
THE MUNICIPALITY OF MACO, IN THE PROVINCE OF DAVAO DE ORO TO THE 
FRANCHISE AREA OF THE DAVAO LIGHT AND POWER COMPANY, INC., 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 11515, ENTITLED "AN 
ACT EXTENDING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE 
GRANTED TO THE DAVAO LIGHT AND POWER COMPANY, INC., UNDER 
REPUBLIC ACT NO. 8960, ENTITLED 'AN ACT FURTHER EXTENDING THE 
TERM OF THE FRANCHISE GRANTED TO DAVAO LIGHT AND POWER 
COMPANY, INC. TO CONSTRUCT, OPERATE AND MAINTAIN AN ELECTRIC 
LIGHT, HEAT AND POWER SYSTEM IN DAVAO CITY AND THE 
MUNICIPALITIES OF CARMEN, PANABO, DUJALI, AND SANTO TOMAS, 
PROVINCE OF DAVAO DEL NORTE, FOR A PERIOD OF TWENTY-FIVE (25) 
YEARS AND FOR OTHER PURPOSES' "
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
SECTION 1. Section 1 of Republic Act No. 11515 is amended to read as follows:
2
3 
"SECTION 1. Nature and Scope of Franchise. - Subject to the provisions
4 
of the Constitution and applicable laws, rules and regulations, the franchise
5 
granted to the Davao Light and Power Company, Inc., hereunder referred to
6 
as the [g]Grantee, its successors or assignees, under Republic Act No. 8960,
7 
to construct, install, establish, operate, and maintain for commercial purposes
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and in the public interest, an electric, light, heat and power system for the
9 
conveyance, distribution and sale of electric power to the end users in Davao
10 
City, Panabo City, TAGUM CITY. THE ISLAND GARDEN CITY OF SAMAL.
11 
and the Municipalities of Carmen, Dujali, [and] Santo Tomas, ASUNCION.
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KAPALONG. NEW CORELLA. SAN ISIDRO AND TALAINGOD in the
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Province of Davao del Norte, AND THE MUNICIPALITY OF MACO IN THE
14 
PROVINCE OF DAVAO DE ORO is hereby extended for another twenty-five
15 
(25) years after the expiration date of the franchise under Republic Act No.
16 
8960.
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18 
"As used in this Act, distribution system refers to the system of wires and
19 
associated facilities, including subtransmission lines belonging to or used by a


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franchised distribution utiiity, extending between the deiivery point on the 
national transmission system or generating facility and the metering point or 
facility of the end user."
SEC. 2. A new section denominated as Section 21-A is inserted after Section 21 
of the same Act, to read as foilows:
"SEC. 21-A. TRANSITION OF OPERATIONS. - TO ENSURE THE 
UNINTERRUPTED SUPPLY OF ELECTRICITY, NORTHERN DAVAO 
ELECTRIC COOPERATIVE (NORDECO), IN THE INTERIM, IS 
AUTHORIZED TO OPERATE THE EXISTING DISTRIBUTION 
SYSTEM WITHIN ITS FORMER FRANCHISE AREA INCLUDED IN 
THE GRANTEE'S FRANCHISE AREA PURSUANT TO SECTION 1 
HEREOF AS AMENDED, AND IMPLEMENT ITS EXISTING POWER 
SUPPLY AGREEMENTS WITH GENERATION COMPANIES THAT 
ARE PROVISIONALLY OR FINALLY APPROVED BY THE ERC 
UNTIL THE GRANTEE ESTABLISHES OR ACQUIRES ITS OWN 
DISTRIBUTION SYSTEM AND FULLY TAKES OVER THE 
OPERATIONS IN THE FRANCHISE AREA INCLUDED IN THE 
GRANTEE'S FRANCHISE AREA PURSUANT TO SECTION 1 
HEREOF AS AMENDED. NORDECO MAY OPERATE NOT LONGER 
THAN TWO (2) YEARS FROM THE APPROVAL OF THE EXPANDED 
TERRITORY OF THIS LEGISLATIVE FRANCHISE.
"UPON COMPLIANCE WITH THE RULES, THE ERC SHALL GRANT 
NORDECO THE NECESSARY PROVISIONAL CERTIFICATE OF 
PUBLIC CONVENIENCE AND NECESSITY (CPCN) COVERING THE 
TRANSITION PERIOD. THE ERC SHALL DETERMINE THE 
APPLICABLE GENERATION RATE.
"THE GRANTEE MAY CONDUCT A COMPETITIVE SELECTION 
PROCESS (CSP) FOR THE ELECTRICITY REQUIREMENTS IN ITS 
EXPANDED FRANCHISE AREA, PROVIDED THAT PERSONS OR 
ENTITIES THAT ARE SUPPLYING NORDECO ELECTRICITY, 
PURSUANT TO SUPPLY AGREEMENTS APPROVED OR 
PROVISIONALLY APPROVED BY THE ERC, AS OF THE DATE THE 
EXPANSION OF THE GRANTEE'S FRANCHISE AREA LAPSES INTO 
LAW, SHALL HAVE AN OPPORTUNITY TO IMPROVE ANY OFFER 
MADE BY A WINNING BIDDER IN THE GRANTEE'S CSP OVER ITS 
EXPANDED FRANCHISE AREA, PROVIDED FURTHER TAMTSUCH 
OFFER SHOULD BE PROPORTIONATE TO THE CAPACITY OF 
SUCH PERSON'S OR ENTITY'S EXISTING SUPPLY AGREEMENT 
WITH NORDECO.
"THE PROVISIONAL AUTHORITY TO OPERATE DURING THE 
TRANSITION PERIOD GRANTED TO NORDECO SHALL NOT 
PREVENT THE GRANTEE FROM EXERCISING THE RIGHT OF 
EMINENT DOMAIN AS PROVIDED UNDER SECTION 9 OF THIS 
ACT.


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"TO REDUCE THE LENGTH OF THE TRANSITION PERIOD, THE 
ERC AND ALL AGENCIES ISSUING THE REQUISITE LICENSES 
SHALL PRIORITIZE ALL APPLICATIONS OF THE GRANTEE 
RELEVANT TO THE ESTABLISHMENT AND OPERATION OF THE 
DISTRIBUTION SYSTEM UNDER ITS FRANCHISE.
"IN THE HIRING OF EMPLOYEES, THE GRANTEE SHALL, AS FAR 
AS PRACTICABLE AND SUBJECT TO CERTAIN QUALIFICATION 
STANDARDS, GIVE PREFERENCE TO FORMER EMPLOYEES OF 
NORDECO WHEN IT COMMENCES BUSINESS OPERATIONS IN 
ITS NEW FRANCHISE AREA.
"THE GRANTEE AND NORDECO SHALL JOINTLY ENSURE THAT 
AFFECTED EMPLOYEES NOT HIRED BY THE GRANTEE AND NOT 
RETAINED BY NORDECO SHALL, TO THE EXTENT ELIGIBLE, 
RECEIVE ALL SEPARATION OR RETIREMENT BENEFITS IN 
ACCORDANCE WITH APPLICABLE LAWS.
"AN INFORMATION DISSEMINATION CAMPAIGN REGARDING 
PUBLIC SERVICES AND OPERATIONS OF THE GRANTEE SHALL 
BE MADE TO ALL END USERS IN THE FRANCHISE AREA.
"THE DOE SHALL, DURING THE TRANSITION, ENSURE THAT THE 
SUPPLY OF ELECTRICITY IN THE EXISTING FRANCHISE AREA IS 
UNINTERRUPTED."
SEC. 3. All laws, decrees, orders, resolutions, instructions and rules and regulations 
or parts thereof which are inconsistent with this Act are hereby deemed repealed or 
modified accordingly.
SEC. 4. This Act shall take effect fifteen (15) days after its publication in the Official 
Gazette or in a newspaper of general circulation.
Approved,