Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
Second  Regular Session
HousEBILLNo.      9982
Introduced by REPRESENTATIVES MUJIV S. HATAMAN,
PRESLHY C. DE JESUS and
SERGIO C. DAGOOC
EXPLANATORY NOTH
This bill  seeks to grant a legislative franchise to the Isabela City Electric Cooperative or
ISABELCO,  to  construct  install,  establish,  operate,  own,  manage  and  maintain  distribution
systems  for  the  conveyance  of electric  power  to  the  end-users  in  the  entire  City  of Isabela,
Province of Basilan.
A component  city  Of the Province  of Basilan.  the  City  of Isabela  has a total  land  area
223.73 square kilometers composed of 45 barangays with a total population of 130,379 based on
the 2020 census of the Philippine Statistics Authority (PSA).
As  a  result  of good  govermance,  many  investors  intend  to  put  up  shop  in  the  City  of
Isabela. And with the congressional  efforts of one the authors, Rep.  Mujiv Hataman,  in tandem
with  the  dynamic  local  government  unit,  Isabela  City  will  soon  see  the  rise  of Basilan  State
University, Basilan Medical Center, new public markets, parks, and other public infrastructure.
Needless to say, these developments will  surely increase the power supply needs of the
city. To ensure that these needs will be met, ISABELCO franchise is indeed a must.


More  importantly,   it  is  worth  noting  that  in   2019,  Isabela  City  was  placed  in  an
administrative  and  legal  quandary  as  it  remained  under  Region  IX  after  it  voted  against  its
inclusion in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). The rest of
Basilan is under BARMM.
It should be noted that the passage of Republic Act 11054, or the law that established the
BARMM,  in  effect  places  the  operation,  control  and  supervision  of BASELCO,  the  Electric
Cooperative  that  distributes  power  to  the  entire  Basilan   including  Isabela  City,   under  the
BARMM Regional Government.
However.   considering  that  Isabela  City   remained  under  Region   IX,   the  BARMM
government has no jurisdiction over Isabela City.
This measure aims to address any legal or administrative obstacles that may arise with the
present situation of Isabela City and its electricity provider BASELCO.
Premises considered, the passage of this bill is earnestly sought.
rmJIV S. H
I)istrict Of Basilan
sHREro#.DAIcOOc
RIpresentative
APEC Party-List


Republic of the Philippines
HOUSE 0F REPRESENTATIVHS
Quezon City
NINETEENTH CONGRESS
Second  Regular Session
HOUSE BILL NO.
Introduced by Representatives MUJIV S. HATAMAN,
PRESLEY C. DE JESUS and
SERGIO C. DAG00C
AN ACT GRANTING A FRANCHISE TO THE ISABELA CITY ELECTRIC
coOpERATlvn ¢sABELco) To coNSTRucT, INSTALL, ESTABLlsH, OpERATE,
OWN, MANAGE AND MAINTAIN DISTRIBUTION SYSTHMS FOR THE
CONVEYANCH OF ELECTRIC POWHR T0 THE END-USERS IN THE CITY 0F
ISABELA IN THE PROVINCE OF BASILAN
Be it enacted by the  Senate and the House Of Representatives Of the Republic Of the  Philippines
in Congress assembled:
SECTION  1. IV¢rfure ¢#tJ L9cape a/ Fr##cfo!.Ice.  -Subject to the provisions of the Constitution
and  applicable laws.  rules  and  regulations,  there is  hereby  granted  to the Isabela City  Electric
Cooperative,  hereunder  referred  to  as  the  grantee,  its  successors  or  assignees,  a  franchise  to
construct,  install,  establish,   operate,   own,  manage,   and  maintain  in  the  public  interest  and
commercial purposes, a distribution system for the conveyance of electric power to the end-users
in the City of lsabela in the Province of Basilan.


As  used  in  this Act,  distribution  system  refers  to  the  system  of wires  and  associated
facilities including sub-transmission lines belonging to a franchised distribution utility extending
between the  delivery  point  on the  national transmission  system  or generating  facility  and the
metering pointlfacility of the end-users.
SEC.  2.  A4l¢##er  a/ Opcrof±.oi!s  a/ F¢c;./z./I.es.  -  All  electric  distribution  facilities,  lines  and
systems for electric services installed, owned, maintain, operated, managed or maintained by the
grantee,  its  successors  or  assignees  shall  be  operated or maintained  at all times  in a  superior
manner, and it shall be the duty of the grantee, its successors or assignees, whenever required to
do  so  by the  Energy  Regulatory  Commission,  hereinafter referred to  as the  ERC,  or its  legal
successor, or the Department of Energy, hereinafter referred to as the DOE, or its legal successor,
or any  other  government  agency  concerned to  modify,  improve  and  change  such facilities  or
systems  in  such  manner  and  to  such  extent  as  the  progress  in  science  or  technology  and
improvements or irmovations in the electric power services may render reasonable and proper.
Whenever practicable, and for purposes of maintaining order, safety and aesthetics along
the highways, roads, streets, alleys or right-of-way, the grantee may allow the use of free spaces
in its poles, facilities, or right-of-way by interested parties upon reasonable compensation to the
grantee considering the costs incurred to accommodate and administer the use of the grantee's
facilities by  such parties. The ERC shall decide in case of dispute or disagreement between the
parties.
Srac. 3. Authority  Of the  Energy Regulatory  Commission  (ERC).  - The gran:tee shall seoue
from the ERC or any government agency having jurisdiction over their operations, the certificate
of public convenience and necessity, and any other license, permit or authority indispensable for
the construction and operation of the electric power distribution system.
SEC. 4. J#gress fl#d Egress.  - For the purpose of erecting and maintaining the poles or other
supports  for  said  facilities,   wires  or  other  conductors,   or  for  the  purpose  of  laying  and
maintaining said facilities, wires, cables or other conductors, it shall be lawful for the grantee, its
successors,  or assignees,  in coordination with the  Department of Public Works and Highways
(DPWH) or the local government unit concerned, as may be appropriate, to make excavations or
lay  conduits  in  any  of  the  public  places,  highways,  roads,   streets,  lines,  alleys,  avenues,
sidewalks,  or  bridges  of the  province  and  city:  P7'ow.c7cc7,  that  a public  place,  highway,  road,
street,  lane,  alley,  avenue,  sidewalk,  or  bridge  disturbed,  altered,  or  changed  by  reason  of
erection  of poles  or  other  supports  or  the  underground  laying  of wires,  other  conductors  or
conduits, shall be repaired and replaced in workmanlike manner at the expense of the grantee, its
successors  or  assignees,  in  accordance  with  the  standards  set  by  the  DPWH  or  the  local
government unit concerned. Should the grantee, its successors or assignees, after the ten (10)-day


notice from  the grant of authority, fail,  refuse or neglect to repair or replace any part of public
place,   highway,   road,   street,   lane,   alley,   avenue,   sidewalk,   or  bridge  altered,   changed,   or
disturbed   by   the   said  grantee,   its   successors   or  assignees,   then   the   DPWH   or  the   local
government unit concerned shall  have the right to have the same repaired and replaced in good
order  and  condition  at  double  expense  to  be  charged  against  the  grantee,  its  successors  or
assignees.
SHC. 5. ReLfpo#si.bi./I.ty fo frfee Pwb/I.c.  -The grantee shall  supply  electricity to its captive market
in the least costly manner. In the interest of the public good and as far as feasible, and whenever
required  by  the  ERC,  the  grantee  shall  modify,  improve,  or  change  its  facilities,  poles,  lines.
systems  and equipment for the purpose of providing efficient and reliable service and reduced
electricity costs.
The grantee  shall  charge reasonable and just power rates for its  services to all types  of
consumers  within  its  franchised  areas  in  order that businesses  and  industries  shall  be  able  to
Compete.
The grantee shall have the obligation to provide open and nondiscriminatory access to its
distribution  system  and  services  for  any  end-user  within  its  franchise  area  consistent  with
Republic Act No. 9136, otherwise known as the "Electric Power Industry Reform Act of 2001 ".
The grantee shall not engage in any activity that will constitute an abuse of market power
such   as  unfair  trade  practices,   monopolistic   schemes,   and  other  activities  that  will   hinder
competitiveness of business and industries.
SHC. 6. R#fes/or L9enJ!.ce§.  -The retail rates and charges for the distribution of electric power by
the grantee to its end-users shall  be regulated by  and  subject to the approval  of the ERC  or its
legal successor.
The  grantee   shall   identify   and   segregate  in   its  electricity   bill   to  the  end-users  the
components  of the  retail  rate  pursuant  to  Republic  Act  No.  9136,  unless  otherwise  amended.
Such  rates  charged  by  the  grantee to the  end-users  shall  be made  public  and  transparent.  The
grantee shall implement lifeline rate to marginalized end-users as mandated under Republic Act
No, 9136.


SEC. 7. Z}orm#.o# a/Co#s##cer J"fercsf.s. -The herein grantee shall establish a consumer desk
that will handle consumer complaints and ensure adequate promotion of consumer interests. The
grantee shall act with dispatch on all complaints brought before it.
SEC.  8. Ri.gAf a/ ffee  r7'otJer##Ic"f - A special  right is hereby  reserved to the President of the
Philippines, in times of war, rebellion, public peril,  calamity,  emergency,  disaster or disturbance
of peace and order to temporarily take over and operate the stations or facilities of the grantee; to
temporarily  suspend  the  operation  of  any  station  or  facility  in  the  interest  of  public  safety,
security  and  public  welfare;  or  to  authorize  the  temporary  use  and  operation  thereof by  any
agency  of the government,  upon due compensation to the grantee, for the use of the stations or
facilities during the period when these shall be so operated.
SEC. 9. R!.gfef a/Efflj.He"f Do#!¢i.# - Subject to the limitations and procedures prescribed by law,
the grantee is authorized to exercise the right of eminent domain insofar as it may be reasonably
necessary for the efficient maintenance  and  operation  of services.  The grantee is authorized  to
install  and  maintain  its  poles,  wires,   and  other  facilities  over  and  across  public  property,
including streets, highways, forest reserves, and other similar property of the Government of the
Philippines,  its branches,  or any  of its instrumentalities.  The grantee may  acquire  such  private
property  as  is actually  necessary for the realization  of the purposes for which this  franchise is
granted:  Prow;.c7ecJ,  that  proper  expropriation  proceedings  shall  have  been  instituted  and just
compensation paid.
SHC.10.  Term a/Fr¢#cfoJ.^7e.  -Unless  sooner  canceled,  the  franchise  shall  be  in  effect for  a
period  of  twenty-five  (25)  years  from  the  year  of  expiration  of  its  existing  franchise.  This
franchise   shall   be   deemed   7.p.s'o  /ac/a   revoked   in   the   event   the   grantee   fails   to   operate
continuously for two (2) years.
SEC.11. 4ccapf#„cc /J#dJ Cb#apJJ.¢"c.a -Acceptance of this franchise shall be given in writing to
the Congress of the Philippines, through the Committee on Legislative Franchises of the House
of Representatives  and  the  Committee  on  Public  Services  of the  Senate  within  sixty  (60)  days
from the effectivity  of this Act.  Upon such  acceptance, the grantee  shall  exercise the privileges
granted under this Act. Nonacceptance shall render the franchise void.
SEIC. 12. VIarranty in Favor Of the National an{l I,ocal Governments - The era:mtee shall hold
the national, provincial, city, and municipal governments of the Philippines free from all claims,
accounts,  demands,  or  actions  arising  out  of accidents  or  injuries,  whether  to  property  or  to
persons, caused by the construction,  installation, operation, and maintenance of the distribution
system of the grantee.


SEC.  13. £I.#bi./i.fy/or D&#c¢ge^s -The grantee shall be liable for any injury and damage arising
from  or  caused  by  accident  to  persons  and  property  by  reason  of any  defective  construction
under this franchise or of any neglect or omission to keep its poles and wires in safe condition.
SEIC. 14. Sale, Lease, Transifer, Usrfruct, or Assigni'nent Of Franchise. - I:he grantee shall not
sell,  lease,  transfer,  grant  the  usufruct  of,  or  assign  this  franchise  or  the  rights  and  privileges
acquired  thereunder to  any  person,  firm,  company,  corporation,  or  other  commercial  or  legal
entity, or merge with any other corporation. or entity, or shall transfer the controlling interest of
the grantee` whether as a whole or in parts,  and whether simultaneously  or contemporaneously,
to  any  such  person,  firm,  company,  corporation.  or  entity  without  the  prior  approval  of the
Congress  of the Philippines:  Provided,  That Congress shall  be  informed  of any  lease,  transfer,
granting the usufruct  of,  sale,  or assignment  of franchise  or the  rights  and  privileges  acquired
thereunder,  or of the merger,  or sale of the controlling interest within  sixty  (60) days  after the
completion of said transaction: Provided further, That any such transfer, sale, or assignment is in
accordance with the constitutional limitations: Provided furthermore, That failure to report to
Congress  such  change  of ownership  shall  render  the  franchise  ipso  facto  revoked:  Provided
finally, That any person or entity to which this franchise is sold, transferred, or assigned, shall be
subject to the same, conditions, terms, restrictions, and limitations of this Act.
SEC.  15. RepoJ4oH.Of Reqwl.reJiceH£  - The grantee shall submit an annual report to the Congress
of  the   Philippines,   through   the   Committee   on   Legislative   Franchises   of  the   House   of
Representatives and the Committee on Public Services of the Senate, on its compliance with the
terms and conditions of the franchise and on its operations on or before April  30 of every year
during the term of the franchise. The reportorial compliance certificate issued by Congress shall
be required before any application for permit or certificate is accepted by the ERC.
SEC.16. Fi.„c. -The failure of the grantee to submit the requisite annual report to Congress shall
be  penalized  by  a  fine  in  the  amount  of five  hundred  pesos  (P500.00)  per  working  day  of
noncompliance.  The  fine  shall  be  collected  by  the  ERC  from  the  delinquent  franchise  grantee
separate  from  the  reportorial  penalties  imposed  by  the  ERC.  All  proceeds  from  the  fines  or
penalties shall be remitted to the National Treasury.
SEC.  17.  Eqwfl/;.fy  C/¢#sc.-Any  advantage,  favor,  privilege,  exemption,  or  immunity  granted
under existing franchises, or which may hereafter be granted, upon prior review and approval of
Congress,   shall   become   part   of  this   franchise   and   shall   be   accorded   immediately   and
unconditionally to the herein grantee: Provided, however, That the foregoing shall neither apply
to  nor  affect  provisions  concerning  territory  covered  by  the  franchise,  the  life  span  of the


franchise or the type of service authorized by the franchise: Provided, further, That the foregoing
shall   not  apply  to  the  sale,  lease,  transfer,  grant  of  usufruct,  or  assignment  of  legislative
franchi ses with prior congressional approval.
Snc.  18. 4pp/I.cob!./I.fy C'/##,5e. -The grantee shall  comply with and be subject to the provisions
of Commonwealth Act No.  146,  as amended,  otherwise known as the  "Public  Service Act"  and
Republic Act No. 9136, otherwise known as the "Electric Power Industry Reform Act of 2001 ".
SHC.   19.   RepGHfflrbj/try   a#fiJ  IVo#-E]fc/#sz.tJ!.fy   Cho#sc.-   This   franchise   shall   be   subject   to
amendment,  alteration,  or repeal  by the Congress of the Philippines when the public  interest so
requires and shall not be interpreted as an exclusive grant of the privileges herein provided for.
SEC. 20. ^Sep¢r#bJ./dy C/¢#`7c. -If any of the sections or provisions of this Act is held invalid, all
other provisions not affected thereby shall remain valid.
SEC.  21.  Rcpe¢JJ.#g  CJazise.  -  All  laws,   presidential   decrees,   executive  orders,   letters  of
instruction,   administrative  rules  and  regulations  or  parts  thereof  which  are  contrary  to  or
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
SEC.  22.  Ex:f.st!.„g Powers.  -  Existing  mandates,  powers,  functions,  and  privileges  granted  to
Electric Cooperatives under existing laws, including Section  10 of Republic Act No.  I 0531, shall
remain valid and effective, unless expressly repealed by succeeding laws.
SHC. 23. EJj7c:ecfl.tJdy Cy¢#§c. -This Act shall take effect flfteen (15) days after its publication in
at least two (2) newspapers of general circulation.
Approved