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Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

SIXTEENTH CONGRESS
Second Regular Session

4822

House Bill No.__

Introduced by RAYMOND DEMOCRITO C. MENDOZA
Representative, TUCP Party-List

EXPLANATORY NOTE

It has been more than thirteen years since the Electric Power Industry Reform Act (EPIRA) or
R.A. No. 9136 was enacted by Congress in June 2001. Among the major reasons for passing the
EPIRA were to stop the financial haemorrhage of the National Power Corporation (NAPOCOR)
and the consequent financial burden to the national government; bring down the cost of
electricity which at that time was already one of the highest in Asia and in the world; and address
the uncertainties in the sufficiency and reliability of supply of electricity vis-a-vis the projected
high electricity demand at that time.

We all recognize the importance of electricity to the development of an individual, a family,
community, and the whole country. It is key to building a nation, to spur growth and progress,
enhance the quality of life, and to increase the choices available to the citizenry.

After 13 years of implementation, the EPIRA is an apparent failure as the reasons cited above are
still far from being realized. Access to affordable and reliable electricity has become more
difficult or burdensome. Consumers have been continuously burdened by bearing almost all the
costs in the supply of electricity while power companies are assured of generous profits. This is
especially true under the new methodology known as performance-based rate-setting (PBR)
adopted by the Energy Regulatory Commission (ERC) in 2006.

Power rates have increased at least twelve times since the implementation of the EPIRA. Had it
not been stopped by the Supreme Court, the P4.15/kWh-increase that MERALCO wanted to
collect from its customers in the period December 2013 to February 2014 would have been the
hardest blow to electricity consumers in the history of the Philippine power industry. Despite the
high court’s Temporary Restraining Order, however, MERALCO continues to charge its
customers with expensive generation rates.


At least 10-15% of the monthly income of our minimum wage earners goes to electricity. The
high cost of electricity has made doing business in the Philippines less attractive to foreign
investors, making our country uncompetitive vis-a-vis our neighbors in the region, and heavily
affecting the manufacturing and the Business Process Outsourcing industries. Locators are
moving to neighboring countries where electricity and other production costs are cheaper. To
make matters worse, the country is now facing an energy crisis due to thin energy reserves.
Rotating brownouts are being experienced not only in Mindanao and Visayas, but also in Luzon
including Metro Manila which is the center of trade and commerce.

Meanwhile, the power industry is controlled by just a few families. What we have is a
monopsony with the Pangilinans, Lopezes, Sys, Aboitizes, Angs, and the Gokongweis
dominating the power industry. This control by a few families curbs competition in the power
industry. We need to encourage more players to counter cartelization and broaden ownership in
the industry to have a true competition that could redound to lower rates.

There is no more time to waste. Let us overhaul EPIRA in order to realize its promise of quality,
reliable, secure and affordable supply of electricity. Amending the EPIRA is inevitable. By
doing this, let us emphasize the nature of the whole electricity sector as a public utility or an
economic activity imbued with public interest, ensuring supply and maintaining national
security, and protecting electricity consumers against unjust prices and abusive market behavior
of power companies.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

RAYMOND DEMOCRITO C. MENDOZA


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

4822
House Bill No.__

Introduced by RAYMOND DEMOCRITO C. MENDOZA
Representative, TUCP Party-List

AN ACT
AMENDING REPUBLIC ACT NO. 9143 OR THE ELECTRIC POWER INDUSTRY
REFORM ACT (EPIRA) AND PROVIDING FOR NEEDED ADDITIONAL REFORMS
IN THE ENERGY SECTOR FOR THE PROTECTION OF ELECTRICITY
CONSUMERS AGAINST MARKET POWER ABUSE AND UNWARRANTED POWER
RATES INCREASES, AND FOR OTHER PURPOSES.

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

SECTION 1. Short Title. - This Act shall be known as “An Act Amending the Electric Power
Industry Reform Act (EPIRA) and Providing for Needed Additional Reforms in the Energy
Sector for the Protection of Consumers.”

SECTION 2. Amendments. — The following sections of Republic Act 9136 otherwise known as
the Electric Power Industry Reform Act (EPIRA) shall be amended as follows:

Section 4. Definition of Terms —

(QQ) “PUBLIC UTILITY” IS DEFINED AS A BUSINESS OR SERVICE
ENGAGED IN REGULARLY SUPPLYING OR PROVIDING THE PUBLIC
WITH A BASIC COMMODITY OR SERVICE OF PUBLIC CONSEQUENCE,
OR INDISPENSABLE TO THE INTEREST OF THE GENERAL PUBLIC SUCH
AS WATER, ELECTRICITY, TRANSPORTATION, COMMUNICATIONS, AND
MEDIA SERVICES.

(RR) “Renewable Energy Resources”.

(SS) “Restructuring”...


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(IT) “Retail Rate”...

(UU) “Small Power Utilities Group”...

(VV) “Stranded contract costs of NPC or distribution utility”...
(WW) “Stranded Debts of NPC”...

(XX) “Subtransmission Assets”...

(VY) “Supplier”...

(ZZ) “Supplier’s Charge”...

(AAA) “Supply of Electricity”...

(BBB) “Transmission Charge”...

(CCC) “Transmission Development Plan”...

(DDD) “Transmis

n of Electricity”...
(EEE) “Universal Charge”...

Section 6. Generation Sector. - Generation of electric power shall be competitive and open.
NONETHELESS, NOTHING IN THIS ACT SHALL PROHIBIT THE GOVERNMENT
FROM COMING IN WITH ADDITIONAL POWER CAPACITY WHEN IT IS
CONSISTENT WITH THE PUBLIC INTEREST, SUCH AS THERE IS AN IMMINENT
POWER SUPPLY DEFICIT THAT IS FORECASTED OR THERE IS A CLEAR NEED
TO BRING ABOUT A MORE COMPETITIVE MARKET. PROVIDED, THAT IT
SHALL ALSO BE SUBJECT TO THE REQUIREMENTS SET IN THIS LAW, THAT
SUCH POWER SHALL BE PURCHASED FROM THE GOVERNMENT THROUGH
FREELY ARRIVED POWER SUPPLY AGREEMENTS WITH THE DISTRIBUTION
SECTOR.

[Any law to the contrary notwithstanding,] Power generation [shall not be] IS considered
a public utility operation. For this purpose, any person or entity engaged or which shall
engage in power generation and supply of electricity shall [not] be required to secure a
[national] CONGRESSIONAL franchise.

[Upon implementation of retail competition and open access,] AS A PUBLIC UTILITY
OPERATION, the prices charged by a generation company for supply of electricity shall
[not] be subject to regulation by the ERC. [except as otherwise provided in this Act.]


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PURSUANT TO THE OBJECTIVE OF LOWERING ELECTRICITY RATES TO
END-USERS, SALES OF GENERATED POWER BY GENERATION COMPANIES
SHALL BE VALUE ADDED TAX ZERO-RATED.

Section 28. De-monopolization and Shareholding Dispersal. - In compliance with the
constitutional mandate for dispersal of ownership and de-monopolization of public utilities,
the holdings of persons, natural or juridical, including directors, officers, stockholders and
related interests, in a generation company, distribution utility and their respective holding
companies shall not exceed [twenty five (25%)] FIFTEEN (15%) percent of the voting
shares of stock. [unless the a utility or the company holding the shares or its controlling
stockholders are already listed in the Philippine Stock Exchange (PSE): Provided, That]
Controlling stockholders of [small] ALL GENERATION AND distribution utilities,
EXCEPT FOR ELECTRIC COOPERATIVES, are required to list in the PSE within five
(5) years from the enactment of this Act. [if they already own the stocks. New controlling
stockholders shall undertake such listing within five (5) years from the time they
acquire ownership and control. A small distribution company is one whose peak
demand is One hundred megawatts (100MW) or less.]

Section 29, Supply Sector. ~ ..

[Any law to the contrary notwithstanding,| Supply of electricity to the contestable market
shall [not] be considered a public utility operation. For this purpose, any person or entity
which shall engage in the supply of electricity to the contestable market shall [not] be
required to secure a [national] CONGRESSIONAL franchise.

‘The prices to be charged by suppliers for the supply of electricity to the contestable market
shall [not] be subject to regulation by the ERC.

Section 30. Wholesale Electricity Spot Market, ~..

Jointly with the electric power industry participants AND ELECTRICITY CONSUMERS
REPRESENTATIVES INCLUDING THE BUSINESS SECTOR, COMMERCIAL
SECTOR, AND THE RESIDENTIAL CONSUMERS, the DOE shall formulate the
detailed rules for the wholesale electricity spot market. Said rules shall provide the
mechanism for determining the price of electricity not covered by bilateral contracts between
sellers and purchasers of electricity users. The price determination methodology contained in
said rules shall be subject to the approval of ERC. Said rules shall also reflect accepted
economic principles and provide a level playing field to all electric power industry
participants. The rules shall provide, among others, procedures for:


Bus

IN CASES WHERE THERE ARE INDICATIONS OF INFLATIONARY PRICE
BIDDING, ECONOMIC WITHHOLDING OR PHYSICAL WITHHOLDING OF
SUPPLY OF ELECTRICY, AND OR MARKET ABUSE OR COLLUSION, AND
OTHER UNUSUAL MARKET BEHAVIOR INDICATING GAMING OF THE
MARKET, THE WESM SHALL BE SUSPENDED BY THE ENERGY
REGULATORY COMMMISSION UNTIL THE INVESTIGATION IS COMPLETED.
THE ENERGY REGULATORY COMMISSION WILL BE MANDATED TO SET UP
THE DEFAULT PRICE COVERING THE CONTESTED PERIOD WHERE THE
GROUNDS FOR SUSPENDING THE WESM OCCURED.

The wholesale electricity spot market shall be implemented by a market operator in
accordance with the wholesale electricity spot market rules. The market operator shall be an
autonomous group, to be constituted by the DOE, with equitable representation from electric
power industry participants AND ELECTRICITY CONSUMERS, BUSINESS AND
LABOR, initially under the administrative supervision of the TRANSCO. The market
operator shall undertake the preparatory work and initial operation of the wholesale
electricity spot market. Not later than one (1) year after the implementation of the wholesale
electricity spot market, an independent entity shall be formed and the functions, assets and
liabilities of the market operator shall be transferred to such entity with the joint endorsement
of the DOE, [and] the electric power industry participants, AND ELECTRICITY
CONSUMERS REPRESENTATIVES INCLUDING FROM THE BUSINESS
SECTOR AND RESIDENTIAL CONSUMERS, AND THE LABOR SECTOR.
Thereafter, the administrative supervision of the TRANSCO over such entity shall cease.

Section. 31. Refail Competition and Open Access. - Any law to the contrary
notwithstanding, retail competition and open access on distribution wires shall be
implemented [not later than three (3) years upon the effectivity of this Act,] ONLY when
[subject to|ALL OF the following conditions ARE MET OR PRESENT:

(a) Establishment of the wholesale electricity spot market;

(b) Approval of unbundled transmission and distribution wheeling charges;

(c) Initial implementation of the cross subsidy removal scheme;

(d) Privatization of at least seventy (70%) percent of the total capacity of generating assets of
NPC in Luzon and Visayas;

(e) Transfer of the management and control of at least seventy percent (70%) of the total
energy output of power plants under contraet with NPC to the IPP Administrators.

(F) THE INSTALLED CAPACITY HAS REACHED AT LEAST FIFTEEN
PERCENT (15%) OVER THE AVERAGE ACTUAL DEMAND FOR THE PAST
YEAR;

(G) TARIFF SIMULATIONS ARE UNDERTAKEN TO SHOW DEMONSTRABLE
BENEFIT TO THE CONTESTABLE MARKET AND NO ADVERSE EFFECT ON
THE CAPTIVE CUSTOMERS. FURTHER, THE DOE AND THE ERC SHALL
CONDUCT PUBLIC HEARINGS WITH THE CONSUMERS IN THE


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CONTESTABLE MARKET, AS WELL AS WITH THE CAPTIVE RESIDENTIAL
AND COMMERCIAL CONSUMERS;

(H) RETAIL COMPETITION AND OPEN ACCESS MUST RESULT IN LOWER
RATES OR MUST BE REVENUE NEUTRAL TO THE CAPTIVE CONSUMERS.

SEC. 32. NPC Stranded Debt and Contract Cost Recovery.

Stranded contract costs of NPC shall refer to the excess of the contracted cost of electricity
under eligible IPP contracts of NPC over the actual selling price of the contracted energy
output of such contracts in the market. Such contracts shall have been approved by the ERB
as of December 31, 2000 AND HAVE BEEN REVIEWED BY AN INTER-AGENCY
IPP REVIEW COMMITTEE (IAC) WITH REPRESENTATION FROM LABOR,
BUSINESS, ANDD CONSUMER SECTORS THAT WILL BE CREATED UNDER
THIS ACT. THE IPP CONTRACTS FOUND ONEROUS BY THE IAC OR WHERE
THE CONTRACTING IPP PARTY IS IN BREACH OF HIS OWN OBLIGATIONS
UNDER THE SAID CONTRACTS ARE INELIGIBLE FOR STRANDED
CONTRACT COST RECOVERY AND SUCH CONTRACTS ARE SUBJECT TO
ABROGATION OR RENEGOTIATION.

‘The national government shall directly assume a portion of the financial obligations of NPC
in an amount not to exceed Two hundred billion Pesos (P200,000,000,000,00).

The ERC shall verify the reasonable amounts and determine the manner and duration for the
full recovery of stranded debt and stranded contract costs as defined herein: Provided, that
the duration for such recovery shall not be shorter than fifteen (15) years nor longer than
twenty-five (25) years. The ERC shall, at the end of the first year of the implementation of
stranded cost recovery and every year thereafter, conducts a review OF THE
IMPLEMENTATION INCLUDING PERFORMANCE OF PARTIES INVOLVED IN
THE CONTRACT WHETHER THERE ARE BREACHES OF OBLIGATIONS to
determine whether there is under-recovery or over-recovery and adjust (tune-up) the level of
stranded cost recovery charge accordingly. Any amount to be included for stranded cost
recovery shall be reflected as a separate item in the consumer billing statement.

Section 38. Creation of the Energy Regulatory Commission. = .

‘The Commission shall be composed of a Chairman [and], [four (4)] SIX (6) members to be
appointed by the President of the Philippines. The Chairman and the members of the
Commission shall be ...: Provided, That out of the [four (4)] SIX (6) 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, ONE (1) FROM THE
CONSUMER SECTOR, AND ONE (1) FROM THE LABOR SECTOR.

All members of the Commission shall have a term of seven (7) years: Provided, that for the


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first appointees, the Chairman shall hold office for seven (7) years, [two (2)] THREE (3)
members shall hold office for five (5) years and the other [two (2)] THREE (3) members
shall hold office for three (3) years: ..

‘The presence of at least [three (3)] FIVE (5) members of the Commission 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 INCLUDING THE FIXING OF RATES AND TARIFFS or other act of the
Commission in the exercise of its quasi-judicial functions: [Provided, that in fixing rates
and tariffs of transmission, and distribution retail wheeling charges and tariffs of
franchise electric utilities and all electric power rates, an affirmative vote of three (3)
members shall be required.]

Section 41, Promotion of Consumer Interest. The ERC shall handle consumer complaints
and ensure the adequate promotion of consumer interests. A CONSUMER ASSISTANCE
OFFICE UNDER THE ERC SHALL BE CREATED TO ASSIST THE CONSUMERS
IN UNDERSTANDING THE TECHNICAL NATURE OF THE INDUSTRY, THE
PETITIONS FOR RATE ADJUSTMENTS AND TARIFFS AND ALL OTHER
PETITIONS SUBMITTED BEFORE THE ERC FOR DECISION. THE OFFICE
SHALL BE STAFFED BY LAWYERS, ECONOMISTS, ENGINEERS, FINANCIAL
ANALYSTS TO ASSIST THE CONSUMERS WHO MAY BRING COMPLAINTS OR
QUESTIONS REGARDING THE PERFORMANCE, TARIFFS OR PETITIONS OF
THE GENERATION COMPANIES, DISTRIBUTION UTILITIES, THE
TRANSMISSION COMPANY, AND THE COMPANIES OR ENTITIES IN THE
SUPPLY SECTOR.

Section 43. Functions of the ERC, - The ERC shall promote competition, encourage market
development, ensure customer choice and discourage/penalize abuse of market power in the
restructured electricity industry. Towards this end, it shall be responsible for the following
key functions in the restructured industry:

(0 In the public interest, establish and enforce a methodology for setting transmission and
distribution wheeling rates, GENERATION RATES and retail rates for the captive
market of a distribution utility, taking into account all relevant considerations, including
the efficiency or inefficiency of the regulated entities AND THE NATURE OF THE
ENTIRE ELECTRICITY SECTOR AS A PUBLIC UTILITY OPERATION, The
rates must be such as to allow the recovery of just and reasonable costs and a reasonable
return on rate base (RORB) to enable the entity to operate viably. THE TARIFF TO BE
IMPOSED BY THE ERC SHOULD ALLOW A RETURN ON RATE BASE (RORB)
FOR THE POWER CORPORATIONS NOT TO EXCEED TWELVE PERCENT
(12%). THE POWER COMPANIES CAN ONLY RECOVER FOR COSTS
INCURRED WHERE THE COSTS MUST BE BOTH USEFUL AND NECESSARY
FOR THE OPERATION OF THE POWER CORPORATION OR UTILITY AND


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WHERE THE COSTS ARE BASED ON ACTUAL TIME OF USE OF THE
EQUIPMENT OR ASSET. CORPORATE INCOME TAX CANNOT BE CLAIMED
AS PART OF THE TARIFF. NEITHER CAN FUTURE EXPENDITURES NOR
FUTURE COSTS OF THE POWER UTILITY BE DEEMED RECOVERABLE.

The rate-setting methodology so adopted and applied must ensure a reasonable price of
electricity. The rates prescribed shall be non-discriminatory. ...

() 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, 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 of 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
THAT ARE NOT YET IN COMPLIANCE, such public offering shall be implemented
not later than five (5) years from the effectivity of this Act. New companies shall
implement their respective public offerings not later than five (5) years from the issuance
of their certificate of compliance

Section 45, Cross Ownership, Market Power Abuse and Anti-Competitive Behavior. - ..

CROSS OWNERSHIP BETWEEN AND AMONG THE POWER GENERATION,
DISTRIBUTION, TRANSMISSION, AND THE SUPPLY SECTOR IS ABSOLUTELY
PROHIBITED. THIS EXTENDS TO BOTH STOCKHOLDERS AND OFFICIALS OF
FIRMS IN ANY ONE SECTOR DISQUALIFYING THEM FROM OWNERSHIP IN
OTHER SECTORS IN THE ELECTRICITY SECTOR.

[No company or distribution utility or its respective subsidiary or affiliate or
stockholder or official shall be allowed to hold any interest, direct or indirect, 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
ity or affinity, shall not hold any interest, whether direct or indirect, in any
generation company or distribution utility. Except for government-appointed
representatives, no person who is an officer or director of TRANSCO or its
concessionaire shall be an officer or director of any generation company, distribution
utility or supplier.)

‘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 group can own, operate or control more than [thirty] TWENTY
percent [(30%)] (20%) of the installed generating capacity of a grid and/or [twenty-five]
FIFTEEN percent [(25%)] (15%) of the national installed generating capacity. “Related
group” includes a person’s business interests, including its subsidiaries, affiliates,


directors or officers or any of their relatives by consanguinity or affinity, legitimate or
common law, within the fourth civil degree;

(b) [Distribution utilities may enter into bilateral] ALL power supply contracts AMONG
AND BETWEEN COMPANIES THAT ARE PRESENT IN THE RESPECTIVE
SECTORS: THE GENERATION, DISTRIBUTION, TRANSMISSION AND
SUPPLY SECTOR ARE subject to [review] APPROVAL by the ERC. |: Provided,
that such review shall only be required for distribution utilities whose markets have
not reached houschold demand level]. For the purpose of preventing market power
abuse, {between associated firms engaged in generation and distribution, no] A
distribution utility shall NOT be allowed [to source from] bilateral power supply
contracts [more than fifty percent (50%) of its total demand from] WITH an
associated firm engaged in generation [but such limitation, however, shall not
prejudice contracts entered in to 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

Section 47. NPC Privatization.

() The Agus and the Pulangui complexes in Mindanao shall be 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 UNTIL SUCH
TIME THAT A SEPARATE GOVERNMENT-OWNED AND CONTROLLED
CORPORATION IS CREATED FOR PURPOSES OF MANAGING AND
OPERATING SAID COMPLEXES. [Said complexes may be privatized not earlier than
ten (10) years from the effectivity of this Act, and except for Agus IlI, 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;}

SEC. 57. Conversion of Electric Cooperatives. Electric Cooperatives (ECs) are hereby
given the option to convert into either stock cooperative under the Cooperatives
Development Act or stock corporation under the Corporation Code. THE NATIONAL
ELECTRIFICATION ADMINISTRATION (NEA), IN COOPERATION WITH THE
SECURITIES AND EXCHANGE COMMISSION AND THE COOPERATIVE
DEVELOPMENT AUTHORITY (CDA), UNDER THE GUIDANCE FROM THE
OFFICE OF THE PRESIDENT, SHALL UNDERTAKE A REFERENDUM TO
DETERMINE WHETHER THE ELECTRIC COOPERATIVES WISH TO
REGISTER AND BE CONVERTED TO A COOPERATIVE UNDER R.A. 9520
OTHERWISE KNOWN AS THE PHILIPPINE DEVELOPMENT COOPERATIVE
CODE OF 2008 OR AS A CORPORATION UNDER BATAS PAMBANSA BILANG 68
OTHERWISE KNOWN AS THE CORPORATION CODE OF THE PHILIPPINES.
FOR PURPOSES OF THIS SECTION, THE QUORUM REQUIREMENT IS


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TWENTY PERCENT (20%) OF THE TOTAL NUMBER OF ALL BONAFIDE
MEMBERS IN GOOD STANDING WITHIN ONE (1) YEAR FROM ENACTMENT
OF THIS ACT. A MAJORITY VOTE BASED ON THIS QUORUM SHALL
CONSTITUTE A VALID AND BINDING DECISION BY THE ELECTRIC
COOPERATIVE. Nothing contained in this Act shall deprive electric cooperatives of any
privilege or right granted to them under Presidential Decree No. 269, as amended, and other
existing laws.

SEC, 60. Debts of Electric Cooperatives. ~

The ERC shall ensure a reduction in the rates of Electric Cooperatives commensurate with
the resulting savings due to the removal of the amortization payments of their loans, Within
five (5) years from the condonation of debt, any electric cooperative which shall transfer
ownership or control of its assets, franchise or operations thereof shall repay PSALM Corp.
the total debts including accrued interests thereon, THE PSALM CORP. AND NEA,
ALONG WITH THE CONCERNED COOPERATIVES SHALL HEREBY BALANCE
THEIR BOOKS AND UNDERTAKE SUCH OTHER REMEDIAL MEASURES FOR
THE CONSUMERS OF ELECTRIC COOPERATIVES TO REFLECT THE
CONDONATION HEREIN THE RATES MANDATED.

SECTION 4. Separability Clause. - If, for any reason, any section or provision of this Act is
declared unconstitutional or invalid, the other sections or provisions hereof which are not
affected shall continue to be in full force and effect.

SECTION 5. Repealing Clause. ~ All laws, decrees, executive orders, proclamations, rules and
regulations or parts thereof inconsistent herewith are hereby repealed,

SECTION 6. Effectivity Clause. - This Act shall take effect immediately upon its publication in
any newspaper of general circulation.

Approved,