-. 
FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
SENATE 
S.No. 3187 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
EXPLANATORY NOTE 
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When President Fidel V. Ramos assumed presidency in 1992, he was welcomed by a crippling 
power crisis throughout the country prompting him to seek emergency powers from Congress. 
Republic Act No. 7648, otherwise known as the "Electric Power Crisis Act of 1993" granted 
emergency powers to then President Ramos to respond to the alarming shortage of the supply of 
electricity during that period. 
RA 7648 allowed special constitutional powers to issue licenses to independent power producers 
(IPP) for the construction, repair, rehabilitation, improvement or maintenance of power plants, 
projects and facilities. This etIectively fast tracked the usually long and tedious process required 
to bid out government projects. Moreover, said law also created an oversight committee in each 
House of Congress to 111ontior the implementation of the same and the exercise of authority 
granted under the law. 
However, the authority granted under RA 7648 was only valid and efIective for a period of one 
(1) year fr0111 its effectivity. Further, as recently stated by Senator Sergio Osmeiia III, Chair of 
the Senate Committee on Energy, in 2001, 
Thus, 
"... the residents of Mindanao, through their representatives, 
pushedfor a 10 year exemption from the privatization program of' 
the NPC-owned plants in Mindanao, notably the Agus-Pulangui 
hydropower complex which at that time supplied about 75% of'the 
power needs of Mindanao at the lowest rate ... [EJven worse, the 
bicam committee agreed to postpone the construction of' the 
transmission line interconnection between Leyte and Surigao. '" 
"Unlike the rest of the country which has already transitioned to 
the new market oriented regime, Mindanao remains isolated .li·om 
the national transmission grid which prevents excess power in the 
Visayas/i'om beingfed into Mindanao. '" 
Sadly, until now, Mindanao continues to suffer intenllittent power brownouts. In fact, President 
Benigno Aquino III recently admitted that the power problem in Mindanao had been neglected 
for years. 
It is in the light of all the foregoing that this measure granting emergency powers to the 
President, to address the shortage of electricity in Mindanao, has been filed. 
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Out of the abundance of caution, however, this measure expressly prohibits the government from 
granting sovereign guarantee for the payment of obligations incurred by the Independent Power 
Producers (IPPs). 
Likewise, this measure proscribes the inclusion of onerous "take or pay" contracts or similar 
provisions which appeared to have been abused in the past. 
Similarly, the rate of return on rate base which may be fixed shall be limited to a maximum of 
twelve percent (I 2) per annum only. 
Subject to these safeguards, it is expected that the President will be able to expeditiously act and 
adequately address the power crisis in Mindanao with the emergency powers provided in this 
Act. 
In view of the foregoing, immediate approval of this measure is earnestly sought. 
ANTONIO "SONNY" F. TRILLANES IV 
Senator 
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FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
SENATE 
S.No. 3167 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
PRESCRIBING URGENT RELATED MEASURES NECESSARY AND PROPER TO 
EFFECTIVELY ADDRESS THE ELECTRIC POWER CRISIS AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House ()j'Representatives of the Philippines in Congress 
assembled: 
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SECTION 1. Short Title. - This Act shall be known as the "Electric Power Crisis Act oj' 
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2012". 
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SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to adopt 
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adequate and effective measures to address the electric power crisis that has dislUpted the 
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country's economic and social life and assumed the nature and magnitude of a public crisis if not 
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a calamity. 
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SEC. 3. Negotiated Contracts. - Pursuant to the above declared policy and in the public 
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interest and whenever it is advantageous to the Government, the President may entcr into 
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negotiated contracts for the constlUction, repair, rehabilitation, improvement or maintenance of 
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power plants, projects and facilities, subject to the following requirements: 
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a) In order to inform competitive contractors, the list of projects to be undertaken under 
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this Act, together with their description, the budgetary estimates involved and other 
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salient features, shall be published in a newspaper of general circulation thirty (30) 
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days after the effectivity of this Act; 
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b) Upon perfection of the contract, the tenns and conditions of the same, with the name 
and qualifications of the contractor, shall likewise be published in a newspaper of 
general circulation two (2) weeks before the signing of the contract; 
c) The contracts shall be awarded only to contractors with: 
i) 
ii) 
iii) 
proven competence and experience in similar projects; 
competent key personnel and sufficient and reliable equipment; and 
sound financial capacity; and 
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d) All the awarded projects shall be subject to existing government auditing rules and 
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regulations goveming negotiated contracts. 
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Provided, That the President shall not grant sovereign guarantee for the payment of 
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obligations incurred by the independent power producers (IPPs); Provided .jitrther, That the 
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President shall not enter into negotiated contracts which will bring the total production capacity 
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in excess of the power requirements of the country as projected by the Department of Energy; 
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Provided finally, That no take-or-pay contracts or similar onerous provisions shall be entered 
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into in the exercise of the powers provided in this Act. 
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SEC. 4. Return 011 Rate Base. - Further pursuant to the above declared policy, the 
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President is hereby authorized, whenever it is necessary for the national welfare and in the public 
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interest, to fix the rate of return on rate base of IPPs to a certain percentage of the rate base, as 
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may be determined by the President in consultation with IPPs and other stakeholders; Provided, 
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That said rate of return on rate base shall not exceed twelve percent (12%) per annum. 
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Any increase in power rates shall take effect only upon approval of the Energy 
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Regulatory Commission (ERC), and only after proper notice, hearing and due proceedings. 
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SEC. 5. Duration of Grant of Powers. - The authority granted to the President under this 
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Act shall subsist, be valid and effective for a period of one (1) year from the effectivity of this 
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Act, unless sooner withdrawn by a resolution of Congress, without prejudice to rights and 
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benefits that may have been vested, and culpabilities and liabilities that may have been incurred. 
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SEC. 6. Oversight Committees. - There is hereby created an Oversight Committee in 
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each House of Congress to be composed of five (5) members each, as may be designed by the 
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Senate President and the Speaker of the House of the Representatives, to monitor the 
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implementation of this Act and ensure compliance with the provisions hereof and the exercise of 
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the authority granted thereunder. 
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The 
Oversight 
Committees 
shall 
submit 
periodic 
repotis, 
evaluations 
and 
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recommendations to the Senate and the House of Representatives. 
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SEC. 7. Report to Congress. - The President shall submit a quarterly report to Congress 
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on the implementation of this Act. 
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SEC. 8. Separability Clause.- If for any reason any provision of this Act is declared 
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unconstitutional or invalid, other parts or provisions hereof which are notaffected thereby shall 
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continue to be in full force and effect. 
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SEC. 9. Repealing Clause. - All laws, decrees, orders, rules and regulations, orportions 
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thereof, inconsistent with this Act are hereby repealed or modifiedaccordingly. 
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SEC. 10. Effectivity Clause. -
This Act shall take effect on the day following 
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itspublications in at least two (2) national newspapers of general circulation. 
Approved, 
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SEC. 6. Oversight Committees. - There is hereby created an Oversight Committee in 
2 
each House of Congress to be composed of five (5) members each, as may be designed by the 
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Senate President and the Speaker of the House of the Representatives, to monitor the 
4 
implementation of this Act and ensure compliance with the provisions hereof and the exercise of 
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the authority granted thereunder. 
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The 
Oversight 
Committees 
shall 
submit 
periodic 
reports, 
evaluations 
and 
7 
recommendations to the Senate and the House of Representatives. 
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SEC. 7. Report to Congress. - The President shall submit a quarterly report to Congress 
10 
on the implementation of this Act. 
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SEC. 8. Separability Clause.- If for any reason any provision of this Act is declared 
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unconstitutional or invalid, other parts or provisions hereof which are notaffected thereby shall 
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continue to be in full force and effect. 
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SEC. 9. Repealing Clause. - All laws, decrees, orders, rules and regulations, orportions 
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thereof, inconsistent with this Act are hereby repealed or modifiedaccordingly. 
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SEC. 10. E.ffectivity Clause. - This Act shall take effect on the day following its 
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publication in at least two (2) national newspapers of general circulation. 
Approved, 
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