Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO.  9696 
___________________________________________________________________ 
 Introduced by Representative WOWO FORTES 
___________________________________________________________________ 
EXPLANATORY NOTE 
The Sorsogon I Electric Cooperative, Inc. (SORECO I) is based in the Second District of 
Sorsogon and has been serving Sorsoganon consumers since 1973. SORECO I is duly 
registered with the National Electrification and Administration (NEA) with a mandate to 
perform electrification in the Municipalities of Bulan, Bulusan, Casiguran, Irosin, Juban, 
Magallanes, Matnog, and Sta. Magdalena, Province of Sorsogon.  
In accordance with Section 27 of Republic Act. (RA) No. 9136 or the “Electric Power 
Industry Reform Act (EPIRA)” the power to grant franchises shall be vested exclusively 
in the Congress of the Philippines. This bill seeks to grant a congressional franchise to 
SORECO I to provide an electric power distribution system to the people of the above-
mentioned municipalities. Moreover, it seeks to require standards that the grantee needs 
to attain in order to secure an effective partnership between the State and the grantee, 
as well as to set high standards for the provided facility. 
The enactment of this bill shall give light and hope to the People and Province of Sorsogon 
as this ensures the continuous delivery of electric service from SORECO I. Such 
electrification in the specified municipalities shall strengthen our paths toward progress 
and development. Further, it shall be in line with the policy of the Republic of the 
Philippines as provided for in EPIRA in ensuring and accelerating the total electrification 
of the country, as well as the quality, reliability, security, and affordability of the supply of 
electric power. 
In view of the foregoing, the approval of this bill is earnestly sought. 
ATTY. WOWO FORTES 
Representative 
Second District, Province of Sorsogon 
December 11, 2023
8:00 am


Nineteenth Congress of the 
Republic of the Philippines 
Second Regular Session 
HOUSE OF REPRESENTATIVES 
H.B. No. 9696 
__________________________________________________________________ 
Introduced by Representative WOWO FORTES 
___________________________________________________________________ 
AN ACT GRANTING THE SORSOGON I ELECTRIC COOPERATIVE, INC. (SORECO 
I) A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE, OWN,
MANAGE AND MAINTAIN DISTRIBUTION SYSTEMS FOR THE CONVEYANCE OF 
ELECTRIC POWER TO THE END-USERS IN THE MUNICIPALITIES OF BULAN, 
BULUSAN, CASIGURAN, IROSIN, JUBAN, MAGALLANES, MATNOG, AND STA. 
MAGDALENA, PROVINCE OF SORSOGON 
Be it enacted by the Senate and House of Representatives of the Republic of the 
Philippines in Congress assembled:  
SECTION 1. Nature and Scope of Franchise. – Subject to the provisions of the 
Constitution and applicable laws, rules and regulations, there is hereby granted to the 
Sorsogon I Electric Cooperative, Inc., (SORECO I) hereunder referred to as the grantee, 
its successors or assigns 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 Municipalities of 
Bulan, Bulusan, Casiguran, Irosin, Juban, Magallanes, Matnog, and Sta. Magdalena, 
Province of Sorsogon.  
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 point/facility of the end-users.  
SECTION 2. Manner of Operations of Facilities. – All electric distribution facilities, lines 
and systems for electric services installed, owned, operated, managed or maintained by 
the grantee, its successors or assigns shall be operated or maintained at all times in a 
superior manner, and it shall be the duty of the grantee, its successors or assigns, 
whenever required to do so by the Energy Regulatory Commission (ERC), or its legal 
successor, or the Department of Energy (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 innovations 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.  
  
SECTION 3. Authority of the Energy Regulatory Commission. – The grantee shall secure 
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.   
  
SECTION 4. Ingress and 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, with the prior approval of 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, lanes, alleys, avenues, sidewalks, or bridges of the province, cities or 
municipalities: Provided, however, 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 by 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 and charge the grantee, its successors or 
assignees, double the amount of the cost and expenses for such repair or replacement.  
  
SECTION 5. Responsibility to the Public. – 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 business 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 (RA) 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.  
  
SECTION 6. Rates for Services. – 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 RA 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 RA 
No. 9136.  
  
SECTION 7.  Promotion of Consumer Interests. – 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.  
  
SECTION 8.  Right of the Government.  – 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.  
  
SECTION 9. Right of Eminent Domain. – 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: Provided, that proper 
expropriation proceedings shall have been instituted and just compensation paid.  
  
SECTION 10. Term of Franchise. – Unless sooner cancelled, the franchise shall be in 
effect for a period of twenty-five (25) years from the effectivity of this Act. This franchise 
shall be deemed ipso facto revoked in the event the grantee fails to operate continuously 
for two (2) years. 
  
SECTION 11. Acceptance and Compliance. – Acceptance of this franchise shall be given 
in writing to Congress, 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.  
  
SECTION 12. Warranty in Favor of the National and Local Governments. – The grantee 
shall hold the national, provincial, city, and municipal governments of the Philippines free 
from all claims, accounts, demands, or actions arising from accidents causing injury to 
persons or damage to properties, during the construction, installation, operation, and 
maintenance of the distribution system of the grantee.  
  
SECTION 13.  Liability for Damages. – The grantee shall be liable for any injury to 
persons and damage to properties arising from accidents by reason of any defective 
construction under this franchise or of any neglect or omission to keep its poles and wires 
in safe condition.  
  
SECTION 14. Sale, Lease, Transfer, Usufruct, or Assignment of Franchise. – The 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: 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.  
  
SECTION 15. Reportorial Requirement. – The grantee shall submit an annual report to 
Congress, 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.  
  
SECTION 16. Fine. – The failure of the grantee to submit the requisite annual report to 
Congress shall be penalized with a fine in the amount of five hundred pesos (P500.00) 
per working day of noncompliance which shall be collected by the ERC. The fine shall be 
collected separately from the reportorial penalties imposed by the ERC and shall be 
remitted to the Bureau of the Treasury.  
  


SECTION 17. Equality Clause.  – 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 franchises with prior congressional approval. 
  
SECTION 18.  Applicability Clause. – 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 RA No. 9136.  
  
SECTION 19. Repealability and Non-Exclusivity Clause.  – This franchise shall be subject 
to amendment, alteration, or repeal by Congress when the public interest so requires and 
shall not be interpreted as an exclusive grant of the privileges herein provided for.  
  
SECTION 20. Existing Powers. – Existing mandates, powers, functions, and privileges 
granted to electric cooperatives under existing laws, including Section 10 of RA No. 
10531, otherwise known as the “National Electrification Administration Reform Act of 
2013”, shall remain valid and effective, unless expressly repealed by succeeding laws.  
  
SECTION 21.  Separability Clause. – If any of the sections or provisions of this Act is held 
invalid, all other provisions not affected thereby shall remain valid. 
  
SECTION 22. Repealing Clause. –  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. 
   
SECTION 23.  Effectivity Clause. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
 
Approved,