Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. ____ 
Introduced by Representative 
LEODY F. TARRIELA 
EXPLANATORY NOTE 
This proposed bill seeks to extend the legislative franchise of the Occidental Mindoro 
Electric Cooperative, Inc. (OMECO) for another twenty-five (25) years.  
OMECO was formally organized in 1974. On February 13, 1980, pursuant to 
Presidential Decree No. 269, it was granted franchise to operate an electric light and power 
service for a period of fifty (50) years by the National Electrification Commission in the areas 
presently comprised of the Municipalities of Calintaan, San Jose, Paluan, Magsaysay, Rizal, 
Abra de Ilog, Sablayan, Mamburao and Santa Cruz. 
From its initial coverage of four municipalities in the southern part of the province, 
OMECO has gradually acquired rights to small-scale electric companies, consolidating power 
service delivery, and expanding to energize the whole of Occidental Mindoro. Among its 
notable milestones is the provision of the first-ever 12-hour electricity supply in the 
Municipality of San Jose. Consequently, it launched the first 24-hour power service in the 
municipalities of Sablayan, Mamburao, and Paluan. 
Throughout its more than fifty-one (51) years of service, akin to any organization, 
OMECO is not immune to challenges. In 1983, OMECO faced a seemingly insurmountable 
financial crisis characterized by delayed employee salaries, mounting debt to its suppliers, and 
critical equipment failures which pushed the cooperative to the brink of ceasing its operations. 
However, under the helm of its then newly-appointed General Manager, Col. Zoilo M. 
Perez (Ret.), OMECO strived to recuperate. Through strict frugality, discipline, and collective 
effort of its loyal staff, it gradually recovered – salaries were normalized, back wages settled, 
and obligations repaid. By 1996, with the operation of additional power plants, it further 
expanded its 24/7 service and offered industrial power rates for as low as P3.50/kWh, attracting 
more commercial users.  
OMECO has also continued to improve its distribution facilities by constructing new 
substations in different municipalities to address low voltage problem and high system loss. In 
2018, OMECO further expanded its franchise area to cover the newly-created barangays. Its 
total land area of franchise is around 5,634.35 sq. kms., with all municipalities and barangays 
100% electrified. Through its prudence and professionalism, OMECO has maintained an 
effective power supply agreement with its power suppliers, ensuring sufficient electricity 
supply and surplus to address peak demands, and shielding its consumers’ legal rights and 
interests. 
July 2, 2025
1:15 pm
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As testament to its unwavering focus on the full implementation of its strategic plans 
and programs, OMECO reached a historic milestone by earning the highest possible NEA 
categorization: Category AAA, during the 2024 Electric Cooperative Overall Performance 
Assessment and Size Classification conducted by the National Electrification Administration. 
With its key role in the electrification of the Province of Occidental Mindoro, OMECO 
has become an vital partner of the National and Local Governments in ensuring the continued 
progress and development of the province. 
In view of the foregoing, the immediate consideration and passage of the Bill is 
earnestly sought. 
HON. LEODY “ODIE” F. TARRIELA 
Representative 
Lone District, Occidental Mindoro 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. ____ 
INTRODUCED BY REPRESENTATIVE 
LEODY F. TARRIELA 
AN ACT 
RENEWING THE LEGISLATIVE FRANCHISE OF OCCIDENTAL MINDORO 
ELECTRIC COOPERATIVE, INC. (OMECO) TO CONSTRUCT, INSTALL, 
ESTABLISH, OPERATE AND MAINTAIN A DISTRIBUTION SYSTEM FOR THE 
CONVEYANCE OF ELECTRIC POWER TO THE END USERS IN THE 
MUNICIPALITIES 
OF 
MAGSAYSAY, 
SAN 
JOSE, 
RIZAL, 
CALINTAAN, 
SABLAYAN, STA. CRUZ, MAMBURAO, ABRA DE ILOG, PALUAN, AND ITS 
NEIGHBORING SUBURBS 
Be it enacted by the Senate and House of Representatives 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 
Occidental Mindoro Electric Cooperative, Inc. (OMECO), hereunder referred to as the grantee, 
its successors or assignees, a franchise to construct, install, establish, operate and maintain for 
public interest, a distribution system for the conveyance of electric power to the end users in 
the municipalities of Magsaysay, San Jose, Rizal, Calintaan, Sablayan, Sta. Cruz, Mamburao, 
Abra de Ilog, Paluan and its neighboring suburbs. 
SECTION 2. Manner of Operation of Facilities. All electric distribution facilities, 
lines, and systems for electric services owned, maintained, operated, or managed by the grantee, 
its successors or assignees, shall be operated and maintained at all times in the best manner, 
and it shall be the duty of the grantee, its successors or assignees, 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 the National Electrification Administration(NEA) or 
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its legal successor, or any other government agency concerned, to modify, improve and change 
such facilities or systems in such a manner and to such extent as the progress in science and 
improvements in the electric power service industry may render reasonable and proper. 
 
Whenever practicable and for purposes of maintaining order, safety and aesthetics along 
highways, roads, streets, alleys, or easements, the grantee may allow the use of its poles, 
facilities, or easements by interested parties upon reasonable compensation. The ERC or NEA 
shall resolve cases of dispute or disagreement between parties. 
 
SECTION 3. Authority of the Energy Regulatory Commission (ERC) and the National 
Electrification Administration (NEA). The grantee shall secure from the ERC or NEA, or any 
other government agency which has jurisdiction over the operation of the herein grantee, the 
necessary certificate of public convenience and necessity and other appropriate permits and 
licenses for the construction and operation of its electric distribution system. 
 
SECTION 4. Excavation and Restoration Works. For the purpose of erecting and 
maintaining poles and other supports for wires or other conductors for the laying and 
maintaining underground wires, cables, pipes or other conductors, the grantee, its successors or 
assignees, is authorized to make excavations or lay conduits in any of the public places, 
highways, streets, lanes, alleys, avenues, sidewalks, or bridges of said province, cities and/or 
municipalities, subject to prior approval of the Department of Public Works and Highways 
(DPWH) or the Local Government Units (LGU) concerned: Provided, however, That any 
public place, road, highway, 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 or 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 LGU concerned. Should the grantee, its successors or assignees, after the ten(10)-
day notice from the said authority, fail, refuse or neglect to repair or replace any part of public 
place, road, highway, street, lane, alley, avenue, sidewalk or bridge altered, changed or 
disturbed by the said grantee, its successors or assignees, then the DPWH or LGU concerned 
shall have the right to have the same repaired or replaced in good order and condition and 
charge the grantee, its successor or assignees at double the amount of the costs 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. 
 
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 any 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 user shall be regulated by and subject to the approval of 
the ERC or its legal successor. 
 
The grantee shall identify and itemize in its electricity bill to the end users the 
components of the retail rate pursuant to Republic Act No. 9136. 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. 
 
SECTION 7. Protection of Consumer Interests. The herein grantee shall establish a 
consumer desk that will handle consumer complaints and ensure adequate protection 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 distribution 
system 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 said distribution system during the period when they 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, wire 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 condemnation proceedings shall have 
been instituted and just compensation paid. 
 
SECTION 10. Term of Franchise. This franchise shall be for a term of twenty-five 
(25) years from the date of effectivity of this Act, unless sooner cancelled or revoked by 
Congress for any violation of the terms and/or provisions of the franchise granted herein. This 
franchise shall be deemed ipso facto revoked in the event that the grantee fails to operate 
continuously for two (2) years. 
 
SECTION 11. Acceptance of the Franchise. Acceptance of the terms of this franchise 
shall be in writing to the Committee on Legislative Franchises of the House of Representatives 
and the Committee on Public Services of the Philippine Senate, within sixty (60) days after the 
effectivity of this Act. Upon giving such acceptance, the grantee shall exercise the privileges 
granted under this Act. Non-acceptance shall render the franchise void. 
 
SECTION 12. Warranty in Favor of National and Local Governments. The grantee 
shall hold the national, provincial, city, and municipal governments of the Philippines free from 
all claims, liabilities, demands, or actions arising out of accidents that cause injury to persons 
and damage to properties, during the construction, installation, operation, and maintenance of 
the distribution system of the grantee. 
 
SECTION 13. Liability to Damages. 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. 
 
SECTION 14. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise. 
The grantee shall not sell, lease, transfer, grant the usufruct of, nor assign this franchise or the 
rights and privileges acquired thereunder to any person, firm, company, corporation, or other 
commercial or legal entity, nor merge with any other corporation or entity, nor shall transfer 
the controlling interest of the grantee whether as a whole or in part, 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 sale, lease, transfer, grant of usufruct, or assignment of franchise or the rights or 
privileges acquired thereunder or the merger, or transfer the controlling interest of the grantee, 


within sixty (60) days after the completion of the said transaction: Provided, further, That any 
such transfer, sale or assignment is in accordance with 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 
the Congress of the Philippines, through the Committee on Legislative Franchises of the House 
of Representatives and the Committee of 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 the 
succeeding year. 
 
SECTION 16. Equality Clause. Except for taxes and customs duties, any advantage, 
favor, privilege, exemption, or immunity granted under existing franchises, or may hereinafter 
be granted shall, upon prior review and approval of Congress, become part of previously 
granted power distribution franchises and shall be accorded immediately and unconditionally 
to the grantees of such franchises. Provided, however, That the foregoing shall neither apply to 
nor affect provisions concerning territory covered, term, or the type of service authorized by 
the franchise: Provided, further, That the foregoing shall not apply to the sale, lease, transfer, 
grant off usufruct or assignment of legislative franchises with prior congressional approval. 
 
SECTION 17. Applicability of Existing Laws. The grantee shall comply with and be 
subject to the provisions of Commonwealth Act No. 146, or the "Public Service Act" as 
amended; Republic Act No. 9136; and Republic Act No. 10531 or "An Act Strengthening the 
National Electrification Administration, further Amending Presidential Decree No. 269, as 
amended. Otherwise known as the National Electrification Administration Decree". 
 
SECTION 18. Fine. Any grantee who fails to submit the annual report to Congress 
shall be penalized by a fine of Five Hundred Pesos (P500.00) per working day of 
noncompliance. The fine shall be collected separately by the ERC distinct from the penalties it 
imposes for non-compliance of its own reportorial requirements. 
 
SECTION 19. Repealability and Nonexclusivity Clause. 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. 


 
SECTION 20. 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 21. Effectivity. This Act shall take effect fifteen (15) days after its 
publication either in the Official Gazette or in a newspaper of general circulation.  
 
Approved,