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S E N A T E  
Senate Bill No. 6 8 6 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Republic Act No. 9136, otherwise known as the “Electric Power Industry 
Reform Act of 2001” clearly stated that the obligations of generating companies 
and energy resource developers to communities hosting energy generating 
facilities and/or energy resource developers as defined under Chapter 11, 
Sections 289 to 294 of the Local Government Code and Section 5(i) of Republic 
Act No. 7638 and their implementing rules and regulations and applicable orders 
and circulars consistent with this Act shall continue: Provided, further, That the 
obligations mandated under Chapter 11, Section 291 of Republic Act No. 7160, 
shall apply to privately-owned corporations or entities utilizing the national wealth 
of the locality. 
Moreover, the aforesaid law so states: To ensure the effective 
implementation of the reduction in cost of electricity in the communities where the 
source of energy is located, the mechanics and procedures prescribed in the 
Department of the Interior and Local Government (DILG) - DOE Circulars No. 95- 
01 and 98-01 dated October 31, 1995 and September 30, 1998, respectively and 
other issuances related thereto shall be pursued. 
The aforesaid law, however, intends to mandate the direct remittance of 
the aforesaid benefits to the host communities instead of remitting them to the 
Department of Energy to assure that the said benefits may be utilized 
immediately for their development and for the introduction of improvements. 
Through this measure, we will be able to facilitate the prompt remittance of 
said benefits to the host communities in consonance with the intention of all laws 
previously legislated. 
In view of the foregoing, immediate passage of this bill is earnestly sought. 
c_ 
Senator 


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OF THE PHILIPPINES 
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First Regular Session 
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S E N A T E  
Senate Bill No. 686 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
REQUIRING ALL INDEPENDENT POWER PRODUCERS, GENERATION 
COMPANIES OR ENERGY RESOURCE DEVELOPERS TO REMIT THE 
AMOUNT THEY ARE REQUIRED TO SET ASIDE AS FINANCIAL BENEFIT 
DIRECTLY TO THE HOST COMMUNITIES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. All independent power producers, generation companies or 
energy resource developers, whether publicly or privately owned, shall remit 
directly to the local government units or other host communities the benefits they 
are required to set aside as financial benefit to host communities pursuant to 
Section 66 of Republic Act No. 9136, otherwise known as the “Electric Power 
Industry Reform Act of 2001”; as defined in Sections 289 to 294, Chapter II of 
Republic Act No. 7160, otherwise known as the “Local Government Code of 
1991”; the benefits defined in Section 5(i) of Republic Act No. 7638, otherwise 
known as the “Department of Energy Act of 1992” and Rule 29 of Energy 
Regulation No. 1-94. 
SEC 2. The use of aforesaid amounts remitted by independent power 
producers, generation companies or energy resource developers to the host 
communities concerned shall remain subject to the guidelines set by the 
Department of Energy. 
SEC 3. 
All laws, presidential decrees, executive orders, letters of 
instruction, rules and regulations or parts thereof inconsistent with the provisions 
of this Act are hereby repealed or modified accordingly. 
SEC 4. This Act shall take effect immediately upon its complete 
publication in at least two (2) newspapers of general circulation. 
Approved,