Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
‘Third Regular Session

HOUSE BILL No,__8970

Introduced by
Representative Carlos Roman L. Uybarreta

EXPLANATORY NOTE

Zamboanga del Sur II Electric Cooperative, Inc. (ZAMSURECO I!) is a duly
organized cooperative with a franchise to distribute electric light, and power to a
total area of 6,370.2 sq. km. in Zamboanga del Sur, with a 1,964.5 distribution
line in circuit-kilometers. It serves 89,621 residential household connections,
5,317 commercial connections and 547 industrial connections, and its current
status of household energization is at 74.3%.

As of March 31, 2018, the total amount of ZAMSURECO II’s outstanding
account with the Power Sector Assets and Liabilities Management Corporation
(PSALM) is ONE HUNDRED SEVENTY FIVE MILLION FIVE HUNDRED TWENTY
FOUR THOUSAND ONE HUNDRED FORTY SEVEN PESOS AND 85/100 (P
175,524,147.85).

ZAMSURECO II’s power obligation to PSALM, including its unpaid bills to
other suppliers, which accumulated over the years has blown out of proportion
that it has become virtually impossible for ZAMSURECO II to focus on the
improvement of their electricity-distribution services. At present, the said
cooperative can no longer make new investments and acquire additional assets
that would provide better, cheaper, and more efficient means of harnessing and
distributing reliable power throughout the area covered, primarily because the
funds intended for these uses are solely being directed towards the payment of
its monetary obligations.

It is for this reason that we take measures in order to apply leniency to
non-stock, non-profit electric cooperatives like ZAMSURECO II by condoning all
its unpaid power obligations to PSALM, including all interests, surcharges and
other penalties from the commencement of the liability. This way, ZAMSURECO
Il will be able to return to its former condition of competent, successful and debt-
free operation. Condoning its unpaid obligations to PSALM allows the cooperative
to remain financially viable for local as well as foreign investors.

In consideration of the foregoing, the immediate passage of this bill is
earnestly requested.

CARLOS ROMAN L. UYBARRETA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
Third Regular Session

HOUSE BILL NO. 8570

Introduced by
Representative Carlos Roman L. Uybarreta

AN ACT CONDONING THE OBLIGATION OF ZAMBOANGA DEL SUR II
ELECTRIC COOPERATIVE, INC. (ZAMSURECO II) PAYABLE TO THE
POWER SECTOR ASSETS AND LIABILITIES MANAGEMENT CORPORATION
(PSALM)

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

Section 1. Title. - This Act shall be known as the Condonation of the Obligation
of Zamboanga del Sur II Electric Cooperative, Inc. (ZAMSURECO I!) Act.

Section 2. Declaration of Policy. - It is hereby declared the policy of the State
to ensure and accelerate the total electrification of the country; ensure the
quality, reliability, security and affordability of the supply of electric power in the
country; and enable the electric cooperatives to cope with the changes brought
about in the industry by emerging technologies.

Section 3. Condonation of Obligation. - The principal obligation of
ZAMSURECO II payable to PSALM as well as the interest and other surcharges
as there may be are hereby condoned.

Section 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after
its publication in at least two (2) newspapers of general circulation.

Approved.