Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Rep. WOWO FORTES 
EXPLANATORY NOTE 
Since its establishment in 1973, the Sorsogon I Electric Cooperative, Inc. 
(SORECO I) has been at the forefront of rural electrification in the Second District of 
Sorsogon. As a duly registered electric cooperative under the National Electrification 
Administration (NEA), SORECO I has long demonstrated its commitment to the 
Municipalities of Bulan, Bulusan, Casiguran, Irosin, Juban, Magallanes, Matnog, and 
Sta. Magdalena, Province of Sorsogon, bridging the development gap between rural 
and urban areas by providing the electrification needs of the aforementioned 
communities. 
Pursuant to Section 27 of Republic Act No. 9136 or the “Electric Power Industry 
Reform Act of 2001 (EPIRA)”, the power to grant franchises shall be vested exclusively 
in the Congress of the Philippines. Thus, this bill seeks to grant a congressional 
franchise for SORECO I to construct, establish, operate, and maintain electric 
distribution systems for the benefit of its over 60,000 member consumers from the 
aforementioned municipalities. 
The approval of this franchise would be vital to ensuring the continued access of 
Sorsoganons to safe, reliable, and affordable electricity. Not only does it guarantee 
uninterrupted service for existing consumers but it also empowers SORECO I to 
expand and improve its infrastructure to reach more underserved areas. This 
legislative measure would reflect the State’s commitment to the equitable access of 
basic services and the uplifting of rural communities in the Second District of 
Sorsogon. 
In view of the foregoing, the passage of this bill is earnestly sought. 
  ATTY. WOWO FORTES 
Representative 
Second District, Province of Sorsogon 
August 4, 2025
8:00 am
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Twentieth Congress of the  
Republic of the Philippines 
First Regular Session  
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Rep. 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 Philippines in the 
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 end-users in the 
municipalities of 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 
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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 ot 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,