Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____________ 
Introduced by MARINO Party-list Representative 
SANDRO L. GONZALEZ 
EXPLANATORY NOTE 
This bill seeks to expand Davao Light Power and Company, Inc. ("Davao 
Light")'s franchise to construct, install, establish, operate, and maintain for commercial 
purposes and in the public interest, an electric, light, heat and power system for the 
conveyance, distribution, and sale of electric power to the end users in the cities and 
municipalities as mentioned in Section 1 hereof. 
The Franchise Area, over the years, have been suffering frequent power outages 
due to Northern Davao Electric Cooperative, Inc. ("NORDECO")’s inefficiency in the 
delivery of power distribution services and its failure to ensure the reliable supply of 
power. This resulted to the Franchise Area’s derailment of their economic growth. On 
the other hand, the neighboring municipalities and cities of the Franchise Area, 
particularly, those within the franchise area of Davao Light, have continued to enjoy 
stable electricity services. Consequently, these municipalities and cities have already 
overtaken the Franchise Area. 
It is imperative, therefore, that amendment must be made to the existing 
franchise of NORDECO to reduce its franchise area as it is incapable of delivering its 
service to the Franchise Area. It must also be observed that despite NORDECO’s 
opportunities to address the complaints of its customers, the clamor from the customers 
and residents in the Franchise Area in replacing their electric service provider is 
unrelenting.   
Meanwhile, Davao Light holds the needed expertise to effectively and efficiently 
provide electricity distribution services to the Franchise Area. It must be observed that 
it is already the distribution utility serving half of the municipalities and cities in the 
province of Davao del Norte. Further, Davao Light is the third largest privately-owned 
electric distribution utility in the country, with respect to customer size and annual 
kilowatt-hour sales, and maintains a reputation for excellent service. 
February 1, 2023
5:30pm
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Thus, this bill will improve the plight of our constituents in the Franchise Area 
and, likewise, consistent with the government's goals to promote and maintain public 
interest and pursue overall growth in Mindanao. 
In view of the foregoing, the passage of this timely measure is most respectfully 
sought.  
Sincerely, 
SANDRO L. GONZALEZ 
Representative 
MARINO Party-list 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____________ 
Introduced by MARINO Party-list Representative 
SANDRO L. GONZALEZ 
AN ACT INCLUDING TAGUM CITY, THE ISLAND GARDEN CITY OF 
SAMAL, AND THE MUNICIPALITIES OF ASUNCION, KAPALONG, NEW 
CORELLA, SAN ISIDRO AND TALAINGOD, IN THE PROVINCE OF 
DAVAO DEL NORTE, AND TIIE MUNICIPALITY OF 
MACO, IN THE PROVlNCE OF DAVAO DE ORO TO THE FRANCHlSE 
AREA OF THE DAVAO LIGHT AND POWER COMPANY, INC. AMENDING 
FOR THE PURPOSE REPUBLIC ACT NO. 11515, ENTITLED "AN ACT 
EXTENDINGFORANOTHER TWEI`ITY-FIVE (25) YEARS THE FRANCHSE 
GRANTED T0 THE DAVAO LIGHT AND POWER COMPANY, INC., 
UNDER REPUBLIC ACT NO. 8960, ENTITLED `AN ACT FURTHER 
EXTENDING THE TERM OF THE FRANCHISE GRANTED TO DAVAO 
LIGHT AND POWER COMPANY, INC.TO CONSTRUCT, OPERATE AND 
MAINTAIN AN ELECTRIC LIGHT, HEAT AND POWER SYSTEM IN 
DAVAO CITY AND THE MUNICIPALITIES OF CARMEN, PANABO, 
DUJALI, AND SANTO TOMAs, PROVINCE OF DAVAO DEL NORTE, FOR 
A PERIOD OF TWENTY-FIVE (25)   YEARS AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled 
Chapter I 
GENERAL PROVISIONS 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 1 of Republic Act No. 11515 is amended to read as follows: 
“SECTION 1. Nature and Scope of Franchise. – Subject to the provisions of 
the Constitution and applicable laws, rules and regulations, the franchise 
granted to the Davao Light and Power Company, Inc., hereunder referred to 
as the Grantee, its successors or assignees, under Republic Act No. 8960, to 
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construct, install, establish, operate, and maintain for commercial purposes 
and in the public interest, an electric, light, heat and power system for the 
conveyance, distribution, and sale of electric power to the end users in Davao 
City, Panabo City, TAGUM CITY, THE ISLAND GARDEN CITY OF 
SAMAL, and the Municipalities of Carmen, Dujali, [and] Santo Tomas, 
ASUNCION, KAPALONG, NEW CORELLA, SAN ISIDRO AND 
TALAINGOD in the Province of Davao del Norte, AND THE 
MUNICIPALITY OF MACO IN THE PROVINCE OF DAVAO DE 
ORO, is hereby extended for another twenty-five (25) years after the 
expiration date of the franchise under Republic Act No. 8960. 
 
“As used in this Act, distribution system refers to the system of wires and 
associated facilities, including sub-transmission lines belonging to or used 
by a franchised distribution utility, extending between the delivery point on 
the national transmission system or generating facility and the metering point 
or facility of the end user.” 
 
SEC. 2. A new section denominated as Section 21-A is hereby inserted after 
Section 21 of the same Act, to read as follows: 
 
“SEC. 21-A. TRANSITION OF OPERATIONS. – TO ENSURE THE 
UNINTERRUPTED SUPPLY OF ELECTRICITY, THE NORTHERN 
DAVAO ELECTRIC COOPERATIVE (NORDECO), IN THE INTERIM, 
IS AUTHORIZED TO OPERATE THE EXISTING DISTRIBUTION 
SYSTEM WITHIN ITS FORMER FRANCHISE AREA, INCLUDE IN 
THE GRANTEE’S FRANCHISE AREA PURSUANT TO SECTION 1 
HEREOF AS AMENDED, AND IMPLEMENT ITS EXISTING POWER 
SUPPLY AGREEMENTS WITH GENERATION COMPANIES THAT 
ARE PROVISIONALLY OR FINALLY APPROVED BY THE ERC. 
 
 
UNTIL THE GRANTEE ESTABLISHES OR ACQUIRES ITS OWN 
DISTRIBUTION SYSTEM AND FULLY TAKES OVER THE 
OPERATIONS IN THE FRANCHISE AREA INCLUDED IN THE 
GRANTEE’S FRANCHISE AREA PURSUANT TO SECTION 1 
HEREOF AS AMENDED, NORDECO MAY OPERATE NOT LONGER 
THAN TWO (2) YEARS FROM THE APPROVAL OF THE EXPANDED 
TERRITORY OF THIS LEGISLATIVE FRANCHISE. 
 
“UPON COMPLIANCE WITH THE RULES, THE ERC SHALL 
GRANT 
NORDECO 
THE 
NECESSARY 
PROVISIONAL 
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY 


 
(CPCN) COVERING THE TRANSITION PERIOD. THE ERC SHALL 
DETERMINE THE APPLICABLE GENERATION RATE. 
 
"THE GRANTEE MAY CONDUCT A COMPETITIVE SELECTION 
PROCESS (CSP) FOR THE ELECTRICITY REQUIREMENTS IN ITS 
EXPANDED FRANCHlSE AREA, PROVIDED THAT PERSONS OR 
ENTITIES THAT ARE SUPPLYING NORDECO ELECTRICITY, 
PURSUANT 
TO 
SUPPLY 
AGREEMENTS 
APPROVED 
OR 
PROVISIONALLY APPROVED BY THE ERC, AS OF THE DATE THE 
EXPANSION OF TIRE GRANTEE'S FRANCHISE AREA LAPSES 
INTO LAW, SHALL HAVE AN OPPORTUNITY TO IMPROVE ANY 
OFFER MADE BY A WINNING BIDDER IN THE GRANTEE'S CSP 
OVER ITS EXPANDED FRANCHlSE AREA, PROVIDED FURTHER 
THAT SUCH OFFER SHOULD BE PROPORTIONATE TO THE 
CAPACITY OF SUCH PERSON'S OR ENTITY'S EXISTING SUPPLY 
AGREEMENT WITH NORDECO. 
 
“THE PROVISIONAL AUTHORITY TO OPERATE DURING THE 
TRANSITION PERIOD GRANTED TO NORDECO SHALL NOT 
PREVENT THE GRANTEE FROM EXERCISING THE RIGHT OF 
EMINENT DOMAIN AS PROVIDED UNDER SECTION 9 OF THIS 
ACT.  
 
“TO REDUCE THE LENGTH OF THE TRANSITION PERIOD, THE 
ERC AND ALL AGENCIES ISSUING THE REQUISITE LICENSES 
SHALL PRIORITIZE ALL APPLICATIONS OF THE GRANTEE 
RELEVANT TO THE ESTABLISHMENT AND OPERATION OF THE 
DISTRIBUTION SYSTEM UNDER ITS FRANCHISE.  
 
“IN THE HIRING OF EMPLOYEES, THE GRANTEE SHALL, AS FAR 
AS PRACTICABLE AND SUBJECT TO CERTAIN QUALIFICATION 
STANDARDS, GIVE PREFERENCE TO FORMER EMPLOYEES OF 
NORDECO WHEN IT COMMENCES BUSINESS OPERATIONS IN 
ITS NEW FRANCHISE AREA. 
 
“THE GRANTEE AND NORDECO SHALL JOINTLY ENSURE THAT 
AFFECTED EMPLOYEES NOT HIRED BY THE GRANTEE SHALL, 
TO THE EXTENT ELIGIBLE, RECEIVE ALL SEPARATION OR 
RETIREMENT BENEFITS IN ACCORDANCE WITH APPLICABLE 
LAWS. 
 


 
“AN INFORMATION DISSEMINATION CAMPAIGN REGARDING 
PUBLIC SERVICES AND OPERATIONS OF THE GRANTEE SHALL 
BE MADE TO ALL END USERS IN THE FRANCHISE AREA. 
 
 
“THE DOE SHALL, DURING THE TRANSITION, ENSURE THAT 
THE SUPPLY OF ELECTRICITY IN THE EXISTING FRANCHISE 
AREA IS UNINTERRUPTED.” 
 
SEC. 3. All laws, decrees, orders, resolutions, instructions and rules and regulations or 
parts thereof which are inconsistent with this Act are hereby deemed repealed or 
modified accordingly. 
 
SEC. 4. This Act shall take effect fifteen (15) days after its publication in the Official 
Gazette or in a newspaper of general circulation. 
 
Approved,