Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
HouseBillNo.9553
Introduced by Representatives Gabriel H. Bordado, Jr., Sergio C.
Dagooc, and Presley C.De Jesus
EXPIANATORY NOTE
The Camarines Sur I  Electric Cooperative,  Inc. (CASURECO I) was organized
and registered pursuant to the provisions of Presidential Decree No. 269. CASURECO
I    was    placed    under   the   supervisory   authority   of   the    National    Electrification
Administration (NEA) and was mandated to perform electrification in the Municipalities
of  Libmanan,  Cabusao,  Sipocot,  Lupi,  Ragay,  Pamplona,  San  Fernando,  Gainza,
Pasacao,  and Camaligan, all in the province of Camarines Sur.  Since it was granted
franchise,   the   CASuRECO   I   has   provided   excellent   service   in   powering   and
electrifying  one  hundred  percent  (100°/o)  of the  barangays  within  its franchise  area.
Moreover,  CASuRECO  I  has  been  consistently  categorized  as  a  Triple  A  "AAA"
electric  cooperative  for  eight  years  since  2015  -the  highest  categorization  of  an
electric cooperative granted by the National Electrification Administration.
This bill  seeks to grant a congressional franchise to  CASURECO  I to  provide
an electric power distribution system to the people of the Municipalities of Libmanan,
Cabusao,  Sipocot,  Lupi,  Ragay,  Pamplona,  San  Fernando,  Gainza,  Pasacao,  and
Camaligan.  Furthermore,  it seeks to require standards that the grantee must attain in
order to secure an effective partnership between the State and the grantee, as well as
to set high standards for the provided facility.
The enactment of this bill will ensure the continuous delivery of electricity from
CASURECO I to the ten municipalities, creating a path towards success and progress
that  would  extend  towards  the  whole  province  of  Camarines  Sur.   In  view  of  the
foregoing, the approval of this bill is earnestly sought.
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APEC Party-List


Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
HouseBillNo.    9553
Introduced by Representatives Gabriel H. Bordado, Jr., Sergio C.
Dagooc, and Presley C.De Jesus
AN ACT EXTENDING THE HXISTING FRANCHISE OF CAMARINES SUR I
HLECTRIC  COOPERATIVE,  INC.  (CASUREC0  I)  TO  CONSTRUCT,  INSTALL,
ESTABLISH,  OPERATE,  OWN,  MANAGE  AND  MAINTAIN  A  DISTRIBUTION
SYSTEM FOR THE CONVEYANCE OF ELECTRIC POWER TO THE END USERS
IN THE MUNICIPALITIES 0F LIBMANAN, CABUSAO, SIPOCOT, RAGAY, LUPI,
PAMPLONA, PASACAO, SAN FERNANDO, GAINZA AND CAMALIGAN, ALL IN
THH PROVINCE 0F CAMARINES SUR
Be  it enacted  by the  Senate  and  the  House of Representatives  of the
Philippines in Congress assembled:
SECTION  1.  Nafure  ant/ Scope  of Franchi.se.  -Subject  to  the  provisions  of the
Constitution and applicable laws, rules and regulations, there is hereby granted to the
CASURECO I ELECTRIC COOPERATIVE, lNC. (CASURECO 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 the ends  users  in  the
municipalities of Libmanan, Cabusao, Sipocot, Ragay, Lupi, Pamplona, Pasacao,
San Fernando, Gainza, and Camaligan, all in the Province of Camarines Sur.
SECTION  2.  A4anner of Operaf7.on  of Fac/I//`fi.es.  - 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,
hereinafter referred to as the ERC, or its legal successor, or the Department of Energy,
hereinafter referred to as the DOE, or its legal successor, or the National Electrification
Administration   (NEA)   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 service industry may render reasonable and proper.
Whenever  practicable,  and  for  purposes  of  maintaining  order,  safety  and
aesthetics  along  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 (ERC). -The grantee
shall  secure from  the  ERG  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. The ERC or any government agency vested with jurisdiction
over the operations, may allow the grantee to expand to surrounding areas, which are
not covered by the franchise granted, whenever public interest so requires.
SECTION 4. /ngress and Egress. - For the purpose of erecting and maintaining the
poles or other supports for said facilities, wires or other conductors 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 said  province  and  city:  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  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  local  government  unit  concerned.  Should  the  grantee,  its
successors or assignees,  after the ten  (10)-day  notice from the grant 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 or replaced  in good order
and condition at double expense to be charged against the grantee, its successors or
assignees.
SECTION  5.  Responsi.bi./i.fy to the Pqb/i.c. -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  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 Servi`ces. -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 ERG 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 Republic Act 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 Republic Act No. 9136.
SECTION 7. Profecfi.on of Consumer /nferests. -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.  Rf.ghf of the Govemmenf.  - A special  right is  hereby  reserved to the
President   of   the   Philippines,   in   times   of   war,    rebellion,   public   peril,   calamity7
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. Ri`gAf of Emi.nenf Domai.n. -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. Terms of French/.se. Unless sooner cancelled, the franchise extension
shall be in effect for a period of twenty-five (25) years from the year of expiration of its
existing franchise. 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  Franchi.se.  -Acceptance  of  the  terms  of  this
franchise shall be in writing to the Congress of the Philippines, 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. 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, accounts, demands, or actions arising out of accidents


or injuries, whether to property or to persons, caused by the construction, installation,
operation, and maintenance of the distribution system of the grantee.
SECTION  13. i/.ab/.//-fy fo Damages. I 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.  Income  Tax  and  Minimum  Corporate  Income  Tax  (MCIT)  - The
grantee shall  be permanently exempt from the  payment of income tax and  Minimum
Corporate Income Tax or MCIT.
SECTION 15. Sale, Lease, Transfer, usufruct, or Assignment of Franchise. -The
grantee shall not sell, lease, transfer, grant the usufruct of, nor 24 assign this franchise
or the  rights  and  privileges  acquired  thereunder to  any  person,  25  firm,  company,
corporation,   or   other   commercial   or   legal   entity,   or   merge   with   any   26   other
corporation, or entity, or 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 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 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 jpso 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 16. Reportorfa/ Requi.remenf. -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 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 ERG.
SECTION  17.  Fi.ne. -The failure of the grantee to submit the requisite annual report
to Congress shall be penalized by a fine in the amount of five hundred pesos (P500.00)
per working  day of noncompliance.  The fine shall  be collected  by the  ERG from the
delinquent franchise grantee separate from the  reportorial  penalties  imposed  by the
ERG. All  proceeds from the fines or penalties shall  accrue to the  monitoring fund  of
the ERG in  line with its supervisory and regulatory functions.
SECTION   18.   Equa/i.fy  C/aLise.  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  11   grantee:  Provided,
however,  That the foregoing  shall  neither apply to  nor affect  provisions  concerning
territory covered by the franchise, the life span for 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 of assignment of legislative franchises with prior
congressional approval.
SECTION 19. App/i.cabi./I.fy of Exi.sfr'ng laws. The grantee shall comply with and be
subject to the  provisions of Commonwealth Act No.  146,  as amended,  otherwise or
the "Public Service Act" and Republic Act No. 9136, otherwise known as the "Electric
Power Industry Reform Act of 2001 ".
SECTION 20. Repea/abJ.//`fy and Non-Exc/us/.v/`fy C/ause. - 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 21. Separab/.//.fy C/ause. -   If, for any reason, any part or provision of this
Act  is  declared   invalid  or  unconstitutional,  the   remaining   parts  or  provisions  not
affected shall remain in full force and effect.
SECTION 22.  Repea/i.ng C/ause. - All laws,  presidential decrees,  executive orders,
and rules and regulations contrary to or inconsistent with the provisions of this Act are
repealed or modified accordingly.
SECTION   23.   Exi.sfr'ng   Powers.   -   Existing   mandates,   powers,   functions,   and
privileges granted to  Electric Cooperatives  under existing  laws,  including  Section  10
of Republic Act No.10531, shall remain valid and effective, unless expressly repealed
by succeeding laws.
SECTION 24. Effecfi.y/.fy C/ause. -This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.
Approved,