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 
Organized and registered in 1973 through Presidential Decree No. 269, as amended, 
and initially covering 8 municipalities, the Sorsogon II Electric Cooperative, Inc. (SORECO 
II) has since served as a vital partner in advancing rural electrification in both districts of
Sorsogon. As a duly registered electric cooperative under the National Electrification
Administration (NEA), SORECO II has effectively distributed electric power to the City of
Sorsogon, the Municipalities of Donsol, Pilar, Castilla, Gubat, Prieto Diaz and Barcelona,
including the neighboring communities of Sorsogon, assisting in the development of rural
communities and providing one hundred (100%) of the electrification needs of its
serviceable area.
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. This bill, therefore, seeks to grant SORECO II a 
congressional franchise to construct, establish, operate, and maintain electric distribution 
systems for the benefit of its 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. Consistently categorized as a “AA 
Cooperative” for four (4) years, then eventually being categorized as a “AAA Cooperative” 
in 2022 by the NEA, SORECO II has proven its mission of accelerated development in its 
area-coverage. Through this legislative measure, SORECO II would ensure uninterrupted 
service for existing consumers and allow it to expand and upgrade its infrastructure, 
continuing its track record of excellent service to its constituents in 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 A FRANCHISE TO SORSOGON II ELECTRIC 
COOPERATIVE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE, OWN, 
MANAGE AND MAINTAIN DISTRIBUTION SYSTEMS FOR THE CONVEYANCE 
OF ELECTRIC POWER TO THE END-USERS IN THE CITY OF SORSOGON AND 
THE MUNICIPALITIES OF DONSOL, PILAR, CASTILLA, GUBAT, PRIETO DIAZ, 
AND BARCELONA, 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 
Sorsogon II Electric Cooperative (SORECO II), hereunder referred to as the Grantee, 
its successors or assignees, a franchise to construct, install, establish, operate, own, 
manage and maintain in the public interest and for commercial purposes, a distribution 
system for the conveyance of electric power to the end-users in the City of Sorsogon 
and Municipalities of Donsol, Pilar, Castilla, Gubat, Prieto Diaz, and Barcelona, 
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 or facility of the end-users. 
SEC. 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 assignees, shall be operated or maintained at all times 
in a superior manner, and it shall be the duty of the Grantee, its successors or 
assignees, whenever required to do so by the Energy Regulatory Commission (ERC), 
or its legal successor, or the Department of Energy, or its legal successor, or the 
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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 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. 
SEC. 3. Authority of the ERC and NEA. – The Grantee shall secure from the ERC or 
the NEA or any government agency having jurisdiction over its 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. 
SEC. 4. Excavation and Restoration Works. – 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 (LGU) 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 LGU 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 LGU 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. 
SEC. 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 businesses and industries shall be able to compete. 
The Grantee shall have the obligation to provide open and non-discriminatory 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 businesses and 
industries. 
SEC. 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. 
SEC. 7. Promotion of Consumer Interests. – The Grantee herein 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. 
SEC. 8. Commitment to Provide and Promote the Creation of Employment 
Opportunities. – The Grantee shall create employment opportunities and shall allow 
on-the-job training in its franchise operation: Provided, That priority shall be accorded 
to the residents where their principal office is located: Provided, further, That the 
Grantee shall comply with the applicable labor standards and allowance entitlement 
under existing labor laws, rules and regulations, and similar issuances. 
SEC. 9. 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. 
SEC. 10. 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 its 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. 
SEC. 11. Term of Franchise. – Unless sooner cancelled, this 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. 
SEC. 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 property, during the construction, installation, 
operation, and maintenance of the distribution system of the Grantee. 
SEC. 13. Liability for Damages. – The Grantee shall be liable for any injury to persons 
and damage to property 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. 
SEC. 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 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: Provided, That 
Congress shall be informed of any lease, transfer, grant of 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. 
SEC. 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 this 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. 


SEC. 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 (₱500.00) 
per working day of non-compliance 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. 
SEC. 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 without prior 
congressional approval. 
SEC. 18. Applicability of Existing Laws. – The Grantee shall comply with and be 
subject to the provisions of Commonwealth Act No. 146 or the Public Service Act, as 
amended, Republic Act No. 9136, and Republic Act No. 10531 or the National 
Electrification Administration Reform Act of 2013. 
SEC. 19. Existing Powers. – Existing mandates, powers, functions, and privileges 
granted to electric cooperatives under existing laws, including Section 10 of RA No. 
10531, shall remain valid and effective, unless expressly repealed by succeeding laws. 
SEC. 20. Repealability and Non-Exclusivity Clause. – This franchise shall be subject 
to 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. 
SEC. 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. 
SEC. 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. 
SEC. 23. Effectivity. – This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in a newspaper of general circulation. 
 
Approved,