Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Twentieth Congress 
First Regular Session 
HOUSE BILL NO. 2966 
Introduced by Representatives Yedda Marie K. Romualdez, 
Andrew Julian K. Romualdez, and Jude A. Acidre 
AN ACT 
GRANTING A FRANCHISE TO THE DON ORESTES ROMUALDEZ 
ELECTRIC COOPERATIVE (DORELCO) / LEYTE I ELECTRIC 
COOPERATIVE INC. (LEYECO I) 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 
TANAUAN, TOLOSA, TABONTABON, DULAG, JULITA, LAPAZ, 
BURAUEN, DAGAMI, MAYORGA, MACARTHUR, JAVIER, ABUYOG, 
AND MAHAPLAG, PROVINCE OF LEYTE 
EXPLANATORY NOTE 
Don Orestes Romualdez Electric Cooperative, Inc. (DORELCO), located 
in Barangay San Roque, Tolosa, Leyte, was established on June 21, 1971, 
pursuant to Presidential Decree No. 269, s. 1973, originally under the name Leyte 
Electric Cooperative, Inc. (LECI). Its operations were financed through a Php 28-
Million long-term loan from the United States Agency for International 
Development (USAID), through the National Electrification Administration 
(NEA). 
Initially operating as a power generation company with ten generator units, 
it served the municipalities of Burauen, Dagami, Dulag, Julita, La Paz, Mayorga, 
Sta. Fe, Pastrana, Tabontabon, and Tolosa. In 1974, it was renamed Leyte Electric 
Cooperative, Inc. (LEYECO I), and its franchise coverage area was expanded to 
include Abuyog, Macarthur, Mahaplag, and Tanauan, while Sta. Fe and Pastrana 
were transferred to Leyte III Electric Cooperative, Inc. (LEYECO III). 
August 4, 2025
5:00 pm


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In 1976, in honor of the late Don Orestes Romualdez, owner of the land 
where the electric cooperative’s headquarters is situated, the name DORELCO 
was created and used. With the commissioning of two PIELSTICK generator sets 
in 1977, DORELCO supplied power to Leyte II Electric Cooperative, Inc. 
(LEYECO II), LEYECO III, and Southern Leyte Electric Cooperative 
(SOLECO). In 1981, another MAN generator unit with a capacity of 2.2 MW was 
again commissioned. In 1982, the National Power Corporation commissioned the 
112.5 MW Tongonan Geothermal power, providing power requirements of 
DORELCO at lower rates, while eliminating generation cost and eventually 
reducing the power cost for end consumers, forcing DORELCO’s business to 
convert from power generation to power distribution. 
In line with the policy of the State as provided for in the Electric Power 
Industry Reform Act (EPIRA) to ensure and accelerate the total electrification of 
the country; and to ensure the quality, reliability, security, continuity, and 
affordability of the supply of electric power, this bill seeks to grant a franchise to 
DORELCO to be an electric power distribution system to the end-users in the 
municipalities of Tanauan, Tolosa, Tabontabon, Dulag, Julita, Lapaz, Barauen, 
Dagami, Mayorga, Macarthur, Javier, Abuyog, and Mahaplag, all located in 
Leyte. 
Further, 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. 
 This measure was also filed during the 19th Congress and was primarily 
referred to the Committee on Legislative Franchises. 
 In view of the foregoing, the passage of this bill is earnestly sought. 
YEDDA MARIE K. ROMUALDEZ 
ANDREW JULIAN K. ROMUALDEZ 
JUDE A. ACIDRE 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Twentieth Congress 
First Regular Session 
HOUSE BILL NO. 2966 
Introduced by Representatives Yedda Marie K. Romualdez, 
Andrew Julian K. Romualdez, and Jude A. Acidre 
AN ACT 
GRANTING A FRANCHISE TO THE DON ORESTES ROMUALDEZ 
ELECTRIC COOPERATIVE (DORELCO) / LEYTE I ELECTRIC 
COOPERATIVE INC. (LEYECO I) 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 
TANAUAN, TOLOSA, TABONTABON, DULAG, JULITA, LAPAZ, 
BURAUEN, DAGAMI, MAYORGA, MACARTHUR, JAVIER, ABUYOG, 
AND MAHAPLAG, PROVINCE OF LEYTE 
Be it enacted by the Senate and House of Representatives of the Philippines 
in 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 Don Orestes Romualdez Electric Cooperative (DORELCO) / Leyte 
I Electric Cooperative, Inc. (LEYECO 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 end-users in the 


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Municipalities of Tanauan, Tolosa, Tabontabon, Dulag, Julita, Lapaz, Burauen, 
Dagami, Mayorga, Macarthur, Javier, Abuyog, and Mahaplag, Province of Leyte. 
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 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 
21 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. 
 


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Section 3. Authority of the ERC. – 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. 


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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 non-
discriminatory 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  R.A.  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 to R.A.  No.  9136. 
 
Section 7. Promotion of Consumer Interests. – The herein Grantee shall 
establish a consumer desk that will handle consumer complaints and ensure 


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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 


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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 


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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 Equality Clause. – Any advantage, favor, privilege, exemption, or 
immunity granted under existing franchises, or which may hereafter be granted, 


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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 R.A. No. 9136. 
 
Section 19. 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. 
 
Section 20. Existing Powers. – Existing mandates, powers, functions, and 
privileges granted to electric cooperatives under existing laws, including Section 
10 of Republic Act 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. 
 


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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,