* RECEIVED

Republic of the Philippines fy
HOUSE OF REPRESENTATIVES |

Quezon City, Metro Manila

Seventeenth Congress
Third Regular Session

HOUSE BILL NO. 8973

Introduced by
Representative Carlos Roman L. Uybarreta

EXPLANATORY NOTE

Misamis Oriental I Electric Cooperative, Inc. (MORESCO 1) is a duly
organized non-stock, non-profit cooperative founded in 1967 with ten (10)
districts, one (1) in each municipality and with each municipality represented by
a director. The original franchise area of MORESCO-1 covers only the 10
municipalities in the Western part of Misamis Oriental, but through the years
had expanded to include the non-viable 15 barangays of Cagayan de Oro City,
part of Talakag and Baungon in the Province of Bukidnon; and Barangay
Hindang of Iligan City, originally within the franchise area of a private
distribution utility.

As of September 30, 2017, the total amount of MORESCO I's outstanding
account with the Power Sector Assets and Liabilities Management Corporation
(PSALM) is TWO HUNDRED FOUR MILLION FIVE HUNDRED FIFTY ONE
THOUSAND EIGHT HUNDRED SEVENTY FIVE PESOS AND 63/100 (P
204,551,875.63), to wit:

Billing Amount
Power Bill VAT Interest Total
P 179,836,165.97 | _24,715,709.67 0.01| P 204,551,875.63

MORESCO I's power obligation to PSALM, including its unpaid bills to
other suppliers, which accumulated over the years has blown out of proportion
that it has become virtually impossible for MORESCO I to focus on the
improvement of their electricity-distribution services. At present, the said
cooperative can no longer make new investments and acquire additional assets
that would provide better, cheaper, and more efficient means of harnessing and
distributing reliable power throughout the area covered, primarily because the
funds intended for these uses are solely being directed towards the payment of
its monetary obligations.

It is for this reason that we take measures in order to apply leniency to
non-stock, non-profit electric cooperatives like MORESCO I by condoning all its
unpaid power obligations to PSALM, including all interests, surcharges and other
penalties from the commencement of the liability. This way MORESCO I will be
able to return to its former condition of competent, successful and debt-free
operation. Condoning its unpaid obligations to PSALM allows the cooperative to
remain financially viable for local as well as foreign investors.


In consideration of the foregoing, the immediate passage of this bill is
earnestly requested.

EEE

CARLOS ROMAN L. UYBARRETA


Republic of the Philippines
HOUSE OF A’
Quezon City, Metro Manila

Seventeenth Congress
‘Third Regular Session

HOUSE BILL NO. 8373

Introduced by
Representative Carlos Roman L. Uybarreta

AN ACT CONDONING THE OBLIGATION OF MISAMIS ORIENTAL I
ELECTRIC COOPERATIVE, INC. (MORESCO I) PAYABLE TO THE POWER
SECTOR ASSETS AND LIABILITIES MANAGEMENT CORPORATION
(PSALM)

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

Section 1. Title. — This Act shall be known as the Condonation of the Obligation
of Misamis Oriental I Electric Cooperative, Inc. (MORESCO 1) Act.

Section 2. Declaration of Policy. - It is hereby declared the policy of the State
to ensure and accelerate the total electrification of the country; ensure the
quality, reliability, security and affordability of the supply of electric power in the
country; and enable the electric cooperatives to cope with the changes brought
about in the industry by emerging technologies.

Section 3. Condonation of Obligation. — The principal obligation of MORESCO
I payable to PSALM as well as the interest and other surcharges as there may be
are hereby condoned.

Section 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after
its publication in at least two (2) newspapers of general circulation.

Approved.