Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
Nineteenth Congress 
Third Regular Session 
HOUSE BILL NO. 11228 
Introduced by HONORABLE JOCELYN SY LIMKAICHONG 
AN ACT  
GRANTING A FRANCHISE TO THE NEGROS ORIENTAL I ELECTRIC COOPERATIVE 
INC. (NORECO I)   TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE, OWN, MANAGE 
AND MAINTAIN DISTRIBUTION SYSTEMS FOR THE    CONVEYANCE OF ELECTRIC 
POWER TO THE END-USERS IN THE CITIES OF BAIS, CANLAON AND GUIHULNGAN 
AND MUNICIPALITIES OF MABINAY, MANJUYOD, BINDOY, AYUNGON, TAYASAN, 
JIMALALUD, LA LIBERTAD AND VALLEHERMOSO, PROVINCE OF NEGROS ORIENTAL 
Explanatory Note 
The Negros Oriental I Electric Cooperative, Inc. (NORECO I) was organized by the Provincial 
Electric Cooperative Team (PECT) and the National Electrification Administration (NEA) on June 14, 
1972. In the same year, NORECO I was incorporated under Certificate of Registration No. 28, issued by 
NEA, which will expire on December 19, 2029.  
For over fifty-two (52) years, NORECO I has been providing electricity to the various cities and 
municipalities in the Province of Negros Oriental, namely the Cities of Bais, Canlaon and Guihulngan, and 
the Municipalities of Mabinay, Manjuyod, Bindoy, Ayungon, Tayasan, Jimalalud, La Libertad and 
Vallehermoso. 
Pursuant to Section 27 of Republic Act No. 9136, otherwise known as the Electric Power Industry 
Reform Act (EPIRA), the power to grant franchises to persons engaged in the transmission and distribution 
of electricity shall be vested exclusively in the Congress of the Philippines. Thus, this bill seeks to grant a 
congressional franchise to NORECO I to provide an electric power distribution system to the constituents 
of the above-mentioned cities and municipalities. The enactment of this bill will ensure the continuous 
delivery of electric service from NORECO I, and will ensure and accelerate the total electrification of the 
Province of Negros Oriental. 
In its more than four decades of existence, NORECO I has provided continuous and effective 
electric service to its consumers consistent with its vision of being a strong, unified, competent and 
competitive electric utility. It has remained true to its mandate in providing prompt, efficient, and reliable 
quality service at a reasonable price.  
In view of the foregoing, the approval of this bill is earnestly sought. 
HON. JOCELYN SY LIMKAICHONG 
1st District, Negros Oriental 
December 17, 2024
3:50 pm


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
Nineteenth Congress
Third Regular Session 
HOUSE BILL NO. 11228 
Introduced by HONORABLE JOCELYN SY LIMKAICHONG 
AN ACT  
GRANTING A FRANCHISE TO THE NEGROS ORIENTAL I ELECTRIC COOPERATIVE 
INC. (NORECO I)   TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE, OWN, MANAGE 
AND MAINTAIN DISTRIBUTION SYSTEMS FOR THE CONVEYANCE OF ELECTRIC 
POWER TO THE END-USERS IN THE CITIES OF BAIS, CANLAON AND GUIHULNGAN 
AND MUNICIPALITIES OF MABINAY, MANJUYOD, BINDOY, AYUNGON, TAYASAN, 
JIMALALUD, LA LIBERTAD AND VALLEHERMOSO, PROVINCE OF NEGROS ORIENTAL 
    Be it enacted by the Senate and House of Representatives of the Republic 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 NEGROS ORIENTAL I ELECTRIC 
COOPERATIVE, INC. (NORECO 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 
Cities of Bais, Guihulngan and Canlaon and Municipalities of Mabinay, Manjuyod, Bindoy, 
Ayungon, Tayasan, Jimalalud, La Libertad and Vallehermoso, Province of Negros Oriental.  
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 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 (DOE), or its legal successor, or 
the National Electrification Administration (NEA) or its legal successor, or any other government agency 
concerned to modify, improve, upgrade, 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 highways, roads, 
streets, alleys, or easements, the Grantee may allow the use of its poles, facilities, or easements by 


interested parties upon reasonable compensation to the Grantee. The ERC or the NEA shall resolve cases 
of dispute or disagreement between parties. 
SECTION 3. Authority of the ERC and the NEA. - The grantee shall secure from the ERC or the NEA, 
or any other government agency which has jurisdiction over the operation of the herein Grantee, the 
necessary Certificate of Public Convenience and Necessity (CPCN), and other appropriate permits and 
licenses for the construction and operation of its electric distribution system. 
SECTION 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, the Grantee, its successors, or assignees, is authorized 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, subject to the prior approval of the 
Department of Public Works and Highways (DPWH) or the local government unit (LGU) concerned. 
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 the 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 to charge the Grantee, its successors or assignees, double the 
amount of the costs and expenses for such repair or replacement.  
SECTION 5. Responsibility to the Public. - The Grantee shall supply electricity to its captive market in 
the urban and rural portions of its franchise area in the least costly manner. In the interest of the public good 
and as far as feasible and whenever required by the NEA and 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 
(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 itemize 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.  
SECTION 7.  Promotion of Consumer Interests. - 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.  


The Grantee shall reduce the duration and frequency of interruptions in its network and in that regard shall 
observe the System Average Interruption Frequency Index (SAIFI) and System Average Interruption 
Duration Index (SAIDI) imposed by the ERC. 
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 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 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 NEA and 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 (Php 500.00) 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 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 with prior congressional approval.  
SECTION 18.  Applicability Clause. - 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 shall 
be under the regulatory and supervisory authority of the National Electrification Administration under 
Republic Act No. 10531 or the National Electrification Administration Reform Act of 2013.” 
SECTION 19. 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. 
SECTION 20. Existing Powers.  - Existing mandates, powers, functions, and privileges granted to electric 
cooperatives under existing laws, including Section 10 of RA 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. 
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,