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Republic of the Philippines = ate
HOUSE OF REPRESENTATIVES TIME: 7
Quezon City, Metro Manila 7 S,
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Seventeenth Congress
Third Regular Session

HOUSE BILL NO. 8945

Introduced by
Representative Carlos Roman L. Uybarreta

EXPLANATORY NOTE

Surigao del Sur I Electric Cooperative, Inc. (SURSECO 1) is a non-stock,
non-profit electric cooperative founded on July 20, 1971, and was organized by
virtue of Republic Act No. 6038, as amended. SURSECO I has a franchise to
distribute electricity in the City of Bislig and the Municipalities of Barobo,
Hinatuan, Lingig, and Tagbina, all in the Province of Surigao Del Sur.

As of September 30, 2017, the total amount of SURSECO I’s outstanding
account with the Power Sector Assets and Liabilities Management Corporation
(PSALM) is TWENTY THREE MILLION SIX HUNDRED SEVEN THOUSAND FIFTY
FIVE PESOS AND 68/100 (P 23,607,055.68), to wit:

Bi Amount
Power Bill VAT Interest Total -
P_18,668,752.92 4,938,302.76 - | P_23,607,055.68

SURSECO 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 SURSECO 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 SURSECO 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 SURSECO | 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.

CARLOS ROMAN L. UYBARRETA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
Third Regular Session

HOUSE BILL NO.. 8945

Introduced by
Representative Carlos Roman L. Uybarreta

AN ACT CONDONING THE OBLIGATION OF SURIGAO DEL SUR I ELECTRIC
COOPERATIVE, INC. (SURSECO 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 Surigao del Sur I Electric Cooperative, Inc. (SURSECO 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 SURSECO
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.