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HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila
Seventeenth Congress
‘Third Regular Session

HousE Bit no,_°944

Introduced by
Representative Carlos Roman L. Uybarreta

EXPLANATORY NOTE

First Bukidnon Electric Cooperative, Inc. (FIBECO) is a duly organized
non-stock, non-profit cooperative with a franchise to distribute electric light, and
power to twelve (12) Municipalities and one City, and is serving the electric power
needs of Southern part of Bukidnon.

As of September 30, 2017, the total amount of FIBECO’s outstanding
account with the Power Sector Assets and Liabilities Management Corporation
(PSALM) is EIGHT MILLION FIVE HUNDRED NINETY ONE THOUSAND SEVEN
HUNDRED NINETY ONE PESOS AND 90/100 (P 8,591,791.90), to wit:

Billing Amount
Power Bill VAT Interest Total |
P 8,141,608.36 450,183.54 -| P __8,591,791.90

FIBECO’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 FIBECO 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 FIBECO by condoning all its
unpaid power obligations to PSALM, including all interests, surcharges and other
penalties from the commencement of the liability. This way FIBECO 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. 8944

Introduced by
Representative Carlos Roman L. Uybarreta

AN ACT CONDONING THE OBLIGATION OF FIRST BUKIDNON ELECTRIC
COOPERATIVE, INC. (FIBECO) 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 First Bukidnon Electric Cooperative, Inc. (FIBECO) 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 FIBECO
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.