Article 97p. 97

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

(c)

Proceeds

from

loans

incurred to restructure or

refinance NPC's transferred liabilities: Provided, however,

That all borrowings shall be fully paid for by the end of

the life of the PSALM Corp.;

(d) Proceeds from the universal charge allocated for

stranded contract costs and the stranded debts of NPC;

(e) Net profit of NPC;

(f) Net profit of TRANSCO;

(g)

Official

assistance,

grants,

and

donations

from

external sources; and

(h) Other sources of funds as may be determined by

PSALM

Corp.

necessary

for

the

above-mentioned

purposes.

Section 56. Claims Against the PSALM Corp. - The

following shall constitute the claims against the PSALM

Corp.:

(a) NPC liabilities transferred to the PSALM Corp.;

(b) Transfers from the national government;

(c) New loans; and

(d) NPC stranded contract costs.

CHAPTER

VII

Promotion

of

Rural

Electrification

Section 57. Conversion of Electric Cooperatives. -Electric

cooperatives are hereby given the option to convert into

either

stock

cooperative

under

the

Cooperatives

Development

Act

or

stock

corporation

under

the

Corporation Code. Nothing contained in this Act shall

deprive electric cooperatives of any privilege or right

granted to them under existing laws, particularly those

under the provisions of Republic Acts No. 6938, 7160 and

8241

Section

58.

Additional

Mandate

of

the

National

Electrification Administration (NEA). - NEA shall develop

and implement programs:

(a) To prepare electric cooperatives in operating and

competing under the deregulated electric market within

five (5) years from the effectivity of this Act, specifically

in an environment of open access and retail wheeling

(b) To strengthen the technical capability and financial

viability of rural electric cooperatives; and

(c) To review and upgrade regulatory policies with a view

to enhancing the viability of rural electric cooperatives as

electric utilities.

NEA shall continue to be under the supervision of the

DOE and shall exercise its functions under Presidential

Decree No. 269, as amended by Presidential Decree No.

1645 insofar as they are consistent with this Act.

Section

59.

Alternative

Electric

Service

for

Isolated

Villages. - The provision of electric service in remote and

unviable villages that the franchised utility is unable to

service for any reason shall be opened to other qualified

third parties.

Section 60. Debts of Electric Cooperatives. - Upon the

effectivity

of

this

Act,

all

outstanding

financial

obligations of electric cooperatives to NEA and other

government

agencies

incurred

for

the

purpose

of

financing

the

rural

electrification program shall be

assumed by the PSALM Corp. The ERC shall ensure a

reduction

in

the

rates

of

electric

cooperatives

commensurate with the resulting savings due to the

removal of the amortization payments of their loans.

Within five (5) years from the condonation of debt, any

electric cooperative which shall transfer ownership or

control of its assets, franchise or operations thereof shall

repay PSALM Corp. the total debts including accrued

interests thereon.

CHAPTER VIII General Provisions

Section 61. Reportorial Requirements. -The DOE shall

take

the

necessary

measures

to

ensure

that

the

provisions of this Act are properly implemented, and

shall submit to the Power Commission a semi-annual

report on the implementation of this Act, which shall be

on or before the last week of April and October of each

year.

Section 62. Joint Congressional Power Commission. -

Upon

the

effectivity

of

this

Act,

a

congressional

commission,

hereinafter

referred

to

as

the

Power

Commission,

is

hereby

constituted.

The

Power

Commission

shall

be

composed

of

fourteen

(14)

members WITH the chairmen of the Committee on

Energy of the Senate and the House of Representatives

and six (6) additional members from each House, to be

designated by the Senate President and the Speaker of

the House of Representatives, respectively. The minority

shall be entitled to pro-rata representation but shall have

at least one (1) representative in the Power Commission.

The Commission shall, in aid of legislation, perform the

following functions, among others:

(a) Set the guidelines and overall framework to monitor

and ensure the proper implementation of this Act;

(b)

Approve

genco

groupings,

IPP

groupings,

and

sequencing of sale of gencos;

(c) Endorse the privatization plan prepared by PSALM for

approval of the President of the Philippines;

(d) To ensure transparency, require the submission of

reports from government agencies concerned on the

conduct

of

public

bidding

procedures

regarding

privatization of NPC generating and transmission assets

before any final award is made;

(e) Review and evaluate the performance of the industry

participants in relation to the objectives and timelines

set forth in this Act;

(f) Approve the budget for the programs of the Power

Commission and all disbursements therefrom, including

compensation of all personnel;

(g) Submit periodic reports to the President of the

Philippines and Congress;

(h) Determine inherent weaknesses in the law and

recommend necessary remedial legislation or executive

measures; and

(i) Perform such other duties and functions as may be

necessary to attain its objectives.

In furtherance hereof, the Power Commission is hereby

empowered to require the DOE, ERC, NEA, TRANSCO,

generation companies, distribution utilities, suppliers

and other electric power industry participants to submit

reports and all pertinent data and information relating to

the performance of their respective functions in the

industry.

Any

person

who

willfully

and deliberately

refuses without just cause to extend the support and

assistance

required

by

the

Power

Commission

to

© 2018 Compiled by RGL

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