Republic of the ENERGY REGULATORY COMMISSIO San Miguel Avenue, Pasig City

IN THE MATTER OF THE APPLICATION FOR CONFIRMATION AND ' APPROVAL OF CALCULATIONS OF OVER OR UNDER RECOVERIES IN THE IMPLEMENTATION OF AUTOMAT~C COST ADJUSTMENTS AND TRUE- UP MECHANISMS FOR THE PERIOD 2013 TO 2015 ERC CASE NO. 2016-011 CF

BAS ILAN ELECTRIC COOPERATIVE, INC. (BASELCO), Applicant. x------x

ORDER

On 30 March 2016, Electric Cooperative, Inc. ("BASELCO~') filed an Application for confirmation and approval of its calculations of over or under-recoveries in the implementation of automatic cost adjustments and true-up mechanisms ("Application") for the period January 2013 to December 2015, pursuant to Energy Regulatory Commission ("ERe") Resolution No. 16, Series of 2009, as amended by Resolution 21, Series of 2010, and ERC Resolution 23, Series of 2010.

In the Application, BASELCO alleged, among others, the following:

1. BASELCO is a non-stock, non-profit electric cooperative, duly organized and existing under and by virtue of Philippine laws, with principal office at Km 3, Binuangan, . Isabela City, Basilan.

2. BASELCO holds an exclusive franchise issued by then National Electrification Commission ("NEC") to operate an ERC Case No. 2016-011 CF Order/1S April 2016 Page 2 of7

electric light and power distribution service in the <;ities of Isabela and Lamitan, and the Municipalities of , Lantawan, Tuburan, Tipo-Tipo, , Unkayapukan, and Mohamad Adjul, all in the Province of Basilan.

3. The Application covering the period January 2013 to December 2015 is filed pursuant to ERC Resolution No. 16, Series of 2009 as amended by ERC Resolution No. 21, Series of 2010 and ERC Resolution No. 23, Series of 2010 that require distribution utilities to file their respective consolidated applications for over/under-recoveries once every three (3) years.

4. Applying the formula provided under Resolution 16, Series of 2009, as amended by Resolution 21, Series of 2010, and Resolution 23, Series of 2010, applicant made calculations of the over recoveries charged or under- recoveries incurred as against its customers covering the period January 2013 to December 2015.

5. The results of its calculations are presented hereunder, as follows:

Allowable Cost Actual Revenue (Over) jUnder (PhP) (PhP) Recovery (PhP)

Generation Rate (GR) 415,813,597.37 416,951,142.35 (1.137,544.98)

System Loss Rate (SLR) 81,751,872.61 82,1QQ,015.74 (.:l66.1.::l~.1~)

Discount Subsidy (PhP) (PhP)

Lifeline Rate (LR) Senior Citizen Discount and Subsidy (1,584,688.11) Net Results

6. In support of the foregoing, BASELCO submitted the following data and documents covering the period January 2013 to December 2015, attached to the Application as Annex "A" , t0 WI.t..

a) Summary of the results of individual calculations of over or under-recoveries made on the subject allowable costs; b) Supplier and Transmission Data; c) Statistical Data; d) Implemented Rates Data; ERCCase No. 2016-011 CF Order/IS April 2016 Page 3 of7

e) Power Bills of Power Suppliers; f) Official Receipts issued by Power Suppliers; g) Debit/Credit Memo of Power Suppliers; h) MFSR (Sections B and E); i) DU-MOI and DU-M02; and j) Consumer Bills of Lifeliners (per level), Non- Lifeliners per (customer class) and Senior Citizens (per level).

7. Thus, BASELCOprays that its calculations of over or under-recoveries in the implementation of subject automatic cost adjustments and true-up mechanisms be confirmed and approved, and the cooperative be allowed to refund the over- recoveries or collect the under-recoveries as the case may be to or from its customers covering the period of January 2013 to December 2015.

Finding the said Application sufficient in form and substance with the required fees having been paid, the same is hereby set for determination of compliance with the jurisdictional requirements, expository presentation, pre-trial conference, and presentation of evidence on 07 June 2016 (Tuesday) at two o'clock in the afternoon (2:00 P.M.) at the ERCHearing Room, 15th Floor, Pacific Center Building, San Miguel Avenue, Pasig City.

BASELCO is hereby directed to cause the publication of the attached Notice of Public Hearing, at its own expense, once (IX) in a newspaper of general circulation in the Philippines, at least ten (10) days before the date of the scheduled initial hearing. It is also directed to inform the consumers, by any other means available and appropriate, of the filing of the instant Application, its reasons therefor, and of the scheduled hearing thereon.

Let copies of the Application, this Order and the attached Notice of Public Hearing be furnished the Office of the Solicitor General ("OSG"), the Commission on Audit ("COA"), and the Committees on Energy of both Houses of Congress. They are hereby requested, if they so desire, to send their duly authorized representatives at the scheduled hearing.

Likewise, let copies of this Order and the attached Notice of Public Hearing be furnished to the Offices of the Governor of Basilan, the Mayors of the Cities of Isabela and and the Municipalities of Maluso, Lantawan, Tuburan, Tipo-Tipo, Sumisip, ERC Case No. 2016-011 CF Order/1S April 2016 Page 4 of7

Unkayapukan, and Mohamad Adjul, all in the Province of Basilan for the appropriate posting thereof on their respective bulletin boards.

BASELCO is hereby directed to furnish all those making requests therefor with copies of the Application and its attachments, subject to reimbursement of reasonable photocopying costs.

On the date of the initial hearing, BASELCOmust submit to the Commission its written Compliance with the jurisdictional requirements attaching therewith, methodically arranged and duly marked, the evidences on the actual posting and publication of the Notice of Public Hearing consisting of certificates issued to that effect, signed by the aforementioned Governor and Mayors or their duly authorized representatives, bearing the seals of their office, and the affidavit of the Editor or Business Manager of the newspaper where the said Notice of Public Hearing was published, together with the complete issue of the said newspaper, and such other proofs of compliance with the requirements of the Commission.

BASELCO and all interested parties are directed to submit, at least five (5) days before the date of initial hearing and Pre-trial Conference, their respective Pre-trial Briefs containing, among others:

a) A summary of admitted facts and proposed stipulation of facts;

b) The issues to be tried or resolved;

c) The documents or exhibits to be presented, stating the purposes and proposed markings therefore; and

d) The number and names of the witnesses, with their written testimonies in an individual affidavit form, to be attached to the Pre-trial Brief.

Failure of BASELCOto submit the required Pre-trial Brief and Judicial Affidavits of its witnesses within the prescribed period shall be a ground for cancellation of the scheduled hearing, and the resetting of which shall be six (6) months from said date of cancellation.

As part of the Pre-trial Conference, BASELCO must also be prepared to make an expository presentation of its Application, aided by whatever communication medium that it may deem appropriate ERe Case No. 2016-011 CF Order/1S April 2016 Page 5 of7 for the purpose, in order to put in plain words and explain, for the benefit of the conS\lmers and other concerned parties, what the Application is all about and the reasons and justifications being cited in support thereof.

SO ORDERED.

Pasig City, 18 April 2016.

FOR AND BY AUTHORITY OF THE COMMISSION:

JO;;VI~~TE B~ Chairman and CEO

LS, tGUJ/ MV lniti,] oro" 20>6-on CF :ERC- Office of the Chairman

lill~:IIIII~IIII! ill~ 0-2016-007-0C-02485 ERe Case No. 2016-011 CF Order/IS April 2016 Page 6 of7

Copy furnished:

1. Dechavez & Evangelista Law Offices Counselfor Applicant BASELCO Units 1609-1610, Tycoon Centre Pearl Drive, Ortigas Center, Pasig City 1605

2. Basilan Electric Cooperative, Inc. Applicant KIn 3, Binuangan, Isabela City, Basilan

3. Office of the Solicitor General 134 Amorsolo Street, Legaspi Village Makati City, Metro Manila

4. Commission on Audit Commonwealth Avenue Quezon City, Metro Manila

5. Senate Committee on Energy GSIS Building, Roxas Boulevard Pasay City, Metro Manila

6. House Committee on Energy Batasan Hills, Quezon City, Metro Manila

7. Philippine Chamber of Commerce and Industry (PCCI) 3F Commerce and Industry Plaza 1030 Campus Ave., cor. Park Ave. Mckinley Town Center Fort Bonifacio Taguig City

8. Office of the Mayor Isabela, Basilan

9. Office of the Mayor Lamitan, Basilan

10. Office of the Mayor Maluso, Basilan

11. Office of the Mayor Lantawan, Basilan

12. Office of the Mayor Tuburan, Basilan

13. Office of the Mayor Tipo- Tipo, Basilan

14. Office of the Mayor Sumisip, Basilan

15. Office of the Mayor Unkayapukan, Basilan ERC Case No. 2016-011 CF Order/1S April 2016 Page 70f7

16. Office of the Mayor Mohamad Adjul, Basilan

17. Office of the Provincial Governor Province of Basilan