On March Lanao Del Norte Electric Cooperative, Inc

' f th Ph'l' Repu bl IC e Ippmes

San MiguelAvenue, Pasig City '\ t';:'1\".t:;'r~,!'::

On March Lanao del Norte Electric Cooperative, Inc, (LANECO) and FDC Misamis Power Corp, (FDC Misamis) filed a Joint Application seeking the Commission's approval of their Energy Power Purchase Agreement (EPPA) including therein a prayer for provisional authority,

Relative to their prayer for provisional authority, Applicants xxx

The turnover of the output of the Mt. Apo and Geothermal Power Plant is scheduled on December 26, FDCMisamis will start payment of the monthly and generation fees upon issuance of the Certificatesof Closing and Effectivity on December A provisional approval of the EPPA with indicative rate, from the Honorable Commission will allow FDC MISAMIS to perform its obligation to supply the requirements of LANECOand for LANECOto receive power from the power plant. The issuance of the provisional authority willallowLANECOto charge and collect the respective fees enumerated in the EPPA as well as authorize it to pass on the full amount to its consumers.

LANECO's increasing energy requirements in the next few years as well as the reduction by PSALMof the energy it supplies to LANECOdue to the takeover of the IPPA of Mt. Apo and will only further worsen the shortage of power LANECO is presently experiencing.The issuance of the Provisional Authority will thus alleviate any shortage of power being encountered by LANECO.

23. Pursuant to ERCrules of practice and procedures, the Honorable Commission may exercise its discretion by granting provisionalauthority or interim reliefprior to a final decision.

24. It is understood that the interim relief sought by the Applicantsthat maybe granted by Commission,shallbe subject to adjustments and other conditions that the Commission may impose after hearing and final determination ofthe Honorable Commission.

xxx

On May pursuant to the Commission's power to provisionally approve Power Supply Agreements (PSAs) as provided under Section 4(e), Rule 3 of the Implementing Rules and Regulations of R.A. 9136, or the Electric Power Industry Reform Act of (EPIRA-IRR), the Commission issued an Order granting Applicants provisional authoriY /;implement their PSA, the Dispositive portion of which read/I ERC CASE NO. 2015-035 RC ORDER/ 26 APRIL 2016 Page 3

WHEREFORE, the foregoing premises considered, the Commission hereby PROVISIONALLY APPROVES the Electric Power Purchase Agreement (EPP A) between Lanao del Norte Cooperative, Incorporated (LANECO) and FDC Misamis Power Corporation (FDC MISAMIS), subject to the following conditions:

The applicable generation rate shall be as follows:

The foregoing applicable generation rate shall be subject to adjustments based on the formula provided in the EPPA;

3. The final generation cost that can be recovered shall be determined by the Commission in its Decision in the instant application; and

4. In the event that the final rate is higher than that provisionally granted, the resulting additional charges shall be collected by FDC MISAMIS from LANECO. On the other hand, if the final rate is lower than that provisionally granted, the amount corresponding to the reduction shall be refunded by FDC MISAMIS to LANECO.

SO ORDERED.

Inasmuch as the Commission has initiated the evaluation of the Application taking into consideration all submissions made by the parties before it, prudence dictates that a meticulous review of every detail thereof be made in furtherance of the policies of the State enunciated in Section of the EPIRA, to wit:

Section Declarationn.of ~y - It hereby deda'ed the policy of the ERC CASE NO. 2015-035 RC ORDER/ 26 APRIL 2016

(b) To ensure the quality, reliability, security and affordability of the supply of electric power;

xxx

To protect the public interest as it is affected by the rates and services of electric utilities and other providers of electric power;

WHEREFORE, premises considered, the provisional authority granted to Applicants LANECO and FDC Misamis as embodied in the Order dated May is hereby EXTENDEDuntil revoked or made permanent by this Commission.

Pasig City, April

(on leave) GLORIA VICTORIA C. YAP-TARDC Commissioner Commissioner

(on leave) JOSEFINA PAT A. MAGP ALE-ASIRIT GERONIMO D. STA. ANA lsszoner Commissioner ERC CASE NO. 2015-035 RC ORDER/ 26 APRIL 2016

Counselfor LANECO 1906, Bontong Camaman-an, Cagayan de Oro City

Counselfor FDC MISAMIS floor, Robinsons-Equitable Tower, 4, ADB Avenue corner Poveda Street, Ortigas Center, Pasig City

Applicant Tubod, Lanao del Norte

Applicant 23rd Floor, PBCom Tower, 6795, Ayala Avenue corner Rufino Street, Makati City

134Amorsolo Street, Legaspi Village, Makati City

Commonwealth Avenue, Quezon City

7. GSIS Bldg. Roxas Blvd., Pasay City

Batasan Hills, Quezon City

Campus Avenue corner Park Avenue, McKinley Town Center, Fort Bonifacio, Taguig City

Province of Lanao del Norte

Municipality of Bacolod

Municipality of Baloi

15. ERC CASE NO. 2015-035 RC ORDER/ 26 APRIL 2016

Municipality of Baroy

Municipality of Kapatagan

Municipality of Kauswagan

Municipality of Kolambugan

Municipality of Lala

Municipality of Linamon

Municipality of Magsaysay

Municipality of Maigo

Municipality of Matungao

dy Municipality of Matungao Municipality of Munai

Municipality of Munai

Municipality of Poona Piagapo

Municipality of Salvador

Municipality of Sapad

Municipality of Sultan Naga Dimaporo

Municipality of Tangkal

Municipality of Tubod

'7th Floo" P,cifi, Cen"'" San Migu.! Av,nu., P"ig