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NPH, ERC Case No. 2015-159 RC <.GULATORy c ,,'" o~ I:t:-(j % !Approved for '"6 Posting Z Republic ofthe Philippines www.erc.go •.ph ENERGY REGULATORY COMMISSIO y' San Miguel Avenue, Pasig City IN THE MATTER OF THE APPLICATION FOR CONFIRMATION AND APPROVAL OF FORCE MAJEURE EVENT CAPITAL EXPENDITURE PROJECT, RE: REPAIR, RESTORATION, REPLACEMENT AND/OR REHABILITATION OF DISTRIBUTION LINES, FACILITIES AND ACCESSORIES DAMAGED BY TYPHOON YOLANDA, ERC CASE NO. 2015 -159 RC LEYTE IV ELECTRIC COOPERATIVE, INC. D a ll~fJ NI!2Otr (LEYECO IV), Date:J ~e__ ~_ Applicant. Bv~__~_. e:s : ,,------------------------------------j( NOTICE OF PUBLIC HEARING TOALLINTERESTEDPARTIES: Notice is hereby given that on 26 August 2015, Leyte IV Electric Cooperative, Inc. (LEYECO IV) filed an Application dated 06 July 2015 (Application) seeking the Commission's approval and confirmation of the force majeure capital expenditure project for the repair, restoration, replacement and/or rehabilitation of its distribution lines and related facilities and accessories, damaged by Super Typhoon Yolanda on 08 November 2013. LEYECOIV alleged the following in its Application: THE APPLICANT 1. LEYECO IV is a non-stock, non-profit electric cooperative, duly organized and existing under and by virtue of the laws of the ERC CASE NO. 2015-159 RC NOTICE OF PUBLIC HEARING/ 24 JULY 2017 PAGE20F5 I Republic of the Philippines, with principal office at Brgy. Lamak, Hilongos, Leyte; 2. It holds an exclusive franchise from the National Electrification Commission to operate an electric light and power distribution service in the municipalities of ~nopacan, Hindang, Hilongos, Bato and Matalom and in the city of Baybay, all in the province of Leyte; I THE FORCE MAJEURE EVENT 3. Snper Typhoon Yolanda struck the Philippines on November 8, 2013. It was treated as the ffi<,Jstpowerlul storm to make landfall in recorded history. The Joint Typhoon Warning Center estimated the system's one-minute sustained winds to 315 km/hour, unofficially making Super Typhoon Yolanda the strongest tropical cyclone ever observed based on wind speed. The eye of the cyclone made its first landfall in the Philippines at Guiuan, Eastern Samar. 4. LEYECO IV being located in the southwestern part of Leyte and Guiuan, Eastern Samar, was partially devastated. Baybay City being located in the north, was damaged the most while it gets lesser as it goes to the southern part of the franchise area from the municipalities of Inopacan, Hindang, Hilongos, BatD and Matalom. 5. Typhoon Yolanda caused destruction to the cooperative's distribution lines, facilities and accessories as well as the transmission and subtransmission lines, resulting to longer power interruption in the entire Region VIII and the nearby islands. LEGAL BASIS FOR THE APPLICATION 6. This application is being filed pursuant to Section 3.3 of ERC Resolution No. 26 Series of 2009, which provides that if a Force Majeure or Fortuitous Event, as the case may be, occurs, the regulated entity shall seek the ERe's confirmation of the implementation of capital expenditure projects arising from such event. DESCRIPTION OF THE PROJECT 7. The project consists of the repair, restoration, replacement and/or rehabilitation of the coqperative's distribution lines, poles, distribution transformers, hardware, protection equipments and accessories damaged by Super Typhoon Yolanda. PROJECT SCHEDULE 8. Repair and restoration works were immediately undertaken after the typhoon left the country and was completed by December 2014. ERC CASE NO. 2015-159 RC NOTICE OF PUBLIC HEARING/ 24 JULY 2017 PAGE30F5 , BENEFITS FROM THE PROJECT 9. The project ensured the power restoration in the entire coverage area of LEYECO IV, and a more reliable and efficient power supply to satisfy the necessities of its consumers. PROJECT COST 10. The restoration and rehabilitation works had an actual total cost of Twenty Eight Million One Hundred Nine Thousand Two Hundred Seventy Nine Pesos .and Thirty Eight Centavos (PhP28,109,279.38). PROJECT FINANCING 11. Due to the extent and adverse effects of Super Typhoon Yolanda to the energy sector, particularly the electric cooperatives including LEYECO IV, and with the immediate need to restore the supply of electricity to the affected areas most especially the households and consumers providing basic services, the government provided calamity assistance intended for the reconstruction and rehabilitation of thirty-three affected electric cooperatives; 12. LEYECO IV being one of the affected electric cooperatives in Region VIII, was one of the recipients of the calamity assistance for the rehabilitation and restoration of its distribution lines and related facilities and accessories. INDICATIVE RATE IMPACT 13. Since the full cost of the restoration and rehabilitation of the damages was funded through government subsidy, the project has no rate impact to the cooperative's effective rate. SUBMISSIONS '4. In support of the instant application, LEYECO IV is submitting herewith the following documents which are being made integral parts hereof, as follows: Nature of Document , AnnexA Notice on the Force Majeure Event AnnexB Executive Summary of the Project Annexes Proof of furnishing copies of the Application to the Cto Sangguniang Bayan of Hilongos and the Sangguniang C-1 Panlalawigan of Leyte , ERC CASE NO. 2015-159 RC NOTICE OF PUBLIC HEARINGJ 24 JULY 2017 PAGE40F5 Annexes Publication of the Application in a newspaper of general Dto circulation within LEYEeD IVs franchise area or where D-2 it principally operates, with Affidavit of Pnblication. PRAYER WHEREFORE, premises considered, it is respectfully prayed of this Honorable Commission that after due notice and hearing, the repair, restoration, replacement and/or rehabilitation undertaken on LEYECO IV's distribution lines and related facilities and accessories, damaged by the ravages of Super Typhoon Yolanda on November 8, 2013, he confirmed and approved. Other reliefs, just and equitable in the premises, are likewise prayed for. The Commission has set the Application for determination of compliance with the jurisdictional requirements, expository presentation, Pre-trial Conference, and presentation of evidence on 16 August 2017 (Wednesday) at two o'clock in the afternoon (2:00 P.M.), at LEVECO IV's principal office at Brgy. Lamak, Hilongos, Leyte. All persons who have an interest in the subject matter of the instant case may become a party by filing with the Commission a verified Petition to Intervene at least five (5) days prior to the initial hearing and subject to the requirements under Rule 9 of the 2006 Rules of Practice and Procedure, indicating therein the docket number and title of the case and stating the following: 1) The petitioner's name and address; 2) The nature of petitioner's interest in the subject matter of the proceeding and the way and manner in which such interest is affected by the issues involved in the proceeding; and 3) A statement ofthe relief desired. All other persons who may want their views known to the Commission with respect to the subject matter of the case may file their Opposition or Comment thereon at any stage of the proceeding before Applicant concludes the presentation of its evidence, subject to the requirements under Rule 9 of the 2006 Rules of Practice and Procedure. No particular form of Opposition or Comment is ERC CASE NO. 2015-159 RC NOTICE OF PUBLIC HEARING/ 24 JULY 2017 PAGE50F5 required, but the document, letter,: or writing should contain the following: , 1) The name and address of such person; 2) A concise statement of the Opposition or Comment; and , 3) The grounds relied upon. , All such persons who wish to have a copy of the Application may request from Applicant that they be furnished with the same, prior to the date of the initial hearing. Applicant is hereby directed to furnish all those making such request with copies of the Application and its attachments, subject to the reimbursement of reasonable photocopying costs. Any such person may likewise examine the Application and other pertinent records filed with the Commission during the standard office hours. WITNESS, the Honorable Officer-In-Charge of ERC ALFREDO J. NON, and the Honorable Commissioners GLORIA VICTORIA C. YAP-TARUC and GERONIMO D. STA. ANA, Energy Regulatory Commission, this 24th day of July 2017 in Pasig City. FORAND BY AUTHORITY OF THE COMMISSION: JOSEFINAPATRI A. MAGPALE-ASIRIT OversightC missioner for Legal.
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