~Q>\itATORf? c} O~~ 'I~~~~l:'ejvcr(\ Republic of the •., . ~()~Ci;l'ii ENERGY REGULATORYCOMMISSIO ,,,' c" ":J c .:. \'fI',"Mrc,~\W,!Jh San Migllel Avenue, Pasig City ,', <:J...:---

, IN THE MATTER OF THE JOINT APPLICATION FOR THE APPROVAL. OF THE ELECTRICITY SUPPLY. AGREEMENT ENTERED INTO BY AND BEllNEEN SECOND ELECTRIC COOPERATIVE, INC. (BUSECO) AND SUNASIA ENERGY INC., WITH PRAYER FOR THE ISSUANCE OF PROVISIONAL AUTHORITY

ERC CASE NO. 2016-099 RC

BUKIDNQN SECQND ELECTRIC COOPERATIVE, INC. (BUSECO) AND SUNASIA DOCKE'rED Date';" iJU~IL:h.•••••••••••••••••1 2016_~ ENERGY INC., 8.1":,;..... • ...... •._, Applicants. "------"

ORDER

On 29 April 2016, the Bukidnon Second Electric Cooperative, Inc. (BUSECO) and SunAsia Energy Inc. (SunAsia) filed a Joint Application for approval of the electricity supply agreement, with prayer for the issuance of provisional authority.

In the. said Application, BUSECO and SunAsia alleged the following:

1. This Joint Application is respectfully submitted to the Honorable Commission for due consideration and approval of the Electricity Supply Agreement (ESA) executed by and between BUSECO and SunAsia pursuant to Rule 20(B) of the Energy Regulatory. Commission's Rules of Practice and Procedure approved by this Honorable Commission on 22 June 2006 in Resolution No. 38 Series of 2005 (ERC Rules) and other relevant rul~~~a~gulations. A copy of the ESA is ,tt"h,d" Annex"A/{

, ERC Case No. 2016-099 RC Order/12 July 2016 Page 2 of 17

THE APPLICANTS

2. BUSECO is a non-stock, non-profit membership electric cooperative duly organized and existing under and by virtue of the laws of the Republic of the Philippines with principal office address at the Municipality of , Province of Bukidnon. It holds a franchise to operate an electric light and power service in the areas presently comprised by the following municipalities: Manolo Fortich, Malitbog, , , , , , Impasug- ong, , and (Franchise Area). A copy of BUSECO's franchise is attached as Annex "B".

3. SunAsia is a corporation duly organized and existing under the laws of the Republic of the Philippines with its principal office at the 902 Paragon Plaza Building, 162 EDSA corner Reliance Street Mandaluyong City, Metro Manila, Philippines. Copies of SunAsia's Certificate of Registration with the Securities and Exchange Commission, Articles of Incorporation and By-Laws, latest General Information Sheet, and [Audited] Financial Statement are attached as Annexes "C", "D", "E", and "F" respectively. SunAsia secured its Board of Investments (BO!) Certificate of Registration on 29 June 2015. A copy of the Certificate is attached as Annex "G".

4. Applicants may be served with orders or other processes of this Honorable Commission through their respective counsel at their addresses stated below.

COMPLIANCEWITH PRE-FILING REOUIREMENTS

5. In compliance with Rule 6 of the ERC Rules, a copy of the instant Joint Application with all its annexes and accompanying documents was furnished to the Sangguniang Panlalawigan of Bukidnon and of the Municipality of Manolo Fortich and Sangguniang Panglungsod of Mandaluyong City. A copy of the corresponding proof of receipt by the Sangguniang Panlalawigan of Bukidnon is attached as Annex "H" and by the Sangguniang Bayan of Manolo Fortich and the Sangguniang Panglungsod of Mandaluyong City is attached as Annex "H-1" and "H-2" respectively.

6. Furthermore, Applicants caused the publication of the present Joint Application in its entirety, excluding its annexes, in a newspaper of general circulation within the Franchise Area. Copies of the corresponding Affidavit of pu~~~~/d the newspaper are attached as Annexes "I" and ~ f ERC Case No. 2016-099 RC Order/12 July 2016 Page 3 of 17

STATEMENTOF FACTS

7. Under Section 23 of Republic Act No. 9136 or the Electric Power Industry Reform Act (EPIRA), a Distribution Utility (DU) shall have the obligation to supply electricity in the least cost manner to its captive market, subject to the collection of retail rate duly approved by the Energy Regulatory Commission (ERC). Furthermore, under Section 45(b) of the EPIRA, a DU may enter into a bilateral supply contract subject to the review by the ERC.

8. In accordance with the EPIRA prOVlSlOn, the Department of Energy (DOE), through Circular No. 2003-12- 11, particularly Section 1 thereof declared that "[a]ll distribution utilities must henceforth take cognizance and assume full responsibility to forecast, assure and contract for the supply of electric power in their respective franchise areas to meet their obligations as a distribution utility."

9. On 11June 2015, the DOE issued Department Circular No. DC 2015-06-008 mandating all distribution utilities to undergo a Competitive Selection Process in securing power supply agreements.

10.Following a joint resolution of cooperation between the DOE and the ERC, the Honorable Commission issued ERC Resolution No. 13, Series of 2015 issued on 20 October 2015 titled "A Resolution Directing All Distribution Utilities to Conduct a Competitive Selection Process in the Procurement of their Supply to the Captive Market" which laid down the procurement guideline for power supply contracts. The guideline was later on clarified in the subsequent ERC Resolution NO.1, Series of 2016 issued on 15March 2016 titled ''A Resolution Clarifying the Effectivity of ERC Resolution No. 13 series of 2015" which states that PSAs executed on or after April 30. 2016 shall be required without exception to comply with the CSP.[Emphasis and underscoring supplied}

11.It is within the purview of the abovementioned resolutions that the instant Application is filed.

12.It must be noted that Mindanao, including the franchise area where BUSECO principally operates, has long been experiencing widespread rotational power interruptions due to power supply deficiency. These power interruptions adversely affect the businesses and the lives of the electricity consuming public. According to the 2012-2013 Supply-Demand Outlook issued by the DOE, a total of 1,600 MW additional capacity is needed during the planning period to meet the electricity ~':.~71requiredre~~, =gin of th, Minrum,e ERC Case No. 2016-099 RC Orderf12 July 2016 Page 4 oft7

13. PSALM/NPC is the main power supplier in the Mindanao Grid and of BUSECO. PSALM/NPC has a Contract for the Supply of Electricity (CSEE) with BUSECO, which will expire in 2019. Over the years the CSEE was renewed but the contract volume was significantly reduced. As a result, BUSECO was forced to implement rotational brownouts and to procure power supply from more expensive sources.

14. During the Customer's Forum held in Davao City on 11 August 2014, PSALM presented the Mindanao Power Supply Outlook for 2015-2016. It declared that the supply allocation for its customers for 2015 will be reduced by a maximum of 18% and will be further reduced in 2016 to a maximum of 46%. These will result to a reduction in BUSECO's average PSALM allocation. In addition, there is uncertainty of electricity supply coming from PSALM after the CSEE expires on 2019.

15.Notably, PSALM has issued a certification confirming that it has insufficient capacity to supply BUSECO's additional power requirements beyond the contracted energy and equivalent demand in the current electricity supply contract. A copy of the PSALM Certification is attached as Annex "K".

16. BUSECO's energy and peaking demand requirements are projected to significantly increase in the next few years based on the existing growth rate of 4.22% per annum, as evidenced by Distribution Development Plan and its Power Supply and Demand Scenario, copies of which are attached as Annexes "L" and "M".

17.Moreover, BUSECO's peaking demand is expected to increase even further as industries and commercial establishments continue to flourish within the franchise area. It is important for BUSECO being the franchised distribution utility, to procure additional capacity to service the requirements of the said industries and establishments and contribute to the economic improvement of the area and of Mindanao.

18.Therefore, to ensure power supply adequacy in its franchise area, it is imperative for BUSECO to enter into long- term power supply contracts from suppliers other than PSALM.

19. Starting 2013, BUSECO solicited offers from various power suppliers with due consideration on its demand growth, generation mix and its rate impact to its Member-Consumer- Owners (MCOs). Among the offers BUSECO considered and ev,"uatedWM fromSunk;iaEn"gy Inc., whicheommitte'i ERC Case No. 2016-099 RC Order/12 July 2016 Page 5 of 17

build a 2.0 MW Solar Power Plant within the Franchise Area. SunAsia's power plant is scheduled to be commissioned in 2017.

20. Based on BUSECO's evaluation, it was determined that the proposal of SunAsia is advantageous to its consumers. Considering that the power plant of SunAsia will be located within the Franchise Area which is adjacent to BUSECO's Sumilao Substation and will be connected directly to BUSECO'S power distribution network, the DU will be able to avoid paying transmission charges to the National Grid Corporation of the Philippines.

21. In addition to the cost savings, since BUSECO is an embedded generator, it is capable of delivering electricity of better quality and reliability since its power plant will be subjected to fewer power interruptions arising from grid- related faults and/or transmission line constraints. BUSECO is also obligated to supply BUSECO back-up energy and capacity during forced outage beyond allowable threshold levels.

22. Given the need to secure long-term power supply and considering the advantages of procuring electricity from SunAsia, and following extensive negotiations, BUSECO and SunAsia signed the ESA subject of the instant Joint Application on 7 January 2014. An affidavit describing BUSECO'S procurement process is attached as Annex "N".

SALIENT FEATURES OF THE ELECTRICITY SUPPLY AGREEMENT

23. Generation Facilities. The electric power supply will come from a 2.0 MW Solar Power Plant also called "Sumilao Solar" to be constructed, owned and operated by SunAsia (the "SunAsia Power Plant" or the "Power Plant"). The Power Plant has been designed to capture solar rays and production of electricity in the land area as particularly described in Annex "0".

24. Commercial Operation Date. Subject to the satisfaction of certain conditions precedent enumerated in the ESA, the Commercial Operation Date shall be no later than twelve (12) months after financial closure, and upon issuance of the Certificate of Compliance by the ERC.

25. Minimum Energy Off-Take Contract. Subject to Article 2.3 of the ESA, BUSECO shall accept all deliveries allocated by SunAsia, and BUSECO shall pay for at least 2,917,640 kWh per year delivered by SunAsia as measured by BUSECO's Billing Mete< b=d on the Cont"ct Pril ERC Case No. 2016-099 RC Order/12 July 2016 Page 6 of17

26. Term. The Minimum Energy Off-take Contract shall remain in full force and effect for a period of Twenty-Five (2S) years from the Delivery Period Commencement Date, unless extended or otherwise renewed by the parties in accordance with the ESA.

27. Contracted Capacity. The Contracted Capacity of Two (2) Megawatt Peak is to be made available by SunAsia to BUSECO to meet the DU's requirements as indicated in and subject to the terms and conditions of the ESA.

28. Delivery Schedule. The energy generated from the Power Plant shall enjoy priority dispatch and delivery of, electricity shall not at any time be interrupted.

29. Contract Price. Starting from Commercial Operations Date, BUSECO shall pay the generation charge of Nine Pesos and Fifty Centavos per kilowatt hour (Php9.so/kWh) and adjusted under the Annual Rate Adjustment Formula as follows:

A. Tariff Formula:

CRF = [(Investment Cost x WACC)/(1-(1+WACC) 1\ Project Life)]/ Annual Energy

O&M = Annual OPEX / Annual Energy Yield

B. Annual Rate Adjustment:

Contract Price * (1 + [(Leverage Ratio * % of Domestic loan) * (CPlaneragej CPIBase)-l) + (Leverage Ratio * o/c, of Foreign Loan) * (FOREXaveragejFOREXBase)-l)]

For reference, a sample computation of Monthly Payments is shown in Annex 1 of the ESA.

30. Governmental Charges. All value added taxes, sales taxes, good and service taxes, excise stamp taxes and similar taxes imposed by any government authority in pursuant to the generation and delivery of electricity shall form part of the Contract Price and shall be for the account of BUSECO.

31. Prompt Payment Discount. BUSECO is entitled to a prompt payment discount equivalent to one point three percent (1.3%) of the billing for a particular month if full payment is made within five (S) days from receipt of the monthlybilling,nnd" th, ,ondition, "t forthin th, ES~ ERCCase No. 2016-099 RC Order/12 July 2016 Page 70f17

32. Security Deposit. Within 30 days from receipt of the Delivery Period Commencement Date Notice, BUSECO shall deliver to SunAsia a Security Deposit in the form of a letter of credit, bank credit or equivalent, bank callable on demand or cash, the initial amount of Two Million Three Hundred Nine Thousand Seven Hundred Ninety Eight in Philippine currency (Php2,309,798.00) equivalent to one month billing, which is the average monthly bill over the 12 month period. Such amount shall be adjusted to conform to the average monthly billing of BUSECO after the lapse of Five (5) months from commencement of operations and every Six (6) months thereafter. It shall be drawn against to answer BUSECO's indebtedness and any remainder shall be returned to BUSECO within Thirty (30) days from expiration of the ESA.

33. Force Majeure. SunAsia shall not be under any obligation to sell and deliver and BUSECO shall not be under any obligation to take and pay the product in the event of force majeure. The periods when BUSECO is unable to receive power supply or when SunAsia is not able to supply power shall be recorded. SunAsia shall notify BUSECO of the cumulative period when deliveries were not received within Six (6) months prior to the end ofthe ESA.

34. Assignment. Applicants may not assign or transfer any of their rights, interest, or obligations in the ESA without the prior written consent and approval of the other applicant. SunAsia may, by written notice but without need of any further consent and approval of BUSECO may assign or delegate, to the corporation specifically created or established to perform the generation functions of the Project, any of its rights, duties, title, interests, and obligations under the ESA. For purposes of said assignment or delegation, the ESA shall constitute the BUSECO's express consent and approval to the assignment or delegation.

35. DOE Endorsement. Applicants have a pending request for endorsement from the Department of Energy to certify that the power plant is consistent with the government's Power Development Plan, with the received request hereby attached as Annex "P". Applicants undertake to submit the Certificate of Endorsement to the Honorable Commission during the course of the application.

36. Solar Energy Service Contract. SunAsia has a Solar Energy Service Contract with DOE. A copy of the Service Contract is attached as Annex "Q".

37. DOE Certificate of Registration. A Certificate of Registration was issued to SunAsia as a Renewable Energy Developer of Solar Energy Resources on 23 January 2015. if ERC Case No. 2016-099 RC Order/12 July 2016 Page 8 of 17

copy of the Certificate of Registration is attached as Annex "R".

38. DENR Certificate of Non-Coverage. A Certificate of Non-Coverage was issued to SunAsia on 27 August 2014 for its project 2 MW Sumilao PV Solar Power Plant Infrastructure Projects. A copy of the Certificate is attached as Annex "S".

39. Certificate of Compliance (COC). Pursuant to ERC Resolution NO.9, Series of 2010, SunAsia shall file its application for a COC not later than three (3) months prior to the commencement of commercial operations.

RATE IMPACT ANALYSIS

40. BUSECO has conducted a generation rate impact simulation to determine the impact of the implementation of the ESA on BUSECO's blended generation costs, assuming that power to be supplied by SunAsia is included in BUSECO'S generation mix. A copy of the rate impact analysis is attached as Annex "T".

41. Upon inclusion of SunAsia, monthly generation cost is expected to increase by PhP 4,104,000.00 at a projected monthly purchase of 432,000 kWh at 60% load factor. BUSECO took into consideration that the contracted energy from embedded power plant is for peaking requirements. The expected rate impact if BUSECO procures power from SunAsia are as follows:

A summary of the simulation on BUSECO's peaking generation rate impact is shown in the table below':

In PhP/kWh Year Effective Effective Blended Rate Impact: Estimated Net Blended Generation Rate Increase/ Savings from Estimated Generation Rate WITH SunAsia (Decrease) Avoided NGCP Increase/ WITHOUT Transmission (Decrease) SunAsia Costs (estimate) 2017 4.3905 4.5318 0.1412 0.85 (0.7088)

While the table above shows a slight increase in BUSECO's generation rate upon entry of SunAsia in BUSECO's generation mix in 2017, it must be noted that said increase is counterbalanced by the avoided transmission costs of NGCP estimated at Php 0.85 per kWh (since SunAsia will be an embedded generator of BUSECO) thereby resulting to a net savings per kWh charged by BUSECO to its consumers.

'The rate simulation is based on the DU's hourly load profile with the solar power plan~~pe~g from gam to 8 pm. This is based on 1,200 kW projected dispatchable capacity of the PIa,,! ERC Case No. 2016-099 RC Order/12 July 2016 Page 9 of 17

ALLEGATIONS TO SUPPORT MOTION FOR CONFIDENTIAL TREATMENT OF INFORMATION

42. Under Rule 4 of the ERC Rules, the Honorable Commission may, upon request of a party and determination of the existence of conditions that would warrant such remedy, treat certain information submitted to it as confidential.

43. Applicants are submitting the following documents pursuant to the foregoing Rule: SunAsia's Project Cost Computation, WACC Computation, Sources of Funds/Financial Plans, and Breakdown of 0 & M Expenses, marked as Annexes "U", "V", "W", "" and "X", respectively.

44. These documents contain certain non-public information, data and calculations involving business operations and financial trade secrets reflecting SunAsia's investment and business calculations. Under Article 13.6 of the ESA, the Applicants agreed not to disclose the provisions of the ESA to any third person except to a party's advisors, agents and counsels, or to banks and financial institutions providing security for BUSECO's obligations under financing agreements, or to SunAsia's prospective investors and lenders.

45. Applicants thus respectfully move that Annexes "U", "V", "W", and "X" not be disclosed and be treated as confidential documents in accordance with Rule 4 of the ERC Rules. Accordingly, Applicants hereby submit one (1) copy of Annexes "U" , "V" ,"W",and "X" in a sealed envelope ,with the envelope and each page of the document stamped with the word "Confidential."

SUMMARY OF SUBMITTED DOCUMENTS

46. In support of the instant Joint Application, Applicants most respectfully submit to the Honorable Commission the following documents which are referred to herein and summarized below, thus:

ANNEX NATUREOF DOCUMENT

A Electricit Su I reement with Addendum B BUSECO'sFranchise C SunAsia's SECCertificate of Re istration D SunAsia's Articles of Incor oration and B -Laws E SunAsia's Latest General Information Sheet F SunAsia's Latest [Audited] Financial Statement G SunAsia's BOI Certificate of Re istration H, H-l Proof of receipt by the Sangguniang Panlalawigan and of Bukidnon and the Sangguniang Bayan of H-2 M'nn!n Fortich,n' the Son union Pon lun 71 ERCCase No. 2016-099 RC Order/12 July 2016 Page 10 of17

of MandaluYQ!!gCity. I Affidavit of Publication J Copy of Newspaper where Joint Application was Published K PSALMCertification L BUSECO'sDistribution Development Plan M BUSECO'sSupply and Demand Scenario N BUSECO'sProcurement Process on SunAsia 0 Executive Summary and Description of SunAsia's Power Plant P Request for Certificate of Endorsement from DOE (consistent with PDP) Q Solar Energy Service Contract R DOE Certificate of Registration for the SESC S DENR Certificate of Non-Coverage T SunAsia Rate Impact Analvsis U Proiect Cost Comoutation - CONFIDENTIAL V WACCComputation - CONFIDENTIAL W Sources of Funds/Financial Plans - CONFIDENTIAL X Breakdown of 0 & M Expenses - CONFIDENTIAL y Sworn Statement from BUSECO in Support of Prayer for Provisional Authoritv Z Sworn Statement from SunAsia III Support of Prayer for Provisional Authoritv

ARGUMENTS IN SUPPORT OF MOTION FOR PROVISIONAL AUTHORITY

47. As stated in the foregoing discussion, BUSECO's forecasted peaking demand is expected to increase significantly in the coming years. In addition, NPC/PSALM's supply is expected to lower after the CSEE expires in 2019 by a maximum of 46% as stated in the Mindanao Power Supply Outlook for 2015-2016 presented by PSALM during the Customer's Forum held in Davao City on 11August 2014.

48. Based on the Supply and Demand Scenario prepared by BUSECO, the DU may suffer a power supply deficit ranging from an average of 3.20 MW to a maximum of (7.21) MW in 2025 if SunAsia does not start delivering power in 2017. This deficit is expected to increase annually if SunAsia fails to go on-line given the consistent increase in BUSECO's demand.

49. Thus, there is a need for BUSECO to secure long-term power supply in order to adequately service the needs of the residents and business enterprises within the Franchise Area.

50. Moreover, the construction of the SunAsia Power Plant requires substantial financing from lending institutions ~noV investors. Such financing in turn requires a determination;j ERC Case No. 2016-099 RC Order/12 July 2016 Page 11 of 17

the ERC approved tariff. Likewise, the project's implementation is bound by contractual milestones including approval of the ESA by the Honorable Commission. A provisional approval of the ESA from the Honorable Commission, together with an indicative tariff, is critical in the evaluation to be made by financial institutions and potential investors of the project.

51. Notably, securing the financing for the Power Plant triggers the timely implementation of the project and achievement of the Commercial Operations Date that in turn ensures that SunAsia is able to provide power in a timely manner to BUSECO, which is in dire need of reliable supply of electricity.

52. Sworn statements attesting to the allegations made in this Joint Application in connection with the prayer for issuance of a Provisional Authority are attached as Annexes "Y" and "z" and respectfully submitted to this Honorable Commission.

53. Therefore, Applicants respectfully move for the provisional approval of the instant Joint Application pursuant to Rule 14 of the ERC Rules.

PRAYER

WHEREFORE, in view of the foregoing, it IS most respectfully prayed that this Honorable Commission:

1. Immediately issue an Order provisionally approving the Electricity Supply Agreement between BUSECO and SunAsia subject of the instant Joint Application, as well as the generation rate and adjustment mechanisms indicated therein;

2. Issue an Order (a) treating Annexes "U", "V","W", and "X" and the information contained therein as confidential, (b) directing their non-disclosure pursuant to Rule 4 of the ERC Rules and (c) prescribing the guidelines for the protection thereof; and

3. After due hearing, render judgment making the provisional approval of the Electricity Supply Agreement permanent.

Other reliefs just and equitable are likewise prayed /( ERC Case No. 2016-099 RC Order/12 July 2016 Page 12 Of17

On 11 May 2016, Applicants filed a Compliance averring the following:

1. On 29 April 2016, Applicants filed before this Honorable Commission the Joint Application for the Approval of the Electricity Supply Agreement with Prayer for the Issuance of Provisional Authority under Rule 20(B) of the Energy Regulatory Commission's Rules of Practice and Procedure.2

2. On the same day the application was filed, Applicants were directed to further submit the following documents:

a. Terms and conditions of SunAsia's registration with the Board of Investments;

b. An Excel file format of SunAsia's Rate Impact Simulation;

c. Original Certification of Receipt from the Local Government Units; and

d. Copy of the publication containing the erratum on paragraph 5 of the Application published in Malaya newspaper on 29 April 2016.

3. Thus, Applicants respectfully submit to this Honorable Commission the instant Compliance with the following attached documents:

a. Terms and conditions of SunAsia's registration with the Board of Investments attached as Annex "A";

b. An Excel file format of SunAsia's Rate Impact Simulation attached as Annex "B";

c. Original Certification of Receipt from the Sangguniang Panlalawigan of Bukidnon, Sangguniang Bayan of the Municipality Manolo Fortich, and Sangguniang Panglungsod of Mandaluyong City attached as Annex "C", "D", and "E" respectively; and

d. Copy of the publication containing the erratum on paragraph 5 of the Application published in Malaya n"""p'p" on '9 Ap,ii,m6 ,tt"hed "Annex ~

2 Resolution No. 38 Series of 2005. ERCCase No. 2016-099 RC Order/12 July 2016 Page 13 of 17

Finding the said Joint 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 22 September 2016 (Thursday) at ten o'clock in the morning (10:00 A.M.) at the BUSECO's Principal Office in Manolo Fortich, Bukidnon.

BUSECO and SunAsia are hereby directed to cause the publication of the attached Notice of Public Hearing in two (2) newspapers of general circulation in the Philippines at their own expense, twice (2X) within two (2) successive weeks, the dates of publication not being less than seven (7) days apart, with the date of last publication made not later than ten (10) days before the date of the scheduled initial hearing. They are also directed to inform the consumers within the franchise area of BUSECO, 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 the Offices of the Provincial Governor, the City and Municipal Mayors, the Chairman, and the Local Government Unit (LGU) Legislative Bodies within BUSECO's franchise area for the appropriate posting thereof on their respective bulletin boards.

BUSECO and SunAsia are 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 and Pre-trial Conference, BUSECO and SunAsia must submit to the Commission their written Compliance with the jurisdictional requirements attaching therewith, methodically arranged and duly marked, the evidence of the actual posting and publication of the Notice of Public Hearing consisting of certifications issued to that effect, signed by the aforementioned Governor, Mayors, Barangay Chairman, and LGU Legislative BO~ ERCCase No. 2016-099 RC Order/12 July 2016 Page 14 of 17 or their duly authorized representatives, bearing the seals of their offices, and the affidavit of the Editors or Business Managers of the newspapers where said Notice of Public Hearing were published, together with the complete issues of the said newspapers, and such other proofs of compliance with the requirements of the Commission.

BUSECO, SunAsia, 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 BUSECO and SunAsia to submit the required Pre- trial Brief and Judicial Affidavits of their 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, BUSECO and SunAsia must also be prepared to make an Expository Presentation of their Application, aided by whatever communication medium they may deem appropriate for the purpose, in order to put in plain words and explain, for the benefit of the consumers and other concerned parties, what the Application is all about and the reasons and justifications beingcitedin'"ppnrttbe,e/( ERC Case No. 2016-099 RC Order/12 July 2016 Page 15 of 17

SO ORDERED.

Pasig City, 12 July 2016.

FOR AND BY AUTHORITY OF THE COMMISSION:

•.. ,~•. •... ~ •... ..-- ••...." JOSE VICENTE B. S Chairman and CEO

:ERC ,~. M ! Office a/the Chqirman LS: mllLS/MV i 11I'1"1~,I~"IIIIII!""~IUI~~~I~mlll~~I~~ I. ~_G=2016=015-0C-03791 """",

Copy furnished:

1. Atty. Lumen P. Balboa Counselfor Applicants BUSECO and SunAsia Suite 77, 7F Zeta Building, 191 Salcedo Street Legaspi Village, Makati City

2. Bukidnon Second Electric Cooperative, Inc. (BUSECO) Manolo Fortich, Bukidnon

3. SunAsia Energy Inc. 902 Paragon Plaza Building 162 EDSA corner Reliance Street, Mandaluyong City

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

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

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

7. House Committee on Energy Batasan Hills Quezon City, Metro Manila ERC Case No. 2016-099 RC Order/12 July 2016 Page 16 Of17

8. President Philippine Chamber of Commerce and Industry (PCCI) McKinley Hill, Fort Bonifacio Taguig

9. Office of the Provincial Governor Province of Bukidnon

10. Office ofthe LGU Legislative Body Province of Bukidnon

11. Office of the City Mayor Malaybalay, Bukidnon

12. Office of the LGU Legislative Body Malaybalay, Bukidnon

13. Office ofthe Municipal Mayor Malitbog, Bukidnon

14. Office of the LGU Legislative Body Malitbog, Bukidnon

15. Office of the Municipal Mayor Baungon, Bukidnon

16. Office ofthe LGU Legislative Body Baungon, Bukidnon

17. Office ofthe Municipal Mayor Talakag, Bukidnon

18. Office of the LGU Legislative Body Talakag, Bukidnon

19. Office of the Municipal Mayor Cabanglasan, Bukidnon

20. Office ofthe LGU Legislative Body Cabanglasan, Bukidnon

21. Office of the Municipal Mayor Impasug-ong, Bukidnon

22. Office of the LGU Legislative Body Impasug-ong, Bukidnon

23. Office ofthe Municipal Mayor Libona, Bukidnon

24. Office of the LGU Legislative Body Libona, Bukidnon

25. Office of the Municipal M~Y/ M,nolo Fort"h, BOkidnO,/ I ERC Case No. 2016-099 RC Order/12 July 2016 Page 17 of 17

26. Office ofthe LGU Legislative Body Manolo Fortich, Bukidnon

27. Office ofthe Municipal Mayor Sumilao, Bukidnon

28. Office ofthe LGU Legislative Body Sumilao, Bukidnon

29. Office of the Municipal Mayor Lantapan, Bukidnon

30. Office of the LGU Legislative Body Lantapan, Bukidnon

31. PSA-1WG Energy Regulatory Commission (ERC) 14th Floor, Pacific Center Building San Miguel Avenue, Pasig City~