Local Franchise
Republic of the Philippines ENERGY REGULATORY COMMISSION San Miguel Avenue, Pasig City IN THE MATTER OF THE APPLICATION FOR AUTHORITY TO INCLUDE IN CUSTOMER'S BILL A TAX RECOVERY ADJUSTMENT CLAUSE (TRAC) FOR FRANCHISE TAXES PAID IN THE PROVINCE OF LAGUNA AND BUSINESS TAX PAID IN THE MUNICIPALITIES OF PANGIL, LUMBAN,PAGSANJAN AND PAKIL ALL IN THE PROVINCE OF LAGUNA ERC CASE NO. 2013-002 CF FIRST ,LAGUNA ELECTRIC COOPERATIVE, INC. (FLECO), Applicant. x- - - - - - - - - - - - - - - - - - - - - - - x DECISION Before this Commission for resolution is the application filed on January 8, 2013 by the First Laguna Electric Cooperative, Inc, (FLECO) for authority to include in its customer's bill a Tax Recovery Adjustment Clause (TRAC) for franchise taxes paid to the Province of Laguna and business taxes paid to the Municipalities of Pangil, Lumban, Pagsanjan and Pakil, all in the Province of Laguna. In the said application, FLECO alleged, among others, that: 1. It is a non-stock non-profit electric cooperative (EC) duly organized and existing under and by virtue of the laws of the Republic of the Philippines. It is represented by its Board President, Mr. Gabriel C. Adefuin, It has its principal office at Barangay Lewin, Lumban, Laguna; " ERC CASE NO. 2013-002 CF DECISION/April 28, 2014 Page 2 of 18 2. It is the exclusive holder of a franchise issued by the National Electrification Administration (NEA) to operate an electric light and power services in the Municipalities of Cavinti, Pagsanjan, Lumban, Kalayaan, Paete, Pakil, Pangil, Siniloan, Famy, Mabitac, and Sta. Maria, all in the Province of Laguna; 3.
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