THIS WRITER has been hoping that with the approval of the law (Republic Act 11212) granting More Electric and Power Corp. (MORE Power) the new 25-year franchise to distribute electricity in Iloilo City, Panay Electric Co. (PECO) would gracefully bow out.
Despite the expiration of its franchise on Jan. 19, PECO clings on to the “homestretch” by virtue of its certificate of public convenience and necessity (CPCN) that would expire on May 25, 2019 yet.
Unfortunately, we have yet to see indications whether PECO is as eager as MORE Power in fulfilling the law requiring the former to step aside and the latter to step in. Until now, PECO’s top-level personnel has made no preliminary meeting with MORE Power’s, which could have been facilitated by the Department of Energy (DOE).
So far, it’s only Roel Z. Castro – president and chief executive officer of MORE Power – who showed up at the Manila office of DOE secretary Alfonso Cusi on Friday, March 1. The two discussed the nitty-gritty of the transition of power transmission from the former to the present franchisees.
We wonder if it’s true that there are already PECO employees who have applied with MORE Power. Our informant would not identify them for obvious reasons.
Sad to say, we have yet to hear PECO’s executives welcoming the takeover. Is reality that hard to sink into their sound judgment?
There was a time when PECO’s corporate communications officer Mikel Afzelius questioned in a media forum the legality of MORE Power to take over by citing the Bill of Rights, specifically Sec. 1, Article III of the Constitution: “No person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied the equal protection of the laws.”
On the contrary, Republic Act 11212 does not deprive PECO of “protection”. Section 10 of that franchise law provides for the “right of eminent domain” or the power of the government to expropriate a utility or to delegate that power to a private group that would pay the mutually agreeable cost of that acquisition.
The willingness of MORE Power to buy PECO’s power lines and other facilities does not deprive but, on the contrary, enables PECO to profit from facilities it could no longer make use of.
Meanwhile, the transition role of PECO is specified in Sect. 17, excerpts of which read:
“Panay Electric Co. (PECO) shall in the interim be authorized to operate the existing distribution system within the franchise area… until the establishment or acquisition by the grantee of its own distribution system and its complete transition towards full operations as determined by the ERC.”
Assuming there is no good faith on the part of PECO to comply with the “eminent domain” clause and bides time, then in the event the new franchisee [MORE Power] fails to operate continuously for two years, according to Sec. 11, “franchise shall be deemed revoked.”
Further on to Sec. 12, “Franchise may be deemed revoked when the public interest so requires or when the grantee fails to reasonably comply with regulatory standards.”
But then, with a stashed capital expenditure of P1.3 billion, how could MORE Power not comply?
On the other hand, we would like to think that PECO – having blazed a trail of 95 years of service – would not want to go down in history as contravida. Its best option is to welcome the new player while wishing itself better luck next time. (hvego31@gmail.com/PN)
