PANELCO III
Pangasinan III Electric Cooperative






NATIONAL ELECTRIFICATION ADMINISTRATION (NEA) : (August 4, 1969)

-under Presidential Decree No. 269 and Letter of Instruction No. 38 and 40 dated November 4, 1972, was given powers, duties and functions to bring about the desired changes and reforms on an area coverage basis. NEA sets up, encourages and assists electric service entities particularly cooperatives in the distribution of power with the end-view of achieving the objectives of making service available throughout the nation as rapidly as possible.

COOPERATIVE DEVELOPMENT AUTHORITY (CDA)

-is the government agency created by R.A.6939 to take charge of the registration, regulation and development of cooperatives.

REPUBLIC ACT No. 6939 (March 2, 1990)

-is an act creating the Cooperative Development Authority (CDA) to promote the viability and growth of cooperatives as instruments of equity, social justice and economic development, defining its powers, functions and responsibilities, rationalizing government policies and agencies with cooperative functions supporting cooperative development, transferring the registration and regulation functions of existing government agencies on cooperatives as such and consolidating the same with the authority, appropriating funds therefore, and for other purposes.

REPUBLIC ACT No.6938/ The Cooperative Code of the Philippines (March 10, 1990)

-was enacted to restore once more the tax exemption privileges of cooperatives to give them mandatory tax shelter to hasten their development into strong vehicles of social justice, equity and economic development. (Cooperatives in the Philippines, A Primer by Aguirre, Borja & Agustin)

REPUBLIC ACT No. 9520 (February 17, 2009)

-an act amending the Cooperative Code of the Philippines to be known as the “Philippine Cooperative Code of 2008” authored by Sen. Juan Miguel F. Zubiri. Under this Act, a cooperative is an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles.

ELECTRIC COOPERATIVE (EC)

-refers to non-stock, non-profit membership corporation hereto formed or organized for the purpose of supplying, promoting and encouraging the fullest use of electric service on an area coverage based at the lowest cost consistent with sound economy and the prudent management of the business of such corporation. (Chapter 3, Sec. 15, PD269). is one organized for the primary purpose of undertaking power generation, utilizing renewable energy sources including hybrid systems, acquisition and operation of subtransmission or distribution to its household members. (Sec. 2, Art. 23 of Chapter II, RA9520)
PANELCO III was duly registered permanently with the CDA under R.A. 6938 otherwise known as the Cooperative Code of the Philippines with permanent registration No. QC-1619-EC-015 issued on October 21, 2006.
“Electric Cooperatives registered and confirmed with the Authority under Republic Act No. 6938 and Republic Act No. 6939 are hereby deemed registered under this Code.”(Article 132. Effects of Registration with the Authority, RA No. 9520).
-is an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles. (Article 3, Chapter I of RA9520)

Under the Rules for Setting Electric Cooperatives’ Wheeling Rates (RSEC-WR), a tariff setting methodology (Benchmarking) set by the ERC, PANELCO III applied for the approval of an adjustment in rates. The Coop’s existing unbundled rates was filed on Year 2001 based on Year 2000 data, duly approved and only implemented on September of 2004. The 98 on-grid electric cooperatives (ECs) were classified into seven (7) groups based on the ECs’ number of customers and megawatt-hour (MWH) customer consumption which are the factors that drive the cost of power. The new tariff structure now includes two (2) items namely:
a) Distribution, Supply, and Metering (DSM) Charges to cover Operation and Maintenance Expenses; and
b) Member’s Contribution for Capital Expenditures (MCC) to cover Capital Expenditures and Debt Service. (See figure 1:Tariff Structure)


The consumers were also regrouped into three (3) customer classes namely:
a) RESIDENTIAL Customers;
b) LOW VOLTAGE Customers; and
c) Higher Voltage Customers. (See figure 2: Customer Classes)


The initial Tariff Caps were established for each of the seven (7) groups/classification of ECs and according to each of the three (3) customer classes respectively. Other provisions include setting periods of Transition (2010-2012) and Regulatory (2013-2015) as well as mentioning the Tariff Glide Path which will determine the power rates of ECs during the Regulatory Period as shown. On January 11, 2010, ERC provisionally authorized PANELCO III to adjust its distribution rates using the following tables and according to the periods set. On October 21, 2009, PANELCO III’s Board of Directors passed Board Resolution No. 74-s-10-2009, imploring upon the Commission to implement the new rate setting methodology embodied in the RSEC-WR. Whereas, PANELCO III has not applied for any rate adjustment since the implementation of its unbundled rates in September, 2004 billing. The Commission, after holding public consultations nationwide particularly in the localities wherein the electric cooperatives operate, issued the final RSEC-WR and the same was published in Manila Bulletin on September 24, 2009. Under the RSEC-WR, PANELCO III was categorized as Group “E”. As such, its determined Operating Revenue Requirement (ORR) per kWh as determined based on the methodology embodied in the RSEC-WR is Php 1.3200. As a Group “E”, PANELCO III is also authorized to collect a Member’s Contribution for Capital Expenditure (MCC) Rate in the amount of Php0.2904/kWh. Hence, its rate caps would be as follows:
1) DSM – PhP1.32/kWh; and
2) MCC – PhP0.2904/kWh.
The Capital Expenditure rates shall be implemented in full from the first up to the third transition period considering that the cooperative will have to purchase various materials and equipments to undertake its rehabilitation and expansion programs in line with DDP program for the reduction of system loss. With the MCC rate, the Cooperative will be able to recover investments on the unplanned capital expenditure projects like the rehabilitation of our typhoon damaged distribution lines during year 2001 (Typhoon “Feria”), 2003 (Tyhoon “Chedeng”), 2008 (Typhoon “Cosme”) including the enormous damages brought about by Typhoon “Pepeng” in October, 2009. R.A. 9994 Otherwise known as “An Act Granting Additional Benefits and Privileges to Senior Citizens”
Good news to our Senior Citizens!
-PANELCO III is now implementing the Senior Citizens Discount on Electricity Consumption as mandated by R.A. 9994, otherwise known as “An Act Granting Additional Benefits and Privileges to Senior Citizens”, subject to the Implementing Rules & Regulations issued by the Energy Regulatory Commission (ERC).
-In view thereof, any Filipino citizen, a resident of the Philippines, 60 years old & above and duly registered as PANELCO III member-consumers should apply for the discount. In order to avail the said discount, the following conditions must be observed:
-The monthly residential consumption must not exceed one hundred (100) kWh of electricity. Residential senior citizen customers whose consumption shall exceed the 100kWh limit during any month are not entitled to the senior citizen discount during the month when they exceeded the said limit.
-The kilowatt-hour meter of the residing senior citizen must have been registered in his/her name for a period of not less than one (1) year.
-The grant of senior citizen discount shall apply per household regardless of the number of senior citizens residing therein.
-The residential senior citizen customers with multiple accounts registered in one name, said customer can only avail of the senior citizen discount for the place where he/she actually resides.
-The senior citizen should apply for the discount personally or through an authorized representative and must submit the following documentary requirements:
For Residential Senior Citizen:
a. Proof of age and citizenship Birth certificate or any proof of birth; or Valid senior citizen’s ID card issued by Office of Senior Citizen’s Affair (OSCA) in the city or municipality where the elderly resides; or Philippine passport or any Government ID card showing proof of age and citizenship, i.e. Driver’s License, Voter’s ID, SSS/GSIS, PRC Card, Postal ID
b. Proof of residence Barangay certificate; or Affidavit of two (2) disinterested persons duly notarized and has known the senior citizen for not less than one (1) year
c. Proof of billing Copy of electric bill in the name of the senior citizen
d. Proof of authority (if through a representative) Valid identification card of the representative; and Authorization letter duly signed or thumb-marked by the senior citizen/end-user which shall be valid only for a period of one (1) year from the date of issuance
e. Additional Requirement Joint undertaking of the owner and the tenant/lessee; Other service connection/s within PANELCO III coverage area Tax Identification Number (TIN) Four (4) pieces 2” x 2” current photo with white background
For Senior Citizen's Center and Residential Care Facilities/Institutions or Group Homes:
a. Photocopy of the approved DSWD accreditation; and
b. Barangay certification that said Senior Citizen’s Center and Residential Care Facilities/Institution must have been in operation for at least six (6) months and the number of clients served; and
c. Proof of billing (copy of electric bill in the name of SCC and RCF/I or GH)
File your documentary requirements to Panelco III offices nearest your area:
Membership Development & Services Dept., Main Office, Urdaneta City (568-2301),
and Institutional Financial Services Division in Area Offices:
Northern Area Office located at Mc Arhtur Hi-Way, Binalonan (562-2415)
Eastern Area Office located at Trenchera, Tayug (572-2518)
Southern Area Office located at Tomana, Rosales (582-3314)
Southeastern Area Office located at Caurdanetaan, Umingan (576-2164)

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