ERC okays lower unbundled rates of 4 electric co-ops

The Energy Regulatory Commission (ERC) approved last Nov. 19 lower unbundled rates of four electric cooperatives (ECs).

The co-ops which are expected to reflect the new and reduced unbundled rate in their billing by next month or by December 2002, include: Pangasinan Electric Cooperative Inc. (Panelco I), Pampanga I Electric Cooperative (Pelco I), Sorsogon Electric Cooperative Inc. (Soreco I), and Zamboanga Del Sur II Electric Cooperative, Inc. (Zamboanga II).

Panelco customers, consuming an average of 67 kilowatt-hour per month, are expected to enjoy a rate reduction of 0.035 centavos per kWh.

The customers of Pelco I, which monthly consumption averaged to 82 kWh, will pay some 0.20 centavos per kWh less than their current electricity rates.

A reduction of 0.21 centavos per kWh will be effected on the franchise area of Soreco which consumes 52 kWh of electricity a month.

Zamsureco customers, consuming average of 50 kWh per month, will have a 0.62 centavos per kWh cut in their electric bills.

Under Republic Act 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA), all power distribution utilities, including electric cooperatives will have to submit an unbundled rate application with the ERC. So far, only five bundling rate petitions were approved by the ERC out of the total 140 applications.

Before these four approvals, the Department of Energy (DOE) had requested the ERC to fast track its decision on these applications as the latter has been lagging behind schedule. Under the EPIRA, from the submission period of December 2001, ERC should have approved the petition on June 26, 2002 or six months after the submission of the application.

The first ERC approval was granted to the National Power Corp. (Napocor) last July. ERC, however, said the six-month period was not enough to decide on these 140 petitions since the commission will have to pass through a tedious process of hearings and evaluating each application.

The approved unbundled rate application of Napocor also called for the reduction in the company’s generation rate by seven centavos as against its petition to increase its rate by 17 centavos.

Aside from ordering these four electric cooperatives to carry out the rate reduction based on the unbundled rate petition next month, the ERC also directed the ECs to discontinue charging the power purchase adjustment (PPA) as soon as the new rates take effect on December 2002.

The ERC also ordered Zamsureco II, Pelco I, and Soreco to cease from implementing the so-called wage adjustment clause (WAC) formula once the unbundled rates become effective.

The four-man quasi-judicial body mandated the four cooperatives to inform their respective franchise areas of the approved unbundled rates not later than (30) days after the receipt of the unbundling decision.