1. RURAL ELECTRIFICATION PROGRAM
36 Years
RURAL ELECTRIFICATION PROGRAM
5 October 2005
Honesty, Efficiency and Solidarity Auditorium

2. REPUBLIC ACT 6038 (1969)
Created NEA as the Primary Agency to implement the RURAL ELECTRIFICATION PROGRAM (REP)
Provided for the organization & supervision by NEA of ELECTRIC COOPERATIVES (ECs) nationwide

3. Characteristics of Rural Electrification During the Early Years of Implementation
Electrification was made possible by using small generating units of 30 to 60 kw
Service was only available in municipal centers
Low voltage of electricity suitable only for lighting
Service was available for 3 to 6 hours usually in the evening

4. Davao Light & Power Co., Inc.
STATUS OF RE PROGRAM
June 1969
Cabanatuan Elect Corp
Sapang Palay Rural
Electric Service
Cooperative
Dagupan Elect Corp
Northern Nueva Ecija
Electric Service Cooperative
MERALCO
Infanta Light & Power
Service Cooperative
Porac Electric Service
AEC & SFELAPCO
Cabatuan Community
Electric Coop Assoc,
Inc.
Six Mexican Barrios
Electric Service
Cooperative
PECO
VECO & MECO
Lubang Electric Service Cooperative
CEPALCO
Victorias Electric Service Cooperative
BOHOL Provincial Elect System
ILPI
COLIGHT
Misamis Oriental Rural Electric Service
Davao Light & Power Co., Inc.
Source:
EA Annual Report
Southern Farmers Cooperative

5. PRESIDENTIAL DECREE 269 (1973)
TRANSFORMED NEA INTO A GOVERNMENT CORPORATION AND DECLARING AS A NATIONAL POLICY OBJECTIVE THE TOTAL ELECTRIFICATION OF THE PHILIPPINES

7. OVER-ALL STATUS THEN AND NOW
FIRST YEAR (1969)
Status of Energization
Municipalities/Cities (52%)
Potential 1,422
Energized
Connections (19%)
Potential M
Energized M
2005
Status of Energization
Municipalities/Cities
(100% energized) 1,609
Barangays
Coverage 41,930
Energized 38,978
% Energization %
Connections
Potential M
Served M
% Energization %
Population Served M
(Approximate)

8. PERFORMANCE BY UTILITY
As of July 31, 2005
Electric
Municipalities/Cities
Barangays
Connections
Distribution
Utilities
Coverage
Energized %
Coverage
Energized %
Potential
Served %
Electric Cooperatives
1,451
1,451
100
36,003
33,165 93
11,141,200
6,939,953 62
MERALCO
111
111
100
4,317
4,243 98
4,416,000
4,173,508 95
PIOUs/LGUs/Others 47 47
100
1,610
1,570 98
1,486,000
1,165,363 78
TOTAL PHILIPPINES
1,609
1,609
100
41,930
38,978 93
17,043,200
12,278,824 72

9. STATUS OF BARANGAY ENERGIZATION As of July 2005 PERCENT ENERGIZED
BASCO
PERCENT ENERGIZED
% ECs
% ECs
% ECs
% ECs
59 & Below ECs
PIOUs / LGUs - 26

10. EC CATEGORIZATION
2000
2001
2002
2003
2004 A+ 42 47 40 45 59 A 18 16 13 B 12 15 21 19 C 11 7 2 10 6 D 14 5 E 22 27 20 17
DMPCD-1/12/05

11. 2000
… 1st GOCC to be ISO 9001

12. Note: Savings due to the restructuring amounts to approximately
P161 M or 49% reduction in operating expenditures.

13. SEC. 58. Additional Mandate of the National Electrification (NEA)
SEC.58. Additional Mandate of the National Electrification (NEA). – NEA shall develop and implement programs:
To prepare electric cooperatives in operating and competing under the deregulated electricity market within five (5) years from the effectivity of this Act, specifically in an environment of open access and retail wheeling;
To strengthen the technical capability and financial viability of rural electric cooperatives; and
To review and upgrade regulatory policies with a view to enhancing the viability of rural electric cooperatives as electric utilities.

14. Short Term Credit Facility aims to finance the ECs’ monthly shortfall on the settlement of power accounts with the NAPOCOR and TRANSCO. Funds allocated for this purpose amounts to P300M.
Equity Financing Scheme was introduced to assist ECs in complying with the Distribution and Grid Code. NEA will finance the actual equity requirement or up to 20% of the total purchase price of the distribution equipment being procured through financing but not to exceed P8M. The initial funding allocation is P100M.
FINANCIAL PROGRAMS
TECHNICAL PROGRAMS
INSTITUTIONAL PROGRAMS

15. Single Digit System Loss Program for the reduction of the national system loss average by at least 1% annually starting 2004 to attain the single digit level before The amount of P300M was allocated for this program.
Enhancement of ECs’ Capital Resources through the adoption of a policy allowing ECs to secure loans (collateral-sharing) outside of NEA to finance their upgrading and rehabilitation projects.
FINANCIAL PROGRAMS
TECHNICAL PROGRAMS
INSTITUTIONAL PROGRAMS

16. Credit Facility for EC Power Accounts with GENCOs and Market Operator (WESM) provides Stand-By Credit Facility for ECs which fail to meet the credit worthiness indicators set in their contracts with the GENCOs, and/or to avoid suspension in the WESM and the claim of the security provided to the Market Operator due to default in payment. Initial funding allocation is P500 M.
Credit Facility for the Acquisition of Sub-transmission Facilites (69 kv lines) from TRANSCO aims to finance the ECs’ equity requirement of up to 20% of the total acquisition cost of the NAPOCOR/TRANSCO sub-transmission facilities. initial funding allocation of P100M was established.
FINANCIAL PROGRAMS
TECHNICAL PROGRAMS
INSTITUTIONAL PROGRAMS

17. SYSTEM LOSS As of June 2005 SINGLE DIGIT - 8 ECs 10% to 14% - 42 ECs
BASCO
SINGLE DIGIT ECs
10% to 14% ECs
ABOVE 20% ECs
15% to 20% ECs
NO DATA AVAILABLE EC 24

18. Macro Engineering Assistance Program (MEAP) was designed to ensure the attainment of single digit systems loss before 2010, improve the level of power reliability and ensure the ECs’ compliance to the Grid and Distribution Codes.
Systems Loss Segregation Program complements the MEAP which aims to guide the ECs quantify and segregate the technical, non-technical and administrative loss. Through this, the ECs shall be able to determine which priority activities should be implemented immediately to maximize beneficial effects.
FINANCIAL PROGRAMS
TECHNICAL PROGRAMS
INSTITUTIONAL PROGRAMS

19. Management Academy for Rural Electrification was established primarily to serve as learning venue for the best practices of successful ECs.
People Development Academy (Toledo City) teaches leadership and corporate values to EC leaders and employees. To date, a total of 1,408 pax have undergone trainings in 12 multi-disciplines seminars.
Integrated Strategic Planning Seminar-Workshops were conducted for 114 ECs to assist them in formulating their 5-year operational plans ( ). An in-house-developed computerized model (ICPM) was designed to harmonize the data for all plans currently existing. It also serves as the basis for the Distribution Development Plans of
FINANCIAL PROGRAMS
TECHNICAL PROGRAMS
INSTITUTIONAL PROGRAMS

20. A total of 121 pax from 41 ECs underwent various WESM-related trainings including a WESM Operations Seminar with PEMC Officials as resource persons were attended by ALL Luzon Main Grid-Connected ECs
Competency Training and Certificate Programs on Electric Distribution System Power Engineering through a MOA between NEA and UP Diliman. To date, a total of 46 participants from 35 ECs have been able to complete the program.
FINANCIAL PROGRAMS
TECHNICAL PROGRAMS
INSTITUTIONAL PROGRAMS

21. Management Academy for Rural Electrification was established primarily to serve as learning venue for the best practices of successful ECs.
People Development Academy (Toledo City) teaches leadership and corporate values to EC leaders and employees. To date, a total of 1,408 pax have undergone trainings in 12 multi-disciplines seminars.
Integrated Strategic Planning Seminar-Workshops were conducted for 114 ECs to assist them in formulating their 5-year operational plans ( ). An in-house-developed computerized model (ICPM) was designed to harmonize the data for all plans currently existing. It also serves as the basis for the Distribution Development Plans of
FINANCIAL PROGRAMS
TECHNICAL PROGRAMS
INSTITUTIONAL PROGRAMS

22. A total of 121 pax from 41 ECs underwent various WESM-related trainings including a WESM Operations Seminar with PEMC Officials as resource persons were attended by ALL Luzon Main Grid-Connected ECs
Competency Training and Certificate Programs on Electric Distribution System Power Engineering through a MOA between NEA and UP Diliman. To date, a total of 46 participants from 35 ECs have been able to complete the program.
FINANCIAL PROGRAMS
TECHNICAL PROGRAMS
INSTITUTIONAL PROGRAMS

23. Medium-Term Development Plan (2005-2009)
ICPM Summary
Corplan, Engineering, Accounts Management & Guarantee, Finance, Institutional Development, Management Assistance

24. ICPM INST’L B S E P LTDP LF - BEP factors to consider: GCP/PIP/ REP
WESM
OPEN ACCESS
DIST. CODE
GRID CODE
ERC COMPLIANCES
MAGNA CARTA
TIME-OF-USE
E.O. 119
DEMAND & SUPPLY
INST’L
ICPM
OUTPUTS
DDP
INSTITUTIONAL PROGRAMS
FINANCIAL PROJECTIONS
2005 WORKPLAN
BSEP
LTDP LF
GCP/PIP/REP
Updated, Harmonized, Distinctive

25. BARANGAYS TO BE ENERGIZED
(2005 – 2008)
EC with most number of unenergized barangays:
LASURECO - 363
Waived: 778
3,068 BARANGAYS
2005 –
2006 –

26. NUMBER OF SITIOS TO BE ENERGIZED
2005 = 821
2006 = 522
2007 = 440
2008 = 335
2009 = 305
EC with most number of identified Sitios for energization:
MARELCO - 123
Sitios Electrified from Jan.03-June 05: 2,559

27. CONSUMER CONNECTIONS Year No. 2005 375,575 2006 367,217 2007 391,969
2008
413,518
2009
502,337
Total
2,050,616
EC with most number of consumers to be connected:
NEW – BENECO (11,035)
ADD-ONS – ALECO (64,819)

28. SUBSTATION REQUIREMENT
(Additional)
685
397
280
250
295
TMVA
TOTAL No. of Units
5 MVA – 92
10 MVA – 96
20 MVA – 13
OTHERS * – 112
EC with greatest S/S capacity requirement:
PENELCO – 85 MVA
* 2.5, 3.75, 15, 30 MVA

29. SUBSTATION REQUIREMENT
(Rehab/Upgrading)
TMVA
200
139
100 90 80
TOTAL No. of Units
5 MVA – 35
10 MVA – 30
20 MVA – 3
OTHERS * – 1
EC with greatest S/S capacity for Rehab:
ISELCO II – 120 MVA
* 2.5, 3.75, 15, 30 MVA

30. Distribution Transformers
10 KVA – 4, KVA – 6,320
15 KVA – 6, KVA –
25 KVA – 12, KVA – 674
37.5 KVA – 3, KVA – 267
TOTAL NO. OF UNITS: 35,359
EC with biggest number of dx transformer requirement:
CAGELCO II – 1,365

31. Kilowatt Hour Meters 3 Phase – 5,921 1 Phase – 1,556,427
TOTAL NO. OF UNITS: 1,562,348
EC with greatest number of kwh-mtr requirement:
AKELCO – 120,075

32. Distribution Facilities
Kilometers of Lines
EXPANSION
REHAB/REVAMP
DC – DC –
3Ø – Ø –
2Ø – Ø –
1Ø – 5, Ø –
UB – 4, UB – 1,
OS – 1, OS –
EC with longest dx lines for expansion:
ZANECO – ckt.kms.
EC with longest dx lines for rehab/revamp:
ZAMECO II – ckt.kms.

33. SUBTRANSMISSION FACILITIES and
VOLTAGES other than 13.2 kv
EXPANSION
REHAB
CENECO is the only EC with subtransmission line for rehab.
EC with longest subtransmission line for expansion:
COTELCO – kms.

34. GRAND TOTAL: 193,803 POLES 25’ – 19,838 30’ – 62,918 35’ – 56,030
25’ – 19,838
30’ – 62,918
35’ – 56,030
40’ – 26,105
45’ – 13,125
OTHERS*– 15,787
GRAND TOTAL: 193,803
* Includes concrete, steel and above footers
EC with most number of Pole Requirements:
ISECO – 12,750

35. FUNDING REQUIREMENT (P ‘000)
– 8,338,532
– 7,056,259
– 6,400,667
– 6,039,058
– 5,982,477
GRAND TOTAL: 33,816,993
EC with largest funding requirement:
BATELEC II – 1,175,437

36. sources Operational Efficiency
Subsidies and Loans
Rate Adjustments
DOE’s Energy Regulations No. 1-94, as amended
50% of P0.01 per kwh financial benefits
Local Government Code of 1991(Chapter II, Sections 289 to 294)
80% of the proceeds maybe used to construct distribution lines and lower the cost of electricity
Missionary Electrification-Universal Charge
Subsidy to QTPs (alternative service providers)
Government General Appropriations Act (GAA) for DOE,NEA/ECs and SPUG (if any)
WB-GEF under DOE’s Rural Power Project
Available for household and community applications (US$ per Wp)

37. VOLUME OF BUSINESS Consumer Connections II. Energy Sales (MWH) 2004
2009
6,702,789
8,753,405
2004
9,546,390
Annual Ave: 12,390,656
Growth Rate = 23%
Growth Rate = 23%
III. Revenues (P)
2004
2009
47B
Annual Ave = 73B
Growth Rate = 36%

38. next steps… 100% Barangay Energization by CY 2008
Single Digit System Loss by CY 2010
90% Energization Rate for Residential Consumers by CY 2017

39. end of presentation