P R O G R A M M E OF ACTIVITIES
PART THREE: BUSINESS MEETING
PART ONE 5:00 AM to 9:00 AM Registration/Distribution of Programs
A. BUSINESS FORUM AGENDA I. Registration Report and Declaration of Quorum - DIR JOY GIL S. MAHINAY II. Reading of the Notice of Meeting - BOARD SECRETARY III. Reading and Approval of Minutes of Previous Meeting
PART TWO 8:30 AM - Opening Program Doxology & National Anthem MORESCO-1 Band
MESSAGES OF WELCOME
B. PRESENTATION, CONSIDERATION AND ADOPTION OF REPORTS:
HON. OLIVER L. UBAUB Municipal Mayor of Laguindingan ( Host Municipality)
The President’s Report DIR. NONITO M. LABIS, DVM President, Board of Directors
DIR. NONITO M. LABIS, DVM President, Board of Directors
The Treasurer’s Report DIR. ALLAN M. SOFOCADO Treasurer, Board of Directors
INSPIRATIONAL MESSAGES
The General Manager’s Report ENGR. JULIE B. REAL General Manager
HON. YEVGENY VINCENTE “BAMBI” B. EMANO Provincial Governor
C. OPEN FORUM RESOURCE SPEAKERS
HON. MARIA LOURDES O. ACOSTA-ALBA Representative, 1st District Bukidnon
THE BOARD OF DIRECTORS MORESCO-1 MANAGEMENT TEAM QUILAB, CABILIN, BATO & CO., CPAS LEGAL COUNSELS
HON. ROLANDO “KLAREX” A. UY Representative,1st District Cagayan de Oro City
MODERATOR DR. DIXON Q. YASAY Director - XUGLI
HON. JULIETTE T. UY Representative, 2nd District Misamis Oriental HON. EDGARDO “ERM” R. MASONGSONG Representative, 1-CARE Partylist
FLOOR LEADERS
INTRODUCTION OF THE KEYNOTE SPEAKER
LEFT AISLE ENGR. MARLON P. GUINITA Talakag Service Area Manager
DIR. BERNARD R. BENAVIDEZ Board of Director - Manticao District
CENTER AISLE ENGR. RENIEL A. CABANTAC Manticao Service Area Manager
COMMEMORATIVE SPEECH HON. CARLOS JERICHO L. PETILLA Secretary, Department of Energy Keynote Speaker
RIGHT AISLE ENGR. COLLEN B. TARCELO Opol Service Area Manager
AWARDING OF PLAQUE OF APPRECIATION BOARD OF DIRECTORS
PART FOUR
OATHTAKING OF THE NEWLY ELECTED DIRECTORS
DIR. JOAR J. DY Alubijid District DIR. EDWIN M. IGLORIA El Salvador District DIR. ALBERT BENEDICT F. BACUS Opol District
AWARDING & RAFFLE DRAW ( COMPUTERIZED RAFFLE ) RAFFLE OFFICIALS EDNA P. DIANGO, LLB Institutional Services Department Manager
Emcees: Marebec Cagalawan and Venancio Gumanid
TABLE OF CONTENTS I
PROGRAMME OF ACTIVITIES
II
NEW MORESCO-1 LOGO AND TAGLINE
1 MESSAGES 24
CORPORATE MESSAGES
25
MESSAGE FROM THE BOARD PRESIDENT
27 MESSAGE FROM THE GENERAL MANAGER 28
PRESIDENT’S REPORT
31
GENERAL MANAGER’S REPORT
33
TECHNICAL REPORTS
40
INSTITUTIONAL REPORTS
41
SENIOR CITIZENS DISCOUNT APPLICATION PROCESSING
48
NORMECALYMPICS 2014
49
AGMA ATTENDANCE
49
DISTRICT ELECTIONS
51
FINANCIAL REPORT
52
2014 FINANCIAL RATES
54 CAPITAL EXPENDITURES AND BORROWINGS 55
SITIO ELECTRIFICATION SUBSIDY
57
2014 CORPORATE HIGHLIGHTS
58
CORPORATE SOCIAL RESPONSIBILITY
62
CORPORATE PLANING DIRECTIONS
66
HUMAN RESOURCE ACTIVITIES
68
LEARNING AND DEVELOPMENT
70
2014 PROMPT PAYORS
73 90
MINUTES OF 44TH AGMA MEETING PHOTO GALLERY
96 FINANCIAL STATEMENTS AND REPORT OF INDENPENDENT AUDITORS 129 MORESCO-1 MISSION, VISION AND CORE VALUES
The new
MORESCO-1 logo and tagline
A
s we continue
to serve
our
increasing member-consumers, MORESCO-1 also grows alongside
its stakeholders. With the growing complexity in the power sector and players in this business; with the developments in our area, we at MORESCO-1 need to adapt with change. Hence, we give focus to developing our Corporate Brand being the first electric cooperative in the country, maintaining our top performing status (NEA: AAA performance), at the same time an entity with a goal to be number one in all our undertakings. This logo shall be used as a tool in obtaining and maintaining our MORESCO-1 as a name and identity in the industry. The tagline, “Energzing Development, Empowering Lives�, brings to the forefront the underlying commitment of MORESCO-1 to the community it serves.
Messages “
Placed in MORESCO-1’s Moog substation in Laguindingan, this 2MW modular generation set, acquired through the National Electrification Administration, started its operation in September 2014. MORESCO-1 also extends its gratitude to the Department of Energy where the program was initiated, for apart from the 10MW geothermal source acquired, this modular genset is one of the reasons why MORESCO-1 did not experience rotational blackout in the first quarter of this year, despite the shortage of power supply in Mindanao.
“
OFFICE OF THE PRESIDENT OF THE PHILIPPINES
My warmest greetings to the Misamis Oriental-1 Rural Electric Service Cooperative, Inc. as you celebrate your 47th Foundation Anniversary and hold your 45th Annual General MEmbership Assembly. Laying the groundwork for an era of peace and prosperity involves establishing reforms to replace the old ways of greed and corruption with a new culture of integrity, transparency, and accountability; promote amity and understanding among our citizens regardless of faith, political views, and social differences; implement programs that lead to people empowerment; and revitalize our sectors to stimulate economic growth. Electric Cooperatives play a critical role in these undertakings, by serving as a mechanism for individuals to conveniently perform their tasks and for industries to efficiently deliver public services and communications. May this gathering be a venue to formulate better alternatives and measures to resolve current issues in the power sector of Mindanao, and engage more of your kababayans to conserve energy so as to meet the projected demand for electricity and maintain the upward trajectory of Misamis Oriental and the entire Philippines. I wish you a happy and meaningful occasion.
HON. BENIGNO S. AQUINO III
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MORESCO - 1
Energizing Development, Empowering Lives
DEPARTMENT OF ENERGY
Greetings to the officers and member-consumers of the Misamis Oriental-1 Rural Electric Service Cooperative (MORESCO-1) as you hold your 45th Annual General Assembly (AGMA). To deliver progress to our people is one of our most important priorities. We can only exhibit this through our excellent services in electrification and power distribution. With a theme that adheres to the calls of social development, we laud your cooperative for being an active partner of the Department in pursuit of our common goals of securing a bright future to our people. As you convene for your AGMA, may you always be driven and motivated to work for the betterment of your member-consumers. Always remember that the true owners of your cooperative are the people, which is why you are obliged to take responsibility; ensuring that they will get the best service possible. Rest assured of the Department’s continued support in all your programs and aspirations. Mabuhay and more power!
HON. CARLOS JERICHO L. PETILLA Secretary
Energizing Development, Empowering Lives
MORESCO - 1
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NATIONAL ELECTRIFICATION ADMINISTRATION
“The 1st Performance Governance System-Institutionalized National Government Agency”
My warm congratulations to the 77,981 Member-Consumers, Board of Directors, Officials and Employees of Misamis Oriental-1 Rural Electric Service Cooperative, Inc. (MORESCO-1) on your 45th Annual Membership Assembly on May 22, 2015. MORESCO-I has been one of the flag carriers of the Rural Electrification Program (REP) for more than four and half decades. It boasts of numerous achievements and well-deserved recognitions such as having been adjudged as a Grand Diamond EC which define the benchmark for an efficient, dependable and service-oriented institution. In its stint as agent of development in the countryside, MORESCO-I lives up to the expectations of its member-consumers for quality electric service as best shown in its performance in the past and in 2013 by the attainment of Triple A Key Performance Standards (KPS) rating. Especially, MORESCO 1’s Single Digit System Loss of 2.71%, Collection Efficiency of 101%, and Good Account Payment status with NEA and power supply providers clearly manifest its commitment to serve its mission of providing light and hope to the people of Misamis Oriental. Let this occasion with the theme MORESCO-I: “Energizing Development, Empowering Lives”, as a timely opportunity to celebrate the fruits of your labor. Also, let this be the chance to elicit from your members new and unique ideas that will sustain the gains that you have achieved that will help enhance their socio-economic status in life. Keep up the good work!
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EDITHA S. BUENO Administrator
MORESCO - 1
Energizing Development, Empowering Lives
ENERGY REGULATORY COMMISSION
The Energy Regulatory Commission (ERC) warmly greets the member-consumers, officials, officers, and staff-members of Misamis Oriental-1 Rural Electric Service Cooperative, Inc. (MORESCO-1) on the holding of your 47th Foundation Anniversary and 45th Annual General Assembly (AGMA) on 22 May 2015 (Friday). Your theme entitled: “MORESCO-1: Energizing Development, Empowering Lives� captures your deep commitment to contribute to nation building through the total rural electrification of your beloved province, the beautiful Misamis Oriental. ERC reminds MORESCO-1 to always keep your member-consumers updated with the status of oeprations. Consequently, your member-consumers must be encouraged to have active participation in your strategic planning to get that advantage of the synergy of different sectors present in your work. Quality, reliable, sustainable and reasonably-priced electric power service is key to have economic progress so that a prosperous, stable and sustainable community is enjoyed. Indeed, you have empowered and continually energized lives. ERC takes pride in the successful endeavors of MORESCO-1. Keep up the good work. Mabuhay!
ZENAIDA G. CRUZ-DUCUT Chairperson & CEO
Energizing Development, Empowering Lives
MORESCO - 1
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HOUSE OF REPRESENTATIVES My warmest greetings to the esteemed leaders and member-consumer-owners (MCOs) of Misamis Oriental-I Rural Electric Cooperative, Inc. (MORESCO-1) as you hold your 45th Annual General Membership Assembly (AGMA) and 47th Foundation Celebration on May 22, 2015. The theme on this occasion, “MORESCO-1: Energizing Development, Empowering Lives”, is reflective of your commitment as a vital partner in the economic and social development in Misamis Oriental for more than decades. It is an accomplishment worthy to be shared with the MCOs for they are an integral part in the Cooperative’s success. Likewise, I commend your leaders for keeping this annual gathering conscientiously to keep the MCOs abreast of last year’s Status Operation. This occasion shows your enduring solidarity and commitment to serve with utmost transparency and accountability. I would also like to take this opportunity to report what I have been doing as your representative in Congress. As of date, I have filed a total of fifteen (15) House Bills and Resolutions which are endeavored to empower and protect our Electric Cooperatives and the electric consumers. Even as obstacles prove to be many and daunting, I take this challenge to persevere more in my legislative work in the remaining time I have for this 16th Congress. Outside the halls of congress, I am advocating for the empowerment of the ECs’ MCOs. We launched the national league of Electric Cooperatives’ Member-ConsumerOwners in Bukidnon, which was followed by the other provinces in Mindanao, and hopefully in Luzon and Visayas. What we hope to achieve is increase the level of consciousness and awareness among electric consumers on the various issues in the power sector. With your support, we can institute the needed reforms in our society, most especially in the power industry. Moreover, you can expect my continued active participation in the AGMAs of ECs, MSEAC and Board of Directors’ assemblies, conferences, conventions, and among others, for me to understand and support the sentiments and issues of member-consumer-owners. Please be assured that I will continue to address the challenges in organizing and revitalizing the movement of our electric consumers. Finally, I would like to express my sincerest gratitude for MORESCO-Uno’s incessant support as we continue to advance the interest of our Ecs and the rural energy consumers. I sincerely wish you all the best in the years to come as you continue to serve the community with excellence as your standard. Mabuhay and more power to the Misamis Oriental-I Rural Electric Service Cooperative, Inc.!
HON. EDGARDO ‘ERM’ R. MASONGSONG Representative, 1-CARE PARTYLIST
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MORESCO - 1
Energizing Development, Empowering Lives
HOUSE OF REPRESENTATIVES
Congratulations to MORESCO-1 on your 47th Foundation Anniversary and 45th Annual General Membership Assembly! As an enduring distribution utility that serves the growing towns of Laguindingan, Manticao and Opol in Misamis Oriental’s Second Legislative District and the town of Talakag, Bukidnon, MORESCO-1 continues to innovate in bringing electricity to homes and businesses in the said areas that should continue to improve in terms of quality for your members and consumers. MORESCO-1 should carry on with its mission to bring sufficient and efficient power distribution to all its consumers. Daghang salamat ug mabuhi ang MORESCO-1!
(SGD) HON. JULIETTE T. UY Representative 2nd District, Misamis Oriental
Energizing Development, Empowering Lives
MORESCO - 1
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HOUSE OF REPRESENTATIVES Looking back at the more than four decades of Misamis Oriental - 1 Rural Electric Service Cooperative, Inc., (MORESCO-1) is touching and joyful at the same time. Touching because we all know that it was basically formed to make people’s lives better and for their dreams to come true. Joyful in the sense that like a child’s coming to the world, it was a beginning of a new life for Misamis Oriental and its people. From its humble inception in 1968, when its member consumers were mostly small houses whose simple electrical needs were for light bulbs and transistor radios, MORESCO-1 is now serving a vast industry bringing forth development not only in the countryside but a contributor to the growth of the whole country as well. All of our lives were immensely changed by MORESCO-1, through the service it provides to us - its member consumers. From the farmers who are now seeing the fruits of their labor, to the empowered students who succeed in the different fields they have chosen, to the entrepreneurs who make the province’s commerce alive, to the people who are experiencing the present fast paced and active lifestyle. Of course, much of the credit for the success of MORESCO-1 lies in the unwavering support of its member consumers but we should also give credit to its administrators for being one of the best managed and consistently recognized electric cooperatives. On its 47th Anniversary and the 45th General Membership Assembly, HATS OFF to everyone who made MORESCO-1 one of the best service providers in the country. CONGRATULATIONS AND MABUHAY PO KAYO!
HON. ROLANDO “KLAREX” A. UY Representative 1st District - Cagayan de Oro City
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MORESCO - 1
Energizing Development, Empowering Lives
Once again, let me greet with pride and admiration the Board of Directors, the Management and Staff of Misamis Oriental-1 Rural Electric Service Cooperative, Inc. (MORESCO-1) on its 45th Annual General Membership Assembly (AGMA) and 47th Anniversary Celebration. Year after year, the power industry continuously evolves, putting everyone in the sector on a close watch. Indeed, your outstanding operational records, driven by your relentless hunger for excellence is not a walk in the park but a consequence of the shared commitment and enthusiasm of the MORESCO-1 workforce and the member-owners. As you take pride in apprising the member-consumers of your accomplishments for the year 2014 and your plans for the coming years, we urge you to endeavor to sustain, if not strengthen your sound partnership with them. In so doing, MORESCO-1 can build up trust and collegial dependability with the owners it serve. PHILRECA therefore joins you with honor and satisfaction, and with the fervent hope of your sustained or even more efficient and reliable delivery of electric service to your member-consumers. MABUHAY and more power!
HON. WENDELL V. BALLESTEROS General Manager
Energizing Development, Empowering Lives
MORESCO - 1
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ASSOCIATION OF MINDANAO RURAL ELECTRIC COOPERATIVE, INC. (AMRECO) It is with great honor that I extend my warm greetings to the member-consumer/ owners, Board of Directors and the men and women of the country's First Rural Electric Service Cooperative, (MORESCO-I) as you hold your 47th Foundation Anniversary celebration come May 22, 2015. Catering development in the countryside and empowering lives of our fellow Filipinos is not only a noble advocacy of a person, firm or group of individuals, but most importantly it is a way of enriching our spiritual life as a person and organization for the Almighty is counting on us to help spread the love He gives to His people by way of helping them. It is therefore in this context that the Association of Mindanao Rural Electric Cooperatives (AMRECO) is proud of the accomplishments and sterling performance of MORESCO-I for more than four decades, being one of AMRECO's members that showcase how a non-stock, non-profit entity can serve its people especially in the rural areas to alleviate them from poverty level through the provision of electricity without consideration of profit. In behalf of the AMRECO member ECs, it is our fervent prayer that MORESCO-I will continue to shine as an example of successful people empowerment initiative that will become a benchmark of good governance in the country. More power onward.
HON. SERGIO C. DAGOOC President 10 |
MORESCO - 1
Energizing Development, Empowering Lives
PROVINCE OF MISAMIS ORIENTAL Greetings! Nowadays, progress goes hand in hand with being competitive and industrious. In this regard, toiling hard is best done through collective efforts to enliven our unity and solidarity. Moreover, it is undeniable that reliable electric service plays a vital role in our common quest for a sustainable development and ultimately, towards empowering lives. I commend MORESCO-1 for their consistently outstanding service to their member-consumers. Indeed, MORESCO-1 is one of the leading contributory institutions in the Province of Misamis Oriental that empowers the lives of the people. Congratulations MORESCO-1 on your 47th Foundation Anniversary Celebrations! Daghang Salamat!
HON. YEVGENY VICENTE B. EMANO Provincial Governor
Energizing Development, Empowering Lives
MORESCO - 1
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CITY OF CAGAYAN DE ORO
My warmest greetings to the Misamis Oriental – 1 Rural Electric Service Cooperative (MORESCO-1) on the occasion of your 45TH Annual General Membership Assembly and 47th Foundation Anniversary, with the theme: “MORESCO-1: Energizing Development, Empowering Lives”. Indeed, this twin event calls for a fitting celebration as this milestone reflects the fruition of your past and present leaders’ commitment and good fiscal management that eventually led to the sustained growth of the cooperative. Hindrances and obstacles in running the operations of the cooperative may come against your way, but humbly take it as a challenge that will pave the way for the betterment of your cooperative. As you hold this two important events, I fervently hope and pray that you can craft better, efficient and effective strategies directed towards a more improved, stable, and reliable MORESCO-1. Wish you all the best and Congratulations!
HON. OSCAR S. MORENO Mayor
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MORESCO - 1
Energizing Development, Empowering Lives
MUNICIPALITY OF OPOL
From time to time, we add our constituents’ voices to our itinerary of actions. Our memberconsumers are key factors as the country fortifies its aim for sustainable electrification. Anchored on this year’s theme: “Energizing Development, Empowering Lives,” the assembly and the anniversary celebration of Misamis Oriental 1 Rural Electric Service Cooperative, Inc. (MORESCO-1) highlight the call of unity in the producer-consumer relationship. This, for which I believe, is necessary as we embark on a path to development. Years passed, the Local Government Unit of Opol and MORESCO-1 broke new grounds of the country’s electrification program. Since then became known the stories of how electricity brought changes in improving people’s lives. From its little beginnings, we can see how power consumption advanced from plain to complex- from incandescent bulbs to light-emitting diode (LED). May this occasion strengthen our partnership in empowering people’s lives through continuing energization program. Mabuhay!
HON. MAXIMINO B. SENO Municipal Mayor
Energizing Development, Empowering Lives
MORESCO - 1
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MUNICIPALITY OF EL SALVADOR CITY My greetings to Misamis Oriental-1 Rural Electric Service Cooperative (MORESCO- 1) and its thousand member-consumers for its 47th Founding Anniversary and 45th Annual General Membership Assembly. Congratulations for 47 years of lighting the lives of every residents in the 2nd district of Misamis Oriental. Four (4) decades ago, the community of El Salvador and its 15 barangays lived in a slow-paced daily existence. Each household was dependent on Petromax (for those who can afford) and palong-palong for the majority of the folks. People listened to radios energized by batteries and fishermen would make sulo out of coconut leaves to light their way as they traverse the dark and quiet streets to the sea. Electrification has made a remarkable cause and effect on the progress and advancement of our city, not just to the residents but also to the increasing number of establishments like the pioneering companies of Asia Brewery Incorporated, Universal Robina Corporation and the like to stand still. The theme: “MORESCO-1: Energizing Development, Empowering Lives� reminds us of your humble beginnings and your continued development to upgrade it within the context of global aspect. I am delighted that MORESCO-1 has offered a program in partnership with the local government in energizing the remotest of the barangays. At present, far-flung barangays are 88% energized and more installation will materialize soon to attain 100% accomplishment on your Rural Energization Project. My heartfelt gratitude to you in behalf of the people of the City of El Salvador for being a catalyst of change and development in our society. Thus, enticing the commercial and industrial sector to do business with us. Rest assured, we will be a partner with your noble endeavor. Once again, CONGRATULATIONS and keep up the good work! MABUHAY MORESCO-1!
HON. ALFREDO Q. TAN Mayor
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MORESCO - 1
Energizing Development, Empowering Lives
MUNICIPALITY OF LAGUINDINGAN
Rural Electrification is one of the pillars that provide energy for development that made possible empowering of lives of people in the countryside. MORESCO-1 has responded effectively to the unending and varied demands of development. This year MORESCO-1 will celebrate the 47th Foundation Anniversary and will hold its 45th Annual General Assembly. This year the celebration is bannered by the theme “MORESCO 1: “Energizing Development, Empowering Lives”. As in the past theme is an aptly description of how the pilot and performing electric cooperative of the country responded and delivered the needed interventions and parameters to respond effectively and efficiently to the demands of the development that redounds to the economic and social empowerment of the people in the entire coverage area. With the Municipality of Laguindingan in a full development mood, MORESCO-1 manifests its support to the Local Government in its full commitment to sustain power service delivery and social responsibility initiatives. MORESCO-1 has sustained its performance run as evidenced by the numerous awards and citations received throughout its years of existence. MORESCO-1 from its experimental and humble beginning almost five decades ago, lived up to the expectations inherent with its conceptualization and implementation. On this special and memorable occasion, I consider it my privilege to congratulate MORESCO-1 1 on its 47th Foundation Anniversary and 45th Annual General Membership Assembly. FLY HIGH MORESCO UNO.
HON. OLIVER L. UBAUB Municipal Mayor
Energizing Development, Empowering Lives
MORESCO - 1
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MUNICIPALITY OF GITAGUM
The 47th Foundation Anniversary of MORESCO-1 is essentially a significant celebration to all its member-consumers/end-users because electricity is too co-equally important as water in order to sustain quality existence. The member’s sensibility to pay their electric bill monthly is contributory to uphold the Energizing Development of MORESCO-1; because it is us who compose and make MORESCO-1 as it continues its quest to deliver basic and quality service to all the members. To all the members of MORESCO-1; Long Live! Congratulations and happy 47th Foundation Anniversary with the theme MORESCO-1: Energizing Development, Empowering Lives.
HON. RODOLFO O. BURAY Municipal Mayor
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MORESCO - 1
Energizing Development, Empowering Lives
MUNICIPALITY OF LIBERTAD My warmest greetings to Misamis Oriental – I Rural Electric Service Cooperative Inc. (MORESCO - I) as you hold your 45th Annual General Membership Assembly and 47th Foundation Anniversary Celebration. Citizen participation turns the gears of equitable progress, the empowerment of the Filipino people optimizes their capacity as our nation builders. Our efforts to bring comprehensive electrification to every sitio and barangay help ensure that our citizens are provided with the means to pursue their aspirations with the comforts and conveniences of modern technology. Let this event be a reaffirmation of the excellence and integrity that your members have committed in service. Wishing you a more fruitful and evocative assembly.
HON. LEONARDO L. UY, JR. Municipal Mayor
Energizing Development, Empowering Lives
MORESCO - 1
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MUNICIPALITY OF INITAO
My warmest greetings to the officers and members of MORESCO-1 Laguindingan, Misamis Oriental on the occasion of the celebration of its 45th Annual General Membership Assembly and 47th Foundation Anniversary on May 22, 2015 with the theme: “MORESCO-1: ENERGIZING DEVELOPMENT, EMPOWERING LIVES.� It is my distinct honor and privilege to extend my message on this historic assembly wherein the Cooperative had experienced difficulties and recoveries of damages attributed by calamities as well as shortage of power supply that brought inconvenience and worries from members and consumers. Yet despite these adversities, the officers of MORESCO-1 made all efforts to address them for the fulfillment of its objective of providing energy for the development and the empowerment of lives. I am proud to be a member of MORESCO-1 as it continuously serve and likewise proud to note that MORESCO-1 has received numerous awards because of its good performance and excellence as a cooperative through hardships and struggles with the able leadership of the officers in the past forty-five years. Indeed it has made a difference in the lives of the members and consumers it has committed to serve. I would therefore appeal to the members and consumers to continue supporting the cooperative with unity, courage and resiliency as we move for a better future. MABUHAY ang MORESCO-1!
HON. ENERITO J. ACAIN, V Municipal Mayor
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MORESCO - 1
Energizing Development, Empowering Lives
MUNICIPALITY OF NAAWAN
My warm Greetings to the members of MORESCO –I on its 45th Annual General Membership Assembly and the 47th Foundation Anniversary. MORESCO-1 is now advancing its age in public service. For the past 47 years MORESCO-1 becomes part of our lives are we are blessed with its presence and in providing us services like electricity. It is always a challenge for one electric cooperative like MORESCO-1 to go beyond its limits and usual delivery of services into something great to transform people’s lives. This year’s theme which is “ MORESCO-1: ENERGIZING DEVELOPMENT, EMPOWERING LIVES makes a lot of sense in our daily activities as our lives are now totally dependent with electricity . With the present condition we have, we are challenged how to save and renew energy electricity amidst electricity dependency. We are not only member-consumer of MORESCO-1 but we have this social obligation to help conserve energy and continue to help empower other lives. By conserving energy, we are heroes in our little ways. Allow me to congratulate MORESCO-1 and its consumer members for another year of success. Let us continue to empower one another in transforming other lives. CONGRATULATIONS!
HON. JAIME C. ROA, M.D. Municipal Mayor
Energizing Development, Empowering Lives
MORESCO - 1
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MUNICIPALITY OF MANTICAO Happy Founding Anniversary to everyone! First, let me congratulate MORESCO – 1 for your great success. You have continuously provided unfailing service not just to my people but to the whole populace of Misamis Oriental. You are a true picture of what authentic service is all about. I am very happy, that this year, MORESCO-I is now on its 47th Foundation anniversary which signifies that your potency has contributed much for the success of the programs you have implemented. MORESCO-I has showed that when combined strength is used as a mechanism to attain our aspiration in empowering the lives of our consumers, we can move forward in developing even the remotest sitios and puroks which is a true picture in Manticao. Many hinter sitios and puroks were already energized which resulted to an increase in household connections. Aside from helping the people and the community, MORESCO-I also reduced the burden of the government particularly that LGUs have limited resources. Yet, with the growing demands of the people, MORESCO-I is able to meet its requirement as our theme for this year speaks “MORESCO-I: Energizing Development, Empowering Lives”. May MORESCO-I continue to stand out in the cooperative movement of the Philippines. Mabuhay ang MORESCO – 1!
HON. ROBERTO M. LAGROSAS Municipal Mayor
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MORESCO - 1
Energizing Development, Empowering Lives
MUNICIPALITY OF LUGAIT
Congratulations to the 45th Annual General Membership Assembly and 47th Foundation Anniversary Celebration of MORESCO-1, another momentous event in MORESCO-1’s journey to progress with its accomplishments. The prominence you have developed as Rural Electric Service Cooperative extended through the years of quality services is a manifestation of your dedication and sincere desire to improve the quality of life of the members as well as to the community they live in and quantifiably as partner in the escalating social and economic rise of the Local Government Units and its people. For years, the ascendency of MORESCO-1 in undertaking the energy development in the region, not only is a legacy but it empowers and confirms the accomplishments as the vital gear continuing towards advancement worthy for its place in a free society.
M A G A N D A N G M A B U H A Y !!!
HON. WELLIE G. LIM, CPA Municipal Mayor
Energizing Development, Empowering Lives
MORESCO - 1
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MUNICIPALITY OF BAUNGON, BUKIDNON
CONGRATULATIONS! Again MORESCO-1 succeeded in having reached up to its 47th Foundation Anniversary Celebration this year 2015 and, as it will hold its 45th Annual General Membership Assembly this coming May 22, 2015. As public servants, our chase toward continuing progress and development is similar to this year’s theme: “MORESCO – 1: Energizing Development, Empowering Lives”. The LGU of Baungon has always been moving toward that pursuit to provide every corner of this municipality electrification and power supply in the hope of making our constituents become proactive in contributing their potentials for development, in the whole. With MORESCO-1 as one among our truly vigorous stakeholders in progress, the LGU of this municipality will continue to support its programs, projects, and activities in the belief that this partnership along with our common commitment to serve the people will make us succeed in our endeavors, now and in the future. We, hope that this commitment will stay to burn in us the dedication to serve and make the lives of our people empowered and energized to achieve their desired good and growth. GOD BLESS.
(SGD.) HON. PEDRO R. ALVAREZ Municipal Mayor
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MORESCO - 1
Energizing Development, Empowering Lives
MUNICIPALITY OF TALAKAG, BUKIDNON MAAYAD HA ANLAW!
In behalf of the Local Government and the people of Talakag , I have the honor to convey my warmest congratulations and best wishes to the Misamis Oriental - 1 Rural Electric Service Cooperative, Inc. (MORESCO-1) on the occasion of our 45th Annual General Membership Assembly and 47th Foundation Anniversary Celebration. Energizing communities, development of new ideas and initiatives give each lives hope, encouragement and motivation to strive for an improvement. Act as if every action we take effects the whole then we will feel more empowered about making a difference as well as more careful about our actions and its consequences. The Local Government of Talakag commends the efforts you made and strongly hopes for your continued partnership with us for the benefit of our people. MABUHI KA, MORESCO-1!
HON. NESTOR B. MACAPAYAG Municipal Mayor
Energizing Development, Empowering Lives
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Corporate Messages MORESCO-1 HOTLINERS AT WORK
Preventive Maintenance - using the technology called Thermal Scanner, MORESCO-1’s Operations & Maintenance Team can already detect any abnormalities going on along the electric poles. This photo was taken during the “hotspot correction” conducted by one of our O&M teams, as part of MORESCO-1’s preventive maintenance routines in all its four (4) Service Areas: Manticao, Laguindingan, Opol and Talakag. Cleaning and replacing pole accessories on a live line are some of the things being done along the detected lines as part of hotline’s capabilities to ensure the delivery of continuous power to our member-consumers.
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Message from the
Board President
Forty seven (47) years to be exact on May 21, 2015 had past since the conception of rural electrification in the country and its first pilot project was implemented in Misamis Oriental, where our beloved Misamis Oriental-1 Rural Electric Service Cooperative Inc. (MORESCO-1) formed into being. We owed this from the wisdom and compassion of former Vice President Emmanuel “Maning” Pelaez, our very own Misamis non-leader, who brought the rural electrification program aimed to empower the lives of his countrymen. Empowering means the rural electrification bridging the Filipinos towards economic opportunities, increase in the production for agricultural and aquatic resources, and to be at par with its neighboring ASEAN countries. With the strong support from the national government, the rural electrification paved the way of lighting the countryside. We believe, embrace, propagate, treasure and persevere these ideals from former Vice President Pelaez as manifested in the replication of MORESCO-1 as its pilot project, into 119 Electric Cooperatives (ECs) at present, significantly distributed in the archipelago. I am proud to be a member-consumer and now as member of the Board of Director of MORESCO-1, the pioneer EC in the country who is recognized as one of the finest, top performing distribution utility, that provides reasonable electric rate at lower cost compared to its neighboring private, and non-stock nonprofit distribution utilities.
Our theme for this 45th Annual General Membership Assembly of MORESCO-1: “Energizing development, Empowering lives”, is attuned to the vision of Vice Pres. Pelaez.
MORESCO-1, which started in 1968, brings along its pioneer employees, officers, general manager, and board of directors. To name a few, our former Board President, Engr. Melvyn D. Eballe was the first general manager. With his expertise together with the support of the memberconsumers, he was elected to represent the APEC Party-list in the House of Representatives. The power industry was restructured upon the passage of R.A. 9136 otherwise known as the “Electric Power Industry Reform Act of 2001 (EPIRA), from monopoly to competitive and regulated distribution utilities. Thus, this prompted the electric cooperatives’ quest towards this competitive era in compliance with the standards of good utility practice set by the Philippine Distribution and Grid Code which was tested and honed for better service. However, despite this restructuring in power industry, MORESCO-1 had reached the communities where it served from Lugait to Opol, Misamis Oriental, and further expanded to the nearby 15 barangays of Cagayan de Oro City, 17 barangays of Talakag, a barangay in Baungon all in the province of Bukidnon and a Barangay in Iligan City through a joint effort from the government, board of directors, management, employees and the full cooperation of the member-consumers. We as member-consumers have a great impact and contribution to what MORESCO-1 has attained at present. The electric cooperative was recognized in the country as one of 7 Grand Diamond awardees consistent single digit systems loss and in year 2014 earned the title as the EC having the lowest systems loss; our General Manager was regarded as Grand Diamond Awardee General Manager. The member-consumers’ involvement in securing the acquisition of right of way and easement; assistance during the construction and installation of distribution lines; attendance for pre-membership seminar to understand our duties and responsibilities; ceremonial activity for the energization; our commitment to pay our monthly electric bill on time; and to encourage our community to abide in the electric distribution policy and guidelines and to support its undertaking for the common good and purpose are amongst the great contributions. Inspired with this enormous support and commitment from the member-consumers; the employees, management and the board of directors responded with wholehearted service guided by its core values in attaining this achievements: Energizing Development, Empowering Lives
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PASSION FOR SUCCESS. The Board of Directors and management true to its mandate as electric cooperative to provide reliable, continuous, safe electricity to the member-consumers at a reasonable cost had undertaken vigorous study to include the long term distribution development plan, power supply plan, competency enhancement of the employees, constant information awareness to the member-consumers and good governance among the officers and board of directors. INTEGRITY. All procurements, plan for the construction and/or acquisition of capital expenditure projects had undergone competitive bidding consistent with the set rules of the National Electrification Administration procurement guidelines. In times where there are disagreement on the issues, the cooperative through its management and board of directors are just and fair negotiator who made it a point to exhaust all the administrative remedies for reconciling the matter. SOCIAL RESPONSIBILITY. One of the cooperative’s plan is providing service beyond electricity. Partnership with the local government units, private entities, non-government organizations all in the effort for environment protection and preservation; economic and livelihood opportunities through the technical and financial downloading; education and health through information education campaign for students, senior citizen associations and barangay assemblies; entertainment through the performance of our MORESCO-1 band, power dancers and MORESChorale. In line with our service to provide electricity, we engage contracting not only for conventional technology but to include a joint venture on renewable energy technology. Tapping some mini hydro power project within our franchise, we had a joint venture with EEI Power Corp., entered a renewable energy supply agreement with First Gen Bubunawan Hydro Corp. for its 23MW Hydro Power Project and created a research team to focus on renewable energy sources. In summary, our cooperative is created for a reason and that reason is for the development in the countryside. With great pride and honor, I am grateful to be of service to our MORESCO-1 through my colleagues in the Board, Management, to you and to my country! Long live and onwards a strong and excellent world-class MORESCO-1!
DIR. NONITO M. LABIS, DVM Board President
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Energizing Development, Empowering Lives
Message from the
General Manager
Dear valued member-consumers,
Time flies so fast. Forty-seven years went and seemed like yesterday when MORESCO-1 was still revolutionizing the rural electrification in the country. History was written the day it was built and every passing day it continues to be one of the best-managed, best-performing, and unfailingly renowned leader among the 119 electric cooperatives of the Philippines. Since its conception on May 21, 1968, we have surpassed all the challenges that came to the cooperative. Today, as we celebrate our 45th Annual General Membership Assembly and 47th founding anniversary, we again gather as one in preparation for the rapid growth that is coming in our coverage area, especially because of the newly-operated Laguindingan Airport and the progress it brings. So much development needs to be energized, so many lives need to be empowered. In this light, I am thrilled to share a sight of our operational plans beginning this year, which are the N-1 Redundancy Project, Capital Expenditure Projects, Power Supply Planning, and Supervisory Control and Data Acquisition or SCADA. With the physical indicators of development in the Cooperative’s coverage area, there’s a balance of infrastructure development to cope with the demand such as the emerging buildings and roads widening projects. This leads us to the most important matter to be discussed in this assembly -- the security and reliability of our power supply. I am very proud of the results of the best efforts of the Management and the Board of Directors combined in deliberating every chance of having additional capacity in our power supply. Because of their brilliant minds and caring hearts, no home shall be deprived of light in all years to come. Thrillingly revealing the coming of May 21, 2018. It is a symbolic date for MORESCO-1 as the pioneer Electric Cooperative (EC) of the Philippines celebrates its golden (50th) jubilee – the year of thanksgiving for the pioneering men and women who fought to realize the rural electrification in the country. With this, we extend our warmest gratitude to the Senior Citizens Misamis Oriental Federation Officers, for showing their support and ensuring that the goal that they have started is being achieved and aligned to ours. Now, we have all been dying to look forward to the possibilities in the future, and what it can offer to this flourishing community; but before we get ahead, it is the perfect time to take a pause and recollect. Looking back, it was Atty. William “Bell” Crisp, the National Rural Electric Cooperatives Association’s (NRECA) legal counsel who advised and collaborated with a Senator from Mindanao, Hon. Emmanuel N. Pelaez, to customize the American rural electrification model to fit the Philippine situation. Thus, ECs strategically set in rural coverage areas, were created and tasked with providing adequate, reliable, and low-cost electricity. To give honor to his great work, we have named our foundation after him – the William T. Crisp International Training Center (WTCITC) Foundation, Inc. This establishment was built to commemorate and return the favor to the member-consumers the way it was given to MORESCO-1. Meanwhile, the BOD and the Management of this Coop cannot afford for this time to pass without a special thanksgiving celebration. Thus, significant activities are lined up to celebrate that upcoming memorable day. One of which is the establishment of a corporate logo, seal, and tagline. These are significantly created to retain the historical identity, institutionalize for use of business correspondences, promote easy recognition, and most importantly, communicate the purpose and values of MORESCO-1. The previous logo with the term “it is owned by those it serves” has been coined by the pioneer people since the beginning of MORESCO-1. Thus, upon institutionalizing, the previous logo was turned into the official seal of the cooperative to remind the predecessors that we have been carrying the same principle since then. The logo, on the other hand, with the new tagline “Energizing Development, Empowering Lives” is comprised of many elements that strongly symbolize the Cooperative and speak its ultimate goal in serving its member-consumers. Having all these at hand, there clearly is a great future that lies ahead of MORESCO-1. I have been at the service for thirty-four years, and I have seen the transformation of MORESCO-1 of which I am more than honored and privileged to have worked and served in this pioneer Electric Cooperative. It has been my gem and my thoughts as long as I can remember. The people are my family and the place my home. Thus, I take this opportunity to express my gratitude for the infinite support and confidence our member-consumers, Board of Directors, Management, staff, partners, friends, and Heavenly Father have entrusted upon me. Let us continue to energize development and empower lives. Mabuhi ang MORESCO-1! ENGR. JULIE B. REAL General Manager Energizing Development, Empowering Lives
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President’s Report
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CONTINUING EDUCATION FOR OFFICERS AND STAFF
MEMBERSHIP STATUS UPDATE Growth in membership in the cooperative for the year 2014 has marked an increase to about 7.01%, that is from 69,445 members in 2013 to 74,367 members as of December 31, 2014. This growth is attributed to the beneficiaries of National Government’s continuing Sitio Electrification Program (SEP), new subdivisions constructed in the area, new commercial and industrial companies emerge in the area as a result of operations of Laguindingan Airport, expansion of the government infrastructure facilities. These increase in member of household, commercial establishments and new high voltage customers, have contributed the additional power requirement of the Cooperative. Yet despite such fact, the Management has efficiently managed its power supply with minimal hours of rotational black out and/or power interruption due to insufficiency of power supply in the year 2014.
MISSIONARY ELECTRIFICATION In the continuing effort of the National Government through the National Electrification Administration (NEA), for the electrification in the entire country, the Sitio Electrification Program (SEP) has extended on its 4th year of implementation in reaching the un-energized sitios and purok far beyond the existing lines of the Cooperative. In year 2014, about 141 sitios were committed to be energized by the Cooperative with 4,052 potential household beneficiaries. Accomplishment at present are 56 completed sitios, 19 of which were energized and 937 beneficiaries had already experienced our service, with the support of the local legislative bodies, which to some extent has waived the necessary permit fees for this indigent beneficiaries of SEP. The purok/sitio leaders, accredited barangay electricians and even the household members, cooperate in securing the necessary Right of Way and electrical permits for the realization of the Program. Amidst, the calamities experienced by our brothers in Central Visayas, our cooperative sent linemen for the immediate restoration of power in Tacloban, Leyte and Bantayan Island, Cebu; generating facilities and vehicle for mobility. 28 | MORESCO - 1
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In compliance with the mandatory requirements from the National Electrification Administration (NEA) and the newly passed Republic Act No. 10531, otherwise known as the “National Electrification Administration Reform Act of 2013” where it aimed to empower and enable the Electric Cooperatives to cope with the changes brought about by the restructuring of the electric power industry pursuant to Republic Act No. 9136 otherwise known as the “Electric Power Industry Reform Act of 2001”, our officers had attended Cooperative Management Course (CMC-1); Good Governance Seminar (CMC-2); NEA Strategic Thinking; and consultative meetings spearheaded by the Department of Energy and Mindanao Development Authority. Competency upgrading for power supply contracting, capital expenditure and operational expense rate making seminars were attended by the Board of Directors which was facilitated by the University of the Philippines professors.
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International assembly on rural electrification practitioner, especially the National Rural Electrification Cooperative Association in the United States electric cooperative, which the Philippine’s rural electrification was patterned has been the avenue of having a sister cooperative in the US. Exchange of best practices among the electric cooperative is one of the benefits for attending the said assembly. Moreover, in the pursuit for international accreditation in terms of the Quality Management System, our Cooperative had started the documentation process requirement for ISO 9001:2008 to further improve our efficiency in providing quality service to the member-consumers we serve.
Energizing Development, Empowering Lives
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CORPORATE RESPONSIBILITY AND TOGETHER WITH GOVERNMENT
SOCIAL WORKING LOCAL
In the successive calamities that hit Mindanao and Central Visayas, which recently is the Typhoon Yolanda- the cooperation, teamwork and brotherhood amongst electric cooperative in the Philippines once again was reunited for benevolent purpose, by sending our manpowere from linemen to construction crew and generator sets carried out to Leyte II Electric Cooperative Inc. (LEYECO-2) and Bantayan Electric Cooperative Inc. (BANELCO) to expedite its power restoration greatly affected by the said typhoon. Likewise, financial assistance and packed goods were extended to the affected provinces. As part of the corporate’s mission and core values to partner with communities for economic development and environment protection, MORESCO-1 through the Office of Corporate Social Responsibility (CSR) took part in the tree growing which marked the Philippines in the Book of Guinnes as the highest record holder for trees planted in an hour. Conduct for continuous Information Education Campaign to some of the districts of the cooperative. Partnership with National Grid Corporation in the Philippines through Gabay Linya Project in providing school supplies and equipment to some identified elementary school within the franchise of MORESCO-1. To assist the cooperative and the local government unit to monitor the weather condition in eastern part of Misamis Oriental our partnership with Therma South Inc. and Weather Philippines Foundation Inc. was made through the installation of one (1) weather station unit within one of our substations. MORESCO-1 does not only provide electric service to the community but as well as promoting entertainment through its Power Dancers and Power Band, composed of its employees who perform during the Annual Town and/or Barangay Fiesta as well as to Non-Government Organizations activities. The MORESCO-1 band has been known in the province and can even be compared with the national bands in terms of their prowess. Thus, several local government units are eager to avail our MORESCO-1 band. In this regard, the Board in cooperation with the Management passed
5
EFFICIENT SERVICE AND OPERATIONAL VIABILITY: For a fast, timely and safe response on the electric power needs of the memberconsumer, MORESCO-1 acquired additional four (4) units of vehicles for the operation and maintenance. Meantime, the contracted information technology integration of business process is now on-going in order to provide for timely, integrated and accurate report free from human intervention.
FULL INVOLVEMENT OF MEMBER CONSUMERS IN ALL MAJOR ACTIVITIES OF THE COOPERATIVE District Elections were held in the Districts of Manticao, Initao and Libertad where it recorded an average of 72% turn-over of votes for the district of Libertad while in the other two (2) districts, there were only sole candidates who filed in their respective municipalities. Likewise, in our 44th Annual General Membership Assembly it recorded 23,573 attendees of members. It was also participated by the former members of the Board of Directors of MORESCO-1. These coop activities are part of the corporate governance implemented by MORESCO-1 which is consistent with the mandate of the National Electrification Administration.
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Turn-over and energization on the beneficiary households under the Sitio Electrification Program of the National Government with the presence of the Barangay Officials, Board of Director and representatives from the Local Government Unit. The participation of the Barangay in the technical and financial downloading of the cooperative, the Barangay as the agent of the coop to maintain the lines after the several learning session and actual implementation of the program. Energizing Development, Empowering Lives
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COMMITMENT FOR RELIABLE SERVICE AND POWER SECURITY With the visible indicators within MORESCO1’s coverage indeed it is the gateway of Northern Mindanao. The Management and Board has prepared its Distribution Development Plan on the network or facility requirement and power supply plan consistent with the demands of the Province and compliant with the standards required under the Distribution and Grid Code of the Philippines.
The summer of 2014 had marked power supply deficiency, where the biggest power plant, STEAG, had its preventive maintenance causing a total blackout in the entire Mindanao. Coping with this incident, there was a rotational black out, and in MORESCO-1 franchise, the rotational schedule of power interruption was shortened due to the Interruptible Load Program with the participation of Asia Brewery Inc. (ABI), WL Foods Inc. and Donau Carbon Inc. As a mandate to the electric cooperatives, in providing a secured power to the member-consumers, MORESCO-1’s Management’s Technical Working group had conducted a thorough study and evaluation in arriving at the optimal power supply mix requirement of the cooperative. The main source of electricity in Mindanao which are the Agus and Pulangi Hydro complexes were built since 1950s and in operation there having no rehabilitation conducted pursuant to the rationalization of the power industry under
RA 9136, otherwise known as Electric Power Industry Reform Act of 2001, (EPIRA Law), its capacity output is depleted at present which prompted the distribution utilities like MORESCO-1 to look for power suppliers capable to meet its requirement. With this, after evaluation on the offers of several independent power producers, MORESCO-1 endeavored to enter a long term contract with FDC Misamis Power Corporation, GN Power Kauswagan and AMRECO PSAg Corporation and Therma South Inc. to address the base-load requirements; renewable technology was identified to address the intermediate load; and to PACERM-1 Energy Corporation for its peaking requirement.
The Cooperative was also able to acquire 1 unit of modular generatin set offered by Department of Energy through loan in National Electrification Administration to strengthen and address the power requirement in Laguindingan Airport. MORESCO-1 does not limit its power sources to one technology like coal or natural gas; it is interested as well in renewable project like hydro power and solar photovoltaic technology which is being promoted to address the climate change experienced nowadays.
DIR. NONITO M. LABIS, DVM Board President 30 |
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General Manager’s Report
For almost five decades now, as the pioneer electric cooperative of the Philippines, MORESCO-1 is always greatly dedicated in bringing light to every doorstep in its coverage area. The Board of Directors and the management exert exceptional efforts to meet every year’s increasing demand from the community despite the intervening challenges of the Mindanao power crisis, the effects of climate change, the Electric Power Industry Reform Act (EPIRA), and the incoming ASEAN Integration. Despite these challenges, the Cooperative remains resilient and continues to provide quality service to its member-consumers.
Aerotropolis: Increasing Demand MORESCO-1 recently attended an expanded workshop conducted by the National Economic Development Authority Region 10 (NEDA-X) together with all the region’s participating industries on February 12, 2015. That activity aimed to ascertain the Priority Focus Areas (PFAs) and Strategic Development Areas (SDAs) in the region. During the workshop, the participants have identified MORESCO-1, which happens to be strategically located a few kilometer-distance from the gateway of Misamis Oriental, to play a vital role in the progress of the Laguindingan Airport Development Project (LADP) Impact Zone, also known as “aerotropolis” which means a new urban form whose layout, infrastructure, and economy is centered on the airport, where its connectivity is also expected to develop. Few of the many key development areas under the LADP Impact Zone that will increasingly demand for energization starting this year are the transportation (airport expansion, seaport, and roads), agri-production and processing (complex and centers, small enterprise technology upgrading program), tourism (pasalubong centers, beach resorts, springs, and waterfalls), residential (subdivisions), education (USTP), sanitation (landfill), water supply (watersheds), and additional power supply (renewable energy sources and sub-transmission lines). With these overwhelming demand to energize the incoming developments and empower the flourishing lives of Misamisnons, MORESCO-1, as the one responsible in the power distribution, guarantees to provide the necessary supply, especially now with the Laguindingan Airport implementation of the night flights since March 12, 2015 and the coming upgrading to meet the standards for the international flights.
Power Supply reliability In 2014, some parts of Mindanao experienced rotating brownouts that stretched to ten hours due to the shutdown and reduced capacity of the Mindanao power-generating plants together with the unpredictable climate change. MORESCO-1 had to ease the situation by inviting its big load consumers, mainly the Asia Brewery, Inc., Donau Carbon, and W.L. Foods Corporation, in which the said participants enter into an agreement with MORESCO-1 for Interruptible Load Program (ILP). Energizing Development, Empowering Lives
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The participants voluntarily run their own generator sets during power shortage and shift a portion of their load from distribution grid to their generator sets in order to prevent other member-consumers, especially residential, from experiencing blackouts. Meanwhile, the acquisition of 2MW Modular Genset supplied by Gendiesel Philippines, which started commissioning on September 3, 2014, also contributed the immediate solution especially during peaking hours. The modular genset is acquired through National Electrification Administration under the program of the Department of Energy (DOE). The total power contracted by MORESCO-1 is 67MW from the following suppliers: PSALM 52MW, Mt. Apo 10MW, ILP Participants 3MW, and the Cooperative’s Modular Genset of 2MW. However, with the increasing demand in the area, there is a need to continuously secure for a reliable power supply. Thus, we have a list of future additional power contracts with PACERM-1 with 10.5MW this year, Therma South, Inc. with 5MW in the first quarter of 2016, FDC Misamis Power Inc. with 22MW in 2017, First Gen Bubunawan Hydro Corporation with 23MW also in 2017, and lastly, GN Power Ltd. with 34.05MW in 2018. Aside from contracting power supply, the Cooperative assures its reliability through the implementation of the Capex Projects just recently approved by the Energy Regulatory Commission (ERC). These are the N-1 69kv sub-transmission line project which will be looped to NGCP Lugait and Opol Substation providing back-up mechanism to our Transmission System, Supervisory Control and Data Acquisition (SCADA) which will provide real time data monitoring and control of equipment remotely, thus, greatly increasing operation efficiency and upgrading of substation, equipment, and communications software. *** Being part of these great achievements, I am very grateful to our member-consumers, Board of Directors, Management, employees, suppliers, partners, and most especially to our Heavenly Father. We hope that you will continuously support all the undertakings of our Cooperative. Let us yield more opportunities for improved quality of life, greater access to basic services and better infrastructure for rural development, and most importantly, continue to energize development and empower lives.
Mabuhi ang MORESCO-1! JULIE B. REAL, PEE General Manager
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Technical Reports
“
MORESCO-1 just acquired these brand
new vehicles in 2014 and first quarter of 2015 for the four (4) Service Areas, respectively. This is for our mobile workforce in the operations and maintenance, to give a quick response to our member-consumers wherever they are located; thus, improving our systems reliability and upgrading our service efficiency.
“
LAGUINDINGAN SERVICE AREA
MANTICAO SERVICE AREA
Business Address: National Highway, Poblacion, Laguindingan, Misamis Oriental
Business Address: P10 Esteban Balabat St., Poblacion, Manticao, Misamis Oriental
Tel. Nos: 09178481624; (088)5830175
Tel. Nos: 09985547020; (088) 5830175
OPOL SERVICE AREA
TALAKAG SERVICE AREA
Business Address: Zone 4, J. Montes St., Poblacion, Opol, Misamis Oriental
Business Address: Barangay 1, Poblacion, Talakag, Bukidnon
Tel. Nos: 09177091549; 09985581569
Tel. Nos: 09175535232; 09985378269
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Demand and Energy Profile
The entry of HOLCIM and Sobros is the reason for the huge difference of demand and energy between 2011-2012. Energizing Development, Empowering Lives
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Consumer’s Profile
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System Loss Profile
Kilometer of Lines
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Fact Sheet
Electric Billing Component
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Modular Generation Set Construction 1st Electric Cooperative to avail the NEA-DOE Program MINDANAO POWER SHORTAGE SHORT TERM SOLUTION
Capital Expenditure Project
Date Filed to Energy Regulatory Commission: October 27, 2011 Date of Approval: December 1, 2014
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Institutional Reports
“T
he r e c e n t l y l a u n c h e d n i g h t f l i g h t a t Laguindingan airport, serving the travelers in Region 10 and its neighboring provinces, through the Philippine Airlines (PAL) and Cebu Pacific.
The Laguindingan airport which was launched in 2014, has been one of the major projects of the government, which has given the western part of Misamis Oriental indicative growth of business industries and activities. Thus, MORESCO-1 aims to meet the current and future demands of its coverage area, while delivering a world-class standard service to its member-consumers.
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Energizing Development, Empowering Lives
MORESCO-1 processes
Senior Citizens application for
discounts
2.2.2 The senior citizens centers and residential care facilities/institutions or group homes must have been in operation for at least six (6) months and must have a separate meter for said utilities/services. Sec. 4.Change of Membership. Following the inquiry raised during the 2014 AGMA, we are republishing the salient provisions of the Energy Regulatory Commission (ERC) Resolution No. 23, series of 2010, A Resolution Adopting the Rules Implementing the Discounts to Qualified Senior Citizens End-Users and Subsidy from the Subsidizing End-Users on Electricity Consumption under Sections 4 and 5 of Republic Act. No. 9994. Article I, Sec. 1. Objectives These Rules shall have the following objectives:
In the case of electric cooperatives, residential memberconsumer may change membership in order to avail of the senior citizen discount provided it complies with the policies and guidelines of the electric cooperative. Sec. 6. Actions on Application for Senior Citizen Discount. DUs must evaluate and process applications for senior citizen discounts within fifteen (15) calendar days upon receipt of complete documents. Within the same period, the DU must inform the applicant through a letter of its decision on the application. For approved applications, the senior citizen discount shall apply the next billing period after the approval. For disapproved applications, DU must state the reason/s for disapproval.
1.1.1 To ensure that the Senior Citizen Discount shall be granted and applied to all qualified senior citizen endusers of all DUs from the subsidy to be paid by the nonsenior citizen and non-qualified senior citizen end-users; 1.1.2 To provide for transparency in the giving of the Senior Citizen Discounts and in the calculation of the subsidy rates; and 1.1.3 To protect the public interest as it is affected by the rates and services of DUs.
Application for approval of discounts shall only be accepted and processed by the DU after the residential senior citizen customer has established the one (1) year residency period and the senior citizen centers and residential care facilities/institutions or group homes has established the six (6) months operation requirement.
Article 2. Senior requirements
Senior citizen end-users availing of the senior citizen discount shall renew annually their applications with the DU to ensure that they are still eligible for the said benefits and/or are still existent at the time of renewal.
Citizen
discounts
application
Sec.1.Qualification for Availment of Residential Senior Citizens’ Discount. To avail of the discount for the residential senior citizen customers, the following conditions must be observed: 2.2.1 The senior citizens centers and residential care facilities/institutions or group homes operators must submit photocopy of the approved Department of Social Welfare and Development’s (DSWD) accreditation.
Energizing Development, Empowering Lives
Sec. 7. Renewal of Application for the Senior Citizen Discounts.
Article 9. Sec.3. Effectivity These Rules shall take effect fifteen (15) days following its publication in two (2) newspapers of general circulation in the country. These Rules are hereby ordered to be posted on the ERC website and filed with the University of the Philippines Law Center Office of the National Administrative Register (ONAR). PASIG CITY, December 15, 2010. MORESCO - 1
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Salient Provisions 2014 GUIDELINES ON THE CONDUCT OF DISTRICT ELECTIONS FOR ELECTRIC COOPERATIVES NEA Memorandum No. 2014-019, Series of 2014 Sec. 1. APPLICABILITY. These guidelines shall govern the elections of the Board of Directors of all electric cooperatives in the Philippines. Sec. 3. DATE OF ELECTION. - It shall be the responsibility of the Board of Directors to call, schedule and provide appropriation for, by an appropriate Board Resolution the conduct of a regular district election. Such resolution shall be passed in not less than 90 days nor more than 120 days before the Annual Meeting of the cooperative as provided for in the By-Laws. A copy of the Resolution shall be submitted to NEA, within 2 weeks after the Board Meeting. 3.1. In not less than thirty (30) days, but not more than sixty (60) days before the Annual Meeting of the cooperative as provided for in the By-Laws, elections shall be held for districts where the terms of office of the incumbent board members as foxed by the By-Laws are due to expire. The thirty (30) day period shall be reckoned from the date of the last elections scheduled for the year. 3.2. A Special Election shall be called by the Board, by an appropriate Board Resolution, to fill any vacancy due to death, incapacity, resignation, disqualification and other similar causes, if the unexpired term shall be two (2) years or more. A duly-elected director under this provision shall serve only the unexpired portion of the term. However, if the remaining term is less than two (2) years, the Board, by a majority vote, shall appoint through a Resolution the successor to the vacant position from among the nominees submitted by the Multi-Sectoral Electrification Advisory Council (MSEAC) or designate a caretaker from among the Incumbent members of the Board of Directors or a NEA-designated Independent Director. 3.3. The Board shall pass the Resolution calling the Special Election not later than five (5) days after the vacancy occurs, to be held in not less than twenty-five (25) days but not more than thirty-five (35) days after the vacancy. The same master list of Member-Consumers used in the immediately preceding regular election shall be used. 3.4. Instead of electing all the director annually, the by-laws may provide that each year half of them or one-third of them, or a number as near thereto as possible, shall be elected on a staggered term basis to serve two-year or three-year terms, as the case may be. Sec. 4. POSTPONEMENT OF ELECTION - When for any serious cause such as violence, terrorism, loss or destruction of election paraphernalia or records and force majeure, the holding of a free, honest and orderly election shall become impossible, the DECOM shall in its discretion, postpone the election in the District concerned. Such decision shall be subject to affirmation of the NEA representative, if any, supervising the actual conduct of election. In no case shall the postponement of election extend 42 |
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to more than twenty (20) days within which the Board with the confirmation of NEA shall reset the holding of the election. Conduct of such election shall be covered by the prescriptive period in the posting/sending of notices, and in the filing of additional Certificate/s of Candidacy, if any, as provided for in Sections 6 and 12 hereof. Unless any or all of the members of the District and Precinct Election Committees as originally constituted shall have withdrawn, the same members shall supervise and control the conduct of the re-scheduled elections. In case of withdrawal, their alternates shall act in their stead; otherwise, the NEA shall appoint new members of the DECOM. As in a Special Election, the same Master List shall be used. Sec. 5. FAILURE OF ELECTION. - If the Board fails or refuses to call and hold the election as mandated by the By-Laws or as prescribed in Section 3 hereof, the National Electrification Administration, in the exercise of its supervisory and oversight functions over electric cooperatives shall have the right to call and conduct the election for and in behalf of the cooperative. - If in the conduct of said election, the total number of Member-Consumers who registered in the form provided for (Member-Consumers’ Register) fails to meet the quorum requirement of one hundred (100) or five percent (5%) of the Member-Consumers whichever is less, the same shall be deemed a failure of election. In such case, the Board shall schedule another election to be held not more than thirty (30) days after the failed election. However, in case of a lone candidate, one vote shall suffice. ARTICLE II – ELIGIBILITY TO RUN AND CERTIFICATE OF CANDIDACY Sec. 7. QUALIFICATIONS OF A DIRECTOR AND AN OFFICER. - Pursuant to Section 26-B of PD 269, as amended by R.A. 10531, a candidate’s integrity, experience, education, competence and probity shall be considered in determining whether he/ she shall be fit and proper as a director or an officer of the EC. The following shall be the minimum qualifications, thus: 7.1. 7.2. 7.3
He or she is a Filipino citizen; He or she is a graduate of a four (4) – year course; He or she should be between twenty-one (21) years old and seventy (70) years old on the date of election; 7.4. He or she is of good moral character; which may be established with the submission of a clearance or certificate from any of the following: 7.4.1. Barangay where the candidate resides; 7.4.2. National Bureau of Investigation; 7.4.3. Philippine National Police; or 7.4.4. Leader of the religious sect where the candidate is affiliated. 7.5. He or she is a member of the EC in good standing for the last five (5) years immediately preceding the election or appointment and shall continue to be a member in good standing during his or her incumbency; A member of good standing shall mean that said member: 7.5.1. Must have no unsettled or outstanding obligations to the cooperative during his membership in the cooperative whether personal or through commercial or industrial connections of which he or she is the owner/co-owner; 7.5.2 ( Amended by DOE Department Circular No. DC2014-09-0017 ) – below: A member of good standing shall mean that said member has no unsettled or outstanding obligations to the EC whether personal or through commercial or industrial connections of which he or she Energizing Development, Empowering Lives
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is the owner/co-owner three (3) months prior to the time of filing of the certificate of candidacy: Provided, That for incumbent members of the EC Board who will seek re-election, unsettled or outstanding obligation shall be deemed to include power bills, cash advances, disallowances (including NEA audit findings) materials and equipment issuances reckoned from the time of filing of certificate of candidacy. 7.6. Has not been apprehended for electric pilferage: A mere apprehension of electric pilferage by the EC, even without conviction for such offense by any court, shall constitute a valid ground for disqualification. The word “apprehension” should be taken in the strict context as used in R.A.7832, otherwise known as “Anti-Electricity and Electric Transmission Lines or Materials Pilferage Act of 1994”, which means that a person is caught in flagrante delicto for violating the provision of the said Act; 7.7. Has not been removed for cause as director or an employee from any EC; 7.8. He or she is an actual resident and member-consumer in the district that he or she seeks to represent for at least two (2) years immediately preceding the election; and 7.9. He or she has attended at least two (2) Annual General Membership Assemblies (AGMA) for the last five (5) years immediately preceding the election or appointment. 7.10. For qualified government employee, he/she must present a written Certification from his/ her Department Secretary/Regional Director/ Local Chief Executive or his duly authorized representative allowing him/her to run and sit as director at the time of his/her filing of Certificate of Candidacy. 7.11. An EC Director or Officer, in order to remain as such must continue to possess all the qualifications and none of the disqualifications throughout his/her term or tenure of office. To this end, no EC Director shall be allowed to stay in a hold-over capacity if he/she fails to meet all the qualifications or is deemed disqualified. Sec. 8. DISQUALIFICATIONS OF A DIRECTOR AND AN OFFICER. - Pursuant to Section 26-B of PD 269, as amended by R.A. 10531, any person shall be ineligible to be elected or be appointed as member of the Board of Director or Officers of en EC if: 8.1. Such person or his or her spouse holds any public office. For the purpose of disqualification, a person holding an elective position or an appointive position with a salary grade of sixteen (SG16) or higher or its equivalent shall not be eligible to be elected as member of the Board of Directors or Officers of an EC; 8.2. Such person or his or her spouse has been a candidate in the last preceding local or national elections; 8.3. Such person has been convicted by final judgment of a crime involving moral turpitude; 8.4. Such person has been terminated from public office/government employment or private employment for just cause as defined in Article 282 of the Labor Code; 8.5. Such person is related within the fourth civil degree of consanguinity or affinity to any member of the EC Board of Directors, General Manager, Department Manager, NEA-appointed Project Supervisor (PS) or Acting General Manager (AGM) and its equivalent or higher position; 8.6. Such person is employed by or has financial interest in a competing enterprise or business selling electric energy or electrical hardware to the cooperative or doing business with the EC including, but not limited to the use or rental of poles; For this purpose, “doing business” shall refer to the transactions related not only to the core or main line of business of the EC, but also those which in any ways affect the management and operation of the EC. 8.7. Incumbent GM and employees of electric cooperatives are not allowed to run as member of the board of another cooperative; and 44 |
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8.8.
The disqualification of one of the spouse shall mean the disqualification of the other.
Sec. 9. INELIGIBILITY OF REPRESENTATIVE OF JURIDICAL PERSON. - Representative of juridical person shall not be eligible to be candidates for Board member. However, the said juridical person is entitled to only one (1) vote. Sec. 10. ONE MEMBER, ONE VOTE POLICY. - A Member-Consumer shall be entitled to only one vote, regardless of the number of connections. For joint membership, only one member shall be entitled to vote. ARTICLE III – TERM Sec. 15. TERM OF OFFICE. 15.1. The term of office of a regularly elected member of the Board of Directors shall be three (3) years. Such member shall be entitled to only two (2) consecutive re-elections. 15.2. A member of the Board who is elected in a special election under Section 3(3.2.) of this Code or in a postponed regular election conducted after the Annual Meeting date of the year in process, shall take his/her Oath of Office immediately after proclamation and shall serve until the Annual Meeting date of the year of the unexpired portion of his/her term. 15.3. A member of the Board who is considered resigned per NEA Memo No. 2012-016 dated 06 July 2012 or its subsequent amendment thereto if applicable, may not be re-appointed by the Board to serve the unexpired portion of his term. 15.4. A Board Director who has just completed his consecutive terms or an equivalent of nine (9) years in office shall no longer be eligible for appointment to a Board vacancy per section 3(3.2.). ARTICLE VI – MEMBER-CONSUMERS Sec. 19. CUT-OFF DATE FOR QUALIFIED MEMBER-CONSUMERS. - Only member-consumers of the cooperative whose application for membership has been approved by the Board not later than ninety (90) days before the first district election scheduled for a particular year shall be included in the master list of Member-Consumers and shall have the right to vote. ARTICLE VIII – ELECTION COMMITTEES Sec. 29. District Election Committee (DECOM). - The NEA-Institutional Development Department (IDD) shall immediately appoint from among the nominees of the concerned cooperative, a District Election Committee to be composed of a Chairman, A Secretary and a third member not later than twenty (20) days before the election. Alternate members shall also be designated to fill up vacancies if the need arises. Sec. 30. Powers of the District Election Committee (DECOM). - The District Election Committee shall have the following powers:
30.1. Supervise and control other committees constituted under these guidelines, except the Screening Committee. 30.2. Properly implement the election guidelines.
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30.3. Appoint members of the Precinct Election Committees. 30.4. Determine the number of voting centers, election precincts and their locations in consultation with the EC Institutional Services Department. 30.5. Determine the place where the final canvassing and consolidation of electoral returns from all districts shall be held. 30.6. Decide on all post-election matters particularly protest, queries, referrals, postponements including qualification issue(s). 30.7. Act as Board of Canvassers. 30.8. Proclaim the winners in the election immediately after the canvassing.
All decisions of the DECOM shall be made either by majority or en banc. Sec. 31. Precinct Election Committee (PECOM). - In every precinct they shall be appointed in accordance with Section 30 (30.3) hereof, the PECOM shall be composed of a Chairman, a Poll Clerk and/or third member. xxx Sec. 32. QUALIFICATION OF MEMBERS OF ELECTION COMMITTEES. - No person shall be appointed chairman or member of any election committee unless he is a bona fide member-consumer of the cooperative per Article II, Section 7(7.5) and Section 8(8.3 and 8.4) of these guidelines, and at least 21 years of age. Employees of the cooperative may be appointed members of the Precinct Election Committee but not as the Chairman. Sec. 33. DISQUALIFICATION. - Any person related to any member of the incumbent board or to any candidate, his/her spouse within the third civil degree of consanguinity or affinity and/or business partners of associates and members of the incumbent Board shall be disqualified to serve as chairman or member of any election committee. EC Employees are disqualified to run as member of the Board of Directors. ARTICLE XII – ELECTION PROTEST Sec. 53. JURISDICTION. - The District Election Committee (DECOM) shall have jurisdiction over all post-election protest relating to the election of the members of the Board of Directors. Post-election protest which covers that irregularities of the conduct of the election shall be filed within three (3) days after the proclamation of the result of the election. FILING FEE. - Protestants of election cases shall pay in cash to the cooperative a filing fee of PhP50,000.00 but not more than PhP100,000.00 to defray expenses which shall be incurred for the resolution of the protest. These expenses include, among others, DECOM/PECOM/ Screening Committee Members honoraria, attorney’s fee, office supplies, postage and mailing and other incidental expenses during hearing and investigations. Sec. 54. DECISION ON CONTEST. - Either by majority or en banc, the District Election Committee (DECOM) shall decide all post-election protests brought before it within fifteen (15) days from the date of receipt after notice and hearing. The decision of the DECOM may be appealed to the Committee on Electoral Protest headed by the Deputy Administrator for Electric Distribution Utilities Services (EDUS), and with the following as members: the Director for Institutional Development and Director for Legal Services. The Committee has the power to conduct investigation to hear and decide the case, to receive evidence and to summon parties and witnesses. The appellant shall pay to NEA a filing fee in the amount of PhP100,000.00 to cover administrative cost and expenses. xxx 46 |
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ARTICLE XIII. FINAL PROVISION. Sec. 56. NEA Authority to Issue These Guidelines. - These Guidelines are being issued pursuant to the provisions of PD No. 269, as amended by PD No. 1645 and R.A. 10531. Sec. 57. TRANSITORY PROVISIONS. - Nothing in these Guidelines shall be deemed to abrogate the terms and limits set forth in the previous Guidelines on EC District Elections. Sec. 58. REPEALING CLAUSE. - All provisions of the By-Laws of the Electric Cooperative, resolutions passed by the EC Board and any previous NEA issuances anent Rules and Regulations in the Conduct of Electric Cooperative District Elections or provisions thereof inconsistent with the provisions of these Guidelines are hereby repealed, amended or modified accordingly, NEA Memo. No. 2005-012 issued on 21 March 2005, on the Consolidated Guidelines in the conduct of EC District Election and other NEA related issuances shall continue to have full force and effect. Sec. 59. EFFECTIVITY - These Guidelines shall take effect 15 days after filing with U.P. Law Center or publication in two (2) newspaper of general circulations. Done in Quezon City, Metro Manila, 8th day of May 2014. (ORIGINAL SIGNED) CARLOS JERICHO L. PETILLA Chairman (ORIGINAL SIGNED) JOSE RAYMUND A. ACOL Alternate of the Chairman (ORIGINAL SIGNED) (ORIGINAL SIGNED) JOSE VICTOR E, LOBRIGO WILFRED L. BILLENA Member Member (ORIGINAL SIGNED) (ORIGINAL SIGNED) JOSEPH D. KHONGHUN EDITA S. BUENO Member Member
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NUMBER OF MEMBER-CONSUMERS BY MUNICIPALITY AS OF DECEMBER, 2014
Bagged the GOLD! NORMECALYMPICS 2014 Champions
MORESCO-1 proudly BAGGED HOME the GOLD during the NORMECAlympics 2014 last December 4 at Xavier Estates Sports and Country Club, participated by all eight Electric Cooperatives of Northern Mindanao. The preparation for NORMECAlympics 2014 was not a walk in the park. It was a challenge for MORESCO-1 employees. But, MORESCO-1 says no to second place. The employees were trained and determined to be at their best. Most of all, one thing prevailed amidst the challenge CAMARADERIE. A culture that stays in every MORESCO-1 employee no matter the circumstances. With our God Almighty to guide, provide and protect; and as we work always as a team, victory is ours. GO FOR GOLD!
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5
Increasing AGMA Attendance in the Last years
a glimpse of 2014 AGMA
About thirty-six (36%) or 23,573 of the total membership registered in the 2014 Annual General Membership Assembly (AGMA 2014) last May 23, 2014 based on the consolidated data-entry registration. It is the highest so far in the last five (5) years ever recorded. This year, it is projected to have an increase of roughly 10%, consistent with the annual estimated attendance in the last three years. MORESCO-1 notified its member-consumers that registration starts at 6:00 o’clock in the morning, however experienced members are already have their queuing for registration as early as 2:00 AM, compelling the dedicated work force to start the registration.
DISTRICT E L E C T I O N S Alubijid District Engr. Joar Jamorol Dy, second from left was the lone candidate representing Alubijid District who was proclaimed by the District Election Committee (DECOM) last March 28, 2015 pursuant to the 2014 NEA Guidelines on EC District Elections. He is a native and resident of Poblacion, Alubijid, Misamis Oriental. He graduated his Bachelor of Science in Electronics and Communication Engineering at Feati University in Manila Philippines and is currently into the field of business. This is the second round of his 3-term of service having served in the years 1998 – 2003; 2003-2006 and 2006 – 2009. Energizing Development, Empowering Lives
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El Salvador District Newly elected Board of Director representing El Salvador District, Mr. Edwin Magpulong Igloria , third from left, was declared by the DECOM as winner through plurality of votes last April 11, 2015 from the three contenders. Mr. Igloria is a graduate of BS Agriculture major in Crop Production at Central Mindanao University, Bukidnon.
Opol District Mr. Bacus was the lone candidate for Opol District. He is a resident at Igpit, Opol, Misamis Oriental and a graduate of Bachelor of Science in Biology at Xavier University – Ateneo de Cagayan.
Mr. Albert Benedict Factura Bacus, fifth from left, was proclaimed by DECOM as the new Board of Director for Opol District last April 18, 2015.
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Financial Reports
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After a day’s work, linemen took time to chill out and enjoy nature’s splendor, feeling proud and victorious of what they have accomplished.
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2014 Financial Update Rates Generation Rate Towards the end of December 2014, the coop had started the operation of its newly acquired modular generation plan. This mainly caused the increase in the average generation rate in December 2014 by around P 0.13/kwh. However, the rate impact was reduced to around P 0.04/kwh in the 1st quarter of 2015 considering that kwh consumption is still very minimal. Distribution, Supply and Metering Charges There is no rate adjustments effected this year for the coop’s Distribution, Supply and Metering Charges though MORESCO-1 has a pending rate adjustments application with the Energy Regulatory Commission (ERC) but as of to date, our coop had not yet received the decision of the ERC. To recall, our coop had since 2010 been using the Distribution, Supply and Metering (DSM)under ERC’s Rules for Setting Electric Cooperatives Wheeling Rate (RSEC-WR). However, due to the negative impact that these rates will have for the coop, it was decided by management, after making a manifestation with ERC on December 2011, to again file a rate adjustment under the previous ERC’s Uniform Rate Filing Requirement (UFR) using Year 2011 as test year. Prior to RSEC-WR, the Cooperative had used the rates approved by ERC last September 2008 until the end of 2009. This new rate adjustment was filed with the Energy Regulatory Commission on February 22, 2013 after its publication and postings with the LGUs within the coop’s franchise area. The overall rate impact of this pending adjustment compared to 2008 rates is an increase of P 0.38/kwh.
Financial Operation and Position
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MWHr Sales per Consumer Type
Decline in MWh sales of Special Loads is due to the long period of preventive maintenance of the plant of HOLCIM Philippines in Lugait, Misamis Oriental.
Financial Key Ratios
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Capital Expenditure and Borrowings Capital expenditure (CAPEX) incurred this year amounted to P 142.34 million which includes P 41.51 million in the acquisition of the 2MW Modular Generation Plant and around P 40 million in the final completion of the 2009 CAPEX (as approved by ERC) and other necessary Capital expenditures. Included also in CAPEX is the cost incurred amounting to P 62 million for the Sitio Electrification projects initiated and funded by the National Government thru the National Electrification Administration (NEA) since the last quarter of 2011 (see discussion under Sitio Electrification Subsidy below).
Please find below the detail of transaction this year’s on loan borrowings and payment:
Considering that loan payments are sourced from the Reinvestment Fund for Sustainable CAPEX (RFSCE) under the ERC’s rules and regulations, following is an accounting of this fund for this year:
RESTRICTED FUND - RFSCE
The CAPEX program for 2011- 2014 which was presented during the 2011 AGMA and which had been filed with the ERC on October 28, 2011 was finally approved by the latter on December 1, 2014. Total amount approved is around P 836.37 million (refer to Technical Report for Breakdown). This excludes the acquisition of (to describe). Of all the top commercial banks that submitted their proposal to finance these projects, the Philippine National Bank (PNB) was evaluated to have the best offer. On September 1, 2014, PNB had pre-approved a P1.2 Billion Loan Credit facility on the basis only of MORESCO-1’s good credit standing with its present creditors, its sound and positive financial performance, which earned the coop a Triple A rating and a Grand Diamond Awardee from NEA. 54 |
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Sitio Electrification Subsidy The Sitio Electrification Program (SEP), in partnership with all electric cooperatives all over the country, was launched by the Aquino administration in 2011 in compliance to his administration’s social contract with the Filipino people. Through this, more Filipinos are given the opportunity to have access to energy which is one of the keys to development and poverty alleviation. During the first batch of implementation of SEP, MORESCO-1 had the highest number of sitios approved to be completely energized totaling 97sitios. After the said batch, several more batches are scheduled with the main goal of having 100% electrification amongst the barangays and the sitios. Below are significant figures related to the Sitio Electrification Program as of end of 2014:
Total released so far by NEA amounted to P 180.75 million as of December 31, 2014 covering around 500 sitios. For the 2011 two batches and for 2012 Batch 1 and 2, NEA had already fully released the fund less 10% retention (subject to release upon full project liquidation).
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BODs' Substation
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visit at
moog
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2014 Corporate Highlights CONTINUING INFORMATION DRIVE TO STAKEHOLDERS
help enhance the awareness of our community through our respective local government units, thus, giving time to plan ahead and prepare for the circumstances that may arise.
For 2014, MORESCO-1’s Information Education Campaign (IEC) has been massively conducted to the multi-sectoral members of the communities under its coverage area. The drive to make the member-consumers learn and understand the undertakings of MORESCO-1 in its operations, is number one on the list of our Cooperative for its member-consumers to feel pride over the achievements that their Cooperative brought on the fore, at the same time feel the sense of being served well. Efforts to make our services better is continuous with the reminders and ideas contributed by the member-consumers representing the different sectors. MAINTAINING STRONG ALLIANCE WITH BUSINESS PARTNERS
M1 & NGCP team w/ GPTA Officers of Elementary schools in Manticao & Naawan on September 2014
MORESCO-1’s partnership with the National Grid Corporation of the Philippines (NGCP) has been fostered for around four years now through giving services beyond electricity. The programs such as Balik Eskwela, Computerization, and Gabay Linya IEC have made the tie up stronger through achieving the same goal, and that is to reach out to the communities we serve.
WEATHER STATION INSTALLATION With today’s unpredictable weather condition, the installation of the weather station in MORESCO1’s Quibonbon substation in El Salvador, is very useful to extract data online through browsing this website: www.weather.com.ph. This compliments the PAGASA weather forecast, making calculations more accurate, which would Energizing Development, Empowering Lives
This CSR project was developed and implemented in partnership with the Weather Foundation Phils. Inc. (WFP) and Therma South Inc. (TSI), in pursuance to MORESCO-1’s mission to extend service beyond electricity
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CSR
STRENGTHENING CORPORATE SOCIAL RESPONISIBILITY
Anchored on 4 Es: Environment protection; Economic enterprise; Education; and Entertainment, MORESCO-1’s CSR has been on the roll on these areas.
Partnership with LGUs has been established particularly on environment protection, giving priority to the National Greening program of the government. Even the private sectors, such as our industrial consumer, Holcim Philippines, who have been supportive of our CSR endeavors especially in the area of environment protection. Economic enterprise is also actively pursued highlighting the Barangay Downloading program among other projects in collaboration with
partner agencies from both government and private. The Education is being catered by the IECs carried out by MORESCO-1; while Entertainment has become part of the Cooperative’s culture through its extension arms: the Power Band; Powerdance; and MORESChorale. All these are extended to the communities to give color to the lives of people whom our Cooperative serves.
Officials and representatives from MORESCO-1, TSI, Weather Phils. during the launching of the Weather station at MORESCO-1 Quibonbon substation, El Salvador, Misamis Oriental 58 |
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MORESCO-1’s
Communication Channels
MORESCO-1’s “KAHAYAG” PROGRAM Airtime Radio Program Schedules
Every other Wednesday 9:00-9:30AM
Attributes of an organization is very important Every Saturday - 1:00-2:00PM to establish its image to the public, making known what they want people to perceive them to be. But it needs an instrument to realize this Every Saturday - 11:00-12:00NN goal. Media Press Releases has been one of the tools that MORESCO-1 uses to get to the masses. This is made consistently to ensure that MORESCO-1’s MPOWER, a newsletthe public is updated with the undertakings of ter released once every 2 months, which is our Cooperative through print publication. Aside from this, MORESCO-1’s block time radio programs boosts the awareness level not only of the member-consumers but also the power end-user who listens to our “Kahayag” program in various radio stations both in FM and AM.
distributed to the member-consumers also provides member-consumers the information that would keep them posted not only with what is happening with their electric cooperative but also help them in getting linked up with MORESCO-1 for their electricity concerns.
MEDIA RELATIONS Press Conference or better called as Media Forum is also held once every now and then particularly if and when there is a controversial issue that needs to be cleared through the media. Year-ender forum with the llocal media last Dec. 29, 2014 presenting the 2014 accomplishments & 2015 plans.
Just like earlier this year, MORESCO-1 gathered the media practitioners in Cagayan de Oro and Misamis Oriental to give them full details of the Mindanao power supply scenario. This was the time when Distribution utilities were being attacked with criticisms on the issue of power shortage resulting to series of power interruptions. It was in this forum that MORESCO-1 was able to convey that despite the implementation of rotational black out, MORESCO-1’s rotational blackout was shorter compared to other ECs, due to the Interruptible Load Program (ILP) it has carried out with its partner Industrial Loads. It also laid out the plans along the pipeline and those that were being implemented to address the power supply concern. The media plays a vital role in delivering information to the public, thus, ensuring that channeling our communication with them must be accurate and correct. Energizing Development, Empowering Lives
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T
he successful treevolution undertaking paved way to another tree planting activity of MORESCO-1 held at sitio Tagbabanga, brgy. Sinai, Laguindingan, Misamis Oriental last November 18, 2014. A Memorandum of Agreement just got completed early January this year, between MORESCO-1 and Barangay Sinai to ensure growth of said fruit trees and continuing environmental preservation and protection advocacy of the 2 parties. In collaboration with Holcim Phils. and the Laguindingan Local Government unit, between 200-500 Guyabano and calamansi seedlings were planted along the brgy road and within the community’s household premises. 36 Tree planting MORESCO-1 Volunteers joined the Brgy Sinai residents who showed enthusiasm in bringing more green to the sitio.
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CUSTOMER SERVICE EFFICIENCY INNOVATIONS VIA CLEVEST MOBILE WORKFORCE MANAGEMENT (mwfm) Foremost in MORESCO1’s long-term objectives, is its commitment, dedication and determination to provide excellent service to its member-consumers. Through innovations in Computer Technology, it has successfully implemented and acquired top-of-the-line capabilities to 1) monitor and track all its crew vehicles on-line and on real-time by employing GPS System and 2) dispatch Job Orders online and on real-time by employing intelligent mobile gadgets while enabling office controllers to have a realistic and up-to-date status on each work progress. Major benefits derived from this project is the drastic improvement in customer service efficiency thereby ensuring customer service satisfaction, while allowing management to effectively manage its assets, control cost and improve overall operational efficiency. Soon, the member-consumers will feel the improvement in MORESCO1’s response time to service requests and outage management, while they will also noticed an updated and realistic job request feed-backing from our frontline staff. This innovation is proven effective and is largely use by electric service utility companies in both continental USA and CANADA. MORESCO1 is very proud that this will be a first among all Electric Cooperatives in the Philippines and maybe even among Private Electric Utility Companies in the Country. With this MORESCO1 sustain its direction to always strive for excellence and be a leader for best practices in the power industry.
CLEVEST Mobile Workforce Management Team
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2014
Corporate Planning Directions
Since the formal institutionalization of the Corporate Planning Office in 2013, it immediately strengthened its organization by hiring competitive staff & re-aligned work units to assist management in the preparation & implementation of short & long term plans to ensure that MORESCO-1 is ready to address the challenges and opportunities posed by the new Power Industry Environment under the new EPIRA Laws, anchored on open access competition, business sustainability and survival. The activities that were facilitated and done by the office in 2014 are as follows: MORESCO-1 had undergone several planning 1. STRATEGIC PLANNING sessions, competency enhancement and The Corporate Strategies of MORESCO-1 was organizational development programs, conducted established in 2008 with a vision of driving the short term and long term performance assessment Cooperative to be a “world-class power provider of and made sure that all operational activities are choice” by 2015. Operational plans were plotted to aligned towards the achievement of its ultimate achieve this objective. However, along the way, several goal. By 2015, MORESCO-1 will assess its overall intervening factors, challenges and opportunities performance vis-à-vis what it wants to achieve as that affect the power industry appeared. With these envisioned in 2008. The MORESCO-1 Strategic MORESCO-1 re-directed its strategies and plans planning cycle and the performance management gearing towards business sustainability and survival. system it employs is best presented in the graph below:
MORESCO-1 welcomed the year 2015 with a Strategic Planning session held last January, ensuring preparatory measures on the projected changes and challenges in the poewr industry.
2. (e-ICPM) ENHANCED INTEGRATED COMPUTERIZED PLANNING MODULE: The year 2014 is again a National Electrification Administration (NEA) schedule for conducting Enhanced Integrated Computerized Planning Module (e-ICPM) Sessions for the years 2015-2016 basis. The Northern Mindanao Electric Cooperatives Association (NORMECA) composing eight (8) members conducted its own sessions at the Hotel KORESCO, Cagayan de Oro City last November 10-14, 2014 62 |
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The coverage of the e-ICPM is termed by NEA and all ECs as the Total Plan of all Electric Cooperatives. The coverage where:
1. Forecast – This represents the Cooperative’s future
performance with respect to power demand, fore cast sales and growth in the franchise area 2. Technical – This is the distribution development plan of the Cooperative’s and its support facilities (CAPEX) in order to sustain, power availability, reliability and quality 3. Institutional – this is the departmental operational plans of the Cooperative to address and improve customer services, corporate imaging and business relationships 4. Financial Forecasting – this is the financial forecast of the Cooperatives which determine its future financial purse considering the projected income and the funds to finance the technical and institu tional plans of the Cooperative.
True to MORESCO-1’s core values and its aim “to do the best we can in everything we do”, MORESCO-1 garnered two (2) major awards out of the four (4) awards in the planning sessions. MORESCO-1 excelled in the Technical and the Institutional Presentations. The participants appreciated the Board and Management for equipping its personnel intellectually by valuing trainings and seminars as “investment” rather than “expense”. These all paid off as it manifested in our endeavors to be the best.
3. MORESCO-1 INTEGRATED BUSINESS PROCESS SOFTWARE (M1-IBPS) MORESCO1 is now on its concluding stage in the development of its Intergrated Business Process Software and is aiming to conduct implementation and deployment of the computerized system within May-August, 2015. The Coverage of these computerization initiatives are the following:
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4.MORESCO-1 PARTNERS WITH PCIEERD & NORMINCIERD TOWARDS RESEARCH DEVELOPMENT The Northern Mindanao Consortium for Industry and Energy Research and Development (NorMinCIERD) is spearheaded by Department of Science and Technology (DOST- RX) which aims to strengthen the system collaboration in the region to develop and enhance the capacity of the institutions engaged in industry and energy researches to contribute to the region’s development. NorMinCIERD is composed of member agencies coming from the Government, Academe and Private Sectors and MORESCO-1 is one of the members of this consortium and is actively participating in every given activities, NorMinCIERD is an ideal venue for MORESCO-1 to engage in research culture that will gradually enable us to conceptualize an innovative research project in the aspect of sufficient power distribution to its member consumers. Currently, MORESCO-1 have already came up with potential research project aligned with Renewable Energy (RE), to be submitted to the consortium for evaluation. Attuned with the goal of said institution through research development, MORESCO-1 is positive it is gearing towards the direction of bringing development to the fore.
5. CLOSED-CIRCUIT CCTV CAMERA (CCTV) MORESCO-1 has now put operational its CCTV System within its facilities in the Laguindingan Headquarters. This system is to ensure security and safety among the Cooperative’s facilities and human resource. This is also in compliance with a directive from the provincial government for all establishments to provide CCTV System in its premises. The MORESCO-1 Program is composed of two phases and the complete program is to cover all facilities for security and safety. While the other objective is to operationalize SCADA System
6. iso 9001:2008 quality management systemproject
in our Distribution System Facilities. For now, only phase 1 was implemented. The 2nd phase is still awaiting CAPEX approval by ERC. 64 |
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7. CORPORATE EMAIL DOMAIN Effective October 2014, MORESCO1 had already acquired a corporate email domain giving a corporate identity to the Cooperative and its employees and staff in the worldwide e-mailing system: The purpose of installing this system is: 1) to provide corporate identity to MORESCO-1 and enhance its reach in the worldwide network and secondly 2) to allow MORESCO-1 to transact with major corporations in a mutually beneficial business transactions which requires MORESCO-1 to have its own Corporate Email Domain.
The corporate email domain of MORESCO-1 is mail@moresco1.com
8. MINDANAO BUSINESS CONFERENCE MORESCO1 has sent representatives to the 23rd Mindanao Business Conference with the following objectives: (A) To gather more information about the possible opportunities and concerns that will directly affect our business directions and strategies posed by the incoming implementation of the ASEAN Integration in 2015. (B) Secondly, to expand its presence and awareness in the Mindanao business community by enhancing networks to promote its core business services considering our strategic position in the realization of the Cagayan-Iligan Industrial & Trade Corridor.
9. FLEET CARD MANAGEMENT MORESCO-1 embraced to venture in the fuel card sector and have access to a host of other dedicated services that work in pursuing to reduce operating costs and increase fleet efficiency. Shell Card is now MORESCO-1’s official road partner, with initially 109 enrolled drivers and vehicles. For greater convenience, Shell stations are strategically located across our country, provides smart solution for control, ensures card security to reducing risks and saves money, too. Shell Card offers an integrated fuel management solution designed to improve protection against fraudulent activities while reducing vehicle fuel consumption, financial administration time and vehicle maintenance cost through the following embedded features and benefits: • Critical protectors Velocity limit and purchase restrictions Card blocking 24/7 Driver and vehicle number identification •
Valuable enablers Shell Card online – an advanced fuel card management online platform that provides easy access 24/7 for customized reports, card deck management and smart alerts. Fraud team – performs transaction analysis and stay abreast with industry fraud trends.
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“
Putting the people at the heart of
MORESCO-1’s vision
2014 Human Resource Activities
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g
Ibi b e F
MORESCO-1 personnel system celebrated the Month of Love through a glam-rock night of love and music on February 13, 2014 at the MORESCO-1 Covered Courts. Since the operations is a priority, the celebration was at 4pm-9pm only, attended in a skeletal formation from all its offices. The night was hosted by its very own real life couples, Engr. Reniel and Engr. Joni Cabantac. The celebration was fun and youthful through the creativity of the event’s head, The LoveBugs.
EMPLOYEES’ RECOLLECTION The Management of the Philippines’ Pioneer Electric Cooperative recognizes the holistic development for its employees. Thus, the Cooperative also provides an avenue for its personnel system to re-assess their faith and personal relationship with God. The 2014 MORESCO-1 Employees’ Recollection with the theme: “Grace, Gratitude and Reconciliation” was facilitated by Mr. John Dwight Pimentel and Mr. Terence Jerome Maceren from the Xavier University – Ateneo de Cagayan Campus Ministries. The personnel was divided into 3 batches last April 22-24, 2014. Venue for the recollection was at the WTC-ITC Function Hall and the Balay sa Banay. 66 |
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MORESCOLYMPICS The 8-Friday afternoon MORESCOLYMPICS event was launched and opened by the Board Vice President, Dir. Nonito Labis last October 24, 2014 at the MORESCO-1 Covered Courts. The personnel system was divided into 4 groups named after the Leadership Brands of the coop: Social Stallions, Aksyon Agad Lions, Strategic Eagles and Proactive Dragons. This activity was under the leadership of the second liners (supervisors): Leadmen and MRBCD Coordinator. Overall, the games every Friday did not only fire up the competitive spirit of the employees but honed and increased the leadership capabilities of the employees.
Christmas Party and Powerkids In December 12, 2014, MORESCO-1 celebrated the gift of life and the blessings of 2014. The event was celebrated through a Kiddie-themed party at the MORESCO-1 Covered Court. This truly is a way for the employees to be engaged and celebrate life’s daily wins, show gratitude for the opportunity to serve, our unity amidst challenges. The year would not end without the Cooperative celebrating the abundance of life’s blessings with the less fortunate kids of our member-consumers. December 19, 2014 at 7:30am-12:00nn, the cooperatives celebrated its 8th year of Powerkids. These 5-9 year-old kids reached to 121 are from all the districts within the franchise area. The employees happily acted as foster parents to the kids. With the food, the gifts, prizes, and the fun that MORESCO-1 has extended to these kids, it surely was not only a success for the employees but an experience worth remembering for the kids!
PERSONNEL SYSTEM GENERAL ASSEMBLY Employee communications and transparency of information is the key to the cooperative’s success. Thus, last December 29, at the WTC-ITC Function Hall, the Management and the employees gathered for updating and information dissemination. The assembly tackled the business group updates from the Service Areas, corporate group updates from the back office departments, update from the ISO 9001:2008 documentation for the year 2014, plans for the cooperative’s upcoming 50th Anniversary, In-House Healthcare and updates from the HR Policy implementations. Energizing Development, Empowering Lives
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Good people make
Learning
Great Business
and
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Development
2014 had been a diverse and exciting year for learning. First, 2014 paved way for training rebirths by reinstituting training from the past, like accounting for non-accountants and linemen performance exercise. Second, The Management Development Program made innovations and adjustment on its design by implementing process consultations and learning sessions. Third, due to technology upgrade triggers and staying to be relevant, Learning and Development Unit facilitated (1) in-house computerbox training for drivers and mechanics, (2) attendance to renewable energy conferences, and (3) SCADA preparedness workshop. Fourth, the members of the management and key personnel had done benchmarks to other Electric Distribution (ED) Companies. And, lastly, the Organizational Development Program determined of its purpose in addressing the gaps in the organization by preparing the Cooperative from a steeper competition, enhancement of the management system, in alignment to the scorecard and strengthening strategies.
ISO 9001:2008 Training When MORESCO-1 decided it wanted to deliver services at world-class standard, naturally it has to comply with international standards.
CPD1: Distribution System Modeling and Analysis MORESCO-1 sent another batch to attend the CPD1: Distribution System Modeling and Analysis training at University of the PhilippinesNational Engineering Center (NEC).This training aims to develop the competency of MORESCO-1 personnel in analyzing technical problems and develop feasible solutions.
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To reinforce the preparations for ISO 9001:2008 a series of writing workshops was facilitated by the Quality Management Specialist, and invited Renato Navarette for Internal Quality Audit Training.
Fire Prevention, Suppression, Control and Rescue March won’t be March without the Fire Prevention Awareness drive of the Bureau of Fire Protection (BFP). MORESCO-1 participated the Fire Prevention Month by inviting the BFP headed by Sr. Insp. Lorono to give a seminar on Fire Prevention, Suppression and Rescue. The training-seminar was participated by MORESCO-1 personnel. Fire drills and fire extinguishment exercise were also facilitated to all service areas, from Manticao to Talakag. Energizing Development, Empowering Lives
The Computerbox training program ran for nine sessions every Saturday from July 2014 to Oct 2014 with resource person Juvanie S. Lomo. The Training capacitated 4 competencies – (1) Engine Management System, (2) Common Rail System, (3) Automotive Transaxle/Transmission System and (4) Automotive Airconditioning System.
The performance exercise is a program which was already practiced by MORESCO-1 in the past to revive the Linemen Performance Exercise. The program was designed to practice a series of line works which are pole climbing and pole dressing of C1 structure that will test their skills and gauge their performance.
ACCOUNTING FOR NON ACCOUNTANTS:
One of its objective was to level-off MORESCO-1 personnel, from top level to rank and file, on how they may indirectly or directly affect the financial operations. capacitate the personnel who are nonaccountants with accounting skills.
“ What we learn with pleasure
we never forget
“
MORESCO-1 together with NGCP facilitated a training for Overcurrent Relay Protection last December 2 to 3, 2014. The training was about the fundamental principles of protective relaying, system protection, types of relay protection and the repercussions it can do with our operations.
all 137 “ Trained MORESCO-1
personnel
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2014 PROMPT PAYORS
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2014 PROMPT PAYORS
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MORESCO-1 FRANCHISE AREA MAP
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Minutes of the 44th AGMA Meeting MINUTES OF THE 44th ANNUAL GENERAL MEMBERSHIP ASSEMBLY (AGMA) AND 46th FOUNDATION ANNIVERSARY OF MISAMIS ORIENTAL-1 RURAL ELECTRIC SERVICE COOPERATIVE, INC. (MORESCO-1) HELD AT MORESCO-1 COMPOUND, WTC-ITC COVERED COURT, LAGUINDINGAN, MISAMIS ORIENTAL, ON FRIDAY, 23rd DAY OF MAY 2014 AT 9 O’CLOCK IN THE MORNING. AGENDA PART I
REGISTRATION OF MEMBER-CONSUMERS
The registration area of MORESCO-1 was already open at 3 o’clock in the morning to cater the arriving member-consumers from different districts of the franchise area, in accordance with the information drive thru flyers, recorida and notices provided to the member-consumers. A member-consumer is considered registered once the freebies are secured in the distribution area at the back of WTCITC Building of MORESCO-1. PART II A.
WELCOME ADDRESS
As the host municipality, Laguindingan Mayor Oliver Ubaub was represented by Coun. Lito Bahian in welcoming the member-consumers attending the AGMA, for the latter had an important engagement previously set before AGMA was scheduled. Coun. Bahian read the message of Mayor Ubaub and welcomed the member-consumers.
This was followed by the welcome message of Board Pres. Bernard R. Benavidez.
B.
INSPIRATIONAL MESSAGE
Cong. Yevgeny “Bambi” Emano welcomed the member-consumers of MORESCO-1 and greatly appreciated the huge attendees of the event comparing it with the other assemblies he has attended, which he attributed to the good management of the Cooperative’s General Manager. Gov. Emano shared the new health program of the province known as the “MisOr Cares or the Misamis Oriental Care System”. Its goal, is to make the needy in 424 barangays of the province to have access to health care and social services, especially the indigent residents. Card holders can avail of the following health services: free medical consultation, hospitalization, medicines and laboratory services in eight provincial hospitals. Other benefits include calamity assistance, burial assistance, free supply of drinking water, free use of tent and vehicle, scholarship assistance, solo parent and widow benefits. C.
INSPIRATIONAL MESSAGE
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Vice-Governor Joey G. Pelaez congratulated MORESCO-1 for sustaining the rural electrification started by his late grandfather. He came not only to celebrate but also observe the General Assembly, taking part in identifying problems related to energy in the province of Misamis Oriental. To address this, he together with the legislative body proposed to create Energy Advisory Committee composed of industry experts with the Electric Cooperatives (ECs) to resolve issues like the neighboring ECs. With this example, he stressed that ECs should limit the use of CAPEX as its impact will redound to consumers having an increase of passed-on rates reflected in their electric bills. They will continue their involvement through partnerships with Energy Regulatory Commission (ERC) and National Electriction Administration (NEA). D. SPECIAL CITATION FOR INDUSTRY PARTNERS OF INTERRUPTIBLE LOAD PROGRAM 1. 2. 3.
Asia Brewery Incorporated (ABI) WL Foods Corporation Donau Carbon
E.
RECOGNITION OF THE FORMER BOARD OF DIRECTORS OF MORESCO-1
The former members of the Board of MORESCO-1 reckoning since 1968 were invited and given honorary appreciation and plaque for their great contribution during their term as policy makers of the Cooperative, which made MORESCO-1 what it is now. F.
COMMEMORATIVE SPEECH
Dir. Nonito M. Labis introduced the Keynote Speaker for this 44th AGMA of MORESCO-1, Hon. Josefina Patricia J. Asirit who shared her experience in the power industry since she was connected before with the Department of Energy (DOE) and has attended the switch-on ceremony for the Sitio ElectrificationProgram (SEP) in Calungunan El Salvador City, Misamis Oriental. Comm. Asirit added the role of ERC on the review function of all the applications of the Distribution Utilities (DUs) to include the ECs like MORESCO-1, which might affect the rate to its member-consumers. Comm. Asirit commended MORESCO-1 for its recognition as a triple “A” Electric Cooperative, the highest performance recognition of an EC by the national government as stated: “It’s all because of your the commitment and support to your MORESCO-1. This is a challenge for you, the employees and officers of the Cooperative, to maintain and persevere this recognition” Comm. Asirit added that in Mindanao the main supply at present comes from hydro power plants, that when there is drought or at dry season, the supply of water is deficient causing low supply of power to the consumers. However, MORESCO-1 along with other DUs is mandated to supply its consumer continuous power. Thus, the Management sought other suppliers capable to provide our power requirement. However, there is an equivalent cost depending on the technology being utilized. Comm. Asirit shared why electricity is vital to the lives of people. She added that the responsibility of the EC is reposed not only to the 74 |
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national government, nor the Management of the Cooperative but to each and every one of the member-consumers for the future of our children. Comm. Asirit expressed that MORESCO-1 has the highest implemented SEP. Its dedication in providing electricity is not only confined in the city, near the airport but also in the farthest barangay under the franchise of MORESCO-1. The potential household of 75,000 in MORESCO-1 which at present had reach72,000 is easy to be communicated. However the challenge posed is not only to be spoken but it must be acted. A plaque of appreciation was presented to Comm. Asirit by the members of the Board of Directors. G. OATH TAKING OF THE NEWLY ELECTED OFFICERS Comm. Josefina Patricia Asirit administered the oath taking of the newly elected and re-elected Board of Directors of MORESCO-1 in three (3) different districts namely:
District of Manticao District of Initao District of Libertad
- Dir. Bernard R. Benavidez - Dir. Agustin D. Caberte - Dir. Allan M. Sofocado
PART III. BUSINESS MEETING A. REGISTRATION REPORT AND DECLARATION OF QUORUM Dir. Abejuela reported that, as of 9 o’clock in the morning, registered members present in the 44th AGMA reached to 18,999, as verified and recorded by the Registration Committee, which exceeds the minimum requirement of attendees to attain quorum in the general assembly. Upon verification on the total registered attendees as of cut off time, it has totalled into 23,573. DISTRICT ATTENDANCE I LUGAIT - 1,145 II MANTICAO - 1,280 III NAAWAN - 1,370 IV INITAO - 2,806 V LIBERTAD - 1,568 VI GITAGUM - 2,321 VII LAGUINDINGAN - 2,888 VIII ALUBIJID - 3,314 IX EL SALVADOR - 4,070 X OPOL - 2,270 CAGAYAN DE ORO - 390 TALAKAG BUKIDNON - 150 BAUNGON BUKIDNON - 1 TOTAL Attendees
23,573
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With the sufficient number of attendees in the meeting, Pres. Bernard R. Benavidez declared the business meeting a quorum. B. READING OF NOTICE OF THE 44th AGMA MEETING by Board Secretary, Dir. Nestor R. Abejuela. C. READING AND APPROVAL OF AGENDA The Board Secretary, Dir. Nestor R. Abejuela read the agenda of the 44th AGMA to wit; a.) Registration and declaration of quorum b.) Reading of Notice of the 44th (AGMA) c.) Reading and Approval of the Agenda d.) Reading and Approval of the Minutes of the 43rd AGMA and 45th Founding Anniversary e.) Presentation and Consideration of Reports a. President’s Report b. Treasurer’s Report c. General Manager’s Report i. Power Supply Engagement of MORESCO-1 ii. Modular Genset Acquisition iii. Calamity Fund Provision iv. Capital Expenditure 2015-2017 v. RA 10531 and its Implementing Rules and Regulations “The NEA Reform Act of 2013” f.) Open forum g.) Adjournment Ms. Sonia Chang of Alubijid requested to clarify details on the agenda of Modular Genset acquisition. It was answered that it will be further discussed when each of the agenda of the meeting will be presented later on. Mr. Benjamin Medina moved for the approval of the agenda of the 44th AGMA and duly seconded by Mr. Nestor Billones of Manticao to wit: General Assembly Resolution No. 2014-0523-01: Resolution approving the agenda of the 44th AGMA enumerated in as follows:
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a.) Registration and declaration of quorum b.) Reading of Notice of the 44th AGMA c.) Reading and Approval of the Agenda d.) Reading and Approval of the Minutes of the 43rd AGMA and 45th Founding Anniversary e.) Presentation and Consideration of Reports a. President’s Report b. Treasurer’s Report c. General Manager’s Report i. Power Supply Engagement of MORESCO-1 MORESCO - 1
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ii. Modular Genset Acquisition iii. Capital Expenditure 2015-2017 iv. Calamity Fund Provision f.) Open forum g.) Adjournment D. READING AND APPROVAL OF THE MINUTES OF THE 43rd AGMA AND 45th FOUNDING ANNIVERSARY Mr. Macario Tiu of Initao moved to dispense with the reading of the minutes of the 43rd AGMA and 45th Founding Anniversary, and severally seconded. Then, Mr. Tiu moved for the approval of the minutes of 43rd AGMA and 45th Founding Anniversary and duly seconded by Mr. Benjamin Medina of Laguindingan to wit: General Assembly Resolution No. 2014-0523-02: Resolution approving the minutes of the previous 43rd Annual General Membership Assembly dated May 23, 2013, be adopted. E. PRESENTATION, CONSIDERATION AND APPROVAL OF REPORTS THE PRESIDENT’S REPORT Board President Benavidez reported the increasing membership of the Cooperative with an average increase of 6.9% from 65,558 members in 2012 to 70,054 in December 2013 which is attributable to the beneficiaries of the SEP, influx of people who were then residents outside of MORESCO-1 franchise, emerging commercial and industrial companies in the area of coverage. President Benavidez added the support extended by the Cooperative to the Task Force Brotherhood to restore the power distribution lines and necessary assistance affected of Typhoon Yolanda in Tacloban, Leyte and Bantayan Island, Cebu. President Benavidez reported on the commitment of the Cooperative in providing a reliable and secured power to the member-consumers by having a thorough study and evaluation of its distribution development plan and the power supply plan; by conducting competitive bidding consistent with the procurement guidelines for the power supply requirement. Lastly, President Benavidez assured the member-consumer for an efficient delivery of service through the quick and safe response of power requirement, fast and reliable data through the acquisition of integrated business processes. In summary, President Benavidez expressed his appreciation on the support of the member-consumers to MORESCO-1 who made great contributions on what MORESCO-1 has attained at present. Please find in the souvenir program the detailed President’s report. THE TREASURER’S REPORT
Director Nonito M. Labis reported and explained the figures in the Financial Statement
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as of December 31, 2013. Please refer to the souvenir program distributed. REPORT OF THE GENERAL MANAGER General Manager Julie B. Real expressed his heartfelt gratitude on the warm support of the member-consumers and guests in attending the 44th AGMA and 46th Founding Anniversary of MORESCO-1, and proudly reminding that we are first Electric Cooperative (EC) in the country and replicated into 121 ECs at present. GM Real shared that in 1970s the once dark area has now become one of the progressive landmarks in the western part of Misamis Oriental as indicated in the growth of the area, widening of road, commercial plants in El Salvador City and the Laguindingan airport. MORESCO-1’s vision to be a world-class power provider of choice aims to be at par with services in China, Japan and United States of America, reason for the planning and evaluation at great lengths by the Board of Directors and Management. GM Real’s report on Power Supply engagement of MORESCO-1, Modular Genset acquisition, Capital Expenditure 2015-2017 and Calamity Fund Provision were summarized into three (3) aspects namely: (a) Coping with climate change GM Real shared that in Mindanao we cannot explain the suddent change in our environment. Though we always hope and pray that there will be no typhoon and weather disturbances, it is already a fact that climate change is happening all over the world. He mentioned the aftermath of the Typhoon Sendong last December 16, 2011 causing damage to the property and lives of the community. For MORESCO-1, the Cabula substation was eroded and some lines were damaged affecting the delivery of power in the area. Upon evaluation, the damage incurred for about Php10M. Then Typhoon Pablo came in 2012 with a damage in MORESCO-1 communication facilities for about Php5M. In 2013, Typhoon Yolanda affected the Visayas region which prompted MORESCO-1 to send linemen and crew to Visayas to assist in the restoration of the power. The Cooperative, intends to be prepared in times of calamities that it has provided immediate fund for the restoration of its facilities. GM Real reported the NEA Memorandum No. 2014-012, effective May 19, 2013 with a mandate to all ECs, entitled: “Policy for the establishment of sinking fund to cover extraordinary proceeds arising from force majeure and risk factor”. The Management recommended to the Board of Directors to establish this calamity fund as mandated by NEA which will be taken from the other income sourced from: (1) Prompt payment discount availed from NPC/PSALM, due to the support and on time payment of our member-consumers to our bills. The 50% availed prompt payment is returned to the consumer and the 50% back to the operations of the Cooperative. (2), there are some communication companies renting on the poles which the proceeds are treated as other income and the 50% is returned to the consumer and the other 50% will be returned to the Cooperative to defray the maintenance cost requirement. The Management recommended to the Board that this 50% 78 |
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that is returned to the consumers be recorded as our sinking fund. There will be no need to collect to the member-consumers for the necessary fund to restore the damaged facilities of the Cooperative; and when the sinking fund will be accumulated into Php10M, it will be reported to the AGMA as part of our preparation to address the climate change. (b) Bridging the power supply gap GM Real reported that MORESCO-1 has entered into a 10-year contract with NPC last August 5, 2005 and will expire by August 2015. We have an ongoing negotiation with NPC/ PSALM, yet despite this negotiation, the Management and Board made efforts to have security of power supply so that we will not experience power interruption nor a rotational blackout. In 2012, by operation of law, one of the biggest cement manufacturers, the HOLCIM Inc. with a demand of 25,000kW became part of the MORESCO-1 demand. Also in 2012 and 2013 the government has allocated a total of 4MW for the airport requirement. Despite this allocation on the power demand, we still experience power deficiency. With this, the Management and the Board studied on what we need to do to ensure security of power supply to provide quality service. However if there is no generating power capacity, we cannot provide the continuous electricity. In Mindanao, we only have our power plants - Agus Pulangi, Pulangi and Steag. Other power plants will be later constructed. The Management made a study in cooperation with the ERC which the latter approved for the Coop’s engagement with the Interruptible Load Program (ILP). Our ILP partners, the Asia Brewery Inc., WL and Donau disconnect from MORESCO-1 to use their genset to operate for its requirement, so that the residential customers are spared from the rotational black out. However, with this ILP we still experience power interruption, thus, the DOE while waiting for the incoming power plants, recommend to use the immediate solution to address the power deficiency in Mindanao which is the modular generator set. GM Real said that MORESCO-1 has prepared a study simulating 19 years of our power supply requirement from 2014 to 2032. The EPIRA Law which restructured the power industry sometime in July 2001, states that there is a need for the electric utility to have a secured power, it needs to look for means on how to get this power requirement. EPIRA Law created a market known as Wholesale Electricity Spot Market (WESM), where one cannot contain this market and is intangible. MORESCO-1 envisions to be a world-class power provider of choice which should equate with quality service and we will only have quality service if we have a secured power supply at all times. Thus, MORESCO-1 entered into several power supply contracts in Mindanao with (a) Therma South Inc. in Davao to operate in last quarter of 2014, (b) modular generator as recommended by the government, (c) PACERM-1 for the peak load requirement in 2015, (d) FDC Utilities to operate in in last quarter of 2017; and (e) GN Power in 2018. Upon evaluation on the power supply requirement of the Cooperative there is a deficiency of power by year 2014 for about 3MW, in 2015 about 15 MW and in 2016 about 18MW. In Mindanao, the Department of Energy has created a market known as Interim Mindanao Electricity Market (IMEM) which effected last December 2013. The Cooperative, Energizing Development, Empowering Lives
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plans not to participate in the IMEM since the price is at Php32.kWh, where we made a study that our baseload, intermediate and peaking load can cater to supply power when needed. In our study, our baseload can be taken from NPC and the ILP from the intermediate while peaking plant for peak load. They say that if you want electricity you pay for a higher cost otherwise there will be power interruption. The Management and the Board, however, do not want to engage into this principle, thus, we made a preparation and study on what is the appropriate technology for the load requirement. Summarized below is the comparative study of the Management and Board for the peaking load requirement:
The Management recommended to the Board to use the plants operating at 20% capacity factor or 4-5 hour usage, for peaking load requirement. (c) Preparing the future “We hope that the children at present will remember and be grateful for the electrification program of Vice Pres. Pelaez, a Misamisnon, for pushing the creation of the electric cooperative, which at present created livelihood opportunities for them. “ GM Real also reported that in 2015 the ASEAN Integration will be effected, meaning, the Philippine products will be open to other Asian country, and vice versa where products will be marketed to the Philippines. He cited the products of URC as an example that it can compete with another Asian country and that the neighboring country will invest in the western Misamis Oriental as having a secured power at least cost. GM Real added, in preparing this market, the Cooperative made a study on its CAPEX projects. MORESCO-1 in its 46th years prepared its project and infrastructure to accommodate the influx of the investors: The pan network project of putting up a substation in Initao, tie line to connect the sub-transmission line of MORESCO-1 to NGCP Opol, acquisition of meters, transformers, pole labeling so that our member-consumers can easily identify the poles. With this, the services to the consumers are easily delivered. Please find in the souvenir program the details of the General Manager’s report. APPROVAL OF THE REPORTS OF PRESIDENT, TREASURER AND GENERAL MANAGER The facilitator of the Business Meeting, Atty. Oclarit expressed that since the presentation of reports of the President, Treasurer and General Manager is done, we need to ask the approval from the member-consumers.
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Treasurer and General Manager which was seconded by Mr. Nestor Billones of Naawan. Ms. Meriam Calang of Libertad posed an objection on the motion considering that there are some items needed to be discussed before the approval. Atty. Oclarit added that since the reports are approved, we may then proceed to the discussion of the matters. The open forum was then formally opened where member-consumers were informed on the guidelines for the forum that only a member-consumer can raise one (1) question with a follow up one so that others can still participate, should they have inquiries. F. OPEN FORUM
Atty. Conchito J. Oclarit sought the objection raised by Ms. Calang.
Question 1: Ms. Calang asked on the Treasurer’s report regarding the composition of the other expenses amounting to Php10M. Reply 1: Mr. Eugene L. Velasco, the Finance Services Department Manager answered that it was stated in the souvenir program on page 19 Note 17 as to the breakdown of the other expenses which include insurance, advertising, membership fees, franchise and legal fees and miscellaneous or petty expenses. Question 2: Ms. Calang said, she recalled MORESCO-1 asking Sanguniang Bayan of Libertad for support for PACERM-1. Based on the report mentioned earlier, she questioned why MORESCO-1 had already entered into contract without informing the member-consumers. “We appreciate the effort of the Management, however, is this contract the lowest rate”. Reply 2: Atty. Oclarit shared that it was previously discussed and approved in the last AGMA so there is a succeeding improvement of the status at present like the contracts and bidding. Legal Counsel, Atty. Eleuterio F. Diao also answered the 2nd inquiry of Ms. Calam since he was the one representing the Coop during public hearing conducted on the application for the supply agreement of PACERM-1 with MORESCO-1. He said that all applications of the Cooperative will be subjected to a thorough study and evaluation by the ERC as mentioned by Comm. Asirit. One of the requirements is the jurisdictional requirement where all the memberconsumers will be notified of the application on the power supply agreement made through publications & announcement on the radio programs. ERC is the agency of the government entrusted to ensure that the interest of the consumers are protected. Even if there is a contract between MORESCO-1 and PACERM-1 it does not mean that they will already approve the rate. They need to evaluate the rate and its term. All consumers are notified and are given opportunity during the hearings with ERC. Atty. Diao added as to the question on the rate, that the Management’s Technical Working Group had made a thorough study on the optimal generation mix. The ERC, the agency of the government determines the reasonable rate applied by the Distribution Utility, like MORESCO-1. He went on that it is not only MORESCO-1 who entered into a contract for the peaking requirement, he mentioned that MORESCO-2, FIBECO, MOELCI 1 and Energizing Development, Empowering Lives
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MOELCI 2 also secured its peaking load requirements. “For the part of the Management and Legal Counsel what we can ensure is that our contract is fair at reasonable rate”. Engr. Jovel B. Ubay-ubay, the Engineering Manager added that he is one of the members of the Techincal Working Group and finds that the offer of PACERM-1 is the most responsive among other offers of Independent Power Provider (IPP) since PACERM-1 has an impact of Php0.91/kWh only as compared to other IPPs offering for peaking with an impact of Php1.29/kWh. Question 3: Ms. Belen Wabe Saavedra of Initao inquired on the Treasurer’s Report. “What do you mean by Current loan and Borrowings? What is the nature and purpose of this loan?” Reply 3: Mr. Velasco, replied that it is shown in the souvenir program on the Financial Statement report, which includes the loan extended by the NEA, Security Bank, Rural Electrification Financing Corporation and TRANSCO. Question 4: Ms. Saavedro inquired whether there was a public hearing conducted in contracting with PACERM-1. “What is PACERM-1 and who are those other IPPs like Filinvest?” Reply 4: Atty. Diao answered that there was an information dissemination conducted through publications in newspaper and radio programs and notices to the Local Government Units as posted on the bulletin boards as notice to the consumers on the application since it would be difficult and costly for every member consumer be personally notified. As to what is PACERM-1, it is a domestic corporation created pursuant to the law. Question 5: Former Dir. Joar Dy of Alubijid expressed to that he has no question but instead an appeal as a former Board of Director of MORESCO-1 to the current members of the Board and Management to defer the implementation with PACERM-1 on three (3) grounds: (a) Violation of the cooperative’s constitution and by-laws; (b) High rate to the consumers (c) Long term engagement with PACERM-1 for about 15 years. Atty. Oclarit requested Mr. Dy to formally put his concern into writing addressed to the Board of Directors. Pres. Benavidez expressed that there will be a separate special meeting called for this purpose and he will invite member-consumers who have concerns regarding the matter. Question 6: Ms. Sonia Chang of Aubijid inquired on why MORESCO-1 incurred millions of losses and why it accumulated that much. What are the composition of the P45M investment and its term. She added that the CAPEX for fencing is not important, why still pursue the project. Reply 6: Mr. Velasco answered that the tariff/rate of an EC like MORESCO-1 is based on Cash Flow Methodology meaning what we incur as expenses is what we can recover. Whereas for CAPEX projects of the cooperative, it is taken from the Reinvestment Fund and this fund once collected is not recorded in the revenue instead it is recorded as equity, so if we purchase an asset, less its depreciation, there is an effect in the accounting of the Income Statement where depreciation is recorded. However funds for this are taken in reinvestment fund which is in equity. “If you take a closer look at the cash flow statement on a comparative note for 2012 and 2013, if we are indeed losing, then why is it that the cooperative still has sufficient funds.” 82 |
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Atty. Diao: “According to RFSCE bill on collection, the amount paid by consumers for accounting purpose is not reflected on revenue and income statement. Based on Eugene’s statement, it was made clear that depreciation value is deducted in figures for accounting purpose but no payment in cash is involved.” Mr. Macario Tiu: “There will be a special meeting to be called, can this inquiry be part in the agenda.” Atty. Oclarit requested Ms. Chang to formally put into writing the inquiry she raised for proper discussion in the special meeting. Question 7: Former Dir. Lorna T. Manlawe of Lugait said she has no question instead manifested that she has the SEC documents proving that incorporators are related to our incumbent BOD. “This questions our transparency and our mission to protect the interest of the public.” She recalled the undertaking of the cooperative on the efforts for MORESCO-1 not to be converted in CDA. “But instead what is happening within MORESCO-1 is what we should be scared of.” Reply 7: Atty. Diao replied that we cannot answer since that document mentioned pertains to PACERM-1. Question 8: Ms. Maria Luisa Casimiro of Initao made suggestions to post on bulletin boards the answers on the inquiry pertaining to the Financial Statement since many of the members do not understand it.
Reply 8: Atty. Oclarit considered and made notation on the suggestion.
Question 9: Mr. Ben Medina of Laguindingan expressed that he represents the Senior Citizens (SCs) of Misamis Oriental. He suggested that as stated in the law that SCs have the privilege of 5% discount on utilities. “However, for electric utility we were given 5% discount for consumption of below 100kWh only.” He suggested to the Board of Directors that it should not be limited on the consumption, instead, once senior citizen 5% should be automatically deducted to their bill. Reply 9: Atty. Oclarit clarified the question raised that its procedure in availing the 5% discount be relaxed and he put a note on the suggestion. Ms. Edna P. Diango, the Institutional Service Department Manager added that the cooperative is giving its best effort to make the availability of senior citizen discount easy.” However, there are some laws on which the Cooperative need to follow on the availment of SC discount such as its requirement to be renewed yearly. “What the cooperative does to assist our member consumers is that we will be having our mobile coop in your barangay and instead of making your application renewal in the office, you will just visit your barangay once we will have schedule in your barangay. Question 10: Mr. Medina made follow up suggestion that on each meter on the account of a senior citizen, an automatic deduction of 5% be placed on the bill.
Reply 10: Atty. Oclarit took note on the suggestion.
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Observations. Mr. Clint Pacana of Manticao upon listening on the inquiry of some member-consumers, expressed that the problem may not be from the Management but from the member consumers. With the effort of Management to come up with supply plan, only MORESCO-1 did not experience rotating brownout. He asked the member-consumer if the time they spent on complaining would be enough to compromise the effort of the Management to address the needs on supply plan. Atty. Oclarit took note on Mr. Pacana’s observation. Question 11: Fr. Pedrito Inerio of Libertad, former Board of Director of MORESCO-1 expressed that his bill increased thrice as compared to his bills in the past 3 months, and asked if there is a rate increase. He added whether the member-consumers need to pay on Real Property Tax (RPT) every month. “How true is it that there is increase in RPT and that we paid for it on April 2014. Reply 11: Mr. Velasco, answered that the RPT payment is recovered to the memberconsumer once the cooperative made its payment on RPT to the local government unit. At the present bill, there was no RPT being collected. Mr. Velasco said that he will make evaluation on the isolated case raised by Fr. Enerio. Question 12: Mr. Julieto Manlawe of Lugait shared that NGCP plans to install a line in Opol, Misamis Oriental, “So why do we need to put up another line if we can have source from NGCP.” Reply 12: Engineering Services Department Manager Jovel B. Ubay-ubay, replied that the statement mentioned by Mr. Manlawe is correct. However, the transmission line will traverse in the mountainous area from Lugait to Opol. The Management studied that it is efficient to have the line in the coastal area for the immediate restoration in times of power interruption. If the owner of the land in the mountainous area will utilize the land it would incur another cost for relocation. He cited the experience at present in Lumbia property where it cannot easily get access for clearing and maintenance. Thus a need to relocate and in negotiation with the DPWH. Question 13: Mr. Dexter Deblois of Sinaloc El Salvador City shared that he is a resident in P3 Sinaloc El Salvador and their problem is that their area has not been energized yet. He made his request since 2011. Reply 13: Atty Oclarit expressed that, Engr. Ubay-ubay will take care of it. Engr. Ubayubay took note on the inquiry of Mr. Deblois. Question 14: Ms. Vina Jo requested for all member-consumers to get free CFL bulb to be given to the paying stations for distribution, she further inquired why the cash given this AGMA is only Php100.00 Reply 14: Atty. Oclarit answered affirmatively that the CFL are given to all attending member-consumers. 84 |
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Question 15. Mr. Jun Ramos of El Salvador expressed that he strongly opposed PACERM-1 as manifested in the Sangguniang Panglungsod of El Salvador. He added that the entire Mindanao including MORESCO-1 have entered into an agreement with AMRECO PSAG Corp without consulting the General Assembly. He said, there is a middle man in the contract which the cost will be passed on through the consumers. Mr. Clint Pacana is a member of AMRECO PSAG Corp. Reply 15. Mr. Clint Pacana answered the rationale of contracting in aggregation. MORESCO-1’s power requirement is too small for IPPs to be interested in putting up a power plant considering the huge investment, with providing only a small capacity requirement. Observations. Mr. Nestor Billones requested and reminded the member-consumers present to focus on constructive ideas instead of destructive ideas. He expressed that all concerns be properly addressed in a proper forum, he shared the saying “Give it to Cesar what is due to Cesar”. He added we should not destroy the credibility of our MORESCO-1, the Management since we are part owner of the Cooperative. We should be united in what is for the betterment of the cooperative. G. ADJOURNMENT Mr. Billones moved to adjourn the meeting and severally seconded by the members present. There being no objection the meeting was adjourned at 2:30 in the afternoon. Certified True and Correct: Attested by:
Dir. Nestor R. Abejuela Dir. Bernard R. Benavidez Board Secretary Board President
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MINUTES OF THE SPECIAL MEETING CALLED FOR THE PURPOSE ON ITEMS RAISED DURING THE OPEN FORUM OF THE 44th AGMA AND 46th FOUNDATION ANNIVERSARY OF (MORESCO-1) HELD AT WTCITC FUNCTION HALL LAGUINDINGAN, MISAMIS ORIENTAL, ON WEDNESDAY, 30TH DAY OF JULY 2014 AT 9 O’CLOCK IN THE MORNING. PART I. RATIONALE The Special meeting was conducted in continuation and agreement of the 44th AGMA of MORESCO-1 to address concerns raised by some member-consumers and former Board of Directors of MORESCO-1. All members of the Board and Management were present along with those former members of the Board and member-consumers who had some inquiries in the last AGMA. PRESENTATION OF REPORTS FROM THE IEC TEAM ON a. MORESCO-1 POWER SUPPLY b. FINANCIAL IMPACT After the presentation of the reports open forum started. Atty. Oclarit was made the moderator of the meeting. Question 1: Mr. Bentong Hernandino of El Salvador expressed that he had attended a presentation in Alubijid where it offered a biomass power technology with a contract price of Php6.00/kWh. “Can MORESCO-1 buy said technology for it offers a cheaper price?” Answer 1: Opol Service Area Manager, Engr. Collen B. Tarcelo said, that as part of the renewable energy team of MORESCO-1, they incorporated into the study the biomass technology as source of power and this renewable technology which is effective for the intermediate load requirement of MORESCO-1. He added that the load requirement of a Distribution Utility is classified into three namely: (a) base load, (b) intermediate and (c) peaking load. However, the problem in this type of fuel (biomass) is the sustainability of its operation. Atty. Oclarit added that MORESCO-1 Management continues its study on power supply contracting. Atty. Eleuterio F. Diao IV added in light of the legal aspect on power supply contracting, that MORESCO-1 supply contract from PSALM will expire by August 25, 2015. “We do not know whether PSALM will renew the contract of MORESCO-1, under the EPIRA Law the supply of power generation will come from the private sector, no longer from the government, which is true not only in Mindanao but in the entire Philippines.” This has brought the DUs including MORESCO-1 to execute contracts in power supply. In consideration of the offered power, one must evaluate not only the capacity, technology but also the price whether it is fair and reasonable then it will be filed to Energy Regulatory Commission for its further evaluation. GM Julie B. Real added that the question raised by Mr. Hernandino is generic. Thus, he will answer his question with an affirmation that we need additional power supply however it must satisfy the requirement on sustainability of operation. He cited an example of biomass in Mindanao like the Crystal Power in Bukidnon which operates only during the harvest season. Their 1 MW power output requires 1.2 to 1.5 hectares of land planted with sugar cane which is harvested only with sufficient maturity.
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Question 2: Mr. Julieto Manlawe of Lugait asked about the personalities of the incorporators; their track records, and their relationship with Board and officers of MORESCO-1. Answer 2: Atty. Diao answered that PACERM-1 is an independent power supplier. It has a power supply contract with MORESCO-1. This power supply contract was made after a thorough evaluation and study on the need for a peaking power requirement. “Since you are questioning about the power supply contract, it is better you raise it to an appropriate agency which the the Energy Regulatory Commission, who has set the rules and procedures on questions pertaining to power supply agreement.” He added that as member consumer we have the right but we do not have the inherent right to question directly the operation of a juridical person like the EC. Under the PD 269 the powers of the EC are vested on the Board of Director. This power supply contract on PACERM-1 is now pending with ERC. Mr. Manlawe expressed that he secured copy of the articles and by-laws from Securities and Exchange Commission (SEC) showing the incorporators of PACERM-1 and who signed the documents. He added that they believed that there is conflict of interest among the officers and members of the Board of Directors. He added that it is not proper that a criminal act is being justified because of power shortage. Atty. Oclarit said that they had studied the allegations of Mr. Manlawe and finds that there is no criminal act. He added that the case is now in SEC pending, thus, it is better not to conclude that there is such an act. Atty. Diao added that this issue has reached NEA and recognized the complaint filed. Due process was made by NEA and the Management and those implicated were given a chance to answer the charges. Since the question was on the incorporators it was referred by NEA to SEC. Thus, SEC upon receipt of complaint of Ms. Sonia Chang has acted the same and finds the questioned corporation to be legal and in order. Question 3: Ms. Sonia J. Chang expressed that Mr. Real, Mr. Perez and Mr. Arcol has only executed a joint affidavit that they are authorized to sign, after having received a filed complaint. Mr. Macario Tiu shared, why Ms. Chang is still questioning and insisting on the issue when in fact there was a result already concluding that there was no fraud committed. He suggested to end this topic. Question 4: Ms. Belen W. Saavedra asked why MORESCO-1 entered into contract with PACERM1 when there was no public hearing conducted. Why MORESCO-1 entered into a contract without the member-consumers’ approval. Atty. Diao answered that the authority to enter into a contract is a corporate act. As to who are the appropriate body to decide on entering a contract is given to the Board of Directors. With regards to the question on public hearing, he said that MORESCO-1 is very particular in the compliance to the jurisdictional requirement of ERC. The due process consists of 2 parts: notice and hearing. The requirement is that before initial hearing, posting of the application in all the Local Government Units under the franchise area of MORESCO-1 and publication needs to be secured. Before the scheduled hearing the ERC makes an order mandating MORESCO-1 to publish the scheduled hearing in a newspaper both national and local. Not only that, MORESCO-1 also informed the 2 houses of the Congress and the Commission on Audit. Prior to the start of public hearing, MORESCO-1 needs to show to ERC that it has complied said requirements through a certification from the LGUs, radio station, newspapers on the said schedule of public hearing. At present the member-consumers of MORESCO-1 is 75,000. What the law requires is the substantial notice to its member-consumers. “Even during the public hearing if you have some Energizing Development, Empowering Lives
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questions you raise it or be an intervenor on the application. In fact Ms. Chang did that and was here along with the municipality of Alubijid”. Atty. Diao threw back the question asking who has the interest to question this contract and who has the motive? Like the TOTAL power corporation who made a letter addressed to the Mayor of Alubijid, showing its interest to supply the peaking power requirement of MORESCO-1 at Php8.50/kWh and yet the offer they made to MORESCO-1 was Php22.5/kWh. Atty. Oclarit summarized the response of Atty. Diao on how the provisional authority from ERC is given. Ms. Saavedra expressed that she is not satisfied on the process of notifying the member-consumers. Ms. Edna P. Diango answered that they cannot proceed with the public hearing if they were not able to notify and secure the certificate of posting from the LGUs from Opol to Lugait to Talakag & Baungon Bukidnon. She said that MORESCO-1 has complied the required postings and notifications to all stakeholders through notices, publications and radio programs. Question 5: Mr. Joar Dy asked why continue the contract with PACERM-1 when in fact it is created in bad faith. “Why not look into other suppliers offering peaking power?” Mr. Macario Tiu shared his opinion that if SEC had ruled already then it is legal. MORESCO-1 had been recognized by NEA on its performance with triple star award and low power rates. Why insist to discourage the members of the Board and Management when they have a good record. Question 6: Fr. Inerio of Libertad asked that as mentioned by Atty. Diao some ECs have their own peaking power plant, “then why can’t MORESCO-1 put up its own peaking power plant”? GM Real answered that records would show that MORESCO-1 indeed planned to put up its own peaking power plant but it was opposed. He expressed that he cannot divulge everything. Dir. Eballe added that MORESCO-1, under the law, is allowed to put up its own generation plant. It has been discussed by the Board with Ms. Sonia Chang when she was still seated as a member of the Board for 3 months. When it was presented back for its update, Ms. Chang opposed the plan of putting up a power plant, thus it was resolved not to continue with the plan. Question 7: Rev. Camilo Baconga of Alubijid asked if MORESCO-1 will continue its services after 2018. GM Real answered that the services of MORESCO-1 will continue since it has already an existing contract with coal fired and diesel power plant. It was reported in the last AGMA as to the N-1 69kV project to be constructed in national highway. “If we have this line, should NGCP 69kV line in the hinterland gets interrupted, we can have alternate power through the 69kV transmission line along the highway, once it is operational. For us, in MORESCO-1, we need to ensure that we have both adequate power supply and reliable transmission line in order to provide quality service to our member-consumers.” Atty. Oclarit added, that under the law, a DU including MORESCO-1 is mandated to deliver 24/7 continuous and reliable power service to its member-consumers.
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Question 8. Mr. Jun Ramos asked why MORESCO-1 has entered into a contract with PACERM-1 and GN Power when It was not presented as part of the agenda in the AGMA. Atty. Diao answered ,a member-consumer must know his rights and obligation as member-consumer. “ Do the member-consumers have the right to enter a contract with power supplier? A member-consumer cannot directly participate or engage in the affairs of the cooperative. Like the power supply agreement with GN Power, PACERM, FDC, PSALM- all are evaluated and studied by the Management, affirmed by the Board of Directors. The only act which the member-consumer can ratify the contract entered into by the Board is when it pertains to the amendment on entering into merger or consolidation. If you want to have this right you must be elected as member of the Board. Question 9: Mr. Villastique of Alubijid asked, if the MORESCO-1 contract with PACERM-1 will not be pushed through, what will happen to MORESCO-1? Dir. Eballe answered that there will be curtailment of power especially during the peaking hours at 6pm to 10pm. “We as residential consumer will be greatly affected.” After all questions raised by the member-consumers present, Dir. Labis made his concluding statement and reminded the consumers that in 2015 there will be an election for the Districts of Alubijid, El Salvador and Opol, if they have plans they can file their candidacy. PART II. ADJOURNMENT
The special meeting was adjourned at 11:50 in the morning.
Certified True and Correct:
Attested by:
Dir. Joy Gil S. Mahinay Dir. Melvyn D. Eballe Board Secretary Board President
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Photo Gallery
MORESCO-1 Board of Directors (2014-2015)
Left to right: Dir. Nestor R. Abejuela (Member); Dir. Agustin D. Caberte (Treasurer); Dir. Joy Gil S. Mahinay (Secretary); Dir. Nonito M. Labis (Vice-President); Dir. Melvyn D. Eballe (President); Engr. Julie B. Real (General Manager/ Ex-officio member); Dir. Allan M. Sofocado (Member); Dir. Zosimo A. Perez, Jr. (Member); Dir. Christopher G. Maagad (Member); Dir. Bernard R. Benavidez (Member)
MORESCO-1 Management Committee
Left to right: Engr. Collen B. Tarcelo, Opol Service Area Manager; Engr. Joni Jane F. Cabantac, Laguindingan Service Area Manager; Engr. Reniel A. Cabantac, Manticao Service Area Manager; Mr. Eugene L. Velasco, Finance Services Department Manager; Engr. Julie B. Real, General Manager; Engr. Jovel B. Ubay-ubay, Engineering Services Department Manager; Mr. Dexter B. Baculio, Internal Auditor; Ms. Edna P. Diango, Institutional Services Department Manager; Engr. Marlon P. Guinita, Talakag Services Department Manager
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The Management Committee members and Secretariat
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Royal Daichi Foods Inc. This is the vast area used to dry out their raw material for their main product, fish cracker, just beside their plant. Royal Daichi Foods Inc.is one of MORESCO-1’s partners in the Interruptible Load Program (ILP) which helps ease the power deficiency situation of MORESCO-1 by saving its residential consumers from experiencing rotational brownout.
WL Foods Corporation The 700 kW generating set of WL, one of MORESCO-1’s industrial loads, manufacturing a snack product within and outside Misamis Oriental. WL Foods Corporation is one of MORESCO-1’s partners in the Interruptible Load Program (ILP) which helps ease the power deficiency situation of MORESCO-1 by saving its residential consumers from experiencing rotational brownout.
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DONAU Carbon Phils. Corp. The office of Donau Carbon, one of MORESCO-1’s industrial loads, located in Cogon, El Salvador City. DONAU Carbon Phils. Corp. is one of MORESCO-1’s partners in the Interruptible Load Program (ILP) which helps ease the power deficiency situation of MORESCO-1 by saving its residential consumers from experiencing rotational blackout.
Regent Foods Corporation Regent Foods Corporation’s variety of display products, popular amongst the student children within and outside the locality of Misamis Oriental. Regent Foods Corporation is one of MORESCO-1’s partners in the Interruptible Load Program (ILP) which helps ease the power deficiency situation of MORESCO-1 by saving its residential consumers from experiencing rotational blackout.
Universal Robina Corporation
The office of Universal Robina Corporation (URC), one of MORESCO-1’s commercial load manufacturing beverages and snack foods, located in Bolo-bolo, El Salvador City. URC is one of MORESCO-1’s future partners in the Interruptible Load Program (ILP) which helps ease the power deficiency situation of MORESCO-1 by saving its residential member-consumers from experiencing rotational blackout. Energizing Development, Empowering Lives
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Energizing Development, Empowering Lives
Energizing Development, Empowering Lives
MORESCO - 1
| 128
Today, the “Cuta sa Punta Sulauan” has slowly drawn the interest of local sightseers because of the stunning view of sunrise that could be enjoyed on the site with its surrounding landscape.
This photo of “Cuta sa Punta Sulauan”, in Moog, Laguindingan is believed to be constructed in the 18th century during the Spanish period. According to archeologists, it was used as a watchtower because of its ideal location at the northern tip of the peninsula overlooking both sides of the bays.
The speedy growth of development in our area is inevitable. And MORESCO-1 in its commitment to meet the demands brought about by development still continues. However, despite all these, we at MORESCO-1 recognizes and corresponds with the historic significance of our location, where it all began.
ulauan S
at Punta
Sunrise