ELECTRIC DREAMS COME TRUE

M O R E S C O - 1 :Four Decades of Empowering People

COVER PHOTOThis group of young linemen, who trained together in one batch, has named themselves the Puma Linemen. Like the cat they are named after, these linemen are known for their climbing skills. They do dance numbers and group calisthenics on top of 30-foot poles.

The MORESCO-1 Franchise & Substation Coverage Area

ELECTRIC DREAMS COME TRUEM O R E S C O - 1 :Four Decades of Empowering People

Copyright © 2009 by MORESCO-1.All rights reserved.

The MORESCO-1 StoryThe Misamis Oriental 1 Rural Electric Service Cooperative, Inc. (MORESCO-1) pioneered the country’s rural electrification program in 1968. The following year, the National Electrification Administration (NEA) was formed. This year, as NEA celebrates its 40th anniversary, MORESCO-1 shares its stories of how electricity has made people’s dreams come true.

From its humble beginnings in the 1970s serving its first member-consumers -- usually nipa huts with one or two light bulbs, and a radio -- MORESCO-1 now boasts of a broad range of clientele. Houses have become bigger and stronger, well lit, and with an assortment of electrical appliances. Farmers have been reaping the benefits of post-harvest facilities. Schools have extended class hours way into the night and have added modern research facilities. Industries requiring megawatts of power have sprouted.

Four decades later, MORESCO-1 continues to be one of the best managed, best performing and consistently recognized leader among the country’s 119 electric cooperatives.

The key to the success of MORESCO-1 is the unwavering support of its member-consumers. This has inspired MORESCO-1 in its quest to be a world-class power provider of choice.

The next pages are little stories which form the big picture – the small beginnings, the great sacrifices, the fruits its member-consumers are now reaping, and a peek into the future.

Happy reading!

MORESCO-1August 2009

Without shutting down the system,“Hotliners” perform maintenance work on high-voltage power lines in Burnay, Laguindingan.

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The MORESCO-1 headquarters in Laguindingan.

And Then There was Light ...Technology has advanced by leaps and bounds since man brought electricity into widespread use over a century ago. But by the time man first set foot on the moon just four decades ago, Misamis Oriental and the rest of rural Philippines were still in darkness. While city dwellers watched on their TV sets at home the worldwide broadcast of Apollo 11 and witnessed Neil Armstrong’s “One small step for man, one giant leap for mankind,” rural folks relied on improvised gas lamps.

At night the road from Cagayan de Oro to Iligan was a long stretch of darkness occasionally lit only by the silver moonlight and the firefly-like flicker of the Petromax and gasera in the homes. Drivers had to find novel ways to keep themselves awake during the long drive in these areas. Now with the streets well lighted, drivers have one less reason to doze off while driving.

1st GM Eballe (left) is now director representing Opol; GM Real talking to employees in the Monday convocation.

Fisherman Jaime Poblete with his Petromax in Gimaylan, Libertad.

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And Then There was Light ...It took a while for electricity to reach Misamis Oriental. When the first hydroelectric plant at the foot of Maria Cristina Falls lit up neighboring Iligan City in the early 1950s, some of the folks in nearby Misamis Oriental were hopeful that electricity would finally reach them. Some, however, were skeptical. Husband and wife Ciriaco and Juana Real held these opposing views. The couple lived in the mountains of Naawan, in a village 18 kilometers from the highway. Ciriaco believed that electricity will not find its way to their village of mostly poor people. Juana, on the other hand, had high hopes that light would come.

In the 20 years that they waited, stories of fly-by-night cooperatives who ran away with

people’s money had made people wary. But Engr. Melvyn D. Eballe, MORESCO-1’s first general manager, had this bright idea of talking to the teachers and asking them to help the cooperative in the campaign for rural electrification. “People do have high respect for teachers. And once we convinced the teachers, they jumpstarted the campaign by informing the parents in PTA meetings,” he recalled.

Juana Real, then barangay captain of Lubilan, convinced her village to join MORESCO-1. In 1971, Juana won the decades-old debate with her husband and Lubilan became one of the first villages to be energized.

Ciriaco and Juana’s son later reaped the fruits of the MORESCO-1 pioneers’ hard work. When he was small they rarely had fresh fish and subsisted mainly on ginamos (fish paste) and bulad (dried fish). By the time he was attending high school in Naawan’s poblacion, their village already had electricity and their family had a refrigerator. On Fridays, he would go to Initao to buy as much fresh fish as he could carry and he would stuff these in their refrigerator.

The young boy developed a keen interest in things run by electricity. On weekends or during special occasions when there was a bayle in the village, he would operate the stereo while the rest would enjoy dancing all night, their stamping feet sending dust into the evening air.

Julie B. Real eventually took up electrical engineering in college, and now runs MORESCO-1 as its general manager, bringing along his mother’s dedication and work ethic in serving the people.

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EmmanuelPelaez:Father ofRuralElectrificationDuring one of his provincial sorties in his campaign for the 1967 senatorial elections, the late Emmanuel Pelaez noticed two Caucasians in the audience. Maybe they were Americans? Could they be CIA agents? These were the thoughts running in Pelaez’s mind while he was delivering his campaign speech in Manticao, thoughts that he later relayed to Engr. Melvyn D. Eballe, MORESCO-1’s first general manager.

After his speech, Pelaez sought an audience with the two foreigners. He found out that Robert Williams Jr. and Philip Parker had been around Misamis Oriental for some time, courtesy

Sen. Pelaez switches on the first substation of MORESCO-1 on September 26, 1971, in Lumbo, Laguindingan. Also in photo is first GM Melvyn Eballe (leftmost). Beside him is Gen. Pedro G. Dumol, first NEA administrator.

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‘Maayong gabii!’ he would come knocking

on people’s doors.

‘Kangitngit ba!’Ph

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of the United States Agency for International Development (USAID), to conduct a survey on the possibility of bringing to rural areas an electric cooperative patterned after the National Rural Electric Cooperative Association (NRECA) in the US.

The potential of bringing electricity to the remotest areas of his home province so electrified Pelaez that he, with the help of NRECA lawyer William “Bill” Crisp, pushed for the passing of Republic Act 6038. This legislation paved the way for the creation of the National Electrification Administration (NEA) which, under the able leadership of its first administrator, Gen. Pedro G. Dumol, nurtured MORESCO-1 to become what it is today.

Pelaez -- who already held various high government positions, from being his district’s representative to Congress, to senator, to vice president of the republic -- considered rural electrification as one of his missions in life.

He volunteered to visit land owners in their homes so they would give up some landholdings to allow MORESCO-1 to install electric posts and power lines. But it puzzled MORESCO-1 people why the senator would tell them to fetch him early in the evening, when it would have been easier and safer to travel around the province in the day.

“Maayong gabii!” (“Good evening!”) Pelaez would come knocking on people’s doors, surprising the big landowners and making them ask why a man of his stature would come and visit at night. Then, at the top of his voice, the senator would exclaim: “Kangitngit ba!” (“It’s so dark!”)

Once, a landowner, who already agreed to give up his coconut land for the power lines to be installed, sued MORESCO-1. Pelaez the bar topnotcher volunteered to serve as the cooperative’s counsel. With his brilliance and eloquence, the case against MORESCO-1 did not prosper.

NRECA lawyer William T. Crisp helped Sen. Pelaez craft the Rural Electrification Act.

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Because of the historic meeting between Sen. Pelaez and USAID representatives in Manticao, MORESCO-1’s first pole was erected right in the middle of this town.

The loans granted to MORESCO-1 by the United States Agency for International Development (USAID) and the Philippine government stipulated that acquisition of the right-of-way for the power lines should be donated, not bought. This could not be easy since it would entail asking rural folks to give up a part of their land and watch several of their coconut trees felled.

“Poor people with small landholdings would cry, knowing that they would lose the coconut trees in their lands, their main source of livelihood to survive and the means to send their children to college. But they would agree,” recalls Melvyn Eballe, MORESCO-1’s first general manager.

Many big land owners would resist, a few would even file charges against MORESCO-1.

Sacrifices and the Spirit of Volunteerism

Coconuts in Initao, not far from the Engracias’ property.

Monday flag-raising ceremony.

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But when he saw so many of

his coconut trees being cut down, he

fainted.

house for MORESCO-1’s first office.

During tough times, like the economic crisis of the mid-1980s, the cooperative fell short of its financial obligations. “I talked to the workers and told them about our situation. I asked them to delay their salaries because at that time, it’s either we claim our wages late, or we all lose our jobs,” Eballe said.

Engr. Julie B. Real, the present general manager, remembers not claiming his salary for a few months at that time.

He is hoping that the present employees would be as willing to sacrifice should the economic situation again call for this.

Sacrifices and the Spirit of VolunteerismOne of the rare big land owners who readily agreed was Felipe Engracia. But when he saw so many of his coconut trees being cut down so electric posts and power lines could be installed, he fainted. He eventually became one of the members of MORESCO-1’s board.

The other members of the original board of directors, who considered their work as missionary, did their own share of sacrifices so the young cooperative would prosper.

The Spanish mestizo Arturo Diago, of Lugait, would offer the free use of his restaurant in neighboring Iligan City for board meetings. It comes with free lunch, of course. Dr. Fortunato Ratunil of Manticao offered the free use of his

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The pioneers of MORESCO-1 with the 1972 Board of Directors. Standing (L-R): Gamaliel Soniel, Dir. Andresito Saarenas (1968), BOD President Fermin Galarrita (1971), Dir. Conrado P. Elot (1971), GM Melvyn D. Eballe, Dir. Arturo Diago (1968), NRECA consultant Charles Ham, Dir. Felipe T. Engracia (1972) and Jaime Lopez. Sitting (L-R): Dir. Sergio Macaranas (1968), Treasurer Marcelino Maagad (1969), MORESCO-1 legal counsel Atty. Bella Tiro, Dir. Rev. Fr. Luis Pacquing (1968), Sen. Emmanuel Pelaez, Vice President Fortunato J. Ratunil (1968) and Rogelio Tiro.

A Street Lamp

Lights the Way for

Fishermen

Artemio mending his net.

‘We can now dare to go fishing at night because we can easily

see the lights in Gitagum’s shores.’

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For the fishermen of Gitagum, a street lamp by the beach is as good as a lighthouse. Before the electrification reached their place, fishing at night meant risking getting lost at sea. When a street light was put up near the beach where they dock their boats, this same street light served as their lighthouse.

“We can now dare to go fishing at night because we can easily see the lights in Gitagum’s shores,” said 56-year-old Artemio Paylan Micutuan, who has been a fisherman since he was a child, assisting his father at the age of six. “Fishing is such a risky profession, but we’re safer now with the help of this tiny light, knowing we can easily find our way home,” he added as he looked up the street lamp, the light in his eyes seemingly brighter than the light from the electric bulb.

The street lamp in the middle of Purok 3 in Barangay Poblacion in the municipality of

Gitagum serves another purpose, too, according to Maximiliano Savellita, a father to 10 and grandfather to 7 kids. It brightens the beach that serves as their docking station and thus discourage thieves from stealing the fishing gear.

With the electrification of Gitagum, ice has become readily available and this has likewise improved the fishing industry, noted Micutuan. “It used to be that the fish rot just a few hours after we catch them. Now, we bring ice with us when we go fishing so that our catch would still stay fresh two to three days later.”

This makes fish vendors like Benigno Cayanong, 42, happy because they can now put their fish and other marine products on the market longer. He was all smiles when interviewed about the benefits of electricity at his stall by the highway in Molugan, El Salvador, showing off his 30-inch long giant squid which he said was caught in the waters of Libertad.

A fisherman in Gimaylan, Libertad sets out to sea at night.

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Days of Pounding = Minutes of Electric Milling

The Jaramillo couple prepares the rice field for planting.

Top to bottom: Felix Gaid in his corn farm; demonstrating his old

corn mill; milling rice in Alubijid.

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Days of Pounding = Minutes of Electric Milling“In the old days, milling rice took quite a while as we manually pounded on them until the grain gets separated from the chaff,” recalls Nomer Jaramillo, now 66 years old. “Sometimes, we couldn’t catch up with the pounding what with eight mouths to feed.”

Nomer and his wife Conchita used to mill rice on wooden mortar and pestle. It was hard labor and usually comes after working under the scorching heat of the sun in the six-hectare farm which the family owned in Laguindingan.

“What used to take one whole day to mill a sack of rice is now done in just a matter of minutes,” says Nomer. Their palay harvest now goes to a milling machine right in the middle of the vast rice fields in Alubijid.

Nomer and Conchita are way past child-rearing stage now, since all their kids have already married, have families of their own, and have chosen to live apart from their parents. Their farm in Moog, Laguindingan was sold to the government to give way to the international airport now being built there. They have since moved to Barangay Loguilo in Alubijid. Back to just the two of them cultivating a small patch of land for a landlord,

Nomer and Conchita are like sweethearts again.

Farmer Felix Gaid, 67, of Sitio Boholano in Gitagum’s Barangay Poblacion, shared a similar story. He used to grind his corn manually with a stone miller. “It was so tiring, but we had no choice,” he said.

Unlike Nomer and Conchita, however, Felix was initially hesitant about letting electricity into his home. He had nine children who were difficult to control and were bound to tinker with the electrical wirings and sockets. Felix was afraid they might get electrocuted.

After weighing the good things that electricity provides -- like an automated mill for his corn, which he tills to this day -- Felix gave in and applied for an electrical connection. The switches in particular sparked interest among his curious children as they tried to beat each other as to who could flick the switch first as nightfall came. Happily, none of them got electrocuted.

“Life became much easier when electricity came,” Felix said, thankful that he won’t be going back to the dark ages, milling his corn on heavy stone.

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The switches sparked interest among the children as they tried to beat each other as to who could

flick the switch first as nightfall came.

The Naawan campus of the Mindanao State University (MSU) gained acclaim when it became the first institution to have completed the study of the life cycle of the tiger prawn, more popularly known locally as the sugpo (scientific name, Penaeus monodon), thus paving the way for the Philippines to become the leading exporter of the sugpo in the 1990s.

MSU-Naawan has since become famous for its marine and fisheries programs, doing research in aquaculture, marine biology and environmental assessment.

In its campus by the sea are various machineries for its research activities -- among them aerators in various forms and sizes to provide oxygen for

the fish and powerful suction machines to bring in sea water into the school’s giant aquariums.

“All these could only be made because of electricity,” said Chancellor Jusie T. Roxas. “Electricity is one of the main contributors to our success,” he added.

They do have generators running on diesel for those rare occasions of power outages, but Roxas could not imagine relying on diesel alone because it is very costly, especially with the constantly fluctuating prices of petroleum products these days.

Also because of electricity, MSU-Naawan is able to extend classes beyond 5 p.m. “We only have

Some of the giant aquariums at MSU-Naawan.

Electricity PowersAcademic Research

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‘Electricity is one of the

main contributorsto our success.’

16 classrooms for our 1,169 college students, so it helps that we can now hold classes up to 9 in the evening,” Roxas said.

Similarly, Bukidnon State University is able to set up an extension campus in Alubijid, which could accommodate college students for night classes by sharing classrooms with the Alubijid National Comprehensive High School. Being able to provide college education to Alubijid and neighboring municipalities has been a big boost to the youth who otherwise could not afford to go to universities in the cities. “We like it here because it is affordable, and we don’t have to travel far and spend so much on transportation,” said Sheralyn Labis, a fourth year education student.

Students of the Alubijid National Comprehensive High School in the poblacion area surf the Internet as their counterparts in the Lourdes Alubijid National High School, in the remotest part of town, experiment with Encarta software.

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Power Hatching

Giant Eggs

How do you hatch an egg the size of a bowling ball?

Ostrich eggs are one of the biggest eggs in the world. If allowed to hatch naturally, the male and female ostrich would take turns sitting on the egg for up to six weeks. This usually leads to more egg wastage and creates a strain on the birds. Thus, if you want to optimize harvest, you couldn’t just trust the giant birds to hatch their eggs. This is especially so since ostrich meat fetches from 400 to 700 pesos a kilo. The Philippine Ostrich and Crocodile Farms, Inc. in the mountains of Malanang, Opol would rather have the incubator do it. This Limketkai-

‘We need a stable supply of electricity to hatch the ostrich eggs properly.’

Farm supervisor Julius Mugot inside the incubator.

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owned company has two incubators brought in from Australia, constantly providing heat at 97.5 degrees Fahrenheit to ensure that the giant eggs, each equivalent to 24 chicken eggs, hatch in 42 days.

“We need a stable supply of electricity to hatch the ostrich eggs properly,” said farm supervisor Julius Mugot.

After the ostrich chick goes out of the shell already the size of a full-grown chicken, it is then transferred to the brooding area, where two 100-watt bulbs keep the little ostriches warm for the next 15 days before they are released into the open. “We tried liquid petroleum gas before, but it’s so expensive,” noted Mugot.

This pioneering farm, which started in 1997, imported ostriches from Africa and Australia. It eventually grew so big that it now has 860 of the world’s biggest birds. If you see ostriches elsewhere in the country, you can bet that it probably came from this 11-hectare Opol farm, claims Mugot.

This farm has been supplying ostrich meat to restaurants all over the country who dare offer exotic meats.

Crocodile meat would be next, which Mugot said commands an even higher price, somewhere in the vicinity of 1,000 pesos a kilo. The farm now has 172 crocodiles, about 30 of which are secured in a big steel cage for the visitors to see.

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Drive-through fruit stands and

Along the highway in Lumbo, Alubijid, as you climb up the winding road coming from Cagayan de Oro City towards Laguindingan, is a series of fruit stands selling various kinds of tropical fruits.

These family enterprises, although housed in nipa huts, must be profitable because their number seems to be continually increasing. A few years ago, there were only a few huts, now there are over a dozen. Situated in what used to be a remote part of town, in Barangay Lumbo, the fruit stands light up this stretch of the highway.

“Before, we could only sell during the day, or up to 6 o’clock at the latest,” said Teresita Ongui, one of the fruit vendors. Now, a 20-watt fluorescent lamp brightens up her small store, enabling her to sell up to 10 o’clock in the

evening. Keeping her company is her four-year-old granddaughter Ella Mae, happily watching shows on a small TV set.

More vendors are selling late into the night in other municipalities, too.

A few towns up the road, fruit stands are likewise popping up in Initao, in a place that has become known to travelers as “Midway,” because it is halfway between Cagayan de Oro and Iligan, and because of a beach resort by that name.

Past Initao, in the municipality of Manticao, motorists can find a long stretch of stalls selling piping hot bibingka, or rice cake. These stores are usually open 24 hours and have become a source of comfort food for truck drivers who drive all night.

all-night bibingka stalls

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Drive-through fruit stands and

Teresita Ongui and granddaughter Ella Mae.

all-night bibingka stalls

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‘Before, we could only sell

during the day.’

Meeting the Industries’ Gargantuan Appetite for Electricity

L-R: URC’s snack products; ABI’s drinks.

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At the start, MORESCO-1 provided electricity to the simplest of homes -- nipa huts using one or two light bulbs -- and to small business establishments, some with jukeboxes blaring out loud music for all the neighborhood to hear.

Soon, the electrification of this side of Misamis Oriental was noticed by industrial giants requiring megawatts of power. It was quite a daunting task for a small rural electric cooperative, but MORESCO-1 was not about to balk at the challenge.

At present, MORESCO-1 services a total of 21 manufacturing firms in its coverage area -- among them Asia Brewery, Inc. (ABI) and Universal Robina Corporation (URC) in El Salvador and Holcim Philippines (cement) in Lugait.

Meeting the Industries’ Gargantuan Appetite for Electricity

Asia Brewery’s plant in El Salvador amid the green environment.

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‘MORESCO-1’s engineers,

ever courteous and accommodating,

solved our problem.’

Engr. Emir Manansala, production maintenance manager at URC, said the generally cheaper electricity rates -- thanks to Mindanao’s reliance on hydroelectric power and the electric cooperatives’ minimal charges -- attracted the Gokongweis to set up a plant in Misamis Oriental. Recently, URC even transferred to El Salvador the operations of its Nova line of snack items, originally earmarked for Indonesia, and the Refresh brand of fruit juices, previously in URC’s Calamba plant. The Gokongweis have plans to make the plant a “megaplant,” bringing in more product lines aside from the five they currently produce -- Chippy, Piattos, Nova, Refresh and Maxx candies.

“Once, we had a trouble with our water tank, so we sought help in installing its electrical component. MORESCO-1’s engineers, ever courteous and accommodating, solved our problem,” says Manansala.

At the sprawling 125-hectare plant of Asia Brewery, Engr. Fernando Simon, in-charge of the electrical department, has found in MORESCO-1 a reliable partner in troubleshooting the plant’s electrical problems. MORESCO-1’s engineers and linemen will be there immediately should the beer and soft drinks plant need help. “We have a very exceptional relationship,” beams Engr. Simon.

Boosting the Tourism IndustryMisamis Oriental’s western side is blessed with a beautiful coastline that has become a frequent destination of local and foreign tourists. From the fine sand of Opol, to the white beaches and rock formations of Initao and Libertad, beach resorts of all forms and sizes have sprouted all the way to Lugait.

Leading the pack is Apple Tree Resort and Hotel in Opol, which offers a majestic view of Macajalar Bay and Camiguin Island. You can stroll or have breakfast by the beachfront, or swim in the resort’s pool with Jacuzzi. Or go kayaking or jet skiing. You may also go diving in the nearby marine sanctuary of Opol, the protection efforts for which are being sponsored by the resort.

Apple Tree’s silent partner is MORESCO-1, which has been supplying electricity for the resort ever since. “A favorable relationship has been created which we feel has not been neglected,” says Maricar A. Vazquez, Apple Tree’s general manager. She appreciates MORESCO-1’s timely advise on power interruptions when maintenance work need to be done. She praised the cooperative’s valiant efforts, too, of restoring power in the aftermath of calamities, like the floods in January 2009.

Top to bottom: Apple Tree Resort & Hotel at dusk; the rocky coastline of Initao and Libertad; enjoying the sunset by the beach in Naawan.

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Boosting the Tourism Industry

Early morning stroll at the beach in Opol.

“We encourage MORESCO-1 to help establishments, especially top consumers, in coming up with energy-saving efforts in view of increasing power rates and maximize rate hike notices for more awareness,” Vazquez said.

With the basic need of powering up its business already answered, Apple Tree is looking forward to continue giving “genuine and exemplary hospitality” to local and foreign visitors, and to provide employment to workers in the locality.

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‘A favorable relationship has been created which we feel has not been neglected.’

Reaching Out to the Farthest Places When you live in a place so far away and nobody seems to help you with your electricity needs, who you gonna call?

MORESCO-1!

MORESCO-1’s mandate is to provide electricity to the 10 municipalities in the western part of Misamis Oriental, from Lugait in Iligan’s border all the way to Opol just outside Cagayan de Oro.

Some electric utilities, however, could not seem to reach out to the remotest parts within their boundaries. Not only are these areas so difficult to reach; putting up electrical lines in the mountains with so few a household is also not cost-effective.

But MORESCO-1 has vowed to serve ordinary folks, even if it means losing money along the way, even beyond its mandated coverage areas. Thus, the cooperative services parts of the municipalities of Baungon and Talakag in Bukidnon; Barangay Hindang of Iligan City;

Linemen Miguel Gulleban and Marvin

Pateño on their way to Besigan.

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and 15 remote and hinterland barangays of Cagayan de Oro City.

Among those areas in Cagayan de Oro is Besigan, an area populated by Higaunon tribesfolk that is so remote you have to go through Talakag in Bukidnon, then walk two hours in the mountains, crossing a wide river on a bamboo raft along the way.

Residents of Besigan -- mostly farmers planting rice, corn, camote and vegetables -- have simple needs. They are happy with the light bulbs to brighten up their homes and the pathways so they could roam the neighborhood at night. “Before, it was so difficult to walk around here at night,” recalls Avelino Minister, 59. Barangay Kagawad Dario Sumbongan, who is still processing his application for electrical connection, wants a little something more -- “I want a radio, so I’d know what’s happening around us.”

Besigan’s youth, however, have raised the bar as to what they want for the future. Unlike

Jason Udasco works on a spreadsheet project.

Reaching Out to the Farthest Places

Lineman Anthony Araco checks out power lines in Besigan.

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their parents who rely on the radio for news, the children are exposed to the world on a daily basis, thanks to the high-end computers complete with Internet access donated by the Department of Education and the Ayala Foundation. Information technology teacher Arnold Langam makes sure his students get to use the computers for an hour on a daily basis.

Fourth year student Jason Udasco, son of a farmer, now wants to take up computers in college.

‘I want a radio, so I’d know what’s

happening around us.’

Helping Preserve the EnvironmentMORESCO-1’s headquarters in Laguindingan is situated in an area only three hectares big. About a third of that is a lush mini-forest with almost a thousand trees. Such is the cooperative’s commitment to the preservation of Mother Earth.

The cooperative maintains a nursery which is now full of seedlings ready for planting elsewhere.

MORESCO-1 is actively involved in managing the Initao-Libertad Protected Landscape and Seascape (ILPLS), contributing resources to help preserve this beautiful place by the highway in Initao’s Barangay Tubigon and Libertad’s Barangay Gimaylan.

Once, when MORESCO-1 employees joined a tree-planting activity, they were delighted

The Initao-Libertad Protected Landscape and Seascape (ILPLS).

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Steel and concrete poles.The monkeys may soon disappear

because they have nothing more to eat.

At the nursery.

Helping Preserve the Environment

The MORESCO-1 mini-forest.

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Converting waste into fertilizer in a compost.

at the sight of monkeys roaming the heavily forested area. Forest caretaker and tour guide Erwin Madriaga lamented that the monkeys may soon disappear because they have nothing more to eat.

“That’s when the idea of planting fruit trees popped up in my head,” said Adelina Real, the cooperative’s corporate social responsibility officer. Shortly after, MORESCO-1 employees came with seedlings of makopa, nangka, papaya and other fruit-bearing trees. It may still take some years for the trees to bear fruit, but Real is hoping that maybe the next generations of monkeys will finally enjoy the fruits. That is if their bigger, less hairy human cousins will not get to the fruits first.

MORESCO-1 is also taking steps to teach the community about the concept of recycling, and so methods of making compost are being explored so that biodegradable wastes can be converted to organic fertilizers.

Finally, to discourage the cutting of trees, only steel and concrete materials are now being used for electrical posts.

NEA Administrator Edita S. Bueno and her tree at ILPLS.

Photo: MORESCO-1 staff.

Planting fruit trees at ILPLS.

Giving Back to the Community“We believe that social responsibility is an integral part of our business.” MORESCO-1 subscribes to the principle that companies should contribute to the welfare of society.

Aside from providing electricity, MORESCO-1 has coordinated with organizations to contribute to community health care and respond to calls for help during disaster situations.

MORESCO-1 has partnered with the Committee of German Doctors, a private organization specializing in providing health and dental care to Mindanao’s remote areas. They teach rural folks, the mothers included, about sanitation, home emergencies, oriental and herbal medicine, organic farming, and many more.

The cooperative’s help comes in various forms -- financial, gasoline, food, logistics, manpower.

“We are so glad to have found a partner that’s reliable,” said Dietmar Schug, the German Doctors’ country director for the Philippines. He said MORESCO-1’s contributions allow them to help more people in need. Aside from Misamis Oriental, they also reach out to the poor in Bukidnon.

Like MORESCO-1’s linemen who provide services come hell or high water, the rest of the cooperative’s constituency are also ready to help in cases of emergency. In January 2009, Misamis Oriental experienced the biggest flood in decades. MORESCO-1 was among the first to bring relief goods.

MORESCO-1 employees prepare to distribute relief goods to flood victims.

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All photos by the MORESCO-1 staff.

Giving Back to the Community

Board President Bernard R. Benavidez distributing relief goods.

Getting busy during mothers’ class.

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CSR officer Adelina Real assists in a medical-dental mission with German dentist Dr. Rolfe.

MORESCO-1 employees brave the mud to help flood victims.

Former Board President Pedrito H. Baculio (right) with the MORESCO-1 Advisory Group and staff visit flood victims.

MORESCO-1 Now ‘Downloading’MORESCO-1 -- despite the combined efforts of its workforce of 350 regular, probationary and sourced out manpower distributed all over western Misamis Oriental and neighboring areas -- could not possibly do everything alone to ensure reliable power supply to its 53,000 member-consumers.

Thus, it could only depend on its vast number of member-consumers to help look after its 20,000 electrical posts and over 3,000 kilometers of power lines. And so the idea of “downloading” services to the barangays was conceptualized, so that member-consumers themselves could help take care of the cooperative’s own assets. These are, after all, their assets, too.

Perhaps the best example of the downloading program is the case of the Lugait Electricians Association (LEA), the first organization of its kind in MORESCO-1’s franchise area. It has 33 members, all of them accredited by the Technical Education and Skills Development Authority (TESDA).

LEA members help MORESCO-1 in various ways.

It used to be that Lugait residents applying for electrical connection have to wait for a long time just for a MORESCO-1 inspector to check if indeed the house is ready. There is only one inspector for all of Manticao Service Area’s coverage, which also includes Lugait, Naawan and Initao.

“Our inspector, who also doubles as a lineman,

could only manage to inspect 10 houses in Lugait in a month during his Monday-Tuesday visits,” said Collen B. Tarcelo, who was area manager until lately. In the service area’s four districts, there are usually 200 applicants a month. Imagine the backlog.

In Lugait, that backlog has disappeared because LEA members now do the inspection.

They, too, help check out for illegal connections and report this to MORESCO-1 discreetly, said LEA president Pride Roldan. Minor electrical problems in the community are also handled by LEA members, thus freeing MORESCO-1 linemen from simple jobs so they could concentrate on the more difficult tasks.

“LEA brings MORESCO-1 closer to its member-consumers,” acknowledged GM Julie B. Real.

Edna P. Diango, Institutional Services Department manager, said the downloading program includes right-of-way clearing and

Himaya barangay chairman Narving Jaudian.

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MORESCO-1 Now ‘Downloading’Lugait Electricians Association (LEA) gets a computer donated by MORESCO-1.

inspection of power lines and poles, serving disconnection notice to delinquent consumers, processing of application for electric service connection, and collection of fees.

To enable the barangay governments to handle the economic enterprise, MORESCO-1 has tapped the Governance and Leadership Institute of Xavier University to train volunteers.

Soon, the barangay hall of Himaya in the mountains of El Salvador will become a collection center. “We are looking forward to it, because that means a lot of savings to residents here in terms of transportation,” said Narving Jaudian, the barangay chairman. To get to the nearest MORESCO-1 collection center in the poblacion, a Himaya resident will have to pay 42 pesos for round-trip fare.

Diango said that getting the member-consumers involved has also helped in the cooperative’s campaign to further cut down systems loss, which has been consistently in the single-digit range through the decades. “We actually get text messages reporting pilferage. Our member-consumers are aware that even if just a few people would cheat, everybody will suffer,” Diango added.

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A LEA member installs electrical wiring in Lugait.

Formula for Success

Now on its fourth decade, the country’s pioneering rural electric cooperative continues to lead, winning awards after awards through the decades. So, how did MORESCO-1 do it? No secret, really -- just a combination of hard work and dedication, intensive trainings, efficient management, transparent governance, and continuous upgrading of equipment.

This year alone, MORESCO-1 won 9 of NEA’s Lumens Awards: Emmanuel Pelaez Award for the Best Electric Cooperative of the Year, Pedro G. Dumol Award for the Best General Manager of the Year, Elite 5% Systems Loss for the Year Award, Best Collection Performance, Best Complying EC in Audit Evaluation, Citation for Legislative Initiatives (for former Board President Pedrito H. Baculio), Special Citation for EC with Biggest Number of Annual General Membership Assembly Attendance, Special Citation of EC Showcase through Lakbay-Aral, and Certificate of Recognition for ECs which have participated in Task Force Kapatid Typhoon “Frank.”

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‘This job is no joke.

We work out there in the field

rain or shine.’

American liveline trainor David Duval

gives instructions to “hotliners” from

other electric cooperatives

undergoing training at MORESCO-1.

highlights of the previous week, of the highs and the lows, the successes and the failures, so the cooperative could move on to the next tasks, or attend to the things it failed to do.

MORESCO-1 pioneered the reorganization of electric cooperatives, decentralizing its operations by creating four service area offices scattered all over its coverage area -- Manticao in the west, Laguindingan in the central part, Opol in the east and Talakag in the south. This has allowed the cooperative to keep in constant contact with its member-consumers. No wonder that during annual general membership assembly meetings, the cooperative consistently gets the most attendance.

The final test for an electric utility’s efficiency is systems loss. For the past two decades, MORESCO-1 has consistently kept loss at a minimum, always in the single-digit. It has even gone to as low as 4.65 percent such that the cooperative belongs to the few elite electric cooperatives with less than 5 percent loss. “We did that by continuously upgrading our equipment, and keeping them in tiptop shape, so they don’t get overloaded,” said Engineering Services Department manager Jovel B. Ubay-ubay.

“This job is no joke. We work out there in the field rain or shine,” says lineman Arthur Abuhan, who belongs to a young generation of workers who call themselves “Puma Linemen” because of their climbing skills. MORESCO-1 also now has a pool of “hotliners,” ready to risk life and limb when repair work needs to be done on high-voltage power lines without shutting down power.

Trainings have become an integral part of MORESCO-1’s system, thanks to the frequent reminders from Fr. Francisco Silva on the need for constant trainings on all aspects of rural electrification work, not only in terms of technical skills but more importantly, on people development so officers and employees can better serve the member-consumers. Fr. Silva is a former NEA administrator and is now Presidential Adviser on Rural Electrification (PARE). One of the most readily noticeable infrastructure in all of Laguindingan is the three-story William T. Crisp International Training Center right across the MORESCO-1 headquarters. Other electric cooperatives send their trainees there as well.

On Monday mornings, right after the flag raising ceremony, officers and employees gather at what has become fondly known as the “Balay sa Banay.” There, officers would report on the

Fr. Silva talks to MORESCO-1 staff.

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Quo vadis MORESCO-1?MORESCO-1 has come a long way, and is gearing up for even bigger roles!

New challenges have emerged, like the worldwide economic meltdown and the enactment of the Electric Power Industry Reform Act (EPIRA) in 2001 that exposes the electric cooperatives to competition with the big players. But MORESCO-1 is bullish about speeding up its growth to meet greater demands for electric power.

Right in its own backyard, MORESCO-1 is keeping an eye on the fast-paced construction of the Laguindingan International Airport in Barangay Moog. The big jets will start coming Laguindingan’s way in the next few years, and along with them the multitude of passengers from all over Northern Mindanao.

Along the Misamis Oriental highways, telecommunications companies are laying out fiber optic cables as more and more towers are being built for cellular phones.

MORESCO-1 is one step ahead in preparing to meet the new demands for electric power to be brought about by these developments.

Aside from continually upgrading its facilities,

MORESCO-1 will join forces with seven other electric cooperatives under the Northern Mindanao Electric Cooperatives Association (NORMECA) to build their own 132-megawatt plant in Talakag, Bukidnon utilizing the Bulanog-Batang river system. This would provide access to more capacity and cheaper rates in response to the upcoming upsurge of demand.

Engr. Cerael Donggay, the group’s consultant, said construction of the Talakag plant would start soon. He added that a number of local and foreign investors are eager to fund the project, thanks to the growing interest in renewable energy in the light of climate change seen all over the world. Donggay once headed the Mindanao center of the National Power Corporation that almost exclusively uses hydro power.

“The electric cooperatives will gain a lot of advantages with this project,” stressed Donggay. “They will no longer be at the mercy of other power producers, they will now have a more stable power supply, and their reliance on fossil fuel will further be reduced,

34

The first generation creates the wealth, the second generation

preserves it. And the third?

Quo vadis MORESCO-1?

The access road to the Laguindingan airport.

35

thus contributing to the world’s efforts to reduce emission of greenhouse gases, and yet minimizing price fluctuations,” he added.

But more than the technological part of the equation, MORESCO-1 is investing even more in its manpower.

Human Resource Department manager Fermin V. Jarales has lined up a series of activities in this regard. Paramount to this is the cooperative’s partnership with the Investors in People (IIP), a United Kingdom-based accreditation agency that focuses on harnessing the potentials of an organization’s human resource. Once IIP accreditation is completed, next would be the International Organization for Standardization (ISO).

As MORESCO-1 President Bernard R. Benavidez points out, reforms must come from within, because “we cannot legislate honesty, team work, respect, integrity, truth, fairness, justice and transparency.”

Jarales is also ensuring that employees keep

their spirituality. Thus, every first Friday of the month, a priest comes in to say the Holy Mass inside MORESCO-1 premises. There is a spiritual retreat, too, for management and employees alike.

As a Chinese proverb says, the first generation creates the wealth, the second generation preserves it. And the third? GM Julie Real wants to prove the Chinese wrong. He is making sure that the cooperative’s next generations will keep the fire burning, even surpass their predecessors in the passion to serve the member-consumers.

Whereas before electric cooperatives have a monopoly of power supply in their coverage areas, the EPIRA law changes the game entirely, now pushing them to compete so they would shape up and deliver even more efficient service to member-consumers.

“But more than keeping ahead of the competition, we need to take care of our member-consumers more, giving them the best service,” Real says.

Board of DirectorsBernard R. Benavidez (Manticao), President; Diosdado T. Obsioma (Laguindingan), Vice President; Shirley D.

Taroy (Gitagum), Secretary; Lillian U. Gallogo (Libertad), Treasurer; Members: Lorna T. Manlawe (Lugait), Joy Gil S. Mahinay (Naawan), James L. Go (Initao), Brando A. Elarmo (Alubijid), Nestor R. Abejuela (El Salvador), Melvyn D.

Eballe (Opol), Julie B. Real (Ex-officio member)

Coffee Table Book CommitteeEdna P. Diango, Fermin V. Jarales, Marebec O. Cagalawan, Ma. Chesed D. Vallejos, Marta D. Villa,

Gilbert G. Gulang, Venancio L. Gumanid

Management CommitteeGeneral Manager: Julie B. Real, PEE; Engineering Services Department Manager: Jovel B. Ubay-ubay, PEE; Finance

Services Department Manager: Eugene L. Velasco, CPA; Institutional Services Department Manager: Edna P. Diango, LL.B.; Human Resource Development Department Manager: Fermin V. Jarales, CEO; Internal Auditor: Dexter B. Baculio, CPA; Talakag Service Area Manager: Marlon P. Guinita, REE; Opol Service Area Manager:

Collen B. Tarcelo, REE; Laguindingan Service Area Manager: Joni Jane M. Fernandez, REE; Manticao Service Area Manager: Reniel A. Cabantac, CE

Text, photos and book design: Bobby Timonera | Additional photos: MORESCO-1 staff | Editing: Miriam Roxas-Timonera

MISAMIS ORIENTAL-1 RURAL ELECTRIC SERVICE COOPERATIVE, INC.Laguindingan, Misamis Orientalwww.moresco1.net.phTel. +63 88 5830167 | Fax +63 8822 756304SMS Hotline: +63 920 9558560

VISIONMORESCO-1, world-class power provider of choice.

MISSIONPartners with communities for economic development and environment protection; Provides business partners with utmost value; and Provides career advancement opportunities and work-life quality to employees and staff.

CORE VALUESThe path towards the Vision and Mission of MORESCO-1 shall be guided by these Core Values...

Passion for Success We will constantly strive for excellence, be the best we can be in everything we do. We will be proactive, driven by a sense of urgency, competitiveness, and commitment to results.

Social Responsibility We believe that social responsibility is an integral part of our business. We are committed to helping improve lives of people and in protecting the environment in the communities we serve.

Integrity In the conduct of our business, we will be guided by what is ethical, fair, and right. We are committed to good governance and the highest moral standards.