Republic ofthe PhilippinesENERGYREGULATORYCOMMISSIO

San Miguel Avenue, Pasig City

IN THE MATTER OF THEAPPLICATION FORAPPROVAL OF BUSINESSSEPARATION ANDUNBUNDLING PLAN (BSUP)PURSUANT TO SECTION 36OF REPUBLIC ACT NO. 9136AND RULE 10 OF ITSIMPLEMENTING RULESANDREGULATIONS,

ERC CASENO. 2016-042 MC

OCCIDENTAL MINDOROELECTRIC COOPERATIVE,INC. (OMECO),

Applicant.x--------------,---------x

ORDER

On 22 December 2016, Occidental Mindoro ElectricCooperative Inc. (OMECO) filed an Application dated 09 December16 (Application) for the approval of its Bnsiness Separation andUnbundling Plan (BSUP) pursnant to Section 36 of Repnblic Act No.9136 and Rule 10 of its Implementing Rules and Regulations.

OMECOalleged the following in its Application:

L OMECO is a non-stock, non-profit rural electric cooperative,duly organized under Presidential Decree No. 269, asamended, with principal office located at M. H. del Pilar St.,Barangay Vl- Poblacion, San Jose, Occidental Mindoro;

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2. It holds an exclusive franchise issued by the NationalElectrification Commission to operate an electric light andpower distribution service in certain municipalities of theProvince of Occidental Mindoro, namely: Ahra de nag,Mamhurao, Sta. Cruz, Sablayan, Calintaan, Rizal, San Joseand Magsaysay.

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ERC CASE NO. 2016-42 MCORDERf12 MAY 2017PAGE 2 of 19

LEGAL BASIS FOR THE APPLICATION

3. Section 36 of Repnblic Act No. 9136 otherwise known as theElectric Power Industry Reform Act of 2001 or "EPIRA",provides in part that "Any electric power industry participantshall functionally and structurally unbundle its businessactivities and rates in accordance with the sectors asidentified in Section 5 hereof. The ERC shall eusure fullcompliance with this provision;"

4. Pursuant to the said mandate of the EPIRA as well as Rule 10of its Implementing Rules and Regulations (IRR) theHonorable Commission promulgated Resolution NO.49,Series of 2006 otherwise known as "Business SeparationGuidelines, as Amended" as well as Resolution No. 07, Seriesof 2012, Adopting the Accounting and Cost AllocationManual (ACAM)for Electric Cooperatives;

5. Pursuant to and in compliance with the requirements of theforegoing law, rules and resolutions, applicant is submittingherewith for the Honorable Commission's evaluation andapproval, its proposed BUSINESS SEPARATION ANDUNBUNDLING PLAN (BSUP) for the business separationand structural and functional unbundling of its businessactivities, with the end in view of separating its distributionactivities into appropriate business segments and to have aclear separation of operations and accounts between itsregulated and non-regulated activities;

THE PROPOSED BUSINESS SEPARATION ANDUNBUNDLING PLAN

6. Applicant's proposed BSUP is divided into six (6) sections, towit:

SECTION I - DETAILSOF CURRENTSTRUCTURE

a) CORPORATE PROFILE

Occidental Mindoro Electric Cooperative, Inc.(OMECO) is a non-stock, non-profit service-orientedrural electric cooperative, duly organized underPresidential Decree No. 269, as amended, andincorporated on March 25, 1974. Its principal office islocated at M. H. del Pilar St., Barangay VI -Poblacion, San Jose, Occidental Mindoro while itstwo (2) Area Offices are located at Airport Road,Barangay 9, Mamburao, Occidental Mindoro andBarangay Buenavista, Sablayan, Occidental Mindoro.

OMECO is the holder of an exclusive franchise issuedby the then National Electrification Commission tooperate the electric power distribution system in theMunicipalities of Abra de Ilog, Mamburao, Sta. Cruz,Sablayan, Calintaan, Rizal, San Jose and Magsaysay.

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For a time, the Municipality of Paluau had its self-generated distribution system and operated by theLGU of Paluan using the line facilities borrowed fromOMECO.

AB of December 3', 2015, OMECO is categorized bythe National Electrification Administration (NEA) as a"C" Cooperative. OMECO generates one (1) powersubstation with a total capacity of 5 MVA located atBrgy, Pag-ABa, Sablayan.

ABof December 3', 2015, OMECO membership standat 71,358, with 65,647 active connections. Totalbarangay energization was accomplished in 2016 andtotal sitio electrification is at a completion rate of77.37%.

b) CORPORATE STRUCTURE

On the 9th day of February 2013, the Board ofDirectors of OMECO passed Resolution No. 56, Seriesof 2013, "Resolution endorsing the proposedreorganizational plan of OMECO to the NEAfor theirconsideration and approval". NEA approved theproposed new organizational structure on August 28,2014 which was received by OMECO on October 7,2014. Since the approval was issued towards the yearend, the mauagemeut decided to implement theenhanced organizational structure in CY2015.

OMEeo's present organizational structure is dividedinto seven (7) departments, namely: Office of theGeneral Manager (OGM), Corporate PlanningServices Department (CPSD), Internal AuditDepartment (lAD), Finance Services Department(FSD), Institutional Services Department (ISD),Technical Services Department (TSD) and AreaOffices Department (AOD).

c.) DESCRIPTION OF FUNCTIONS

1.General Membership

They are the owners of the cooperative. Theirgeneral functions are to purchase from theCooperative electric energy, to vote, to participatein the General and Special Meetings of members,to comply with and be bound by the Articles ofIncorporation and By- Laws of the cooperative,any rules and regulations adopted by the Boardand requirements of the National ElectrificationAdministration, and to pay the membership fee.

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2.Board of Directors (BOD)

They are fully responsible to member-consumersfor the management of internal affairs of thecooperative, for public relations and for relationswith government agencies. Responsible for theformulation of policies needed for the efficient andeffective operation of the cooperative.

3.General Manager (OGM)

The OGM ensures proper implementation of NEAand Board - approved policies and guidelines, andother applicable governing laws, rules andregulations. The OGM sees to it that all plannedtargets, activities and projects are accomplished.The General Manager is responsible for thegeneral management and administration of corefunctions necessary to provide excellent services tothe member- consumers as electric distributionutility; ensures compliance with all regulatorypolicies, rules, guidelines and laws surmounting itsmandates as electric cooperative; provides directlink between the Board of Directors and the workforce for policy support matters concerning utilityoperation and general members' welfare; ensurethat the cooperative is kept capable to sustain theattainment of its vision, mission and goal.

4.Corporate Planning Services Department(CPSD)

Helps management draw up detailed action plansand structured approach to achieve thecooperative's goals and objectives, taking intoaccount the resources and the environment withinwhich it operates; designs, operates or maintainstechnology products, provides services related tosoftware, hardware, databases, web resources,networks and enterprise systems; collects,investigates, monitors and evaluates informationrelevant to energy trading; and develops theOMEeo's plans for business promotion withreference to the demands of the captive andcontestable market

5.Internal Audit Department (lAD)

This department ensures the effective and efficientimplementation of internal control system in alldepartments and ensures transparency,effectiveness and efficiency of business operationsand reliability of financial, institutional, technicaland area information. It is responsible forauditing financial, technical, institutional and areaoffices transactions to serve as basis for decision

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making and policy formnlation for a betteroperating performance.

6. Finance Services Department (FSD)

The department administers the technical detailsof the financial aspect of the Cooperative'soperation. Its functions include accounting,financial analysis, tax planning, investmentanalysis, regulatory compliance and consumeraccounts management.

7.Institutional Services Department (ISD)

The ISD through the Consumer Services Divisionis responsible for the efficient and intelligentinformation dissemination of member-consumers,intensifying the member-consumers databasewhich is being used as the basis to fulfill the socialresponsibility through comprehensive andsustaining education and social, political andeconomic formation and development, andmaintaining good community relations. It is alsoresponsible for enhancing human resourcescompetencies, skills and capabilities throughcontinuing education and training, sustaining fairand just implementation of policies, andmaintaining the proper acquisition, receiving,safekeeping and issuance of materials through asound procurement and warehousing policythrough the HR and Administrative Division.

8.Technical Services Department (TSD)

This Department directly addresses the planning,construction, operation and maintenance of thedistribution system, conducts periodic systemanalysis and evaluation of distribution lines for thetotal electrification of the service coverage areaincluding far-flung barangays and sitios,improvement of line distribution system, andreduction of technical and non-technical systemloss.

9. Area Operation Department (ADD)

The Area Operation Department is responsible forthe planning, supervision, leading and controllingof the operation of the area offices with regard tocooperative's technical, financial, and institutionalaspects and services for a more encompassing andclosed inter- action and inter-relation withmember-consumers and for the speedy delivery ofreliable and good quality of electricity in order toachieve significant and sustained energy efficiencyimprovement.

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ERC CASE NO. 2016-42 MCORDER/12 MAY 2017PAGE60f19

d.) DESCRIPTION OF CURRENT PROCESS

1.Audit Process

Internal auditing is an internal appraisal activitywithin the organization for the review of technical,financial, institutional and District operations ofthe cooperative. The objective of Internal Auditinclude, but not limited to the following: (a)ensure the efficiency and effectiveness of electriccooperatives' operation; (b) review of existinginternal control system; (c) Evaluate the validity ofcooperative data reported to NEA, ERe, BrR, DOE,and other regulatory agencies; (d) determinewhether funds are properly expended; (e)determine whether NEA and Ee policies arebeing carried out effectively by management andwhether the financial progress of the EC is beingmaintained; (f) prevent fraud and provide strongdeterrent to any irregularities; (g) recommendsremedial action to management which will correctdeficiencies and irregularities discovered.

2.Meter Reading, Billing and DistributionProcess

This Process enables the Meter Readers to readkWh meters, process the bill and issue the same tothe concerned consumers in one visit. Prior to thedispatching of routes for reading, the consumersupdated data from the Billing Data Server by theBilling Supervisor and at the end of the day, themeter readers return the reading card to theBilling Supervisor who will update the data to theBilling Data Server.

3.Collection~ Remittance and DepositProcess

This process is a responsibility of the Main Officeas well as all Collection Offices. This processfacilitates Main Office Tellers, Collectors, AreaTellers to collect power bills and other revenuesand issue manual or computerized tellers' receipts.Payment of power bills and other revenues can bemade through the following: (a) Main Office(through Main Office Tellers/Roving Collectors);(b) Area Offices (tbrough Area Tellers/RovingCollectors)

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ERC CASE NO. 2016-42 MCORDER/12 MAY 2017PAGE70ft9

4. Issuance of Notice of Disconnection"Huling Abiso" Process

This is a function of the Finance ServicesDepartment through Consumer Accounts Division.A forty eight (48) hour Notice of Disconnection'Huling Abiso" is issued to consumers if power billis unpaid nine (9) days from the day after thereceipt of monthly power bill, giving the consumerthe time to pay within 48 hours after the deliveryof disconnection notice.

5.Disconnection Process

Disconnection of delinquent consumers is afunction of Consumer Accounts Division under theFinance Services Department. Disconnection isalso a function of the Lineman under TechnicalServices Department for requested disconnection.After the lapse of the forty-eight (48) hour writtenNotice of Disconnection "Huling Abiso", theconsumer with unpaid accounts is subject todisconnection. The Finance Manager throughConsumer Accounts Division Chief and the AreaChief shall see to it that disconnection policies arestrictly implemeuted. To properly implement thedisconnection policies, the Consumer AccountsOfficer shall prepare a list of consumers subject fordisconnection, checked by the Consumer AccountsVerifier, noted by the Consumer Accounts DivisionChief and approved by the Finance Manager. TheMRCD Section Head will be furuished withapproved disconnection list and dispatch by thedisconnection team. The disconnection team shallread the kWh meter prior to disconnection of thekWh meter and submits disconnection report tothe Meter Reading Collection Section Head.

6.Reconnection Process

Reconnection to a member- consumer whoseelectric service has been disconnected due to non-payment of bills shall be made only upon paymentof all unpaid bills, reconnection fees, up dated thepower bill guarantee deposit and acquisition ofclearance required by management.

7.Payroll Process

Labor costs and the related payroll taxes constitutea material portion of the non-power cost ofOMECO. Accounting for payroll is very importanttask of the Institutional Services Departmentbecause of the amount involved and thecompliance of the various tax and social securityregulations which require the employers to

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maintain information in their payroll records notonly for the coop but also for each individualemployee.

8.Budget Process

A preliminary planning by management shall bedone to obtain needed decisions on the significantknown or assumed condition that will occur duringbudget period. The decision includes financialperformance and efficiency, level of consumerservice to be rendered, standards for the quality ofservice, reliability and safety.

9. Check Voucher Preparation Process

A Check Voucher (CV) shall be prepared to recorddisbursement transaction and used as a basis toprepare check. Disbursements are incurred to payfor purchases, labor cost, administrative and otheroperating expenses.

10. Journal Voucher Preparation Process

A Journal Voucher (JV) is a medium by which afinancial transaction of OMECO is recognized inthe books of accounts. It shows the nature oftransaction occurred, account to be charged andthe corresponding amount. A JV can be used forfinancial transaction which cannot be taken-up inthe Cash Receipt Register, Check DisbursementRegister, Accounts Payable Register and MaterialRegister.

11. Monthly Financial Preparation ReportProcess

Financial Reports are necessary tools formanagement's decision making process. It mustadhere to the Generally Accepted AccountingPrinciple, PASjPFRS. Internal accountingcontrols shall be ensured by the FSD Manager andInternal Auditor covering transaction reporting.

12.Procurement Process

All Capital Expenditures (Capex) are based on theCapex Plan prepared by the Technical WorkingGroup submitted to the Board of Directors forapproval and to be included in the Annual CashOperating Budget. The Capex Plan is submitted tothe Energy Regulatory Commission for approvalon a specified regulatory period. All requisitionsfrom different departments are certified by theBudget Supervisor as to the availability of fundsand thereafter recommends approval/disapproval

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ERC CASE NO. 2016-42 MCORDER/12 MAY 2017PAGE 9 of19

of the requisition to the General Manager. OMECOimplements the proper procedure in theprocurement of materials through public bidding,canvass or sealed bid as provided for in thecooperative's Policy on the Conduct of Bidding.

13.Membership and Meter Installation forNew Connection Process

The membership and assessment of requirementsprior to meter installation for new connection ispertormed by the Member Services Division. Anapplicant for service connection fills up and signsan Application for Membership, pays PS.aoMembership Fee. Applicants shall be required toattend a pre-membership orientation to know therights and responsibilities of the consumer. Anapplicant shall file an application for electricservice connection and pays inspection fees andother charges. The application duly signed by theapplicant shall indicate that OMECO staff shall beallowed to access to the premises of the applicantfor purposes of inspection, meter reading, andother official business that OMECO may have.Applications for Electric Service Connection shallbe forwarded to Safety Inspection Officer for theinspection of the connection.

14.Customer Assistance- Inquiries,Complaints and Concern Process

This is pursuant to Chapter 11,Art 13 of the MagnaCarta for Residential Electricity Consumers whichstates that "Right to a Prompt Investigation ofComplaints; Customer Dealings - Distributionutilities shall record and promptly investigate allcomplaints referred to them concerning services".The Consumer Welfare Desk Officer is tasked toreceive and answers queries and endorsescomplaints to the concerned department forappropriate action. All complaints and request areproperly docketed and documented including thedate accomplished and other feedback.

15. KWH Meter Testing .and SealingProcess

OMECO shall ensure that all electric meters it putsin service shall have been tested, sealed by theERe, and while these meters are already in service,the same should be tested at least once every two(2) years in accordance with a statistical samplingprogram approved by the ERC.

ERC CASE NO. 2016-42 MCORDERf12 MAY 2017PAGElO0f19

16. Repair and Maintenance of Equipment/Transformer Process

Defective equipment most especially transformersare inspected by the Special Equipment andSubstation Division for possible repairs orrehabilitation. This activity of the division savesmoney by reviving busted transformer or turningthe scrap or garbage to a useful asset. In mostcases, the cost allocated to revive a transformer isalmost 65% of the cost of new transformer. Thishelps the operation's sustainability for distributiontransformers. This activity alleviates instancessuch as delays in the shipment of newtransformers and/or bidding failure. Repair oftransformer undergo rewinding, baking,assembling and electrical testing.

SECTION II. DETAILS OF BUSINESS SEGMENTS

Under the Distribution and Related Activities BusinessSegments, OMECO adopts four (4) out of the seven (7)distribution business segments, as follows: DistributionServices (DS), Distribution Connection Services (DCS),Regulated Retail Services (RRS), and Related BusinessServices (RBS). Likewise included in the application arethe remaining three (3) distribution business segmentswhich are relevant to the future connection of OMECO tothe main Grid, namely: Last Resort Supply Services,Wholesale Aggregation Services and Non-RegulatedRetail Services.

A.REGUIATED BUSINESS SEGMENTS:

1. Distribution Services Business Segment

This segment has the following distributionservices to end-users and other customers: (a)The conveyance of electricity through ApplicantOMECO Distribution System and the control andmonitoring of electricity as it is conveyedthrough OMECO's Distribution System(including any services that support suchconveyance, control or monitoring or the safeoperation of OMECO's Distribution System); (b)The provision of Ancillary Services that areprovided using assets which form part ofOMECO's Distribution System; (c)The planning,maintenance, augmentation and operation ofOMECO's Distribution System; (d)The provision,installation, commissioning, testing, repair,maintenance and reading of WESM- relatedmeters that are not used to measure the deliveryof electricity to end-users or other customers; (e)The billing, collection and the provision of

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customer services that are directly related to thedelivery of electricity to end users or to thatrelate to the connection of such persons toOMECO's Distribution System (whether suchservices are provided to those end-users or toSuppliers or to any other person).

2.Distribution ConnectionBusiness Segment,

Services

This segment comprises the prOVISIOn ofdistribution connection services namely: (a) Theprovision of capability at each Connection Pointto OMECO's Distribution System to deliverelectricity to or take electricity from theconnection point, and the conveyance ofelectricity: (1) From the facilities of personswhich are directly connected to OMECO'sdistribution system; (2) From the connectionpoint to the facilities of persons which aredirectly conuected to OMECO's distributionsystem; (b)The planning, installation,maintenance, augmentation, testing andoperation of OMECO's Distribution ConnectionAssets; (c)The provision of other services thatsupport of the above services

3.Regulated Retail Services BusinessSegment

This segment comprises the provision ofregulated retail services, namely servicespertaining to the sale of electricity to end-userswho are included in the captive market ofOMECO. The assets included in this service areall the assets used directly, or a relevant share ofthe shared assets which are used to provideregulated retail services. The liabilities includedin this service are all the liabilities incurreddirectly or a relevant share of the sharedliabilities which are incurred to provide theservices or undertake the operational activities ofthis particular segment. The revenues include allthe revenues associated with providing theregulated retail services.

4. Last Resort Supply Business Segmeut

Applicant OMECO similarly prepares to engagein this business by the time the OpenAccess/Retail Competition becomes operationalin Occidental Mindoro. This segment comprisesthe provision of SOLRservices to be provided byOMECO, namely: services pertaining to the saleof electricity to SOLR customers, including

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billing, collection and the proVlslOn of basiccustomer services.

5.Wholesale AggregationBusiness Segment

Services

OMECO also prepares to undertake this businesspertinent to the future connection of thecooperative's distribution lines to the main Grid.This segment comprises OMECO's service ofpurchasing electricity in bulk and selling this toother Distribution Utilities. It also comprises theprovision of Wholesale Aggregation services tobe provided by OMECO, namely: servicespertaining to the sale of electricity to otherDistribution Utilities including billing, collectionand the provision of basic customer service.

B. NON. REGULATED BUSINESS SEGMENT:

6.Non-Regulated Retail Services BusinessSegment

As WESM becomes operational in OccidentalMindoro, OMECO similarly prepares to enterinto this venture. This segment comprises theprovision of nOll- regulated services to beprovided by OMECO. namely: servicespertaining to the sale of electricity to end userswho are included in the contestable market or toother customers who are not end-users., andincludes: Ca) Billing, collection and the provisionof customer services to such end-users in theircapacity as electricity consumers or to such otherconsumers in their capacity as purchasers ofelectricity; Cb) The sale of electricity to end-userswho are included in the contestable market or toother customers who are not end-users; (c) Theprovision, installation, commissioning, testing,repair, maintenance and reading of meters thatare used to measure the delivery of electricity toend-users who are included in the contestablemarket or to other customers who are not endusers.

7. Related Businesses Business Segment

This segment comprises the provision of all otherservices and the carrying out of all otheractivities that utilize distribution assets, facilitiesor staff including: (a) Electricity related servicessuch as the construction and maintenance ofcustomer installation; (b)Non- electricity relatedservices such as telecommunication services.

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The proposed BSUP likewise presents a detailedsegregation of employees per department as wellas an allocation of its assets to the appropriatebusiness segments in which they are utilized.

SECTION III. ACCOUNTING SEPARATION

OMECO shall adopt the ERC-approved Accounting andCost Allocation Manual (ACAM) in its operations. It shalllikewise adopt certain policies and principles to be able toachieve an effective accounting separation, as follows:

a. Principles to Achieve Accounting Separationb.Allocation Principlesc.Chart of Accountsd.Basic Accounting Principles

SECTION IV - DESCRIPTION OF SEPARATION

OMECO analyzes and evaluates workloads, jobdescriptions, quaiifications, among others, and designateand distribute personnel among the business segments asdescribed in the Details of Business Segment presented inSection 2. OMECO shall not share facilities, office,property, equipment, assets, employees, and computerhardware/software with its Affiliate RES except for assetscommonly used by top management. Likewise, it shallnot share facilities, office, property, equipment, assets,same set employees (except Top Management), andcomputer hardware/software with its Local RES asprovided in the Business Separation Guidelines (asamended).

These business activities are unbundled into businesssegments Generation of electricity, Distribution Services,Distribution Connection Services, Related businesses,Regulated retail services. Should there be WESM,connection of cooperative's distribution line to the mainGrid. In the event of Open Access/Retail Competition inthe future, OMECO will undertake Non-Regulated RetailServices, Wholesale Aggregation Services and Last ResortSupply Services respectively.

SECTION V - MILESTONES AND HIGHLIGHTS

Details of OMECO's milestones and highlights aredocumented in the BSUP.

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SECTION VI. PROGRAM FOR CODE OF CONDUCT

OMECO shall comply with ERC Resolution No. 3', Seriesof 2006, the Code of Conduct for Competitive RetailMarket participants Printed as well as electronic copies ofOMECO's proposed BSUP are being submitted herewithand made integral parts hereof as Annexes "A" and "A-I",respectively.

7. OMECO prepared Accounting Separation Statements inaccordance with the Accounting and Cost Allocation Manual(ACAM) for Electric Cooperatives, based on its AuditedFinancial Statements (AFS) for the Years 2014 and 2015.Copies of the Accounting Separation Statements and AFS areattached hereto and made integral parts hereof as Annexes"B" and "C", respectively.

8. In addition to the BSUP, OMEO is likewise submittingherewith for the Honorable Commission's consideration andapproval, a set of Confidentiality Policies and Guidance to beobserved by concerned personnel, together with a BoardResolution adopting certain sets of obligations imposed uponDistribution Utilities (DUs), among others, as providedunder Article V of the Business Separation Guidelines (BSG),attached hereto and made integral parts hereof as Annexes"D" and "E," respectively.

PRAYER

"\VHEREFORE, premises considered, it is respectfullyprayed of this Honorable Commission that after due notice andhearing, OMECO's proposed Business Separation and UnbundlingPlan (BSUP) be approved accordingly.

Other reliefs, just and equitable under the premises, arelikewise prayed for.

Finding the said Application sufficient in substance with therequired fees having been paid, the same is hereby set fordetermination of compliance with the jurisdictional requirements,expository presentation, Pre-trial Conference, and presentation ofevidence on 04 July 2017 (Tuesday) at nine o'clock in themorning (9:00 A.M.) at the ERC Hearing Room, 15th Floor,Pacific Center Building, San Miguel Avenue, Pasig City.

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OMECOis hereby directed to:

1) Cause the publication of the attached Notice of PublicHearing in at least once in one (1) newspaper of nationwidecirculation in the Philippines at its own expense, the date ofthe publication to be made not later than ten (10) daysbefore the date of the scheduled initial hearing;

2) Furnish with copies of this Order and the attached Noticeof Public Hearing the Offices of the Provincial Governors,the City and Municipal Mayors, and the Local GovernmentUnit (LGU) legislative bodies within the affected franchisearea for the appropriate posting thereof on their respectivebulletin boards;

3) Inform of the filing of the Application, its reasons therefor,and of the scheduled hearing thereon, the consumerswithin the affected franchise area, by any other meansavailable and appropriate;

4) Furnish with copies of this Order and the attached Noticeof Public Hearing, the Office of the Solicitor General (OSG),the Commission on Audit (COA), and the Committees on 1Energy of both Houses of Congress. They are herebyrequested, if they so desire to send their duly authorizedrepresentatives at the scheduled hearing; and

5) Furnish with copies of the Application and its attachmentsall those making requests therefor, subject toreimbursement of reasonable photocopying costs.

On the date of the initial hearing, Applicant must submit to theCommission its written compliance with the aforementionedjurisdictional requirements attaching therewith, methodicallyarranged and duly marked the following:

1) The evidence of publication of the attached Notice of PublicHearing consisting of affidavit of the Editors or BusinessManager of the newspapers where the said Notice of PublicHearing was published, and the complete issue of the saidnewspaper;

ERC CASE NO. 2016-42 MCORDERf12 MAY 2017PAGE 16 of19

2) The evidence of actual posting of this Order and theattached Notice of Public Hearing consisting ofcertifications issued to that effect, signed by theaforementioned Governors, Mayors, and LGU legislativebodies or their duly authorized representatives, bearing theseals of their offices;

3) The evidence of other means employed by Applicant toinform of the filing of the Application, its reasons therefore,and of the scheduled hearing thereon, the consumerswithin the affected franchise area;

4) The evidence of receipt of copies of this Order and theattached Notice of Public Hearing by the Office of theSolicitor General (OSG), the Commission on Audit (COA),and the Committees on Energy of both Houses of Congress;

5) The evidence of receipt of copies of the Application and itsattachments by all those making requests therefor, if any;and

6) Such other proofs of compliance with the requirements ofthe Commission.

Applicant and all interested parties are also required to submit,at least five (5) days before the date of initial hearing and Pre-TrialConference, their respective Pre-Trial Briefs containing, amongothers:

1) A summary of admitted facts and proposed stipulation offacts;

2) The issues to be tried or resolved;

3) The documents or exhibits to be presented, stating thepurposes and proposed markings therefore; and

4) The number and names of the witnesses, with their writtentestimonies in a Judicial Affidavit form attached to the Pre-trial Brief.

Failure of Applicant to comply with the above requirementswithin the prescribed period shall be a ground for cancellation of thescheduled hearing, and the resetting of which shall be six (6) monthsfrom the said date of cancellation.

ERC CASE NO. 2016-42 MCORDER/12 MAY 2017PAGE170ft9

OMECO must also be prepared to make an expositorypresentation of the instant Application, aided by whatevercommunication medium that it may deem appropriate for thepurpose, in order to put in plain words and explain, for the benefit ofthe consumers and other concerned parties, what the Application isall about and the reasons and justifications being cited in supportthereof.

SO ORDERED.

Pasig City, 12May 2017.

FORAND BYAUTHORITYOFTH MISSION:

ALF O%NOfficer-In-Charge of ERC

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Copy Furnished:

1. DECHAVEZ & EVANGELISTA LAWOFFICESCounsel for the ApplicantUnits 1609-1610, Tycoon CentrePearl Drive, Ortigas Center, Pasig City 1605

2. Occidental Mindoro Electric Cooperative, Inc. (OMECO)M.H. del Pilar St., San Jose, Occidental Mindoro

3. Office of the Solicitor General (08G)134 Amorsolo Street, Legaspi Village,City of Makati 1229

4. Commission on Audit (eGA)Commonwealth Avenue,Quezon City 1121

5. Senate Committee on EnergyGSIS Building, Roxas Boulevard,Pasay City 1300

6. House of Representatives Committee on EnergyBatasan Hills, Quezon City 1126

7. Office of the Municipal MayorAbra de Ilog, Occidental Mindoro

8. Office of the Sangguniang BayanAbra de Ilag, Occidental Mindoro

9. Office of the Municipal MayorCalintaan, Occidental Mindoro

10. Office of the Sangguniang BayanCalintaan, Occidental Mindoro

11. Office of the Municipal MayorMagsaysay, Occidental Mindoro

12. Office of the Sangguniang BayanMagsaysay, Occidental Mindoro

13. Office of the Municipal MayorMamburao, Occidental Mindoro

14. Office of the Sangguniang BayanMamburao, Occidental Mindoro

15. Office of the Municipal MayorPaluan, Occidental Mindoro

16. Office of the Sangguniang BayanPaluan, Occidental Mindoro

17. Office of the Municipal MayorRizal, Occidental Mindoro

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18. Office of the Sangguniang BayanRizal, Occidental Mindoro

19. Office of the Municipal MayorSablayan, Occidental Mindoro

20. Office of the Sangguniang BayanSablayan, Occidental Mindoro

21. Office of the Municipal MayorSan Jose, Occidental Mindoro

22. Office of the Sangguniang BayanSan Jase, Occidental Mindoro

23. Office of the Municipal MayorSta. Cruz, Occidental Mindoro

24. Office of the Sangguniang BayanSta. Cruz, Occidental Mindoro

25. Office of the GovernorProvince of Occidental Mindoro

26. Office of the Sangguniang PanlalawiganProvince of Occidental Mindoro

27. Philippine Chamber of Commerce and Industry (PCCI)3rd Floor, ECC Building, Sen. Gil Puyat Avenue, Makati City

28. Regulatory Operations Service17th Floor, Pacific Center Bldg.San Miguel Avenue, Pasig City

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