House panel hears QUEZELCO I bid for new 25-year franchise

By Nimfa L. Estrellado-Laurino Lawmakers and QUEZELCO I representatives attend the House Committee on Legislative Franchises hearing on ...

By Nimfa L. Estrellado-Laurino

Lawmakers and QUEZELCO I representatives attend the House Committee on Legislative Franchises hearing on HB 10623, which seeks a new 25-year franchise for the electric cooperative. (Atorni Mike)

LUCENA CITY, Quezon - The House Committee on Legislative Franchises held a hearing on September 9 on a measure seeking a new 25-year franchise for Quezon I Electric Cooperative, Inc. (QUEZELCO I). The proposal concerns the cooperative’s electricity distribution operations across much of southern Quezon and Del Gallego in Camarines Sur as its existing authority approaches expiration in 2029.

Third District Rep. Reynante U. Arrogancia and Fourth District Rep. Keith Micah “Atty. Mike” D.L. Tan filed House Bill No. 10623 on August 5, and the House referred it to the committee on August 11. The measure covers 22 municipalities in Quezon and Del Gallego, forming a 23-municipality service area under the proposed new operating term.

The bill comes as QUEZELCO I pursues network expansion and other distribution projects across communities within its coverage area. Those initiatives include line extensions, equipment improvements and other works intended to strengthen electricity delivery across the cooperative’s service territory.

The measure would allow QUEZELCO I to construct, install, establish, operate, own, manage and maintain electric power distribution systems throughout its service area. Its mandate would include electricity distribution to households, businesses, government facilities and other end-users connected to the cooperative’s network.

QUEZELCO I currently operates under Certificate of Franchise No. 042, issued by the National Electrification Administration on September 26, 1979 for a 50-year period. The 50-year authorization remains in force while Congress considers the proposed new operating term sought by the cooperative.

Arrogancia announced that the proposed renewal had been taken up by the Committee on Legislative Franchises during the September 9 proceedings at the House of Representatives. He also identified Tan as his co-author in seeking another operating term for the electric cooperative.

“Pagdinig ng House Bill No. 10623 o pag-renew ng prangkisa ng QUEZELCO I, na inihain namin ni Rep. Keith Micah Tan, ang isinagawa kanina sa House of Representatives sa pangunguna ng Committee on Legislative Franchises,” Arrogancia said.

The Third District lawmaker said the legislation is intended to improve electricity service for consumers throughout QUEZELCO I’s coverage in southern Quezon. He specifically cited member-consumer-owners and other end-users in the Third and Fourth Congressional Districts as the intended beneficiaries of the measure.

“Layon ng panukala na ito na mas mapaunlad ang serbisyo ng electric cooperative na mapapakinabangan ng mga member-consumer-owners o end-users sa Ikatlo at Ikaapat na Distrito ng Quezon,” Arrogancia said.

Tan separately said he met with QUEZELCO I officials and personnel to discuss improvements in electricity service and the cooperative’s franchise renewal. He linked the discussions to efforts to maintain reliable electricity service for communities covered by the utility.

“Nagkaroon tayo ng pagpupulong kasama ang mga opisyal at kawani ng QUEZELCO I upang talakayin ang pagpapabuti ng serbisyo ng kuryente, kabilang ang usapin ng renewal ng franchise ng kooperatiba upang matiyak ang tuloy-tuloy at maaasahang serbisyo para sa ating mga kababayan,” Tan said.

The Fourth District lawmaker also stressed continued coordination with other sectors as efforts to improve public services proceed across his congressional district. He said cooperation with institutions and service providers would remain part of his approach to addressing the needs of constituents.

“Patuloy tayong makikipagtulungan sa iba't ibang sektor upang makapaghatid ng mas maayos at mas maaasahang serbisyo para sa ating mga kadistrito,” Tan said.

QUEZELCO I was incorporated on April 24, 1972 as the country’s 22nd electric cooperative and began operations with six municipalities in the Bondoc Peninsula. Its distribution network later expanded across southern Quezon and into Del Gallego, substantially widening the territory served since its early years.

The cooperative continues to reinforce and extend its distribution system across communities within its present service territory. In August, QUEZELCO I sought contractors for line extensions to 37 sitios in Quezon’s Third and Fourth districts and Del Gallego, together with house-wiring materials and service entrances for the electrification project.

QUEZELCO I has also pursued system improvements during 2026, including procurement for the first phase of a supervisory control and data acquisition or SCADA system. Other works have included testing of substation transformers and circuit breakers and the acquisition of poles, transformers, conductors and other equipment used in power distribution.

The Energy Regulatory Commission separately acted this year on QUEZELCO I’s application involving its capital expenditure program covering the period from 2024 to 2026. The proceeding involves planned investments in infrastructure and equipment intended to support the reliability and capacity of the cooperative’s distribution network.

QUEZELCO I’s residential electricity rate stood at P13.6091 per kilowatt-hour in August, compared with P13.5916 in July and P10.2703 in January. The August rate was about 32.5 percent higher than the January level, providing a consumer-cost benchmark alongside the cooperative’s ongoing service and infrastructure developments.

The measure must complete the required legislative stages in the House and Senate before it can be transmitted to the President for action. QUEZELCO I’s current 50-year franchise is scheduled to expire on September 26, 2029.