The National Electrification Administration (NEA) has issued a reminder to all electric cooperatives (ECs) to strictly adhere to regulatory guidelines for capital expenditure (CAPEX) projects, ensuring timely, cost-efficient, and consumer-focused infrastructure upgrades. In *NEA Memorandum No. 2023-09*, the agency emphasized compliance with ERC Resolution No. 26, Series of 2009, which outlines updated rules for approving CAPEX initiatives.
Central to the resolution is the Electric Cooperative Distribution Utility Planning Manual, a framework guiding ECs in expanding and modernizing distribution facilities. The manual prioritizes meeting consumer demands, safety standards, and regulatory requirements while aligning with long-term institutional development goals.
To streamline approvals, the NEA further advised ECs to follow ERC Resolution No. 09, Series of 2020, which mandates electronic filing and initial review of CAPEX compliance applications. Projects submitted for ERC approval must match those outlined in biennial workplans shared with the NEA. Cooperatives are also required to submit documentation related to adjustments in their Reinvestment Fund for Sustainable CAPEX Projects (RFSC) before making changes.
Franchise Renewals: Deadlines Loom for 39 ECs
In a related directive (*NEA Memorandum No. 2023-10*), the agency urged 39 ECs to promptly file applications for franchise renewals with the House Committee on Legislative Franchises. Key deadlines include:
- 2027 Expirations: DORELCO, PRESCO
- 2028 Expirations: AKELCO, BASELCO, BENECO, CAGELCO I, CANORECO, CAPELCO, CASURECO I, CENPELCO, NORDECO, FLECO, LASURECO, LEYECO II, ZAMCELCO, ZAMECO I
- 2029 Expirations: ANTECO, CASURECO II-IV, COTELCO, FICELCO, ILECO II, ISELCO I, LANECO, LEYECO III-IV, MARELCO, NORECO I, PALECO, PANELCO I, QUEZELCO I, SOCOTECO I, SOLECO, SORECO I-II, SULECO, TAWELCO, ZAMSURECO I
ECs must submit critical documents, including a Certificate of Registration, Certificate of Good Standing, and updated Articles of Incorporation and By-Laws, to avoid operational disruptions.
Why This Matters
Compliance with ERC resolutions ensures ECs can secure funding and approvals for critical infrastructure projects, directly impacting service reliability for millions of consumers. Proactive franchise renewal filings also safeguard uninterrupted operations as expiration dates approach.
The NEA reiterated its commitment to supporting ECs through regulatory transitions while stressing the urgency of meeting deadlines to maintain sustainable energy distribution nationwide.
Stay updated with NEA guidelines to ensure your cooperative remains compliant and competitive in a rapidly evolving energy landscape.