Application CAPEX Force Majeure

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    Republic of the PhilippinesENERGY REGULATORY COMMISSION

    San Miguel Avenue, Pasig City

    IN THE MATTER OF THE APPLICATIONFOR APPROVAL OF REGULATED ENTITIES CAPITAL EXPEDITURE PROJECTS DUE TOFORCE MAJEURE,

    ERC CASE NO.______RC

    FIRST LAGUNA ELECTIRC COOPERATIVE,INC. (FLECO),

    Applicant.X---------------------------------------------------------X

    APPLICATION

    COMES NOW , applicant First Laguna Electric Cooperative, Inc. (FLECO,

    for short), through the undersigned counsel, and unto this Honorable

    Commission, most respectfully states:

    1. That applicant is an electric cooperative duly organized and existing under

    and by virtue of the laws of the Philippines, with the principal office at

    Barangay Lewin, Lumban, Laguna, where it may be served with summons

    and other legal processes, represented in this instance by its Project

    Supervisor, Acting general Manager, EVANGELITO S. ESTACA, of legal

    age, Filipino, and with office address also at FLECO office;

    2. That herein applicant is the exclusive franchise holder issued by the

    national electrification Administration (NEA) to operate an electric light and

    power services in the municipalities of the province of Laguna, namely:

    Pagsanjan, Cavinti, Lumban, Kalayaan, Paete, Pakil, Pangil, Siniloan,

    Famy, Mabitac, and Sta. Maria;

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    3. That on July 13, 2011, Typhoon Basyang hit the Luzon area, including

    the province of Laguna. As a consequence, the distribution lines of

    FLECO were partially damaged, which caused brownout in its entire

    coverage area, as shown in the attached pictures duly marked as

    Annexes A to A -6;

    4. That the details of capital expenditures of FLECO had actually incurred as

    of the date of the force Majeure (Typhoon Basyang) was One Million Six

    Hundred Thirty Four Thousand Four hundred Forty Three Pesos and

    Eighty Seven Centavos (P1,634,443.87), as evidenced by the attachedmaterials damaged by Typhoon Basyang and duly marked a Annexes B

    to B -3;

    5. That the increase in costs of the damaged distribution lines is

    P1,640,563.99 considering that the expenses incurred in the repair of the

    damaged due to force Majeure was P3,275,007.86, the details of which is

    shown in the attached Materials Used for FLECOs Distribution Lines

    damaged by Typhoon Basyan g and duly marked as Annexes C to C -1,

    and such costs are reasonable and occur as a sole consequences of the

    aforesaid typhoon;

    6. That for purposes of and in connection with this application, FLECO

    hereby attached hereto the following documents in compliance with the

    requirements pertinent there to:

    a) Project Description;

    b) Justification or Benefits to be delivered;

    c) Estimated Project Costs

    d) Project schedule

    7. That the above projects are consistent with the Distribution development

    Plan (PDC), the Philippine Grid code (PGC), the Philippine Distribution

    Code (PDC) and other relevant government issuances; and in accordance

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    with ERC Resolution No. 26. Series of 2009, Resolution Amending the

    Rule for Approval of Regulated Entities Capital Expenditure P rojects;

    8. That the source of fund for the aforementioned capital projects was taken

    from Members Contribution for CAPEX (MCC);

    9. That in compliance with the pre-filing requirements, we are submitting the

    following:

    a) Certification from the Presiding Officer or secretary of the

    Legislative Body (and not the office of the Mayor) of the

    municipality where it principally operates, that a copy of theapplication, with all its annexes accompanying documents attesting

    to be fact that applicant has furnished the said legislative body of

    the aforesaid application. If such principal place of operation is a

    component city or municipality and secure the same certification

    from the Sangguniang Panlalawigan of Laguna, or their duly

    authorized representatives; and

    b) Affidavit of Publication and Newspaper issue containing the

    published Application in its entirety in a newspaper of general

    circulation in Laguna;

    10. That the approval of the capital expenditure projects due to Force Majeure

    is needed to maintain efficient, reliable, and safety delivery of power to

    FLECOs existing and future consumers, and will redound to the benefits

    of the consuming public.

    PRAYER

    WHEREFORE, view from the foregoing, it is respectfully of this Honorable

    Commission that, after due notice and hearing and consideration, this application

    be approved.

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    Other relief/s just and equitable under the premises are likewise prayed

    for.

    Cainta, Rizal for Pasig City, March 1, 2011.

    ARNIDO O. INUMERABLECounsel for the applicant405 Elisa Street, U.E. Village, Cainta, RizalPTR No.4610303, 1-7-11, Q.C.IBP No. 857319, 3-1-11, Pasig CityRoll of Attorneys No. 28764MCLE Compliance III-0015335, 5-5-10

    EXPLANATION

    Filing and service of the foregoing application were done by registeredmail instead of personal service due to manpower constraint.

    ARNIDO O. INUMERABLE

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    Republic of the Philippines) ______________________) S.S

    VERIFICATION/TION/CERTIFICATION

    I, EVANGELITO S. ESTACA, of legal age, Filipino, with office address atBarangayn Lewin, Lumban, Laguna, Philippines, after having been sworn to inaccordance with law, here by depose and state:

    1. That I am the Acting General Manager of First Laguna electric Cooperative,Inc. (FLECO), the applicant in this case;

    2. That I have caused the preparation and filing of the this application for Approval of Regulated Entities Capital Expenditure Projects Due to force

    majeure before the Energy Regulatory Commission;

    3. That I have read and know the contents of the said application as true andcorrect to the best of my knowledge;

    4. That I hereby certify that I have not therefore commenced any other action or proceeding involving the same in the Supreme court of Appeals or any other tribunal or agency;

    5. That to the best of my knowledge, no such action or proceeding is pending in

    the Supreme Court, the Court of Appeals or any other tribunal or agency;

    6. That if there is such action or proceeding which is either pending or may have been terminated, I must state the status there of;

    7. That should I thereafter learn that a similar action or proceeding has been filedor pending before the Supreme court, the Court of appeals or any other tribunal or agency, I will undertake to report that fact within five (5) daystherefore to the Court or agency wherein the original pleading has been filed.

    IN WITNESS WHEREOF, I have here unto set my hand this 16 th day of June,2011at Marikina City, Philippines.

    EVANGELITO S. ESTACA

    AffiantCTC No.13472387Issued on Feb. 24, 2011Issued at Famy, Laguna

    SUBCRIBED AND SWORN to before me this 16th

    day of June, 2011 in MarikinaCity, Philippines, affiant exhibited to me his community Tax Certificate as shown above.

    Doc. No.______;Page No.______;Book No.______;Series of 20____.