By Genalyn Kabiling
The Bases Conversion and Development Authority (BCDA) has been granted a franchise to engage in power distribution in five places for the next 25 years.
President Duterte has signed Republic Act No. 11420 that allows BCDA “to construct, install, establish, operate, lease, own, manage and maintain distribution systems for the conveyance of electric power users in selected areas.”
Covered by the BCDA franchise are John Hay Station in Baguio City, Wallace Air Station in Poro Point, La Union, O’Donnell Transmitter Station in Capas, Tarlac, Capas Relay Station in Capas, Tarlac, and a portion of the Clark Special Economic Zone covering new Clark City.
Under the law signed last August 22, the grantee must secure from the Energy Regulatory Commission the necessary certificate of public convenience and necessity and other appropriate permits and licenses for the construction and operation of its electric distribution system.
“All electric distribution facilities, lines and systems for electric services owned, maintained, operated or managed by the grantee, its successors or assignees, shall be operated and maintained at all times in the best manner,” the law read.
The law also stated that the grantee’s retail rates and charges for the power distribution to end users shall be regulated and approved by the ERC.
The grantee must also supply electricity to its captive market in the urban and rural portions of its franchise area in the least costly manner. “The grantee shall charge reasonable and just power rate costs for its services to all types of consumers within its franchise areas,” the law added.
BCDA, formed in 1992, is a state corporation engaged in the development of former military bases and properties in premier centers of economic growth.