MORE Power takes over PECO building

By Francis Allan L. Angelo

 

Iloilo City’s new power distributor MORE Electric and Power Corp on Wednesday formally took over the corporate building of former distribution utility Panay Electric Co. (PECO).

The takeover took effect after Iloilo Regional Trial Court Branch 39 Judge Victorino Maniba issued on January 7, 2021 a supplemental writ of possession (WOP) in favor of MORE Power.

To recall, MORE Power took over electricity distribution assets in the city in February 2020 based on the WOP issued by RTC Judge Emerald Requina-Contreras who was then handling the expropriation case against PECO.

The WOP is an offshoot of the expropriation case filed by MORE Power against PECO on March 11, 2019 in exercising its rights under Republic Act No. 11212, which granted the Razon-led firm the congressional franchise to distribute power in Iloilo City.

Pres. Rodrigo Duterte signed RA 11212 into law on February 14, 2019.

Based on the first WOP issued by the Judge Contreras, MORE Power took over the following assets:

-the Baldoza, La Paz substation (land including all machinery and improvements, buildings);

-the General Luna, City Proper substation (machinery);

-the Tabuc Suba, Jaro substation (land and machinery);

-the Bolilao, Mandurriao substation (land, buildings, and machinery); and

-the Avanceña Street, Molo substation (land, and buildings, machinery)

The coverage and execution of the WOP were based on properties that the court categorized into three.

Category A includes all properties that PECO did not contest as ‘distribution assets’ such as Baldoza, Lapaz Substation, Gen. Luna, City Proper Substation, and Tabuc Suba, Jaro Substation, and among others. These properties have a total assessed value of PHP217,940,870

Meanwhile, Category B is comprised of the properties which the court initially finds as part of the distribution assets being listed under the ‘distribution plant’ in the Energy Regulatory Commission (ERC) record, and may be necessary for the operation of MORE Power so that the operation may not be interrupted once the writ is implemented.

The properties include meter lab, power plant building and switchboard house in Gen. Luna St. in City Proper. These properties have an assessed value of PHP14,792,680.

Category C properties are those excluded in the coverage of the writ because they are either under the classification “general plant” or not listed under the distribution plant” in the ERC record such as pole stockyards in Diversion Road, Mandurriao and land set aside for future substation in Brgy. Gen. Hughes in City Proper.  These assets have an assessed value of PHP2,252,330.

However, Contreras reiterated that properties under categories B and C are the properties that the court reserved to include in the final determination of the properties to be expropriated in expropriation proceedings.

But the January 7, 2021 order of Judge Maniba granted the supplementary WOP covering the Category C assets, including the corporate building.

Maniba, however, held in abeyance the order of expropriation to all PECO assets.

Expropriation refers to the action by the state or an authority of taking property from its owner for public use or benefit with due compensation to the previous owner.

In the case of MORE Power, RA 11212 allowed the Enrique Razon-led firm to use the expropriation powers of government to take over the distribution assets of PECO.

Apart from the supplementary WOP, Judge Maniba also denied PECO’s motion to suspend the expropriation and his inhibition from the case for lack of merit.