EDITORIAL

Are You Happy With Akelco Services?

The Aklan Electric Cooperative filed an “Application for Approval of Capital Expenditure Program for the years 2011 – 2014 With Prayer For Provisional Authority”. This is docketed as ERC Case No. 2011 – 153 RC.

A public hearing was held on the case on Tuesday morning, Feb. 7, 2012 at Gov. Corazon L. Cabagnot Training Center, Buswang Old, Kalibo, Aklan.

While the subject matter of the hearing was of province wide concern and importance, very few came to participate in the public hearing. Moreover, of those who attended, majority of whom was Akelco personnel.

During the public hearing, Akelco presented via the power point, the Akelco projects for financing and the financial feasibility of the proposed projects.

ERC Commissioner, Hon. Reyes presided the public hearing.

After the presentation, Atty. Niovady M. Marin, a retired RTC judge asked if Aklan Electric Cooperative, Inc. is registered with the Securities and Exchange Commission. The answer was “NO”. Is this a misrepresentation? INC must be removed. Atty. Marin pointed out to some of the “capital projects applied for are not really capital projects, but are expenses for the operation and maintenance of the distribution system”. Hon. Reyes easily agreed on the observation.

Asked if relocation of electric posts which are believed ugly and impeding road widening and improvement are included in the Capital Expenditure, the answer is “NO”, neither the rebonding of the black spaghetti wire on electric posts which are “no fun to see”. Hon. Reyes and Akelco Manager Chito Peralta pointed to the DPWH to do the job.

Atty. Romeo Inocencio was the last to give comments. He asked questions on the proposal and the responses given to most questions were not only of Akelco but of Hon. Reyes, ERC Commissioner. Is Reyes partial to Akelco?

Atty. Inocencio manifested and informed the ERC of the “intention of the People Opposing Warrantless and Excessive Electricity Rates to file a formal intervention” on the ERC Case No. 2011 – 153 RC. The intention was instantly approved.

According to Inocencio, if this application is approved, capital contribution of members will increase from P0.2904 to P0.52 per kwh per member consumer or about 40 percent increase for the next 4 years. With this additional cost, Akelco has not shown clearly how additional capital expenditure program will benefit the consumer members”, Inocencio pointed out.

On the basis of Akelco presentation, additional capital is not needed in the next 4 years to bring about increase in revenue with present MCC rate.

In 2008, in ERC Case No. 2008 – 013 RC, Akelco was granted P160.8 million as total Annual Revenue Requirement. Looking at the audited 2010 financial statements, Akelco has a total P215,702,089 revenue, net of power cost. With these figures, Akelco has P54,891,38 over collection or surplus. In 2009, Akelco’s total revenue was P180,141,192, net of power cost. If the total revenue requirement of P160,810,151 is deducted from it, there is P19,331,041 over collection or surplus. With these figures, Akelco has an aggregate over collection of P74,222,979 for 2009 and 2010.

According to Atty. Inocencio, the application for authority to collect additional members contribution for Capital Expenditure is a grave violation of Section 5.4, Article 5 of the Rules for Setting the Electric Cooperative’s Wheeling Rates. Furthermore, “there was no public hearing or consultation conducted to secure the consent of the member – consumers…before the filing of the instant application”.

Hence, Atty. Inocencio respectfully prayed for the disapproval of this application for Capital Expenditure Program.

But Akelco general manager Chito Peralta asked, “are you happy with Akelco services?” /MP