Ordinance 23 series of 2013


EXCERPT FROM THE MINUTES OF THE 8TH REGULAR SESSION OF THE 17TH SANGGUNIANG PANLUNGSOD, CITY OF GENERAL SANTOS, HELD AT THE SANGGUNIANG PANLUNGSOD SESSION HALL ON TUESDAY, AUGUST 27, 2013.

PRESENT:

Hon. Shirlyn L. Bañas-Nograles                                City Vice-Mayor & Presiding Officer
Hon. Dominador S. Lagare III                                   City Councilor
Hon. Elizabeth B. Bagonoc                                          City Councilor
Hon. Ramon R. Melliza                                                  City Councilor
Hon. Franklin M. Gacal, Jr.                                         City Councilor
Hon. Rosalita T. Nuñez                                                  City Councilor
Hon. Shandee Theresa O. Llido-Pestaño                City Councilor
Hon. Brix T. Tan                                                                City Councilor
Hon. Arturo C. Cloma                                                     City Councilor
Hon. Richard L. Atendido                                            City Councilor
Hon. Vivencio E. Dinopol                                             City Councilor
Hon. Marius Orlando A. Oco                                       City Councilor
Hon. Eduardo D. Leyson IV                                         City Councilor
Hon. Mac Alejandre M. Tablazon                              City Councilor (SK Federation President)

ABSENT:

Hon. Lourdes F. Casabuena                                         City Councilor (President, Liga ng mga Barangay) (OB)

WHEREAS, Republic Act Numbered Ninety‐One Hundred and Thirty‐Six (RA 9136), otherwise known as the “Electric Power Industry Reform Act of 2001” has been enacted to provide a framework for the restructuring of the electric power industry, including the privatization of the assets of NPC, the transition to the desired competitive structure, and the definition of the responsibilities of the various government agencies and private entities;

WHEREAS, under the abovementioned law, it has also been declared, among others, a policy of the State to:

a. Ensure and accelerate the total electrification of the country;

b. Ensure the quality, reliability, security and affordability of the supply of electric power;

c. Ensure transparent and reasonable prices of electricity in a regime of free and fair competition and full public accountability to achieve greater operational and economic efficiency and enhance the competitiveness of Philippine products in the global market;

d. Enhance the inflow of private capital and broaden the ownership base of the power generation, transmission and distribution sectors;

e. Ensure fair and non-discriminatory treatment of public and private sector entities in the process of restructuring the electric power industry;

f. Protect the public interest as it is affected by the rates and services of electric utilities and other providers of electric power;
g. Assure socially and environmentally compatible energy sources and infrastructure;

h. Promote the utilization of indigenous and new and renewable energy resources in power generation in order to reduce dependency on imported energy;

i. Establish a strong and purely independent regulatory body and system to ensure consumer protection and enhance the competitive operation of the electricity market; and

j. Encourage the efficient use of energy and other modalities of demand side management.

WHEREAS, starting from the time the abovementioned law has been put into effect, local government units (LGUs) concerned were already expected to subsequently lay down incidental policies to make sure that the eventual restructuring of the power industry including the privatization of National Power Corporation assets or any option relating to Demand Side Management or other similar contingencies shall not, in any way, become hurtful to their respective constituencies in the process;

WHEREAS, during the first semester of Fiscal Year 2013, General Santos City has terribly experienced a seven‐hour‐long day‐to‐day power outages which have been brought, allegedly, by some shortfall in power supply due either to privatization, incidental breakdown or routine maintenance procedures, administrative neglect or ineffective foresight on the part of concerned agencies, thereby, unreasonably constraining local industries to a near meltdown, while costs of electricity went up;

WHEREAS, Section 16 of Republic Act Numbered Seventy‐One Hundred and Sixty (RA 7160), otherwise known as “The Local Government Code of 1991” states that “every local government unit shall exercise the powers expressly granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or incidental for its efficient and effective governance, and those which are essential to the promotion of the general welfare;”

WHEREAS, the foregoing Section, thus, states that “LGUs shall ensure and support, among other things, the preservation and enrichment of culture, promote health and safety, enhance the right of the people to a balanced ecology, encourage and support the development of appropriate and self‐reliant scientific and technological capabilities, improve public morals, enhance economic prosperity and social justice, promote full employment among their residents, maintain peace and order, and preserve the comfort and convenience of their inhabitants;”

WHEREAS, this Sanggunian, in the interest of residents and investors alike, deems it necessary to create a local power resource planning and advisory board towards realizing the mandates of RA 9136, most particularly in promoting, inter alia, “transparent and reasonable prices of electricity in a regime of free and fair competition and full public accountability to achieve greater operational and economic efficiency and enhance the competitiveness of Philippine products in the global market;” ;

NOW, THEREFORE, on motion of City Councilor Franklin M. Gacal, Jr., duly seconded by City Councilors Elizabeth B. Bagonoc and Shandee Theresa O. Llido-Pestaño, be it –
RESOLVED, as it is hereby resolved to enact this Ordinance:

ORDINANCE NO. 23
Series of 2013

AN ORDINANCE ESTABLISHING THE GENERAL SANTOS CITY LOCAL POWER RESOURCE PLANNING AND ADVISORY BOARD (GSCLPRPAB)
————————————————————————————————-
Hon. Shirlyn L. Bañas‐Nograles – Author
Hon. Franklin M. Gacal Jr. – Co‐Author & Principal Sponsor
Hon. Ramon R. Melliza & Hon. Dominador S. Lagare III- Co-Sponsors
———————————————————————————————–

Be it ordained by the 17th Sangguniang Panlungsod of General Santos City that:

ARTICLE I
GENERAL PROVISIONS

Section 1. Short Title. ‐ This Ordinance shall be known for short as “The General Santos City Local Power Resource Promotion Ordinance of 2013.”

Section 2. Policy Statement. – (a) The Local Government Unit of General Santos City hereby commits, as a policy, to protect and promote, whenever appropriate or necessary, the right of household, commercial or industrial end-users to a quality, reliable, secure, and affordable supply of electricity vis-à-vis their right to health and safety and to a balanced ecology. (b) The Local Government Unit of General Santos City also hereby commits to implement, whenever practicable, appropriate or necessary towards the advancement of general welfare of all residents alike, the pertinent provisions of RA 9136 in the pursuits of local governance and development.

Section 3. Definition of Terms. – For all intents and purposes hereof, the following terms shall be used hereinafter to mean as:

a. Demand Side Management – refers to the measures undertaken by distribution utilities to encourage end-users in the proper management of their load to achieve efficiency in the utilization of fixed infrastructures in the system.

b. Distribution Code – refers to a compilation of rules and regulations governing electric utilities in the operation and maintenance of their distribution systems which includes, among others, the standards for service and performance, and defines and establishes the relationship of the distribution systems with the facilities or installations of the parties connected thereto.

c. Distribution of Electricity – refers to the conveyance of electric power by a distribution utility through its distribution system pursuant to the provisions of RA 9136.

d. Distribution System – refers to the system of wires and associated facilities belonging to a franchised distribution utility extending between the delivery points on the transmission or sub‐transmission system or generator connection and the point of connection to the premises of the end‐user.

e. Distribution Utility – refers to any electric cooperative, private corporation, government-owned utility or existing local government unit which has an exclusive franchise to operate a distribution system in accordance with RA 9136.

f. Electricity – refers to the extremely versatile form of energy being used to provide light, heat and mechanical power, distributed to varied end-users within a specific franchise area through a distribution system.

g. Electric Cooperative – refers to a distribution utility organized Pursuant to Presidential Decree 269, as amended, or as otherwise provided under RA 9136.

h. End-user – refers to any person or entity requiring the supply and delivery of electricity for its own use.

i. Generation of Electricity – refers to the production of electricity by a generation company or a co-generation facility pursuant to the provisions of RA 9136.

j. Grid – refers to the high voltage backbone system of interconnected transmission lines, substations, and related facilities.

k. Grid Code – refers to the rules and regulations governing the safe and reliable operation, maintenance and development of high voltage backbone transmission system and its related facilities.

l. Local Power Resource Management Program (LPRMP) – refers to the short- term programmatic project of the city’s overall prospective as well as actual volume of demand or requirement for electricity, viewed generally from an end-user perspective and approximated on an annual scale, to be presented in a case study format, therefore, consisting of some introductory notes, statistical data, comparative analyses, other relevant technical or empirical facts or background, findings and policy recommendations vis-à-vis the Power Development Program of the Department of Energy (DOE) and other related literature or rules, to be made accessible to any concerned party or entity in the pursuit of legislation, rule-making or private business.

m. Power Development Program (PDP) – refers to the indicative plan for managing electricity demand through energy efficient programs and for the upgrading, expansion, rehabilitation, repair and maintenance of power generation and transmission facilities, formulated and updated yearly by the Department of Energy (DOE) in coordination with the generation, transmission and distribution utility companies.

ARTICLE II
THE GSC LOCAL POWER RESOURCE PLANNING AND ADVISORY BOARD (GSCLPRPAB)

Section 4. Establishing the GSC Local Power Resource Planning and Advisory Board (GSCLPRPAB). – There is hereby established the General Santos City Local Power Resource Planning and Advisory Board, hereinafter referred to as the GSCLPRPAB, to assist the city’s Local Chief Executive (LCE) in coming up with counterpart programs which are appropriate, necessary or incidental in the efficient and effective implementation of the provisions of Republic Act Numbered Ninety‐One Hundred and Thirty‐Six (RA 9136), otherwise known as the “Electric Power Industry Reform Act of 2001,”and other related concerns within the territorial jurisdiction of the Local Government Unit of General Santos City.

Section 5. Composition. ‐ The GSCLPRPAB shall be headed by the city’s Local Chief Executive who shall be seated as Chairperson thereof, henceforth, to consist of the following members, to wit:

a. The City Vice-Mayor who shall be seated therein as Vice-Chairperson ex-officio;

b. The Chairperson of the Committee on Finance of the Sangguniang Panlungsod ;

c. The Chairperson of the Committee on Public Utilities of the Sangguniang Panlungsod;

d. The Chairperson of the Committee on Public Works and Infrastructure of the Sangguniang Panlungsod;

e. The Chairperson of the Committee on Trade, Commerce and Industry of the Sangguniang Panlungsod;

f. The City Administrator;

g. The City Legal Officer;

h. The City Planning and Development Coordinator;

i. The City Engineer;

j. The designated representative of the Philippine Institute of Certified Public Accountants (PICPA)- General Santos City Chapter;

k. The designated representative of the duly recognized association or federation of Electrical Engineers in the city;

l. The designated Representative of the General Santos City Chamber of Commerce and Industry;

m. The General Manager of the Distribution Utilities concerned in the City;

n. The Chairperson of the Committee on Consumer Welfare; and

o. The Chairperson of the GSC Consumers’ Protection Council;

Section 6. Powers, Duties and Responsibilities. ‐ In the interest of promoting the general welfare of inhabitants pursuant to the provisions of Section 16 of Republic Act Numbered Seventy‐One Hundred and Sixty (RA 7160), otherwise known as “The Local Government Code of 1991,” the GSCLPRPAB shall be vested with and, therefore, exercise the following powers, duties, and responsibilities, to wit:

a. Formulate for and in behalf of the Local Government Unit of General Santos City a Local Power Resource Management Program (LPRMP) and submit the same to the Sangguniang Panlungsod for corresponding approval and adoption;
b. Require, whenever appropriate or necessary, the submission of the respective financial statements of any Electric Cooperative or private‐owned Distribution Utility currently doing business within the city;

c. Check, at the instance of any private or public complainant, on the propriety of any Demand Side Management measure being implemented by any Electric Cooperative or private‐owned Distribution Utility concerned within the city;

d. Enjoin any Electric Cooperative or Distribution Utility concerned towards the proper management and placement of all Grid and Distribution System located within the city including all necessary components thereof to ensure that these facilities are neatly kept intact at all times and that these do not pose any obstruction to traffic or threaten public order, health or safety;

e. Ensure the efficient and effective implementation of the Distribution Code, the Grid Code as well as all other similar or related rules and regulations pertaining to the Generation of Electricity or Distribution of Electricity within the city;

f. Represent the Local Government Unit of General Santos City in all meetings, forums, assemblies, hearings or other similar or related conferences called for by the Department of Energy (DOE), the Energy Regulatory Commission (ERC) or any other agency of the National Government in all matters pertaining to the pursuits of Republic Act Numbered Ninety‐One Hundred and Thirty‐Six (RA 9136), otherwise known as the “Electric Power Industry Reform Act of 2001”; and

g. Exercise such other powers, duties, and responsibilities necessary, appropriate, or incidental towards the efficient and effective implementation of the provisions hereof.

Section 7. Meetings. ‐ (a) The GSCLPRPAB shall convene in a regular meeting at least once in every semester, the specific dates of which to be determined by the Chairperson thereof through an Order or Memorandum issued to this effect. (b) The Chairperson thereof may also call the GSCLPRPAB to convene on a special meeting as often as such may be deemed appropriate or necessary given a circumstance or emergency situation under consideration. (b) The Chairperson or, in his absence, the Vice‐Chairperson, shall preside at all meetings of the GSCLPRPAB. The decision of at least a majority of those present at a meeting at which there is quorum shall be valid and binding as an act of the GSCLPRPAB: Provided, however, that the Chairperson or, in the absence thereof, the Vice‐Chairperson, shall vote only in case of a tie.

Section 8. Quorum. ‐ A majority of the total GSCLPRPAB composition shall constitute a quorum for the transaction of any business: Provided, that the presence of the Chairperson or Vice‐Chairperson thereof, as the case maybe, shall be required thereby.

ARTICLE IV
THE SECRETARIAT

Section 9. Creation, Composition, Functions, and Remunerations of the GSCLPRPAB Secretariat. ‐ (a) Within thirty (30) days from the effectivity of the ordinance, the secretariat shall be constituted to serve as main support unit thereof. (b) The Chairperson of the GSCLPRPAB, through an Executive Order, shall designate an organic office or division within the Executive Department of the Local Government Unit or assemble a composite team of experts preferably coming from the Office of the City Planning and Development Coordinator, the Office of the City Engineer, Office of the City Housing and Land Management and the Office of the City Economic Management and Cooperative Development, which is deemed to be most competent to perform the functions provided in the next succeeding paragraph vis-à-vis the circumstances attendant at the time of its constitution, to comprise the GSCLPRPAB Secretariat. (c) The GSCLPRPAB Secretariat shall have the following functions, to wit:

a. Provide administrative support to the GSCLPRPAB and, at the same time, serve as Technical Working Group (TWG) there for;

b. Organize and make all necessary arrangements for GSCLPRPAB meetings and conferences;

c. Prepare minutes of meetings and resolutions of the GSCLPRPAB;

d. Take custody of GSCLPRPAB documents and other records;

e. Monitor GSCLPRPAB activities and report the same to offices or departments concerned whenever required;

f. Act as central channel of communications between the GSCLPRPAB and all other agencies, parties or stakeholders involved;

g. Distribute/provide to the barangays, accredited non-government organizations (NGOs) and peoples’ organizations (POs), large-scale commercial end-users and other concerned public or private entities copies of the Local Power Resource Management Program (LPRMP);

h. Perform such other related clerical or ministerial functions as may be deemed appropriate, necessary or incidental to its creation or purpose.

(d) For services rendered, the GSCLPRPAB Secretariat shall be entitled to receive additional remuneration in the form of lawfully allowed honoraria and/or overtime services which, however, may be commutable to Certificates of Overtime Credit (COC) whenever circumstances would warrant the commutation thereof or that no budget for overtime services shall have been appropriated there for, subject to the pertinent provisions of Civil Service laws, rules, and regulations, the government accounting and auditing rules and regulations, and such other applicable laws, rules, and regulations, subject, further, to availability of funds.

ARTICLE V
BUDGETARY PROVISIONS
Section 10. Provisions for Personal Services Rendered. ‐ Budgetary provisions for personal services, i.e., honoraria and overtime services, rendered towards the efficient and effective implementation of the provisions of this Ordinance shall be appropriated, whenever deemed appropriate or necessary, under the appropriate Account of the respective department concerned of the Executive, from which majority of the staff component comprised pursuant to the pertinent provisions of Article IV hereof come.

Section 11. Provisions for MOOE. ‐ Budgetary provisions for Maintenance and Other Operating Expenses (MOOE) which may be deemed appropriate or necessary towards the efficient and effective implementation of this Ordinance shall also be provided care of the appropriate Account concerned of the City Mayor’s Office.

Section 12. Provisions for Other Expenditures. ‐ Budgetary provisions for other expenditures aimed at accomplishing some related projects, programs or activities which may be deemed appropriate or necessary towards the efficient and effective implementation of this Ordinance shall also be provided care of the appropriate Capital Outlay or MOOE Account concerned of the City Mayor’s Office, subject to the availability of funds.

ARTICLE VI
FINAL PROVISIONS

Section 13. Suppletory Clause. ‐ The pertinent provisions of Republic Act Numbered Ninety‐One Hundred and Thirty‐Six (RA 9136), otherwise known as the “Electric Power Industry Reform Act of 2001,” insofar as applicable to any given case or circumstance under consideration with respect the generation or distribution of electricity within the territorial jurisdiction of the city, shall be adopted to supplement the provisions of this Ordinance.

Section 14. Amendatory Clause. ‐ The provisions of previous local enactments, resolutions, memoranda, circulars, and other issuances which are inconsistent with this Ordinance are hereby repealed or modified accordingly.

Section 15. Separation Clause. ‐ In the event that a provision or some provisions hereof are found or decreed to be invalid or unconstitutional, all other provisions hereof not affected by such pronouncement or decree shall remain to be in full force and effect.

Section 16. Effectivity Clause. ‐ This Ordinance shall take effect after ten (10) days following the completion of its full publication in any newspaper of general circulation within General Santos City.

Enacted by the 17th Sangguniang Panlungsod, City of General Santos, on its 8th Regular Session held on August 27, 2013.

CERTIFIED CORRECT:

ATTY. ROSENDO A. ROQUE
Secretary to the Sanggunian

ATTESTED BY:

SHIRLYN L. BAÑAS-NOGRALES
City Vice-Mayor and Presiding Officer

Approved by His Honor, the City Mayor on___________, 2013.

RONNEL C. RIVERA
City Mayor


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