QuestionsQuestions (CDA MEMORANDUM CIRCULAR NO. 2013-05)
It is titled “Clarificatory Guidelines on the Registration and Capitalization Requirements for New Electric Cooperatives and Existing Cooperatives Intending to Include Power Generation, Transmission and/or Distribution in its Business Operation.” Its purpose is to clarify the registration and capitalization requirements for (1) new electric cooperatives and (2) existing cooperatives intending to include electric power generation, sub-transmission, and/or distribution in their operations.
It covers: (a) proposed cooperatives intending to engage in electric power generation, transmission, and distribution or either of these activities; and (b) both single type and multi-purpose cooperatives intending to engage in electric power generation, transmission and distribution or either in power generation, transmission, or distribution.
An electric cooperative is one organized for the primary purpose of undertaking power generation (utilizing renewable energy sources, including hybrid systems), acquiring and operating sub-transmission or distribution to its household members. It also includes cooperatives engaged in a single activity: power generation, sub-transmission, or distribution.
A hybrid system is any power or generation facility using two or more technologies with both conventional and/or renewable fuel sources (e.g., integrated solar/wind, biomass/fossil). It requires at least ten (10) megawatts or ten percent (10%) of the annual energy output to be provided by the renewable energy component.
Power generation is the production of electricity utilizing renewable energy resources.
They are energy resources without an upper limit on total quantity to be used, renewable on a regular basis, and whose renewal rate is relatively rapid to consider availability over any indefinite period. Examples include biomass, solar, wind, geothermal, ocean energy, and hydropower conforming with internationally accepted norms and standards on dams and other emerging renewable technologies.
Sub-transmission is the conveyance of electric power from transmission facilities to distribution utilities. Power distribution is the conveyance of electric power from transmission facilities or embedded generators to end users.
It refers to the activity of generation, sub-transmission, and distribution of electricity.
They are: (1) Name verification slip; (2) Articles of Cooperation and By-Laws; (3) Sworn Statement of the treasurer showing at least 25% subscribed and at least 25% of total subscription paid, with paid-up share capital not less than P5,000,000; (4) Surety Bond of accountable officers handling funds, properties and sureties; (5) Certificate of Pre-Membership Education Seminar (PMES); (6) Economic Survey; (7) Undertaking to change name if another cooperative acquires prior right; (8) Detailed feasibility study indicating viability; and (9) Undertaking to comply with prescribed auditing and accounting standards.
At least 25% of authorized share capital must be subscribed, and at least 25% of total subscription must be paid. In no case shall paid-up share capital be less than Five Million Pesos (P5,000,000).
They must comply with the existing CDA registration requirements for amendments of Articles of Cooperation and By-Laws to include such activity. Their treasurer’s sworn statement must specify availability of at least P5,000,000.00 to start the business.
They must be submitted in four (4) copies to the CDA. Filing may be made either to the CDA Extension Office with jurisdiction over the cooperative or to the CDA Central Office, at the cooperative’s option.
All cooperatives seeking to engage in power generation, sub-transmission, and/or power distribution must secure the necessary Authority to Operate/Franchise from Congress within two (2) years from the issuance of the Certificate of Registration (or Certificate of Registration of Amendments).
It starts from the issuance of the Certificate of Registration or the Certificate of Registration of Amendments.
Yes. Section 6 states that notwithstanding previous issuances including the IRR related thereto, this circular shall be the primary guidelines in the registration of new electric cooperatives and existing single type and multi-purpose cooperatives intending to engage in these electric power activities.
It takes effect immediately.
The circular requires, among others, an Undertaking to comply with the auditing and accounting standards prescribed by the Authority, and an Undertaking to change the cooperative’s name if another cooperative acquires prior right to its proposed name.