Coverage: who must follow these rules
- The circular covers proposed cooperatives intending to engage in electric power generation, transmission and distribution or either generation, transmission, or distribution.
- The circular covers single type cooperatives intending to engage in electric power generation, transmission and distribution or either.
- The circular covers multi-purpose cooperatives intending to engage in electric power generation, transmission and distribution or either.
- The circular covers cooperatives seeking the covered activities through registration and amendments to charter documents.
Key definitions used in registration
- An Electric Cooperative is a cooperative organized for the primary purpose of power generation (including renewable energy sources and hybrid systems), and acquisition and operation of sub-transmission or distribution to its household members.
- An Electric Cooperative includes cooperatives that are engaged in a single activity of either power generation, sub-transmission, or distribution.
- A Hybrid System is a power or generation facility using two or more technologies using both conventional and/or renewable fuel sources, including specified examples, with a minimum of ten (10) megawatts or ten percent (10%) of the annual energy output provided by the Renewal Energy component.
- Power Generation means the production of electricity utilizing renewable energy resources.
- Renewable Energy Resources (RE-RESOURCES) are energy resources without an upper limit on total quantity to be used, renewable on a regular basis with renewal rates rapid enough for availability over an indefinite period, including biomass, solar, wind, geothermal, ocean energy, and hydropower, conforming with internationally accepted norms and standards on dams and other emerging renewable technologies.
- Sub-Transmission means the conveyance of electric power from transmission facilities to distribution utilities.
- Power Distribution means the conveyance of electric power from transmission facilities or embedded generators to end users.
- The Electric Power Industry means the activity of generation, sub-transmission, and distribution of electricity.
Registration requirements for new electric cooperatives
- Registration requirements for new electric cooperatives must be submitted in four (4) copies to the Authority.
- The documents required for registration are:
- A name verification slip.
- Articles of Cooperation and By-Laws.
- A sworn statement of the treasurers elected by the subscribers showing that:
- at least twenty-five per centum (25%) of the authorized share capital has been subscribed, and
- at least twenty-five per centum (25%) of the total subscription has been paid; and
- in no case shall the paid-up share capital be less than Five Million Pesos (P5,000,000).
- A surety bond of accountable officers handling funds, properties and sureties.
- A Certificate of Pre-Membership Education Seminar (PMES).
- An economic survey.
- An undertaking to change name in the event that another cooperative has acquired prior right to the use of the proposed name.
- A detailed feasibility study showing the viability of the proposed business activity.
- An undertaking to comply with the auditing and accounting standards prescribed by the Authority.
- The circular requires existing cooperative applicants intending to engage in covered activities to comply with registration rules on amendments of the Articles of Cooperation and By-Laws to include the activity.
- For such amendments by existing single type and multi-purpose cooperatives, the sworn statement of the treasurer must specify availability of at least Five Million Pesos (P5,000,000.00) to start the business.
- Registration documents must be filed either to the CDA Extension Office with jurisdiction over the cooperative or to the CDA Central Office, at the cooperative’s option.
Authority-to-operate/franchise timing
- 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 the Certificate of Registration of Amendments.
Primary guidelines and effect on prior issuances
- The circular applies notwithstanding previous issuances of the Authority on the registration of electric cooperatives and the related IRR.
- The circular establishes itself as the primary guidelines for the registration of:
- new electric cooperatives, and
- existing single type and multi-purpose cooperatives intending to engage in power generation, sub-transmission, and/or power distribution.
Effectivity rule and approval
- The circular takes effect immediately under Section 7.
- It was approved per CDA Board Resolution No. 052, s-2013 dated February 7, 2013 in Quezon City, Philippines.