Creation and regulation of National Electrification Admin

Key terms defined include NEA (National Electrification Administration), cooperative, public service entities, person, service, area coverage, franchise, and others.
"Cooperative" means a non-profit electric service entity organized under this Decree or prior laws.
"Area coverage" means dependable and adequate service available to all requesting persons within a franchised area under reasonable terms.

NEA is established as a government-owned corporation with corporate powers and borrowing authority to promote electrification.
NEA powers include making loans to public service entities, technical assistance, acquisition of properties, and issuing franchises.
The NEA Board consists of a Chairman and four members, including the Administrator, appointed by the President.
The Administrator manages daily operations and supervises NEA staff.
NEA reports annually on electrification progress and loan statuses.

NEA's authorized capital stock is one billion pesos, fully subscribed by the government through various appropriations and funds.
Loans given by NEA must be financially feasible for area coverage projects and are subject to repayment terms and interest rates set by NEA.
NEA is authorized to contract domestic and foreign indebtedness, with government guarantees and tax exemptions for these financing activities.

NEA can enforce compliance by withholding loans, technical assistance, or foreclosing on security for loan defaults.
Borrowers cannot dispose of mortgaged property without NEA approval.
NEA may extend loan terms, defer payments, or subordinate its security interests when beneficial.

NEA officials and employees are prohibited from conflicts of interest, including participating in matters affecting entities with which they are related.
Penalties include removal, fines, or imprisonment for violations such as false loan application information or illegal fees.

NEA is supervised by the Office of the President.
A Power Development Council is created to coordinate electrification and power development among government agencies and stakeholders.

NEA and electric cooperatives enjoy broad exemptions from taxes, duties, fees, and imposts to support their operations.

Electric cooperatives are non-stock, non-profit corporations formed to supply electric service on an area coverage basis at the lowest cost.
Cooperatives have powers including generating, transmitting, and distributing electricity; borrowing funds; acquiring property; and assisting members with wiring and appliances.
Cooperative membership requirements, meetings, board governance, officers, and amendments are regulated under the Decree.
Cooperatives must operate non-discriminatorily and comply with area coverage obligations.
Cooperatives are exempt from certain government regulation and taxes.

Franchising powers for electric service are delegated to NEA; municipal, city, and provincial governments lose their franchising authority.
NEA reviews, modifies, or cancels franchises to ensure area coverage electrification.
NEA grants preference to cooperatives in franchise conflicts unless alternatives provide earlier or larger electrification with equal or lower costs.
Operating electric service without a NEA franchise is prohibited.
NEA has authority to require interconnection and power exchanges among public service entities.
NEA conducts hearings, investigations, and regulates cooperatives to enforce compliance.
The Decree provides procedures for hearings, subpoenas, appeals, and Court review of NEA decisions.

The existing NEA structure, personnel, assets, and projects continue under the new corporation established by this Decree.
Provisions declared separable; inconsistent laws repealed.
The Decree takes effect immediately upon promulgation.