Republic of the Philippines

ENERGY REGULATORY COMMISSION

San Miguel Avenue, Pasig City

IN THE MATTER OF THE APPLICATION FOR APPROVAL OF REGULATED ENTITIES CAPITAL EXPEDITURE PROJECTS DUE TO FORCE MAJEURE, ERC CASE NO.______RC

FIRST LAGUNA ELECTIRC COOPERATIVE, INC. (FLECO), Applicant. X---------------------------------------------------------X

APPLICATION

COMES NOW, applicant First Laguna Electric Cooperative, Inc. (FLECO, for short), through the undersigned counsel, and unto this Honorable Commission, most respectfully states: 1. That applicant is an electric cooperative duly organized and existing under and by virtue of the laws of the Philippines, with the principal office at Barangay Lewin, Lumban, Laguna, where it may be served with summons and other legal processes, represented in this instance by its Project Supervisor, Acting general Manager, EVANGELITO S. ESTACA, of legal age, Filipino, and with office address also at FLECO office; 2. That herein applicant is the exclusive franchise holder issued by the national electrification Administration (NEA) to operate an electric light and power services in the municipalities of the province of Laguna, namely: Pagsanjan, Cavinti, Lumban, Kalayaan, Paete, Pakil, Pangil, Siniloan, Famy, Mabitac, and Sta. Maria;

3. That on July 13, 2011, Typhoon Basyang hit the Luzon area, including the province of Laguna. As a consequence, the distribution lines of FLECO were partially damaged, which caused brownout in its entire coverage area, as shown in the attached pictures duly marked as Annexes A to A-6; 4. That the details of capital expenditures of FLECO had actually incurred as of the date of the force Majeure (Typhoon Basyang) was One Million Six Hundred Thirty Four Thousand Four hundred Forty Three Pesos and Eighty Seven Centavos (P1,634,443.87), as evidenced by the attached materials damaged by Typhoon Basyang and duly marked a Annexes B to B-3; 5. That the increase in costs of the damaged distribution lines is P1,640,563.99 considering that the expenses incurred in the repair of the damaged due to force Majeure was P3,275,007.86, the details of which is shown in the attached Materials Used for FLECOs Distribution Lines

damaged by Typhoon Basyang and duly marked as Annexes C to C-1, and such costs are reasonable and occur as a sole consequences of the aforesaid typhoon; 6. That for purposes of and in connection with this application, FLECO

hereby attached hereto the following documents in compliance with the requirements pertinent there to: a) Project Description; b) Justification or Benefits to be delivered; c) Estimated Project Costs d) Project schedule 7. That the above projects are consistent with the Distribution development Plan (PDC), the Philippine Grid code (PGC), the Philippine Distribution Code (PDC) and other relevant government issuances; and in accordance

with ERC Resolution No. 26. Series of 2009, Resolution Amending the Rule for Approval of Regulated Entities Capital Expenditure Projects; 8. That the source of fund for the aforementioned capital projects was taken from Members Contribution for CAPEX (MCC); 9. That in compliance with the pre-filing requirements, we are submitting the following: a) Certification from the Presiding Officer or secretary of the Legislative Body (and not the office of the Mayor) of the municipality where it principally operates, that a copy of the application, with all its annexes accompanying documents attesting to be fact that applicant has furnished the said legislative body of the aforesaid application. If such principal place of operation is a component city or municipality and secure the same certification from the Sangguniang Panlalawigan of Laguna, or their duly authorized representatives; and b) Affidavit of Publication and Newspaper issue containing the published Application in its entirety in a newspaper of general circulation in Laguna; 10. That the approval of the capital expenditure projects due to Force Majeure is needed to maintain efficient, reliable, and safety delivery of power to FLECOs existing and future consumers, and will redound to the benefits of the consuming public.

PRAYER

WHEREFORE, view from the foregoing, it is respectfully of this Honorable Commission that, after due notice and hearing and consideration, this application be approved.

Other relief/s just and equitable under the premises are likewise prayed for. Cainta, Rizal for Pasig City, March 1, 2011.

ARNIDO O. INUMERABLE Counsel for the applicant 405 Elisa Street, U.E. Village, Cainta, Rizal PTR No.4610303, 1-7-11, Q.C. IBP No. 857319, 3-1-11, Pasig City Roll of Attorneys No. 28764 MCLE Compliance III-0015335, 5-5-10 EXPLANATION Filing and service of the foregoing application were done by registered mail instead of personal service due to manpower constraint.

ARNIDO O. INUMERABLE

Republic of the Philippines) ______________________) S.S VERIFICATION/TION/CERTIFICATION I, EVANGELITO S. ESTACA, of legal age, Filipino, with office address at Barangayn Lewin, Lumban, Laguna, Philippines, after having been sworn to in accordance with law, here by depose and state: 1. That I am the Acting General Manager of First Laguna electric Cooperative, Inc. (FLECO), the applicant in this case; 2. That I have caused the preparation and filing of the this application for Approval of Regulated Entities Capital Expenditure Projects Due to force majeure before the Energy Regulatory Commission; 3. That I have read and know the contents of the said application as true and correct to the best of my knowledge; 4. That I hereby certify that I have not therefore commenced any other action or proceeding involving the same in the Supreme court of Appeals or any other tribunal or agency; 5. That to the best of my knowledge, no such action or proceeding is pending in the Supreme Court, the Court of Appeals or any other tribunal or agency; 6. That if there is such action or proceeding which is either pending or may have been terminated, I must state the status there of; 7. That should I thereafter learn that a similar action or proceeding has been filed or pending before the Supreme court, the Court of appeals or any other tribunal or agency, I will undertake to report that fact within five (5) days therefore to the Court or agency wherein the original pleading has been filed. IN WITNESS WHEREOF, I have here unto set my hand this 16th day of June, 2011at Marikina City, Philippines. EVANGELITO S. ESTACA Affiant CTC No.13472387 Issued on Feb. 24, 2011 Issued at Famy, Laguna SUBCRIBED AND SWORN to before me this 16th day of June, 2011 in Marikina City, Philippines, affiant exhibited to me his community Tax Certificate as shown above. Doc. No.______; Page No.______; Book No.______; Series of 20____.