Press Release
June 6, 2011

Explanation of No Vote against Senate Joint Resolution No. 9
Extending the Term of the Power Commission


Senate Joint Resolution No. 9 is an encroachment on Executive power and is unconstitutional.

The powers of the Power Commission (Powercom) given under Senate Joint Resolution No. 9 authorize the Powercom to perform functions of the Executive Branch. It does not merely act as an oversight committee.

Senate Joint Resolution No. 9 seeks extension of another 10 years, avowedly to see to the completion of the following goals and objectives under the EPIRA:

1. Implementation of retail competition and open access on distribution wires;

2. Formation of the Independent Market Operation (IMO);

3. Determination, fixing and approval by the Energy Regulatory Commission (ERC) of a Universal Charge (UC);

4. Reduction of the royalties, returns & taxes collected for the exploitation of all indigenous sources of energy to effect parity of tax treatment with existing rates for imported coal, crude oil and other imported fuels and the corresponding reduction of the power rates from all indigenous sources of energy; and

5. Performance by the National Power Corporation-Small Power Utilities Group of the missionary electrification function.

And in the case of the Renewable Energy Act, (RE Act), under Senate Joint Resolution No. 9 the Powercom is tasked with the implementation of the

Renewable Energy Act which entails, among others, the formulation or establishment of:

1. The Feed-in-Tariff (FIT) system;

2. The Renewable Portfolio Standards (RPS);

3. The Renewable Energy Market (REM);

4. The Green energy Option;

5. Net-metering for Renewable Energy.

As can be seen readily, the above EPIRA and RE goals and functions are clearly matters for executive action. They all partake of implementation of the EPIRA Act and the RE Act, purely executive in nature.

What the RE Act granted Powercom are the usual oversight functions, namely, scrutiny and investigation, in order to ensure administrative efficiency and aid it in legislation.

However, Senate Joint Resolution No. 9 virtually invests the Powercom with authority to implement both laws and involve itself with administrative details, intrinsically executive in nature.

There is absolutely no good reason nor satisfactory justification for extending the term of the Powercom. Possibly one reason why Powercom may

have failed to accomplish its duties under EPIRA in the last ten (10) years is it is ill- equipped to do so, considering its powers concern the execution of the law itself, performance of which properly belongs to the Executive.

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