RESOLUTION AUTHORIZING COMMISSIONER ALEJANDRO Z. BARIN TO SIGN THE ORDER FOR AND BY AUTHORITY OF THE COMMISSION DENYING THE REQUESTS OF ELECTRIC COOPERATIVES (ECS) FOR THE EXEMP…

WHEREAS, on various dates, the Commission issued several Decisions
approving the capital expenditures projects of electric cooperatives
(ECs);

WHEREAS, in the said Decisions, the ECs were directed, among others,
to pay appropriate permit fees within the period prescribed by the
Commission;

WHEREAS, some ECs requested for the exemption from the payment of the
Commission’s permit fees invoking to Section 39 (a) of Presidential
Decree 269 (P.D. 269), otherwise known as the “National
Electrification Decree”;

WHEREAS, Section 39 (a) of P.D. 269 provides that:

“Section 39. Assistance to Cooperative; Exemption from Taxes,
Imposts, Duties, Fees; Assistance from the National Power Corporation. –
Pursuant to the national policy declared in Section 2, the
Congress hereby finds and declares that the following assistance to
cooperative is necessary and appropriate:

(a) Provided that it operates in conformity with the purposes
and provisions of this Decree, cooperative (1) shall be permanently
exempt from paying income taxes, and (2) for a period ending on
December 31; of the thirtieth full calendar year after the date of a
cooperative’s organization or conversion hereunder, or until it shall
become completely free of indebtedness incurred by borrowing, whichever
event first occurs, shall be exempt from the payment (a) of all National
Government, local government and municipal taxes and fees, including
franchise, filing, recordation, license or permit fees or taxes and any
fees, charges, or costs involve d in any court or administrative
proceeding in which it may be a party, and (b) of all duties
or imposts on foreign goods acquired for its operations, the period of
such exemption for a new cooperative formed by consolidation, as
provided for in Section 29, to begin from as of the date of the
beginning of such period for the constituent consolidating cooperative
which was most recently organized or converted under this Decree:
Provided, That the Board of Administrators shall, after consultation
with the Bureau of Internal Revenue, promulgate rules and regulations
for the proper implementation of the tax exemptions provided for in this
Decree.”

WHEREAS, Pursuant to the provision afore-cited, the ECs exemption
from the payment of permit fees shall expire after the lapse of the
thirty (30) year period or when such EC shall have become completely
free of indebtedness incurred by borrowing, whichever event first
occurs;

NOW, THEREFORE, be it RESOLVED, as the Commission hereby RESOLVES to
authorize Commissioner Alejandro Z. Barin to sign, for and by authority
of the Commission, the Orders denying the requests of electric
cooperatives for exemption from the payment of permit fees when the
condition/s prescribed under Section 39 (a) of P.D. 269 so warrant.

This resolution shall take effect immediately.

Adopted: 23 March 2009

(SGD.) ZENAIDA G. CRUZ-DUCUT Chairperson
(SGD). RAUF A. TAN Commissioner	(SGD.) ALEJANDRO Z. BARIN Commissioner
(SGD.) MARIA TERESA A.R. CAS TANEDA Commissioner	(SGD.) JOSE C. REYES Commissioner