President Rodrigo Duterte has signed Republic Act No. 11420 which gives the Bases Conversion and Development Authority (BCDA) a franchise to distribute power in five areas for the next 25 years.
This allows BCDA “to construct, install, establish, operate, lease, own, manage and maintain distribution systems for the conveyance of electric power users in selected areas.”
The areas covered are: Station in Baguio City, Wallace Air Station in Poro Point, La Union, O’Donnell Transmitter Station in Capas, Tarlac, Capas Relay Station in Capas, Tarlac, and a portion of the Clark Special Economic Zone covering new Clark City.
The law mandated that the BCDA must obtain necessary permits from the Energy Regulatory Commission (ERC) for its operation and construction of electric distribution system.
“All electric distribution facilities, lines and systems for electric services owned, maintained, operated or managed by the grantee, its successors or assignees, shall be operated and maintained at all times in the best manner,” as stated under the law.
Retail rates and charges must be reviewed and approved by the ERC.
The grantee shall charge reasonable and just power rate costs for its services to all types of consumers within its franchise areas,” according to the approved law.
BCDA was originally mandated to help strengthen the Armed Forces, as well as establish integrated developments.