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The Official News Magazine of the National Power Corporation of the Philippines.

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2 Maiden Issue, November 2013

HEALTHY LIVINGNPC AT 77: National Power, National Pride

Editorial

THE COVER TITLE. Dagitab is the gift of light, that begins with a spark, but potent with the power to illuminate and energize. Such is the mission of NPC as it embarks on its new mandate to “lighten up the islands”.

Editorial BoardPresident Ma. Gladys Cruz-Sta. Rita

Chairman

Members Management Committee

VP Danilo S. SedillaVP Urbano C. Mendiola, Jr.

VP Lorna T. DyVP Melchor P. Ridulme

VP Katambayan S. CelinoVP Rudy P. Brioso

SDM Manuel Luis B. PLofinoDM Emmanuel A. Umali

DM Romualdo Maria T. Beltran

National Power CorporationPublisher

Joel V. BagayEditorial Consultant

DAGITAB is an official publication of the National Power Corporation (NPC). All contents are sourced from the

NPC organization, partners, and acknowledged experts and resource persons on various disciplines of the national

and global energy industries. All content, graphical and textual, including

headers, column titles, and lay-out design are the properties of the NPC. All logos and emblems of DAGITAB and the NPC,

including color swatches and designs are the properties of the

National Power Corporation.

Editorial Offices at: National Power Corporation

BIR Road corner Quezon Avenue, DilimanQuezon City, P h i l i p p i n e s

Tel +632 9200069 | Email: [email protected] www.napocor.gov.ph

Facebook: www.facebook.com/nationalpowerph

Less than a Hundred Days

“The actions you take during your first three months in a new job will

largely determine whether you succeed or fail.”

Harvard Business School manage-ment transition expert Michael Wat-kins, author of best-selling business book “The First 90 Days” argues that all it takes is just three months for a leader in transition to seal his fate and the future of his organization.

The first lady president of National Power Corporation (NPC), Ma. Gladys Cruz-Sta. Rita, came face to face with a daunting transition for a 77 year old organization, in a mission to stay relevant to the times.

The woman president, however, is treading familiar ground. Her more than 2 decades of experience, backed by intensive learning of both gov-ernment administration, corporate governance, and new politics, gave her the winning-edge in her discreet, yet remarkable career as civil servant, pub-lic manager, development consultant, book author, and leadership innovator.

This is perhaps the reason why Energy Secretary Jericho Petilla, a

seasoned public servant and local executive himself, saw a gem in the lady from Bulacan, who the Secretary said, represented the NPC President he had in mind: ”a people-person and a systems-person capable of navigating the intrica-cies of the government bureaucracy and politics”.

What she brought to NPC was a new perspective and strategy in finding solutions to old problems. Tapping on the latent expertise of people, she put synergy into the flow, and ushered a new way of looking at the possibilities in the missionary energy sector, and the stew-ardship of the country’s major dams and watershed areas, and undisposed energy assets.

Now, she takes as her mission the shepherding of the company towards moving on bravely to the next challenge of their 12-year old mandate.

The challenge was laid before the employees of the National Power Corpo-ration one Monday morning in August. The petite figure on stage was towering over her audience, all expectant, faced with the tall order of a new day for the company: Results in less than a hundred days.

Winning the First 90 Days 3

T H E E X E C U T I V E R E P O R T

In her opening speech, moments after the National Power Corporation flag and symbolic hard hat were turned over to her in August, Presi-dent Gladys Sta. Rita (PGSR) made a pact with her new corporate family:

“I promise to hold dear to my heart this company and this family; bearing in mind that I come here as your Presi-dent and your mother.

As your president, I shall steer this organization to its utmost efficiency and com-petitiveness and serve as an inspiration to all the Napocor employees to do our very best and prove to the leaders of this country, and the public we serve, that we are worthy of their trust; that Napocor remains to be an important pil-lar in the business of electricity and that the role Napocor plays remains rel-evant to the present and future of the energy sector.

And like a mother ever prepared to run in aide of her child, so shall I run to you when you need me. But as a ma-triarch to a family in need of

guidance, I, too, shall use every opportunity to straighten the path of those astray, and draw the line between rescue, repri-mand, and punishment when the occassion so demands.” Calling on employees, she said, “I believe that the com-pany, with decades of institu-tional expertise in powering communities, is in a position to intensify the national agenda of total electrification of even the farthest island communities, and of evolv-ing a new model of corporate governance”.

The new NPC president is guiding her people towards accelerating their own transi-tions as well. The intention is to encourage them to take a second look, not only at the wealth of technical knowledge of their company, but also at the prospects of evolving its proud legacy and corporate culture, more innovatively towards fulfilling its new mandate .

PGSR believes that for the NPC, the first three months of this transition phase would have to focus on recalibrating operations, ensuring that sys-

tems and processes are in place, and eliciting the full and active involvement of even the small-est stakeholders to the agenda of immediate, yet calculated reforms.

Today, after 77 years of powering Filipino lives, National Power Corporation continues to assert its national role, but in its new mandates.

NPC’s mandate is by no means miniscule. The demand for powering homes and industries in the countryside is increasing by the day, with pressing demands for longer service hours and additional capacities.

In the face of seemingly daunting odds, the NPC Presi-dent believed at the onset that the company, the corporate family she had embraced, will fulfill its role.

Challenges and solutions When PGSR came in August 2013, she was smack in the middle of “budget season”. That means, she would have to be in the frontlines of defend-ing a 2014 budget, of which she had no part in crafting.

She was welcomed by both good news and bad news. Fortunately, former President Froilan Tampimco made sure of a smooth transition.

Also, the whole year reor-ganization of the corporation

was finally completed last February 2013.

This means that five months before the entry of the new president, employees should have already settled in the new structure. Also, after years of negative financial per-formance, NPC finally achieved a positive net income of P398 Million pesos in December 2012. Yet, a crisis is loom-ing for the company--budget shortfall, fuel problems, deferred projects, and a few others that need immediate solutions.

90Winning the First Ninety Days

NPC’s Mandate

• To electrify every remaining island and community of the archipelago with its missionary electrification and continue serving 770,000 households in 207 municipalities across 36 provinces through its network of 298 Small Power Utilities Group(SPUG) plants until the private sector comes in these areas.

• To manage 11 watershed systems covering 476,469 hectares, spread all over the country.

• To manage 17 dams nation-wide and ensure safety of its communities and environs.

• To manage undisposed generat-ing assets particularly the Agus & Pulangi complexes.

• To champion renewable energy in the missionary areas.

4 Maiden Issue, November 2013

HEALTHY LIVINGNPC AT 77: National Power, National Pride

2BUDGET SUFFICIENCY. The close and persistent coordina-tion of the new NPC leadership with the DBM resulted in a formal letter of assurance from Secretary Florencio Abad expressing DBM’s support to NPC should the projected shortfalls in 2014 SPUG operations occur. Likewise, the

Energy Regulatory Commission (ERC), in a number of meetings with the NPC leadership, expressed its support to the company and recently, has approved NPC’s Universal Charge for Missionary Electrification amounting to P7.4 billion together with a UCME of P2.763 billion for 2014. Considering the automatic augmentation provision in the General Appropriations Act (GAA) which allows NPC to increase its budget with-out going to Congress and Senate, on the condition that there are new sources of funds, unprogrammed portion of this additional revenue in 2014 will now be sufficient to cover for the anticipated budget short-falls. The Universal Charge for Missionary Electrification (UCME) is the major source of NPC’s corporate funds in addition to the basic revenue collected from power bills of electric coops called Subsidized Approved Generation Rate (SAGR).

T H E E X E C U T I V E R E P O R T

2 BUDGET SHORTFALL. NPC management estimates show that the NPC’s 2014 Budget which was already endorsed to Congress by the Department of Budget and Manage-ment (DBM), will have an anticipated shortfall of P1.1

Billion pesos in its fuel budget and P990 Million for the power bills subsidy for New Power Providers (NPP). This means diesel fuel supply for the SPUGs will only last for 10 months and power bill subsidy payments for NPPs will cover only six and a half months.

1 FUEL AND POWER EFFICIENCY. The October 11, 2013 issue of the Philippine Star published NPC’s Invitation to Bid for the 2014 Supply and Delivery of Oil- Based Fuel to NPC SPUG power plants and barges. This is the first time

NPC was able to have a bidding 3 months before its actual use which in the past years was done in February. This will ensure fuel avail-ability and that the Romblon incident would be a thing of the past. Investigations on reports of fuel pilferage are now being conducted. NPC is coordinating with the Department of Justice to fasttrack filing of cases. In relation to this, an old administrative case finding an employee guilty of unauthorized fuel transfers was already signed by the President upon the Legal Office’s recommen-dation. This sent a strong message in the intensified drive against fuel mishandling. The President also led the thorough review of op-erations to install procedures and internal control measures that would prevent pilferage and wastage through the Fuel Operations Manual. Twenty-seven (27) new fuel tanks and new fuel flowmeter gauges to improve fuel management are already scheduled for bidding.

Challenges and Solutions

1BROWNOUTS DUE TO FUEL ISSUES. The prior months’ incidences of prolonged brown-outs in Romblon and other areas because of delayed fuel delivery brought about by delayed

fuel procurement, haunted the new leadership. It also highlighted some issues of inefficiency in the fuel man-agement and hinted on alleged fuel pilferages in some islands.

GETTING ERC ENGAGED. NPC Team members headed by PGSR with ERC Chairperson Zenaida Ducut (4th from left) and ERC Direc-tor III Florensinda Digal (5th from left).

Winning the First 90 Days 5

3VERY LOW BUDGET UTILIZATION ON 2013 NATL GOVT (NG) SUBSIDY FOR CAPEX. Records showed that there is very low budget utilization in

the NG subsidy of 969 Million pesos allotted for the Capital Expenditures (CapEx) of NPC. The Special Allotment Release Order (SARO) corresponding to the subsidy was lodged at the DBM, awaiting the proper documentations and compliance with procurement standards before it can be released. This budget is allotted for important electric power transmissions, substa-tions, new generator sets and a big portion for the various spare parts of many aging power plants. But since it was past mid year, DBM advised that it was impossible for NPC to complete all the requirements. Thus, it declared that the request for SARO of Php 969 Million will not be issued.

3 UTILIZATION OF 2013 CAPEX. Determined to have the pending SARO released, President GSR augmented the Bids and Contracts Services Division of Logistics, with additional 6 personnel, to finish the

needed documentation to facilitate the release of the SARO from DBM. The Finance and Logistics Group, Power Engineering Services (PES), SPUG Group, and the Bids and Awards Committee (BAC), also worked overtime to finish all the required tender documents needed by the BAC. To date, SARO has been issued with Certificate of Availability of Funds.

5 HUGE OUTSTANDING POWER ACCOUNTS RECEIVABLES. NPC had been chasing P4.4 Billion pesos of outstanding receivables, 77% or P3.4 Billion of which comes from the ARMM provinces of Basilan, Sulu, and Tawi-Tawi,

collectively called BASUTA. This is pulling down the overall collection ef-ficiency of NPC which as of June, 2013 is at its all-time low of 23% ( with BASUTA) and 52% (without BASUTA).

4 NEW LIFE FOR STALLED PROJECTS. Braving limitations set by standing court rulings, she personally met parties involved in pending projects held up by long standoffs, to bring them into her brand of business talk—win-win or no deal. With the help of local officials, results were produced.

At least three (3) major projects were resolved amicably and re-activat-ed for completion and operations in 2014 a. Palawan –The remaining two towers and parts pilfered during the long standoff will soon be bid out for completion. Re-survey of the area to consider the request of the landowner to avoid a hilly portion in their property was completed. B. Catanduanes — As of October 2013, the landowners already agreed to NPC’s offer of P1,000 per square meter, and to an out-of-court settle-ment. As a standby option, President Gladys convinced the FICELCO Board to issue a resolution that would set aside a portion of the coop-erative property for the NPC substation, should the negotiations fail again. The project was due for bidding on October 31, 2013. C. Mindoro —A MOA was signed among NPC, Governor Alfonso Umali, Representative Josephine Sato, and the landowner. The resort owner covered a substantial share of the cost of the project, while NPC covered for materials.The project cost was significantly reduced because of the participation of the local electric coop, the DPWH, and the local govern-ment. The project is due for implementation in the next few weeks.

5 INCREASED COLLECTION EFFICIENCY. Maximizing her extensive exposure to local government circles, President Sta. Rita engaged the clout and influence of Mindanao local executives and legislators to gather all power stakeholders in one consultation at the Department of Energy. With Secre-

tary Petilla leading the discussions, NPC was able to secure commitment of their energy partners to help the concerned electric cooperatives in their local collections, for them to be able to pay their outstanding debts. Though intervention is yet to be done using DOE’s formula of EC rehabili-tation, to date, NPC’s collection efficiency already increased from 23% to 33.7%. After the dialogue, the monthly average collection of P35 million from BASUTA shot up to P72.5 million the following month.

4 STALLED PROJECTS. A number of important projects have been in deep freeze since about 7 to 11 years, due to pending court cases, deadlocks with landowners in the Right-of-Way and various other reasons. The

deadlocks did not only delay development of mis-sionary power services. It denied communities the social and economic opportunities that could have spurred real growth in the countryside through electricity. a. Palawan The standoff between the NPC and a prominent family in Palawan was derailing a 111 kilometer power line of 375 towers, connecting Puerto Princesa to Roxas with a project cost of P154M. With only 2 towers left to be constructed, the project was halted by the disagreement that spanned 7 years. Pilferage was also a problem. B. Catanduanes The Virac (Marinawa) Substation Project will improve the reliability and efficiency of electric service in the island province of Catanduanes. NPC has negotiated with the landowner for the acquisition of the property but failed to reach an agreement for the past 11 long years. The case is pending at the Supreme Court. C. Mindoro The 2-year deadlock between a private resort owner in Orien-tal Mindoro and the NPC regarding the business expansion plans of the former that could only be realized if the latter’s three (3) 69kV structures are to be relocated, affected the power supply in the adjoining province of Occidental Mindoro.

6 Maiden Issue, November 2013

HEALTHY LIVINGNPC AT 77: National Power, National Pride 6 ENHANCED SYSTEM OF TRANSACTIONS

AND DELIVERY OF BASIC SERVICES IN THE SPUG AREAS. Even before the en-tire NPC Manual of Approval is revised, the President immediately acted to address the

issue raised by the SPUG managers during a dialogue in September 11, 2013. She approved, signed and issued on the same day Circular No. 2013-20 deliniating limits of authority to SPUG managers. The issuance of the said circular optimizes the threshold for Shopping and Small Value procurement as provided in RA 9184 up to Php 500,000.00 as the limit of authority for the Department Managers while Php 100,000.00 for Division Managers. This enhanced system enables the managers to promptly address the needs of their concerned areas such as the delivery of basic services and other transactions within their newly authorized level of authority.

6 DELAYS IN SMALL VALUE PROCUREMENT & DE-LIVERY OF BASIC SERVICES IN SPUG AREAS. An outdated NPC Manual of Approvals required a SPUG unit in

Camarines Sur or Palawan, for example, to bring the transactions to SPUG Luzon office in Bulacan which could have been done in their respective areas. The set-up thus causes operational inefficiency, delayed payment of salaries of security and utility personnel, and delayed delivery of basic services due to geographical constraints of area offices from SPUG operations and the Head Office.

7 SECURING NPC REAL PROPERTY AND TITLES. The long standing claim of NPC inspired President GSR to pursue the case with PSALM and seek its con-currence. Her persistence finally paid off in October, as PSALM agreed to revert the 23,013 square meter

head office complex to NPC. The remaining 12,145 square meters of the property were also marked for use of NPC under usufruct for 25 years. The Office of the Legal Counsel (OLC)is currently completing documents for the said property. Taking heed of the President’s 90-day challenge, OLC had also completed its inventory of land titling documents for various SPUG plants throughout the archipelago. Verification surveys are being fast-tracked in preparation for land registration.

7 THE STRUGGLE TO RECLAIM THE HEAD OFFICE AND UNTITLED SPUG REALTIES. The bulk of NPC assets, including the head office complex and its associated facilities, were transferred to

the Power Sector Assets and Liabilities Management (PSALM) when EPIRA was signed into law. NPC had since championed the return of the Head Office com-plex. Despite favorable board resolutions, ownership to these areas has not been returned to NPC. Another concern is the incomplete titling of many SPUG plant properties all over the country.

Challengesand Solutions

(Photo) From left, Director Mylene Capongcol of DOE, President Gladys Sta. Rita, Commissioner Rainier Butalid of GCG and Director Raine Robinson of DOF flash smiles as National Power gets GCG approval for its 2013 Balanced Scorecard.

8 NPC GETS GCG NOD. Rising up to the challenge, President GSR led the Per-formance Agreement Negotiations with the Governance Commission for GOCCs (GCG), making known the new mandate, vision, and direction of the corporation. Finally,

NPC obtained on September 16, 2013, the approval of the GCG of NPC’s 2013 Performance Scorecard. This prescribes the performance targets for each Major Final Output of the corporation.

8 GCG CHALLENGE TO GOCCs. For the first time, NPC, along with other Government-Owned and Controlled Corporations (GOCCs) had to go through a rigorous Performance Agreement Negotiations with the Gov-

ernance Commission for GOCCs (GCG) that had set the per-formance measurements for such institutions under the GCGs 2013 Performance Scorecard.

Winning the First 90 Days 7

Funding Missionary Power

nPC funds come from its internal cash generation from elec-tricity sales in missionary areas and the universal Charge from Missionary Electrification (UCME), to be charged from all electricity users nationwide, as approved by ERC. These can only support the Operational Expenditures (OPEX) portion of the NPC budget. Funds for its strategic projects nationwide would have to be sourced else-where. But thanks to the National Government, headed by His Excel-lency President Noynoy Aquino, a Special Allotment Release Order (SARO) amounting to Php969 million for the year 2013 was granted to NPC through the Department of Budget and Management, allow-ing NPC to implement its Capital Expenditures (CAPEX) projects.

By August 2013, however, NPC President Gladys Sta. Rita learned that the budget utiliza-tion for CAPEX was very low. The Department of Budget Manage-ment (DBM) advised that since it was past mid year, it was impos-sible for NPC to complete all the requirements. Thus, it declared that the request for SARO may not be issued. NPC appealed and was given by DBM a deadline of one (1) month to submit all the required documents.

With the strong will of PGSR and full support from the Management Committee, NPC submitted the following proj-ects within the committed time promised to DBM. The Bids and

a. tRansMission line and suBstation PRoJeCts 1. Catanduanes 69 kV

Codon-Virac Transmission

Awards Committee (BAC), the Power Engineering Services (PES), the Small Power Utilities Group (SPUG), Logistics and Finance group worked double time to complete all tender doc-uments and other requirements. Six employees were detailed to the Logistics department to aug-ment the workforce.

Because of the release, the following projects were not deferred for another year.

The amount in excess of the P969M was charged to inter-nally generated funds.

Line and 10 MVA Marinawa Substation (P 135,479,966.20) a. The construction of 31.28 km transmission line (P108,694,252.20) and 10 MVA Substation (P26, 785,714.00) will serve as the backbone of the Catan- duanes electrical system for the purpose of transport- ing electric power from

IMPACT OF NATIONAL GOVERNMENT’S P969M SUBSIDY SARO RELEASE

various plants over long distance at a voltage of 69 kV. b. This line will augment the existing 13.8 kV network of the cooperative to improve system reliability, reduce line fault and reduce line losses.

2. Masbate 69 kV Cataingan- Mobo- aroroy transmission Line Projects (P119,314,597.23) a. The rehabilitation of 43.42 km Mobo – Aroroy and 76 km Mobo – Cataingan line is expected to reduce the universal charge for missionary electrification in Masbate. 3. Palawan 69 kV Transmission line Abo- Abo Quezon Rizal Survey investigation (P 4,000,000.00) a. This survey investigation is part of the process of determining the most viable option to reliably

PROJECT NAME BUDGET REQUIREMENTA. TRANSMISSION LINE AND SUBSTATION PROJECTS 283,169,563.43

B. CAPACITY ADDITION PROJECTS 258,443,946.72

B.1 Increase Demand/ Electricity Consumption 229,464,896.02 B.2 Increase in Operating Hours 28,979,050.70

C. SPARE PARTS FOR SPUG OPERATIONS 559,145,262.26

C.1 Luzon 324,585,241.84 C.2 Visayas 69,728,253.98 C.3 Mindanao 164,831,766.44

D. ELECTRIFICATION OF NEW AREAS 20,286,149.93

TOTAL 1,121,044,922.34Note: For transmission and substation projects, the amount represents the cost for pre-construction activities and mobilization cost.

8 Maiden Issue, November 2013

HEALTHY LIVINGNPC AT 77: National Power, National Pride

increase the supply of electricity of the town of Rizal, Palawan from 12 hours to 24 hours.

4. Mindoro 138 kV transmission line and Substation Projects (P24,375,000.00)

a. Whenever there are strong typhoons passing Occidental Mindoro, the existing wood poles in the 69 kV line cross- ing the meandering rivers in the towns of Taguilan, Colonia and San Agustin are toppled due to erosion caused by strong river current. b. The usual effect is two (2) to three (3) weeks power shortage in Occidental Mindoro due to the time required to restore the line.

To prevent the situation from recurring, NPC will install over-sized 138 kV steel towers instead of steel tower normally intended for 69 kV line to cover longer span thereby addressing the effect of river meandering during typhoon season.

B. CaPaCitY addition PRoJeCts

1. Increase Demand / Electricity Consumption (P203, 551,704.87)

a. The capacity addition projects will augment and meet the increasing de- mands of the SPUG service areas. b. The project involved the procurement of 52 gensets

PLANTS EXTENDING SERVICE HOURS*

FROM TOEl Nido, Palawan 16 HRS 24 HRS Rapu-Rapu, Albay 12 HRS 20 HRS West Simunul, Tawi- Tawi 10 HRS 16 HRS Cagayancillo, Palawan 8 HRS 16 HRS J.P. Rizal, Palawan 8 HRS 16 HRS

*4,973 households beneficiaries

DEFENDING THE 2014 BUDGET. President Gladys Sta. Rita shares a light moment with House Speaker Feliciano “Sonny” Belmonte dur-ing a break in the budget hearings.

COMMISSIONING OF NEW SPUG PROJECTS WITHIN THE FIRST 90 DAYS

1.) New Areas Under Off-Grid Electrification Projects a. ATULAYAN ISLAND Location : Camarines Sur Capacity : 15 KW No. of Households Served : 147 Cost of Project : Php 5,647,113.21 Date of Commissioning : October 2013 Distribution Utility : CASURECO IV b. PALUMBANES ISLAND Location : Catanduanes Capacity : 20 KW No. of Households Served: 198 Cost of Project : Php 6,595,641.03 Date of Commissioning : October 2013 Distribution Utility : FICELCO c. CABUL-AN ISLAND Location : Bohol Capacity : 60 KW No. of Households Served: 763 Cost of Project : Php 8,043,395.69 Date of Commissioning : October 2013 Distribution Utility : BOHECO II

2.) LINE EXTENSION FROM GUINAWAYAN DPP TO SITIO CANTEL This project benefited the 103 households and a primary school in Sitio Cantel, Placer, Masbate. This project was undertaken through “Bayani-han” where barangay volunteers, LGU officials and NPC linemen comple-mented each other until completion. 3.) COMMISSIONING OF 25MVA SAN JOSE SUBSTATION & ENERGIZA-TION OF 120KM 69KV TRANSMISSION LINE TO SABLAYAN, OCCIDENTAL MINDOROThis provided a reliable alternate source of power to Sablayan coming from the plants in the south with acceptable voltage delivery.

in areas covering 69 mu- nicipalities in 16 provinces and affecting 169,311 households.

2. Increase in Operating hours

(P28,979,050.70)

C. NEW SYSTEM OF SPARE PaRts PRoCuReMent a. Under the previous

procedure, spare parts procurement is made through the issuance of purchase requisition by each plant head or cost center head regardless of the brand or model of the equipment that needs such spare parts. This resulted to volumi-nous work and conse-quent delays.

b. Hence, a process of con-solidating (by SPUG De-partment as applicable) spare parts of the same brand and model into one (1) purchase requi-sition was implemented to reduce considerably the number of procure-ment activities.

c. Furthermore, the process of categorizing spares into PMS Parts for parts to be used for periodic Preventive Maintenance Sched-ule and Security Parts for parts to be used as replacement for broken parts has been under-taken.

Winning the First 90 Days 9

KEEPING THE HOUSE IN ORDER. PGSR (2nd from left) looks up to the NPC build-

ing canopy she wants repaired along with other “signs of decay” she wants to

rid the company of.

T H E C A L L F O R I N T E R N A L R E F O R M S

Change from WithinT he new

National Power President Gladys Cruz-Sta. Rita, PGSR to her peo-

plem made it very clear to her NPC family that their desired change, the meaningful transi-tion they want to happen, should start from within. She did not, however, wait for them to make the first move.

PgsR CommunicatorOn her first day of office,

she immediately put in place a functional feedback system where every employee has direct, confidential access to the President through an SMS Messaging System called the PGSR Communicator. The system generates text messages survey-ing the concerns of employees and eliciting their feedback on human resource, administrative, and operational issues.Meeting the union

One of the first groups PGSR met in her initial rounds was the Philippine Government Employees Association, (PGEA), and the NPC Executives’ Union, to members of which the Presi-dent appealed for support to the transition agenda. The Collec-

tive Negotiation Agreement (CNA) which already expired last September 16, 2013 has been agreed upon for renewal by PGEA and the NPC. It was already presented to the Board Review Committee which clari-fied that the President should be the signatory of the CNA subject to approval by the NP Board of any additional incentive or benefit.Up Close with the President

To further reach out to employees, PGSR began meeting with birthday celebrators every month since September, in a jolly “Up Close with the President” consultation-breakfast.

In the same activity, the Presi-dent instantly approved the long standing request of a solo parent employee for flexible working hours (flexitime), as mandated by the Solo Parent Welfare Act of 2009. She also gave instruction to study the adaption of flexitime under EO 282. Flexitime will now be implemented at NPC beginning November 2013.

team PowerPresident GSR’s Monday flag

ceremony speeches have been highly-anticipated for its inspira-tional, suprise, and even “shock” value. Yet every talk ends on a high note of confidence and

faith in the power of team work and positive outlook. She invites employees to think, dream, act, and pray together to make a dif-ference. At one Monday program, she echoed a quote: “Enthusiam is the electricity of life”, as she encouraged employees to be energetic and excited with their work and their lives to fulfill their dreams, and led the house in one loud cheer.Putting the house in order

As she is known for her attention to details and equal impatience over signs of decay and disorderliness, the NPC president doggedly pushed for immediate repairs and repaint-ing of deteriorating portions of the NPC building, including its canopies and roofs. Also, integral to her agenda of sustainable internal reforms, PGSR initiated a “corporate culture survey”, to determine the ways that would propel the company up the ladder of competitiveness and innovativeness.

Personal Visits and dialogues

PGSR took time to person-ally visit and dialogue with her managers and employees, both in the main office, and even the SPUG facilities. Her recent

10 Maiden Issue, November 2013

HEALTHY LIVINGNPC AT 77: National Power, National Pride

visit to SPUG Luzon marked this commit-ment to continue her conversation with NPC as their President and CEO. Managers appreciate such encounters because of the immediate response and concrete actions to their pressing concerns.

Highlighting Efficiency and Excellence

Several NPC departments stood up to be counted. SPUG Mindanao is well on its way to ISO 9001-2008 certifi-cation. The Power Engineering Services successfully renewed their ISO 9001-9008 certification, while Angat Hydroelectric Plant had just been certified ISO 9001-2008.

NPC’s Corporate Safety, Health, and Environment (SHE) Plan and Policy Manual was also completed and implemented, to ensure safety and welfare of employees at work. Also completed was the Annual Fire and Earthquake Drill Exercise.

Just recently, the National Power Chorale won in the National Civil Service Commission Choir Fest held at the UP Theatre.

Keeping up with the High Times

As she considers the power of modern technology important for work efficiency and as an effective public image platform, PGSR pushed for the upgrade of the on-line presence and savvy of the company. Today, NPC is on Facebook, sports a new corporate website, database-wise with Dropbox, and working its way to being Oracle-powered in its financial and logistics systems.

Employee Training and Team Building

On-going is a series of Team Building and Revisiting the Vision and Mission Workshops to inculcate among employees the professional and ethical values inherent in NPC’s new mandate and direction. The goal is to make NPC’s purpose of existence a personal and professional experi-ence for all employees. Technical training program on Hydroelectric Power Plant System was carried at MinGen. Other non- technical train-ing programs include Contract Administration, Government Procure-ment Administration, and Fire Safety and Preparedness Seminar.

Setting the Standard for Corporate Efficiency

To set corporate standards, the President steered managers to come up with a Data Management Protocol to harmonize the cor-poration’s statistics. She underscored that “the right decisions and sound policies depend largely on accurate and reliable figures”.

PHOTOS: (From top) SPUG Luzon headed by DM Glicerio S. Alpajora poses with the new President; PGSR meets union officers and members of PGEA led by their President Raul M. Del Mundo; NPC Chorale poses after winning in CSC Choirfest, and; VP Danilo S. Sedilla signals SPUG Mindanao’s venture to full ISO 9001:2008 certification.

Winning the First 90 Days 11

Under the Electric Power Indus-try Reform Act (EPIRA), NPC has

the obligation to operate and maintain (O&M) its undis-posed Main Grid generating assets even as the ownership of the same has been trans-ferred to Power Sector Assets and Liabilities Management (PSALM). To date, these include the Agus and Pulangi Complexes, the Angat Hy-droelectric Power Plant and Power Barges 101-104.

EPIRA also empowered PSALM to appoint Indepen-dent Power Producers (IPP) administrators. IPPs were contracted by the National Government during the power crisis of the 90’s. NPC remains to be the counter-party in said IPP Contracts but the Corporation merely manages and implements said IPP Contracts for and in behalf of PSALM. agus and Pulangi hydro- electric Power Plants (HEPP)

The NPC MinGen opera-tion, with a current manpow-er of 628, continues to profit-ably operate and manage the Agus and Pulangi Complexes. Their recent successful activ-ity is the dry repair work of flap gates and draft tubes of Agus 4 HEPP implemented simultaneously with the An-nual Preventive Maintenance System (PMS) of the generat-ing units. The repair works was supposed to be sched-uled for sixty six (66) days. Implementation of repair works started in August 15, 2013 and was completed with zero (0) accident in thirty four (34) days on September 17, 2013. An impressive 32

days ahead of schedule! Also, the P99M contract for the res-toration of the MinGen build-ing which was gutted down by fire in 2009, has already been approved and awarded. angat hydroelectric Plant

Even as the Angat HEPP continues to make the neces-sary repairs and overhauling of the facility prior to the lat-ter’s turnover to its new own-er (K-Water which won in the public bidding conducted by PSALM), it was able to secure its ISO 9001-2008 certification which was awarded by Certifi-cation International Philip-pines, Inc. last September 16. NPC’s Resource Management Service (RMS) and AHEPP Management are working closely to ensure that person-nel concerns are adequately addressed to avoid problems for all AHEPP employees who will be separated from the service upon turnover. Botocan hydroelectric Plant

Last August 27, NPC’s In-dependent Power Producers’

Contracts Management Depart-ment was able to successfully bid out and implement the Botocan-Kalayaan 115kV restoration which will enable NPC to trans-mit the 20MW capacity of the Botocan HEPP to the Luzon Grid.

Ilijan Natural Gas Receiving Facility

Meanwhile, the Ilijan Natural Gas Receiving Facility, the 14.6

Operation and Maintenance (O&M) of Undisposed Generating Assets

TOWARDS PEAK OPERATIONAL HEALTH

HYDRO POWER. (Top) Hard hat team of AGUS 4 HEPP in Lanao del Norte, with VP Rudy Brioso (center, in white) had more than enough time for a posterity shoot, after completing repair works in their facilities at less than half the time. (Middle) President GSR (center) proudly holds Angat HEPP’s ISO 9001-2008 certification in ceremonies at NPC main office. Wth the President are: (third from right) Angat HEPP Manager Rodolfo E. German and (third from left) SDM Atty. Manuel Luis B. Plofino.

km long natural gas pipe-line from Tabangao to Ilijan, Batangas being operated and maintained by NPC, had set its “no outage” record thereby ensuring that the plant, which accounts for 15% of the Luzon Grid power requirement, is always available for dispatch.

NPC is currently pursuing the facility’s “pigging project” and the Leak Detection System.

IN SYNCH. President GSR meets with officials of Malampaya Consortium (left to right)led by Chev-ronPresident Sabino Santos, PNOC-EC President Pedro Aquino, Mr. Sebastian Quinones, Jr., and Dr. Bodo Goerlich, to ensure that relevant programs can be synchronized with the scheduled Malampaya Maintenance Outage on November 9 to December 8, 2013.

12 Maiden Issue, November 2013

HEALTHY LIVINGNPC AT 77: National Power, National Pride

Steward of Watersheds

The operational capacity of the hydro and geother-mal power generation rests in the productive

condition of the watersheds. this is why, national laws provide that watershed reservations ear-marked to support power genera-tion be placed under the complete jurisdiction of the National Power Corporation (NPC).

MANDATES

RA 6395 (1971): Authorized NPC to exercise complete jurisdiction and control over watersheds surround-ing the reservoirs of power plants and power projects.EO 224 (1987): Vested upon NPC the complete jurisdiction, control

and regulation of seven watershed areas surrounding its power plants.EPIRA (RA 9136, Sec. 34): NPC shall manage and continue to be responsible for watershed rehabili-tation and management and shall be entitled to the environmental charge equivalent to one-fourth of one cen-tavo per kilowatt-hour sales.

WATERSHED VISITS

New NPC President Gladys Cruz-Sta. Rita (PGSR), on her first few days in the company, visited the Angat Watershed in Bulacan in August 9, and the Caliraya-Lumot Watershed in Laguna, September 1, 2013.

A plant tour was conducted in the An-gat Hydroelectric Power Plant (AHEPP) and the Kalayaan Pumped Storage Power Plant (KPSPP).

SUSTAINABLE PARTNERSHIPSCaliraya-Lumot Watershed Ecological Community (CLWEC)

On her first visit, PGSR promised to be back in few weeks and gave the following instructions to Manager Em-manuel Umali: to organize stakehold-ers to help Napocor in protecting the watershed; to conduct a program for the students to educate them early on how to protect the watershed in coordination with the DepEd; and to intensify all law enforcement efforts to protect the forest.

She said she also wants to plant trees when she gets back. And so she did on October 12 and October 25, when the NPC President returned to Laguna to implement all these programs.

There she met members of the Caliraya-Lumot Watershed Ecological Community (CLWEC), an organized com-munity of stakeholders in the Caliraya-Lumot Watershed Reservation (CLWR), revived by President GSR after seven years of inactivity. CLWEC will soon be SEC registered.

N P C N U R T U R E S

Winning the First 90 Days 13

Highlighting the October 12 meeting was the signing of the historic “Renewal of Commitment to Protect and Conserve” the already pressure-laden watershed.

At the NPC Camarin Guesthouse, Cavinti, Laguna, PGSR invited stakehold-ers of the need to “redefine the roles and responsibilities of every interest group, of every government agency and non-government sector in the manage-ment and conservation of the Caliraya Watershed Reserve”.

Her advocacy and call for shared responsibility and collaboration in protecting the CLWR was warmly met by those in attendance led by Mr. Peter Wal-lace of the Caliraya Lake Conservation Society (CLCS), Mayor Milbert Oliveros of Cavinti town, Mayor Renato Añonuevo of Lumban, Mayor Teodoro Adao, Jr. of Kalayaan, Col. Ivan Samarita of the Phil-ippine Army 202 IB and Mr. David Du of Caliraya Springs.

PGSR and Peter Wallace were elected President and Vice President of CLWEC, respectively, while Jocelyn Pinca of CBK Power was elected Treasurer. Commit-tees were also established to address various concerns in CLWR. National Greening Program (NGP)

NPC and the DENR recently forged a Memorandum of Agreement (MOA) last September 30, 2013 to jointly imple-

ment the National Greening Program (NGP).

The MOA provides for the allocation of open areas within NPC-managed wa-tershed reservations for rehabilitation through the NGP in partnership with civil society organizations or people’s organizations in the areas. More than 150,000 hectares are potential sites for rehabilitation and agro-friendly projects under the program.

FOREST PROTECTION AND LAW ENFORCEMENTBantay Gubat Patrol Operations

The NPC President commended the Caliraya-Lumot Watershed Area Team (CLWAT) of Watershed Management Department (WMD) for their remarkable implementation of the “Bantay Gubat Patrol”.

Since August 1, 2013, the patrol teams confiscated a total of 10,113 board feet of illegally cut timber/lumber, 203 sacks of charcoals and 3 convey-ances in the different watersheds.

MOBILIZING THE YOUTHBatang Kalikasan—Young Environmental Champions Program

The NPC President also conferred the title of Batang Kalikasan-Young

FUTURE PERFECT. (from top left to right) President Gladys engages NPC Forester Vince Con-cio in her first Caliraya tour; PGSR leads tree plant-ing activities in Caliraya; DENR Secretary Ramon Paje and PGSR show National Greening Program MOA; Caliraya-Lumot folks unite for the future of their watershed; The President being briefed by CBK CEO Masahiro Ikezawa. MAIN PHOTO (below) Scenic Angat Watershed and Dam continues to be a symbol of hope for all 11 watersheds under NPC’s care.

Environmental Champions (BK-YEC), to thirty-two (32) students of the two-day environmental training-camp for the youth, held from October 9 to 10, at the NPC Guesthouse.

In her opening message, PGSR challenged the young environmental champions in the vernacular: “Kayo ang mga bagong kampeon ng Caliraya Water-shed, dahil kayo ang magtuturo sa inyong kapwa kabataan, sa inyong kapitbahay, sa inyong mga kalaro, o kahit sa mga matatanda na minsan ay nakakalimot, ng pagmamahal sa kalikasan na nag-bibigay sa atin ng biyaya at hanapbuhay. Naniniwala ako na ito ang pinakamabi-sang paraan upang tiyakin na patuloy na maaalagaan ng mga susunod na henerasyon ng mga salinlahi ng Caliraya, ang kayamanan at pagpapala ng ating watershed.”

The BK-YEC is one of the environ-mental awareness programs of NPC for the CLWR. Piloted in the area, the

14 Maiden Issue, November 2013

HEALTHY LIVINGNPC AT 77: National Power, National Pride

program will be replicated and sustained in ten (10) other NPC-managed watershed areas supporting power plants in Luzon and Mindanao, and in coordination with the DepEd.RESTORING THE WATERSHED

Watershed reha-bilitation, which includes vegetative measures like reforestation, agroforestry, rubber, bamboo, tiger grass plantation, among others, remains the thrust of the WMD, and involves farm-ers as direct beneficiaries, and laborers directly hired

from the locality. For 2013, WMD had rehabilitated a total of 161 hectares of open areas.This translates to a total of 115,500 seed-lings of indigenous forest and fruit bearing species produced and outplanted.

Caliraya’s Future. Batang Kalikasan graduates pledged to lead the ad-vocacy for the preservation of the Caliraya-Lumot Watershed Reserve, of the 2-day Environmental Aware-ness Workshop in Caliraya.

The National Power Board

The members of the National Power Board comprised of repre-sentatives from different government agencies concerned with the National Power Corporation’s business operations are the leaders who regularly confer to provide direction towards the fulfillment of NPC’s new mandates. The following officials or their official repre-sentatives are the ones who formulate and adopt policies, annual and supplement budget of receipts and expenditures for the NPC management and operation:

Chairman Secretary Cesar Purisima Department of Finance Vice Chairman Secretary Carlos Jericho Petilla Department of Energy

Members of the Board

Secretary Florencio Abad, Department of Budget & ManagementSecretary Manuel Roxas, Department of Interior and Local Government

Secretary Proceso Alcala, Department of AgricultureSecretary Gregory Domingo, Department of Trade and Industry

Secretary Ramon Paje, Department of Environment and Natural ResourcesDirector General Arsenio Balicasan, National Economics and Development Authority

President Ma. Gladys Cruz-Sta. Rita, National Power Corporation

Secretary of the Board, Atty. Victor Gaudencio Garcia

The Technical Working Group, now the Board Review Committee (BRC), evaluates and reviews matters for consideration and make the proper recommendations to the National Power Board. BRC is comprised of the following:

Chairman, USEC John Philip Sevilla/ Director Raine Robinson, DOFVice Chairman, ASEC Jose Raymund Acol, DOE

Committee Members:

USEC Antonio Fleta/ Asec. Allan Umali, DAUSEC Analiza Teh, DENR

Director General Rolando Tungpalan/Asst. Director General Ruben Reinoso, Jr., NEDAExecutive Director Raul Angeles, DTI

USEC Mario Relampagos/ Director Lorenzo Drapete, DBMUSEC Rafael Antonio Santos/ Director Anthony Nuyda, DILG

President Ma. Gladys Cruz-Sta. Rita, NPC

To date, the National Power Board already convened once last August, while the Board Review Committee already met thrice since the start of President Gladys Sta. Rita’s leadership.

POLICY MAKING BODYOF THE NATIONAL POWER CORPORATION

DIALOGUE WITH CLIENTSP GSR took time out to listen to the various

concerns of the retirees including the DAMA and the COLA, which are now pending at the Supreme Court. The well-attended meeting was

arranged with the Office of the President by Mr. Resty Dela Cruz of the National Power People.

ERC Commissioner Josefina Magpale-Asirit, NEA Administrator Edita Bueno, and PGSR meet with officers and members of the Association of Isolat-

ed Electric Cooperatives (AIEC) to thresh out pressing issues and concerns, and possible areas of cooperation.

ENCOUNTER WITH NPC RETIREES

Winning the First 90 Days 15

dam safety ProgramThe NPC under the

new leadership of President Gladys Sta. Rita, is bringing up to date its Dam Safety

Program (DSP) which follows strict interna-tional standard practice to guarantee the struc-tural integrity of all 17 dam facilities under its control and manage-ment. This program ensures that communi-ties located immedi-ately downstream of all NPC operated and maintained dams are not exposed to risks from its existence and operations.Safety Inspection, Monitoring & FFWSDO

As part of the DSP, NPC’s Dam Manage-

ment Department regularly conducts several activities such as: semi-annual dam safety inspections; dam deformation surveys;

the monitoring and surveillance of dam

The National Power Corporation (NPC) under its mandate is tasked to operate and maintain 17 large dams all over the country. these large dams

supply water for domestic use and for irrigation, and generate electricity through our hydroelectric power plants (HEPPs).

instrumentations and its reservoir condi-tions; maintenance clearing of vegetation; and reservoir inflow Flood Forecasting and Warning System during Dam spillway discharge Operation (FFWSDO) of reservoir excess flood waters.emergency Preparedness

The DSP, in keeping with international best practices, mandates the establishment of an Emergency Action Plan (EAP) for all NPC large dams categorized as “high risk” dams.

PGSR has included in her agenda, continu-ing consultation and dialogues with local government officials to further strengthen collaborative activities towards mitigating the effects of dam-induced flooding and other safety and disaster programs.

Recently, PGSR met with Bulacan Gover-nor Wilhelmino Sy Alvarado together with MWSS Administra-tor Gerardo Esquivel and NIA Administra-tor Claro Maranan, to together establish and affirm protocols during the annual flood events and a worst case dam break scenario that could bring severe flooding to the down-

stream local communi-ties of the province. In the meeting, PGSR as-sured all stakeholders that dams under NPC’s watch remain safe and that the corporation will support all struc-tural or non-structural interventions that dam safety experts may rec-ommend to maintain Angat Dam’s structural integrity and lessen the risk it may pose to all communities down-stream.

NPC leads the way in Dam Safety Management

ANGAT AGENDA. President GSR and NPC Dams Manager Romuald Bel-tran met Bulacan Governor Wilhelmino Alvarado, Vice Gov Daniel Fer-nando, MWSS administrator Gerardo Esquivel, and NIA Administrator Claro Maranan in October 16 to discuss Angat Dam rehabilitation and flood mitigation plans in Bulacan, as well as rehabilitation of NIA’s Bustos Dam and Bulo Dam. PGSR sits as director of the NIA Board.

POWER PARTNER. NGCP Presi-dent Henry Sy, Jr. (6th from right) invited NPC’s MANCOM members for a tour of the NGCP Complex in October 7. They were oriented on the modern National Control Center with advanced weather monitoring systems under NGCP’s System Operation, which is available for NPC to provide real time weath-er updates relevant to power generation.

16 Maiden Issue, November 2013

HEALTHY LIVINGNPC AT 77: National Power, National Pride

Faced with these challenges, the new NPC president has intro-duced key reforms and changes in the way the corporation does business in the country’s evolving energy sector. With inputs from officials and employees, President Ma. Gladys Cruz-Sta. Rita has iden-

tified the things NPC have to do to be relevant to the changing times. Missionary Electrification

PGSR envisions that, as the “People’s Missionary Power Provider,” NPC will continue to perform generation functions in select areas included in the first fourteen (14) Large SPUG areas for privatization, since not all can be taken over by New Power

Providers (NPPs) in the near term. Considering the difficulties expe-rienced in the privatization of the large areas, the same challenges are likely to be experienced in the Medium and Small SPUG areas. Thus, local government units (LGUs) continue to petition NPC

to electrify these areas. This is in addition to requests for electri-fication of new areas, transfer of other unviable areas to mission-ary electrification and increase in operating hours in areas with less than 24-hour service.

Meanwhile, NPC shall remain the UCME Petitioner to the Energy Regulatory Commission (ERC) and Disburser of UCME to NPP and QTP

NPC PROGRAMS FOR THE FUTURE OF MISSIONARY POWER1. Implementation of a re-fleeting/retirement program to replace the old,

high-fuel consuming and unreliable diesel generator sets. Study shows that the break even for recovery of capital cost vis-à-vis fuel savings ranges from 12 to 20 months.

2. Procurement of new diesel generator sets to replace the rented ones and supplement the needed capacity of the first fourteen (14) Large SPUG areas where there is a projected power supply deficiency brought by diffi-culties in attracting private sector participation or non-performing NPPs

3. Development of the Renewable Energy Program for off-grids and cham-pion the adoption of appropriate RE technologies in missionary areas. Initial implementation of solar hybrids in areas requiring increased oper-ating hours or those where fuel is difficult and expensive to deliver.

4. Facilitation of an integrated generation and transmission planning in mis-sionary areas to effectively and efficiently use available UCME

5. Establishment of a reasonable graduation programs for missionary areas from the UCME subsidy in coordination with DOE and NEA

6. Phase-out of NPC generation function in private areas that are fully taken over by NPPs/QTPs and transfer/deployment of existing diesel generating units to other areas

7. Accelerated implementation of needed transmission line and substation expansions that are designed to reduce system loss and UCME require-ments

8. Redeployment and/or termination of manpower and resources from areas fully taken over by NPPs/QTPs

9. Application of automatic tariff and UCME adjustment mechanism to ERC for financial sustainability

NPC: Moving Forward, Stepping Up.

The advent of RA 9136 in 2001 changed the land-scape of the electric power industry. While the National Power Corporation continues to oper-ate and maintain the undisposed main grid gen-

erating assets and manage the IPP contracts, it is moving forward with renewed focus on missionary electrifica-tion, renewable energy development, and watershed and dams management. These mandates have presented numerous challenges that call for staunch commitment and innovation in ensuring that the Corporation remains an important pillar in the electricity sector.

as well as the Cash Incentive to Renewable Energy (RE) Develop-ers. Recovery of incurred costs also poses a huge challenge considering tariff and UCME approvals are not sufficient to support operating and capital expenses.

Having identified these chal-lenges during the first 90 days, NPC plans to proceed with flagship programs to improve operational efficiencies and to secure reliable electricity supply. For this purpose, it will adopt appropriate technolo-gies; implement a Re-Fleeting Pro-gram for its inefficient generating sets; redeploy capacities to match the load; and carry out a Spare Parts Program for existing plants, among others.

For 2014-2016, NPC intends to put up a total of 91.087 MW capacity additions in missionary areas estimated at Php 1.337 Billion. Further, it plans to put up a total of 526.55 circuit-kilometers of transmission lines esti-mated at Php 2.896 Billion and 60 MVA substations at Php 882 Million. It will also increase operating hours in select areas.

NPC likewise plans to adopt RE technolo-gies to complement its existing diesel power plants to reduce UCME requirements. NPC plans to initially adopt photovoltaic systems to respond to requests for increased operating hours and in areas where fuel is difficult and expensive to deliver. NPC will also de-velop an RE Program for Off-Grids, beginning with

the mapping of RE resources in the missionary areas in coordination with the DOE.

NPC will also facilitate an integrated generation and trans-mission planning in missionary areas in coordination with electric cooperatives, LGUs, DOE and the National Electrification Adminis-tration (NEA) for inclusion in the MEDP, with the overall objective of

effectively and efficiently utilizing UCME.

To ensure financial sustain-ability, NPC will engage the Energy Regulatory Commission (ERC) to approve reasonable and timely recovery of incurred costs, including automatic adjustments mechanisms, for the NPC tariff and UCME. In addition, it will pursue increased collection efficiency, res-toration of its borrowing authority, and National Government subsidy for capital expenses, as well as a graduation program for missionary areas from UCME in coordination with NEA and DOE. Undisposed Generating Assets in the Main grid

In support of the privatiza-tion efforts, NPC shall continue to operate and maintain undisposed generating assets in the main grids in accordance with internationally-accepted practices and standards. It will also continue to manage IPP contracts and handle the bill-ing and settlement for main grid customers.Watershed and dams Management

NPC continues to be respon-sible for the management and rehabilitation of 11 watersheds covering over 476,000 hectares of forest areas. Flagship programs include the protection of exist-ing forests and rehabilitation of open and denuded areas through increased stakeholder involve-ment, and jointly with the DENR, in implementing the National Greening Program. This will provide sustainable water supply for power generation, and support climate change mitigation and food production programs of the government. NPC also continues to manage 17 dams and implement programs to ensure dam safety and protection of communities downstream.

NPC acknowledges, however, that these enhanced roles and directions would have to consider the larger concerns of the industry and the country for inclusive growth and economic development in the countryside as outlined by the national leadership.

Winning the First 90 Days 17

tRee Planting. Presi-dent Gladys led the NPC Ladies Foundation last October 12, 2013 in a tree planting activity to make sure that there are enough protectors in the future with the help of Batang Kalikasan-Young Environmental Champions at the Japanese Memorial Garden in Caliraya, Laguna. Goodies were given by the foundation as gifts to the young champions.

Bonding tiMe. Well, Cyndi Lauper was com-pletely right when she said, “Girls just wanna have fun” and President Gladys is one of the “girls”.

girls, they wanna have

fun. What in the world

could they have done.

Oh, girls just wanna have

fun.

For the ladies of National Power Corporation,

Friday time-out does not mean a celebration at

the spa on a Saturday morning. What relieves

their tiring weekdays are bonding times with

co-working girls, job descriptions scrapped off,

while fulfilling a noble mission. Take a sneak peek

at how they spell out fun when they are out to

have some.

Blood letting. What has been doing great must carry on. Pres. Gladys Sta. Rita spearheaded the regu-lar blood letting activ-ity sponsored by the NPC-LFI in cooperation with the Philippine Blood Center (PBC) last September 18, 2013. 30 employees partici-pated.

PLANNING FOR donations. For John

Holmes, “There is no exercise better for the

heart than reaching down and lifting people up.” And

so, for NPC ladies, it is always better to constantly

exercise reaching out to the needy.

shaRing and CaRing. NPC Ladies take joy in sharing their happy stories over chores of pack-ing for victims of recent disasters, the displaced, and the least fortunate.

NPC Ladies Foundation: AT WORK

NPC LFI’s TURNOVER CEREMONY. In the past, NPC Ladies Foundation Inc. used to be led by the first ladies of National Power’s presidents. Last August 2, 2013, together with former First Lady Gladys Tampinco, the NPC ladies welcomed the first ever lady president of NPC to lead the foundation herself, President Ma. Gladys Cruz-Sta. Rita.

ATTACK OF THE TYKE TRIBE. Little babes of NPC Day-care Program for children of employees, raid the Presi-

dent’s Office one fateful morning, filling the busy day with welcome fits of giggles and contagious laughter.

“Trust in the Lord with all your heart and lean not on your own understanding. In all your ways acknowledge Him, and He will direct your path.”

PROVERBS 3: 5-6

18 Maiden Issue, November 2013

HEALTHY LIVINGNPC AT 77: National Power, National Pride

QUICK FACTS AND FIGURES N P C B Y T H E N U M B E R S

Founded : November 3, 1936 (Commonwealth Act No. 120)Type : Government-Owned and Controlled Corporation (GOCC)RA 9136 : Electric Power Industry Reform Act (EPIRA) of 2001

• Separation of transmission system to TransCo• Transfer of assets to PSALM

Staffing Pattern : 2455 (as approved by Governance Commission of GOCCs)

WATERSHEDS AND DAMS

FY 2012 Net Income : Php 398 MillionFY2012 Assets : Php 39,279 MillionFY 2013 Augmented Budget : Php 15,116 MillionFY 2014 Proposed Budget : Php 14,161 Million

FINANCIAL PROFILE

Watershed Area Vested to NPC: 476,469 hectares Number of Watersheds: 11Number of Dams: 17

(COB)

Winning the First 90 Days 19

MISSIONARY ELECTRIFICATION

NPC-SPUG Power Plants 298No. of NPPs/QTPs 14Total Installed Capacity 329 MWTotal Dependable Capacity 244 MWBeneficiary Households 770,862 Municipalities 207 Provinces 36Service Areas 231Distribution Utilities (Electric Coops and LGUs) 49No. of Substations 10Total Substation Capacities 170 MVATotal Length of Transmission Line 770 circuit-kilometers

• Universal Charge for Missionary Electrifi-cation (UCME)- A subsidy approved by the Energy Regulatory Commission(ERC) for the electrification of off-grid or missionary areas that are not connected to the main transmission grid. This is passed on and collected from all electricity end-users nationwide.

• New Power Provider (NPP) – A private entity that takes over the role of NPC SPUG in power generation in the off-grid areas and is chosen through a Competitive Selection Process (CSP).

• Qualified Third Party (QTP) –An alternative electric service provider that meets DOE’s stan-dards and is duly qualified and authorized by the ERC to serve declared unviable areas.

• Private Sector Participation(PSP) Areas – NPC SPUG areas that are declared open for the entry of NPPs.

Definition of Terms

From 2008, energy sales in the missionary areas increase from 573 GWh to 735 GWh in 2012. NPC-SPUG used to have the majority share in the total energy sales at 93.2% while the NPPs/QTPs have only 6.8%. As of 2012, NPC-SPUG share has decreased to 51.2% as against 39.8% of NPPs/QTPs, an indication of private sector participation in missionary areas. The trend is forecasted to continue in the future with NPC-SPUG share in energy sales at 43.7% and NPPs/QTPs at 56.3% by 2016.

Energy Sales in Missionary Areas

20 Maiden Issue, November 2013

HEALTHY LIVINGNPC AT 77: National Power, National Pride

NPC CELEBRATES 77 YEARS OF SERVICE2 0 1 3 A N N I V E R S A R Y H I G H L I G H T S

MONDAY, NOVEMBER 4Flag Ceremony and Opening Launching of TULONG TAYO: A CSR ProjectOpening of First 90 Days Photo ExhibitUnveiling of NPC Wall of PrideOne-man Art Exhibit by Dolpee AlcantaraEmployees Boodle Lunch

TUESDAY, NOVEMBER 5NPC Ladies Foundation Bingo SocialNPC Tribute

WEDNESDAY, NOVEMBER 6Media Forum with the PresidentFun Run and AerozumbaPito-pito Amazing RaceSports Tournament

THURSDAY, NOVEMBER 7Dialogue with Power CustomersGeneral Assembly of SPUG Plant HeadsNational Power Night with Energy Secretary Carlos Jericho Petilla

FRIDAY, NOVEMBER 8Rampa Na!Dance Fever ContestEmployees’Night