The Palawan Provincial Board has backed a feasibility study on creating a separate electric cooperative for northern mainland Palawan and island municipalities outside the Busuanga Island Electric Cooperative service area.
The board adopted the recommendation of its Committee on Energy, Oil and Gas Exploration during its 58th regular session last Tuesday, advancing a proposal tentatively referred to as the Northern Palawan Electric Cooperative.
Filed by Board Member Winston Arzaga, the resolution asks Governor Amy Roa Alvarez to initiate the study with assistance from the National Electrification Administration (NEA).
Board Member Al-Nashier Ibba presented the committee report on behalf of committee chair Board Member Ryan Maminta, who was the acting chair that day.
“Ito ay request ng ating kasama si Board Member Winston Arzaga, requesting Governor Amy Alvarez to initiate and undertake, with assistance of National Electrification Administration, a comprehensive legal, technical and financial feasibility study for the proposed establishment of separate electric cooperative, NORPECO,” Ibba said.
He said the proposed cooperative would cover northern mainland municipalities and island towns outside the franchise area of the Busuanga Island Electric Cooperative, or BISELCO.
The board approved the committee report along with other measures handled by the energy committee.
The action does not establish the cooperative or remove any municipality from an existing electricity provider. It authorizes the provincial government to examine whether a separate distribution utility would be legally permitted and financially and technically capable of operating.
The study would have to determine the proposed service area, number of consumers, electricity demand, available power sources, distribution assets, staffing needs, rates and cost of operating across mainland and island communities.
It would also need to examine what would happen to existing facilities, obligations and member-consumer interests if some areas were separated from the Palawan Electric Cooperative, or PALECO.
Arzaga previously said the proposal should first be studied to determine whether a northern cooperative could operate financially and technically. No study findings, proposed headquarters, capitalization requirement or implementation schedule were presented during the latest session.
The Provincial Board also did not identify which municipalities would be included. The committee report described the proposed coverage only as northern mainland Palawan and island municipalities not served by BISELCO.
BISELCO serves communities in the Calamianes area, while PALECO’s franchise application covers Puerto Princesa City and 19 Palawan municipalities, including northern mainland and several island towns.
The proposed study comes as PALECO seeks a new 25-year congressional franchise. During the same session, the energy committee reported its support for House Bill No. 11029, which would allow PALECO to continue operating its distribution system in Puerto Princesa and most Palawan municipalities.
Some board members objected to or expressed reservations about supporting the franchise application, citing power interruptions, distribution-line problems, late-payment surcharges and unfulfilled electrification commitments.
One member said Palawan residents had already suffered from poor service and questioned whether PALECO should be given another long-term franchise. Another said the board should wait until the cooperative delivers promised improvements before issuing its endorsement.
Arzaga, who proposed the northern cooperative study, has previously raised complaints about PALECO’s disconnection and billing practices.
PALECO disputed those allegations in 2025 and explained that its policies were based on approved procedures and regulations.
