Iloilo court allows expropriation of PECO’s real estate properties

MANILA, Philippines — The Iloilo Regional Trial Court has ruled in favor of Razon-led More Electric and Power Corp. in the ongoing expropriation case over the power distribution assets of Panay Electric Co. (PECO) in Iloilo City.

In a 22-page decision issued recently, RTC Judge Nestle Go granted MORE Power’s motion to include the so-called Category C assets in the writ of possession (WOP) earlier issued by RTC Judge Emerald Requina-Contreras in February 2020.

The WOP was an offshoot of the expropriation case that MORE Power filed against PECO on March 11, 2019, almost a month after the former secured its congressional franchise to distribute power in Iloilo City via Republic Act 11212.

The WOP issued by Contreras divided the PECO properties into three categories:

– Category A includes all properties that PECO did not contest as “distribution assets”

– Category B includes the properties the court initially found as part of the “distribution assets” listed under the “distribution plant” in the Energy Regulatory Commission record and may be necessary for the operation of MORE Power

– Category C lists the properties excluded in the coverage of the writ.

The WOP covers the properties under Categories A and B, which include the La Paz, City Proper, Jaro, Molo, and Mandurriao substations; and the Meter Lab, Power Plant Building, and Switchboard House located in Gen. Luna Street.

The Category C assets include:

– PECO’s business building office, elevator and parking lot on Gen. Luna Street in the city proper;

– a 769-square meter lot at Gen. Hughes, city proper;

– a 2,401-square meter lot used as pole stockyard at Diversion Road, San Rafael, Mandurriao;

– two guest/staff houses and semi concrete canteen at Gen. Luna Street.

In his decision, Go found PECO’s assertion that only assets that are connected to the distribution system must be covered by the WOP and turned over to MORE Power as “without merit.”

The judge said the Category C properties are “necessary for the maintenance and operation of the distribution systems,” thus “the issuance of a writ of possession over the same is in order.”

MORE Power legal officer Allana Mae Babayen-on said the Category C assets are vital to the utility firm’s operations especially that they plan to put up more substations in the city.

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Article and Photo originally posted by The Philippine Star last October 10, 2020, 12:00am.