Panay Electric Company

Last updated

Panay Electric Company, Inc.
Company type Public
Industry Power distributor
PredecessorIloilo Light Company
FoundedMay 14, 1921;103 years ago (1921-05-14)
Founder Esteban de la Rama
DefunctFebruary 14, 2019;5 years ago (2019-02-14)
FateSuperseded by MORE Power
Headquarters12 General Luna St., City Proper, Iloilo City, Philippines
Key people
Mariano Cacho Jr., Chairman
Luis Miguel A. Cacho, President and CEO
OwnersCacho family
First Philippine Holdings Corporation
Website www.panayelectric.com

Panay Electric Company, Inc., also known as Panay Electric or simply PECO, is an electric power distribution company in the Philippines. It served the City of Iloilo from 1923 until 2019, when its franchise service expired and MORE Electric and Power Corporation (MORE Power) controversially took over. [1]

Contents

Although PECO is no longer the main power distributor for Iloilo City, the company continue to provide a variety of services, including meter management, electrical infrastructure maintenance, and safety-related services. [2]

History

Iloilo Light Company

Electricity in Iloilo was introduced as early as 1895 when the Escuela de Artes y Oficios de Iloilo (now reestablished as Iloilo Science and Technology University) developed its own power generator.

In 1902, during the American Colonial Period, Iloilo Light Company was founded by American mining engineer Joseph Clayton Nichols. This marked the first time electricity in the province was made available for public subscription and established the first light company outside Luzon. In 1908, Nichols sold the Iloilo Light Company to fellow Americans and electrical engineers Albert Bryan and Robert Landon. [3] [4]

Founding of Panay Electric Company

On February 22, 1921, Philippine Revolution general and senator Esteban de la Rama was granted a franchise "to install, operate, and maintain an electric light, heat, and power system in the municipalities of Iloilo, La Paz, Jaro and Arevalo" by virtue of Act 2983. He then organized Panay Electric Company (PECO) on May 14, 1921. [5]

In April 1922, PECO became the majority owner of the Iloilo Light Company by purchasing three-fourths of the firm, thereby operating the power distribution system. PECO took full control of the Iloilo Light Company in February 1923 after the Philippine Legislature passed Act No. 3035, authorizing de la Rama to transfer his franchise to the company. [3] On June 12, 1923, PECO began serving as Iloilo City's electric power distributor.

Cacho takeover and martial law

On January 27, 1927, Candelaria Soriano Cacho acquired the whole company, making it the first 100-percent Filipino-owned private company in the Philippines. Cacho died later that year, and her son, Mariano Cacho, inherited the company and continued its operations. [6] [7]

In 1929, the 8th Legislature passed Act 3665, granting PECO a new 50-year franchise and expanding its service area to include Santa Barbara, Pavia, and Oton. In 1974, under martial law, the company faced technical and financial problems, resulting in the towns being taken over and serviced by the electric cooperative ILECO 1, leaving the City of Iloilo as the only area serviced by PECO. [8]

Acquisition by the López group

In 1996, First Philippine Holdings Corporation of the influential López family of Iloilo, acquired 30% of the capital stock of PECO, leaving 70% for the Cacho family. [9] [10]

Franchise expiration controversy

On January 18, 2019, PECO's franchise expired and was not renewed by Congress. [11] Billionaire Enrique Razon-owned MORE Electric and Power Corporation (MORE Power) filed an expropriation case to acquire the assets of PECO. MORE Power was granted a 25-year contract to serve and operate the city's electricity distribution system by virtue of Republic Act 11212, signed by President Rodrigo Duterte on February 14, 2019, ending PECO's 97-year-long operation in Iloilo City. [12] [13]

Controversies

1990 labor dispute and union strike

A significant labor issue arose in 1990 when PECO attempted to transfer union vice-president Enrique Huyan to a new position, which he declined, citing potential demotion and interference with his union duties. His refusal led to his dismissal, which sparked a union strike later declared illegal by the National Labor Relations Commission (NLRC). The NLRC awarded Huyan and another union officer separation benefits and damages, though these were later modified by a higher court. [14]

Assets and franchise dispute against MORE Power

PECO faced escalating controversy as tycoon Enrique Razon Jr.'s MORE Power vied for control of Iloilo City's electricity franchise. Accusations flew as MORE Power accused PECO's owners, the Cacho family, of blackmailing customers with threats of operational disruptions upon the expiration of their franchise. MORE Power criticized PECO for neglecting technological investments, resulting in poor service for the city. In response, PECO defended its operations, claiming to have resolved past issues and pledging not to shut down facilities amid the transition. The Department of Energy and Energy Regulatory Commission assured the public of a smooth transition, preparing measures to prevent citywide blackouts upon PECO's franchise expiry on January 18, 2019. [15] [16] [17]

Related Research Articles

<span class="mw-page-title-main">Iloilo</span> Province in Western Visayas, Philippines

Iloilo, also called Iloilo Province, officially the Province of Iloilo, is a province in the Philippines located in the Western Visayas region. Its capital and largest city is Iloilo City, the regional center of Western Visayas and politically independent from the province. Iloilo occupies the southeast portion of the Visayan island of Panay and is bordered by the province of Antique to the west, Capiz to the north, the Jintotolo Channel to the northeast, the Guimaras Strait to the east, and the Iloilo Strait and Panay Gulf to the southwest.

<span class="mw-page-title-main">Fernando Lopez</span> Vice President of the Philippines from 1949 to 1953 and 1965 to 1972

Fernando Hofileña Lopez Sr. was a Filipino statesman. A member of the influential Lopez family of Iloilo, he served as vice president of the Philippines under Presidents Elpidio Quirino from 1949 to 1953 under the Liberal Party and Ferdinand Marcos from 1965 to 1972, under the Nacionalista Party. He was also the chairman of ABS-CBN Corporation from 1986 to his death in 1993.

<span class="mw-page-title-main">Roxas City</span> Capital of Capiz, Philippines

RoxasTagalog pronunciation:[ˈɾohas], officially the City of Roxas, is a 3rd class component city and capital of the province of Capiz, Philippines. According to the 2020 census, it has a population of 179,292 people, making it the most populous city in Capiz and also the second-most populous city in Western Visayas, after Iloilo City.

<span class="mw-page-title-main">Meralco</span> Large distribution private utility sector in the Philippines

The Manila Electric Company, also known as Meralco, is an electric power distribution company in the Philippines. It is Metro Manila's only electric power distributor and holds the power distribution franchise for 39 cities and 72 municipalities, including the whole of Metro Manila and the exurbs that form Mega Manila.

<span class="mw-page-title-main">Iloilo City</span> Highly-urbanized city and capital of Iloilo, Philippines

Iloilo City, officially the City of Iloilo, is a 1st class highly urbanized city in the Western Visayas region of the Philippines, located on the southeastern coast of the island of Panay. According to the 2020 census, Iloilo City has a population of 457,626 people, making it the most populous city in Western Visayas. For the metropolitan area, the total population is 1,007,945 people.

<span class="mw-page-title-main">Oton</span> Municipality in Iloilo, Philippines

Oton, officially the Municipality of Oton, is a 1st class municipality in the province of Iloilo, Philippines. According to the 2020 census, it has a population of 98,509 people making it as the most populous town in the province and the entire Panay island.

<span class="mw-page-title-main">Rail transportation in the Philippines</span>

Rail transportation in the Philippines is currently used mostly to transport passengers within Metro Manila and provinces of Laguna and Quezon, as well as a commuter service in the Bicol Region. Freight transport services once operated in the country, but these services were halted. However, there are plans to restore old freight services and build new lines. From a peak of 1,100 kilometers (680 mi), the country currently has a railway footprint of 533.14 kilometers (331.28 mi), of which only 129.85 kilometers (80.69 mi) are operational as of 2024, including all the urban rail lines. World War II, natural calamities, underspending, and neglect have all contributed to the decline of the Philippine railway network. In the 2019 Global Competitiveness Report, the Philippines has the lowest efficiency score among other Asian countries in terms of efficiency of train services, receiving a score of 2.4, and ranking 86th out of 101 countries globally. The government is currently expanding the railway network up to 1,900 kilometers (1,200 mi) by 2022 through numerous projects.

<span class="mw-page-title-main">Lopez Holdings Corporation</span> Filipino conglomerate and holding company

Lopez Holdings Corporation is a Filipino conglomerate founded by the brothers Eugenio Lopez, Sr. and Fernando Lopez, Sr. It has substantial holdings in the public service and utilities sector in the Philippines and serves as the Lopez family's publicly listed holding company for investments in major development sectors such as broadcasting and cable; telecommunications; power generation and distribution; manufacturing; and property development. It added to its portfolio investments in other basic service sectors but has also since sold its interest in banking, toll roads, information technology, and health care delivery.

<span class="mw-page-title-main">Iloilo International Airport</span> Airport serving Iloilo, Philippines

Iloilo International Airport, also known as Iloilo Airport, and as Cabatuan Airport, after the municipality of Cabatuan, Iloilo, where it is located, is an international airport serving the province of Iloilo in the Philippines, including its capital city, Iloilo City, the regional center of the Western Visayas region. It opened its doors to commercial traffic on June 14, 2007, after a decade of planning and construction, replacing Mandurriao Airport in Mandurriao, Iloilo City, which had been in service for over seventy years. As a result, the new airport inherited its IATA and ICAO airport codes, as well as its position as the fourth-busiest airport in the Philippines, from its predecessor. It was the fifth-busiest airport in the Philippines in 2022. It is the first airport in both Western Visayas and the island of Panay to be built to international standards, and it is also considered to be the primary gateway into the region. It is classified as an international airport by the Civil Aviation Authority of the Philippines.

<span class="mw-page-title-main">PECO Energy Company</span> Energy company

PECO, formerly the Philadelphia Electric Company, is an energy company founded in 1881 and incorporated in 1929. It became part of Exelon Corporation in 2000 when it merged with Commonwealth Edison's holding company Unicom Corp.

<span class="mw-page-title-main">Iloilo Science and Technology University</span> Public university in Iloilo City, Philippines

Iloilo Science and Technology University (also known as ISAT-U or ISAT) is a state research university located in La Paz, Iloilo City, Philippines. Founded in 1905 under the American colonial government of the Philippines, it is mandated and chartered as a polytechnical university by the Philippine government to provide undergraduate and graduate courses in technology education, agriculture, fishery, engineering, arts and sciences, forestry, business, health, computer, criminology, nautical and short-term vocational-technical and other continuing courses. It attained its university status in 2013 renaming it to its present name, the Iloilo Science and Technology University (ISAT-U).

<span class="mw-page-title-main">Enrique K. Razon</span> Filipino billionaire

Enrique Klar Razon, Jr. is a Filipino billionaire and the chairman and CEO of the Manila-listed company International Container Terminal Services, Inc. (ICTSI), the Philippine port-handling giant. He is also Chairman of Bloomberry Resorts Corp., developer of Solaire Resort and Casino, a US$1.2 billion integrated resort complex in Metro Manila’s Entertainment City and Manila Water, the private concessionaire of Metropolitan Waterworks and Sewerage System that serves the more than seven million population of the East Zone of Metro Manila and Rizal Province. ICT, BLOOM, MWC and APX are listed in the Philippine Stock Exchange. Razon also owns MORE Power, Iloilo City's sole power distributor since 2019.

<span class="mw-page-title-main">Panay Railways</span> Philippine government corporation

Panay Railways, Inc. is a government-owned and controlled corporation of the Philippines that formerly operated railway systems on the islands of Panay and Cebu. It is headquartered in La Paz, Iloilo City, and is a subsidiary of Phividec Railways, Inc. under the Philippine Veterans Investment Development Corporation (PHIVIDEC). While Panay Railways currently does not operate any trains, it leases its property, and the generated revenue is utilized to cover personnel and administrative costs associated with maintaining its assets.

<span class="mw-page-title-main">Iloilo Golf and Country Club</span> Private members-only golf course and club in Santa Barbara, Iloilo, Philippines

The Iloilo Golf and Country Club, Inc., formerly and informally known as the Santa Barbara Golf Course, is a private members-only golf course and club based in Santa Barbara, Iloilo, Philippines. Situated 15 kilometres (9.3 mi) north of Iloilo City, it spans a 35-hectare (86-acre) area of plain and rolling hills in Barangay San Sebastian in Santa Barbara. It is considered the first golf club in the Philippines and the oldest existing golf course in Southeast Asia.

<span class="mw-page-title-main">Passi, Iloilo</span> Component city in Iloilo, Philippines

Passi, officially known as the City of Passi, is a 4th class component city in the province of Iloilo, Philippines. According to the 2020 census, it has a population of 88,873 people.

<span class="mw-page-title-main">Calle Real, Iloilo</span> Historic street in Iloilo City, Philippines

Calle Real, officially named as J.M. Basa Street, is a historic street located in the old downtown district of Iloilo City Proper in Iloilo City, Philippines. It is home to several fine examples of luxury American-era neoclassical, beaux-arts, and art deco buildings. The street has been famous since the Spanish era and once served as the city's main shopping center for more than a century.

<span class="mw-page-title-main">Governor of Iloilo</span> Local chief executive

The Governor of Iloilo is the local chief executive of the Philippine province of Iloilo. The governor holds office at the Iloilo Provincial Capitol located at Bonifacio Drive, Iloilo City. Like all local government heads in the Philippines, the governor is elected via popular vote, and may not be elected for a fourth consecutive term. In case of death, resignation or incapacity, the vice governor becomes the governor. Along with the governors of Aklan, Antique, Capiz, andGuimaras, he sits in the Regional Development Council of the Western Visayas Region.

West Visayas State University Medical Center is a government owned hospital operated under the West Visayas State University. It was established in the 1940s after which when the Cacho family of Panay Electric Company (PECO) sold their property to the Philippine Women's College, then later to the Lopez family turning it into Don Benito Lopez Memorial Hospital.

MORE Electric and Power Corporation, also known as MORE Power, is an electric power distribution company in the Philippines. It has been serving Iloilo City since 2019, following its controversial takeover of the private firm Panay Electric Company (PECO) as the city's sole power distributor.

Esteban de la Rama was a Filipino general during the Philippine Revolution, entrepreneur and politician of the Nacionalista Party (NP), who became a member of the Philippine Senate from 1941 to 1947.

References

  1. ↑ "MORE ELECTRIC v. PANAY ELECTRIC COMPANY". lawyerly.ph. Retrieved August 5, 2022.
  2. ↑ PECO. "Panay Electric Company, Inc". General Services | Panay Electric Companay, Inc. Website. Retrieved August 5, 2024.
  3. 1 2 Cajilig-Luján, Nereo (2016-09-04) HISTORY 101. "The name Joseph Clayton Nichols may not be familiar to today's generation but this American mining engineer left a significant legacy here in Iloilo — electricity."
  4. ↑ PECO Iloilo History Archived 2016-04-20 at the Wayback Machine . In: Iloilo Today (10/2014)
  5. ↑ De la Rama Mansion in Sights & Sounds of Iloilo
  6. ↑ INQUIRER.net (May 8, 2019). "IN THE KNOW: Panay Electric Co. Inc". INQUIRER.net. Retrieved August 5, 2022.
  7. ↑ Cajilig-Luján, Nereo (2020-02-28) HISTORY 101. "Don Mariano Cacho (1889-1964) inherited Panay Electric Company (PECO) from his mother, Doña Candelaria Soriano Cacho (1858-1926), who acquired it from Don Esteban de la Rama (1866-1947) just before she died."
  8. ↑ Jereza, Franz (January 31, 2014). "History of Panay Electric". History of PECO & Iloilo City: An Enlightened Past, A Bright Future– via Ilonggo Sa Amerika ( I.S.A. ).
  9. ↑ "Lopez Holdings – History". lopez-holdings.ph. Retrieved August 5, 2022.
  10. ↑ "First Philippine Holdings Corporation – Annual Report 1997" (PDF). 1997. Retrieved August 5, 2022.
  11. ↑ Jr, Hazel P. Villa, Nestor P. Burgos (May 8, 2019). "After 92 years, Iloilo family's power firm on brink of shutdown". INQUIRER.net. Retrieved July 10, 2024.{{cite web}}: CS1 maint: multiple names: authors list (link)
  12. ↑ Burgos, Nestor P. Jr. (March 17, 2021). "SC affirms ruling on constitutionality of Peco asset expropriation". INQUIRER.net. Retrieved August 5, 2022.
  13. ↑ "Big energy fight in Iloilo". Manila Standard. July 21, 2020. Retrieved August 5, 2022.
  14. ↑ "G.R. No. 102672". lawphil.net. Retrieved July 10, 2024.
  15. ↑ Navallo, Mike (September 25, 2019). "Panay power firm accuses rival of pursuing takeover despite court ruling". ABS-CBN News. Retrieved July 11, 2024.
  16. ↑ "'PECO FAILED ILOILO'". Panay News. November 23, 2018. Retrieved July 10, 2024.
  17. ↑ Lucas, Daxim L. (November 14, 2018). "Blackouts feared as fight for Iloilo electricity franchise heats up". INQUIRER.net. Retrieved July 10, 2024.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.