This funding support is under the regular financial benefits program, which is pursuant to Energy Regulation 1-94 implementing Republic Act 7638 or the Energy Act of 1992.
The remittance represents the accrued financial benefits due from the Quezon power plant since the start of its commercial operations on May 30, 2000 up to the end of the second quarter of 2001. The amount is based on electricity sales proceeds derived from the commercial operation of the energy-generating facility, calculated in accordance with the power producer’s regular billing cycle.
The host communities can utilize the funds to finance projects endorsed by the host local government units (LGUs) and approved by the DOE through the Energy Industry Administration Bureau (EIAB).
In accordance with the guidelines and procedures for the granting of benefits to host LGUs, the DOE has allocated the P10.9 million to the following: (a) P5.5 million for electrification projects, (b) P2.7 million for community development and livelihood programs, and (c) P2.7 million for reforestation, watershed management, health and environment enhancement projects.