Salas assumed as chairman and executive officer of the central management formed by the National Electrification Administration (NEA) which merged the operations of Pampanga Electric Cooperatives 1, 2 and 3, as directed by NEA director Fr. Francisco Silva.
The move was reportedly backed by Mrs. Arroyo herself who, during her recent visit to Clark, asked the mayors of the affected towns to support Salas.
Myrna Sarmiento, president of the employees’ union of Pelco 2, said majority of the cooperative’s personnel welcomes the merger and the appointment of Salas, who has had success in managing cooperatives.
Salas headed the NPA for several years until he was captured and incarcerated during the Marcos administration.
He was granted amnesty by former President Corazon Aquino and has been involved in various cooperatives and business enterprises since then.
The three general managers and the board members of the three electric cooperatives were designated as advisers to the central management, according to Sarmiento who was among those present when Silva signed Salas’ appointment last Oct. 17.
Catalina Saplala, co-chairman of the Regional Development Council and chairman of the Consumers’ Alliance of Central Luzon, also threw her support behind Salas’ appointment.
Saplala noted the anomalies hounding Pelco 2, citing audit findings that as of last December, the electric cooperative has incurred a net loss of about P100 million.
Pelco 1 covers some 65,000 households in the towns of Magalang, Mexico, Sta. Ana, Candaba and San Luis; Pelco 2, some 99,000 households in Bacolor, Guagua, Lubao, Sta. Rita, Porac and Mabalacat; and Pelco 3, some 46,000 households in Sto. Tomas, Minalin, Macabebe, Masantol and San Simon.
Sarmiento cited studies showing that Pelco 1 has been incurring 27 percent "systems losses" from unauthorized use of electricity.
Pelco 2 and 3, for their part, have been incurring systems losses of 22.4 percent and 20 percent, respectively.
Sarmiento said Pelco 2 has not been able to pay some P116 million in debts to the National Power Corp. Pelco 3’s arrears have reached P179 million.
Pelco 1, however, has been up-to-date in its payments to the Napocor.
Silva directed the new management to implement a 100-day "plan of action" to reduce systems losses, improve collection, contain non-power costs, and boost the financial viability and operational efficiency of the three merged electric cooperatives.
Consumers in Mabalacat town welcomed Salas’ appointment, having experienced frequent and unannounced power outages.
The power failures have been blamed for the transfer of investors to neighboring Angeles City, which is serviced by a privately owned power company.