KALINGA-APAYAO ELECTRIC COOPERATIVE, Inc.
Callagdao, Bulanao, Tabuk City, Kalinga
I. BACKGROUND
a. Map indicating coverage area/substations, etc
Kalinga is a landlocked province of the Philippines in the Cordillera
Administrative Region in Luzon. Prior to 1995, Kalinga and Apayao used to be a
single province named Kalinga-Apayao, until they were split into two to better
service the needs of individual native tribes in the provinces.
The province is bounded by the provinces of Apayao on the North, Cagayan and
Isabela on the East, Mt. Province on the South, and Abra on the West. The
province enjoys average temperatures ranging from 17-22 degrees Celsius and
type III weather patterns. The dry season extends from November to April. The
rest of the year is considered rainy. The heaviest rains usually occur in the month
of July and October.
Seven (7) municipalities and only one (1) city makes up Kalinga. The City of Tabuk
is where most trading takes place.
Aside from farming, weaving industry and wood carving is one of the industries
that the locals of Kalinga are working on.
Agricultural products are mainly palay, coffee, legumes, vegetables, roots, tubers,
fruits, livestock, and poultry and freshwater fishes. The average monthly family
income range to P2, 835.00 with a poverty incidence of 65. 6%
Apayao is likewise landlocked by the provinces of Cagayan in the east, Ilocos
Norte in the north, Ilocos Sur and Abra in the west and Kalinga in the south. It
has the same physiographic with the province of Kalinga. Agriculture is the main
source of livelihood in the area.
These two (2) provinces, Kalinga and Apayao are geographically situated in the
mountainous region of the Cordillera where municipalities are far from each other.
Average travel time to reach these municipalities is 2-6 hours on unpaved and
partially paved road networks. Most barangays are inaccessible due to the absence
of road networks linking them. The mode of transportation in most barangays is
still the use of hiking.
FINANCIAL ASPECT
The coop posted net operating revenue in the amount of Ᵽ220 Million compared to Ᵽ186 Million
which reflect an increase of Ᵽ34Million or 18% compared to the previous year. The significant
increase is attributed to the energization of the three (3) municipalities through the grid, namely
Lubuagan, Pasil and Balbalan – all in Kalinga Province. Aside from the successful
implementation of Sitio Electrification Program (SEP) under P’Noy Projects, there were likewise
growth of businesses in the City of Tabuk coupled with additional household connections (add-
ons) within the existing lines, thus contributed to the attainment of high sales revenue.
Consequently, a domino effect on power costs follow, and as shown in the report, it increased by
Ᵽ10 Million or 7% compared to previous year of 2012. The ratio is 73% from sales revenue.
The non-power cost or operating costs of Ᵽ48 Million is within the NEA Approved Budget Level
of 22%. With these, for the first time after a quite period of time, the coop posted a positive result
of operation after depreciation and interest charges on loans. The net income is attributed to the
positive trading result with the Philippine Electricity Market Corporation (PEMC) and
incentives from our power supplier – Aboitiz Power – Renewable Inc. (APRI).
The coop’s power rate is flexible or variable due to Generation Mix as we are sourcing power
from PEMC, APRI and Mt. Province Electric Cooperative (MOPRECO). We would like to
emphasize that the positive trading we had for the summer months of 2013, there was a
significant reduction in our average power rate amounting to Ᵽ0.37/kWh. The coop’s total
collection of Ᵽ225.7 M with an average collection efficiency of 97% is attributed to the intensive
and strict implementation of disconnection policy of the coop. The fervent and sincere
compliance of collection guidelines by our regular and deputized collectors and constant
monitoring of their remittances, firstly, contributed to the improvement of collection efficiency.
Secondly, is the establishment of sit-in collection in the urban areas during Saturdays and
Sundays to cater working consumers, augmented our much needed collection to pay our
obligations. The regular public announcement before disconnection schedules has created an
impact to persuade consumers to pay in due time.
The utilization of the above collection is segregated by priority such that we maintain prompt
payment to our power supplier which has the lion share of 75% and only 22% was utilized for the
coop’s operational costs.
Vision
KAELCO continuously strives to become an elite EXTRA LARGE CLASS
COOPERATIVE by 2022
Mission
S Strengthen the commitment of KAELCO Board of Directors and workforce in response
to the man date of new electric industry regime.
P Pursue mandate of total electrification
E Excellent delivery of reliable electric service to its stakeholders
E Enhance competency of cooperative employees to meet the demands of changing
globalization.
D Develop programs to sustain/gain the support and lead KAELCO closer to member-
consumers.
b. Districts covered
KAELCO is located at its service office at the capital town of Tabuk, Kalinga. Its
service area covers the two (2) provinces of Kalinga and Apayao serving eight (8)
and three (3) municipalities respectively totalling to 224 barangays. These
municipalities were grouped to eight (8) districts as follows:
District I – Northern Tabuk;
District II – Southern Tabuk;
District III – Western Tabuk;
District IV – Rizal;
District V – Pinukpuk;
District VI – Balbalan, Lubuagan, Pasil;
District VII – Tanudan, Tinglayan and
District VIII - Municipalities of Calanasan, Conner and Kabugao.
District VIII was just recently approved in the franchise area.
Municipalities covered
KAELCO covers the provinces of Kalinga which comprises the municipalities of
Balbalan, Lubuagan, Pasil, Pinukpuk, Rizal, Tanudan, Tinglayan and the City of
Tabuk; province of Apayao which comprises the municipalities of Conner,
Calanasan and Kabugao; outside coverage area comprises the barangays of
Callagdao and Lepanto, Quezon, Isabela; eight (8) barangays of Tuao, Cagayan;
one (1) barangay of Rizal, Cagayan.
