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Meralco Financial Statements

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Meralco Financial Statements

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MANILA ELECTRIC COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIATED FINANCIAL STATEMENTS

1. Corporate Information
Manila Electric Company or MERALCO, holds a congressional franchise under Republic Act or RA No. 9209 effective June 28, 2003. RA No. 9209 grants MERALCO a 25-year franchise valid through June 28, 2028 to construct, operate, and maintain the electric distribution system in the cities and municipalities, and barangays in the provinces of Batangas, Laguna, Pampanga, and Quezon. On October 20, 2008, the Energy Regulatory Commission or ERC, granted MERALCO a consolidated Certificate of Public Convenience and Necessity for the operation of electric service within its franchise coverage, effective until the end of MERALCO’s congressional franchise, MERALCO is the largest power distribution utility or DU, in the Philippines. The power segment, primarily power distribution, consists of operations of MERALCO and its subsidiary, Clark Electric Distribution Corporation or CEDC. CEDC is registered with Clark Development Corporation or CDC, under RA No. 9400, Bases Conversion Development Act of 1992, as a Clark Special Economic Zone or CSEZ, enterprise, primarily engaged in owning, operating, and maintaining a power distribution system within CSEZ. Separately, MERALCO organized a subsidiary for its re-entry into power generation through its wholly-owned subsidiary, MERALCO PowerGen Corporation or MGEN, and another unit for its entry into retail electricity supply or RES. The MERALCO local RES, otherwise known as MPower, is a business unit within MERALCO. Through several other subsidiaries, its other business segments provide engineering, construction and consulting services, bill collection services, energy management services and information systems and technology services. MERALCO’s investment in common equity shares of Rockwell Land Corporation or Rockwell Land, was declared as property dividends on February 27, 2012 to stockholders of record as at March 23,...