President Ferdinand R. Marcos Jr. has signed into law Republic Act (RA) 12306, granting the Pampanga Rural Electric Service Cooperative (PRESCO) Inc. a 25-year franchise to operate and maintain a power distribution system in four towns of Pampanga province.

The new law, signed by the President last Sept. 18, allows PRESCO to construct, install, establish, manage, and operate facilities for the distribution of electricity in 34 barangays across the municipalities of Mexico, Arayat, Sta. Ana, and Magalang.

Under the franchise, PRESCO is mandated to provide reliable and affordable electricity service, ensure non-discriminatory access to its system, and promote consumer protection through a dedicated consumer desk.

It is also required to comply with labor standards, create employment opportunities, and allow on-the-job training for local residents.

The law further directs the cooperative to secure regulatory approval from the Energy Regulatory Commission (ERC), the Department of Energy (DOE), and the National Electrification Administration (NEA) for its operations, while giving the government the authority to temporarily take over the facilities in times of war, calamity, or other emergencies.

PRESCO’s franchise shall run for 25 years, commencing from the expiration of its existing franchise, unless sooner cancelled or revoked.

It is likewise required to submit annual operational and compliance reports to Congress, with failure to do so subject to penalties.