C04578-2021

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)
Jul 1, 2021
2. SEC Identification Number
C199800134
3. BIR Tax Identification No.
200-652-460-000
4. Exact name of issuer as specified in its charter
ABOITIZ POWER CORPORATION
5. Province, country or other jurisdiction of incorporation
Philippines
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
32nd Street, Bonifacio Global City, Taguig City, Metro Manila, Philippines Postal Code 1634
8. Issuer's telephone number, including area code
(02) 8 886-2800
9. Former name or former address, if changed since last report
N/A
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common Stock P1 Par Value 7,358,604,307
Amount of Debt Outstanding (As of Mar. 31, 2021) 234,782,470,000.00
11. Indicate the item numbers reported herein
9

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

Aboitiz Power CorporationAP

PSE Disclosure Form 4-31 - Press Release References: SRC Rule 17 (SEC Form 17-C)
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

Bakun LGU resists DOE order, forcibly closes 3 hydros
Background/Description of the Disclosure

On June 30, members of the Bakun local government unit (LGU), together with representatives from the National Commission on Indigenous Peoples - Cordillera Administrative Region (NCIP-CAR) and the Bakun Indigenous Tribes Organization (BITO) went to Hedcor’s Lower Labay, Lon-oy, and FLS hydropower plant facilities in Bakun to implement a forced shutdown upon the instruction made by the NCIP Regional Office in relation to the Cease and Desist Order (CDO) it issued last June 22. The instruction was made without any reference to the directive from the Department of Energy (DOE) dated June 25 to Hedcor to continue operating.

According to Atty. Jerry A. Marave who accompanied the group to implement the shutdown, a court order and not a letter from the DOE can supersede the CDO. They likewise insisted that the letter from the DOE was not an instruction, rather, a simple reminder.

However, the standing Status Quo Ante Order issued by the Regional Trial Court of Buguias which is a result of a mutual commitment between Hedcor and the LGU, represented by Atty. Sunny G. Sacla, to maintain the uninterrupted operations of the plants, was also not recognized by the group.

“Unless DOE expressly states in writing and confirms that their letter sent on June 25 addressed to Hedcor to continue operations is simply a reminder, we will treat DOE’s letter as an order for Hedcor to keep operating our plants in Bakun. However, we are forced to stop operations, with the threat posed by the situation. As much as we want to continue delivering power to the Luzon grid, we don’t want to compromise the safety of the community and our personnel,” said Hedcor’s Vice President for Operations and Maintenance Leo Lungay.

It can be recalled that DOE underscored in the June 25 letter its mandate pursuant to the Electric Power Industry Reform Act of 2001, “to ensure the quality, reliability, security, and affordability of the supply of electric power especially during this period of health pandemic.”

Furthermore, DOE highlighted in the letter the importance of ensuring “integrity of the power system, pursuant to EPIRA and as mandated by the [aforementioned] circulars and issuances” and emphasized its advice to “continue operating the Bakun hydropower plants in compliance with the said laws, WESM rules, and the Philippine Grid Code.”

“Hedcor has earnestly engaged and constantly reached out to the community in good faith for a reasonable dialogue. Prior to the issuance of this CDO, we were hopeful with the confirmed tongtongan that we were supposed to have with the IP leaders last June 15. However, with the last-minute cancellation advised by the LGU, and followed by the BITO, we are saddened that the situation has come to this,” said Noreen Vicencio, Hedcor’s Vice President for Corporate Services.

“We hear the community’s desire for a dialogue and the demand for a shutdown before any discussions will commence, but we also have a mandate from DOE to continue operations in light of the ongoing power crisis in Luzon. We reiterate our long-standing request to engage in a reasonable dialogue with the community, while allowing the plants to continue running, so we can serve the critical energy needs of the Luzon grid and at the same time, sustain the benefits for the Bakun IPs,” Vicencio added. ##
Other Relevant Information

The disclosure has been amended to reflect recent developments in Hedcor's Bakun Hydros.
Filed on behalf by:
Name Mailene de la Torre
Designation Asst. Corporate Secretary