About Us.

Brief History and Profile

The rural electrification of the Philippines was first introduced in June 1969 by Hon. Emmanuel N. Pelaez, the former Vice President of the Republic of the Philippines and Chairman of the NEA. He had strongly endorsed to former President Ferdinand E. Marcos to declare a national policy for the total electrification of the country to be considered as his pet project. Thus, Republic Act 6038 was promulgated. This Act has created the NEA whose primary role in the electrification program was to administer for the organization and registration of ECs. The Act was subsequently repealed by Presidential Decree No. 269 in 1973 and Presidential Decree No. 1645 in 1979 giving NEA additional responsibilities particularly in the supervision on the technical and managerial activities of the ECs and promoting the development of alternative sources of power in the country.

The SURSECO II was organized as a private, non-stock, non-profit membership and service-oriented cooperative on September 10, 1979 thru the effort of the assemblyman and at the same time the Deputy Minister of State for Energy, Jose “Popit” Puyat, Jr.. It was registered as the 115th electric cooperative in the country.

NEA-designated Engr. Victor A. Cunanan became the Acting General Manager. On the same year, an Interim Boardof Directors was formed who then represented SURSECO II for the loan contractwith NEA. Among the interim Board were Mr. Godolivo A. Urbiztondo, President (Cantilan);Mr. Cecilio C. Corvera, Vice President (San Agustin); Mr. Mario Lumanao(Cortes); Mr. Senecio A. Baure (Carrascal); Mr. Florencio Sagaysay (Cagwait);Mr. Carlos S. Echavez (Tandag); Mr. Benedicto T. Badiang (Madrid); Mr. RomalitoYuhico (Lanuza-Carmen); Mr. Pedro Cejoco (Tago-Bayabas) and Mr. Florencio Tuyor(Marihatag).

Incorporators and Coverage Area

Mr. Godolivo A. Urbiztondo, President (Cantilan); Mr. Cecilio C. Corvera, Vice President (San Agustin); Mr. Senecio A. Baure, Secretary (Carrascal); Mr. Benedicto T. Badiang, Treasurer (Madrid); Members: Mr. Mario Lumanao (Cortes); Mr. Florencio Sagaysay (Cagwait); Mr. Carlos S. Echavez (Tandag); Mr. Romalito Yuhico (Lanuza-Carmen); Mr. Pedro Cejoco (Tago-Bayabas); and Mr. Florencio Tuyor (Marihatag).

Surigao del Sur is divided into two (2) ECs. The south was under the operation of SURSECO I with its main office at San Fernando, Bislig while the northern part was under SURSECO II with its main office at Tandag, the capital town of Surigao del Sur.

The coop originally has 13 municipalities to form the coverage area namely: San Agustin, Marihatag, Cagwait, Bayabas, San Miguel, Tago, Tandag, Cortes, Lanuza, Carmen, Madrid, Cantilan and Carrascal. But due to the clamor of the members of San Agustin to be under the management of SURSECO I, in 1989, with the concurrence of NEA, SURSECO II management, after a series of dialogues and realizing the advantages of the said request, interpose no objection thereby consented for the same transfer under certain terms and conditions.

However, effective October 26, 2007, the municipality of San Agustin voluntarily returned, while the municipality of Lianga willingly transferred to the area coverage of SURSECO II.

ELECTRIC SYSTEM TAKE-OVER

The start of SURSECO II operations was the dawn of the era of electrification in the province. As part of its initial energization program, SURSECO II took over the franchise of four (4) existing municipal power systems operating within their area of jurisdiction. Taken over were the electric systems of Tandag, Tago, Marihatag and Carrascal. Of the four electric systems bought by SURSECO II, only in Tandag was privately owned. The franchise of the said electric system was formerly held by the Tandag Electric and Telephone Company (TETCO), a corporation owned by the Serra-Ty family. The other three electric systems belonged to the municipal governments. At the time the coop acquired these power generating assets, SURSECO II became operational through the re-energization of the towns of Tandag, Marihatag, Tago and Carrascal.

In its initial state of operation, the coop then had 1, 268 member-consumers. The operation was projected at a 24-hour operation by synchronizing the generating sets with a combined capacity of 325 kilowatt. This was admittedly a period of survival as the construction of backbone lines and lateral lines were simultaneously undertaken. Inspite of these intervening factors, Engr. Cunanan judiciously negotiated the shipping of one (1) unit 3.75 MVA power transformer from a sister coop, Aklan Electric Cooperative (AKELCO), and it was installed at the town of Madrid located some 70 kilometers north of Tandag. Barely a year after its installation, on November 10, 1983, Carrascal, Cantilan, Madrid, Carmen and Lanuza (CARCANMADCARLAN) area were energized and power was supplied by the National Power Corporation (NPC).

TECHNICAL DESCRIPTION

The franchise area of SURSECO II is situated along the coastal part of the first district of the province with a total land area of 2, 758.96 square kilometer.

The electric power for the whole coverage area was supplied by four substation power transformers respectively located at the municipalities of Madrid, Cagwait, Lianga and Tandag.

Metering point one in Madrid was being powered with NGCP – Anislagan in Surigao del Norte. The upgrading of the pioneer 3.75MVA sub-station power transformer to 5MVA of the Madrid Sub-station was successfully completed and operation of the same started on December 2008.

The First Sub-station in Madrid

Madrid sub-station was upgraded to 5MVA to prevent possible overload and massive power blackout since latest test showed that it is approaching nominal capacity and now at its critical condition. It has been estimated that by the end of 2007 or in early 2008, the substation would experience 14% overload due to the population swell of the CarCanMadCarLan area and the boom of the mining industry, and the population influx that goes along with such economic development.

Metering point two is located in La Purisima, Cagwait with a capacity of 5 MVA. And metering point three is in Balilahan, Tandag with a capacity of 10 MVA. Both sub-stations were supplied with power by NGCP – Bislig. Cagwait substation is currently serving the municipalities of Marihatag, Cagwait, Bayabas and San Miguel while the substation in Tandag is serving the municipalities of Tandag, Cortes and Tago.

5MVA Sub-station in Cagwait

Metering point number four is located in Bantolinao, Lianga serving the newly transferred municipalities of Lianga and San Agustin. This is a newly installed sub-station and energized in March 2010.

Metering Point nNumber Four

The completion of the sub-station was actually slowed down by bad weather conditions experienced during the last quarter of 2008 up to the first and second quarters of 2009. The regular relocation and re-routing of distribution lines brought about by the continuous road widening and concreting project of the Department of Public Works and Highways (DPWH) has also delayed the completion of the project.

The upgrading of Madrid Sub-station and the installation of Lianga Sub-station were funded by the P6M Priority Development Assistance Fund (PDAF) of Hon. Philip A. Pichay, coursed through the Provincial Government of Surigao del Sur.

Today, the coop has attained 100% energization and even energized barangay Pantukan of Carrascal and has extended secondary line to barangay Mampi (Ibuan) in Lanuza which were formerly waived in favor of the Department of Energy (DOE) thus decreasing the waived barangays to five namely: Lobo (Cantilan); Pakwan (Lanuza); and Bagyang, Bitaugan and Calatngan (San Miguel).

ORGANIZATIONAL STRUCTURE

The existing organizational structure of SURSECO II is now composed of the Office of the General Manager (OGM), three (3) department with two (2) divisions each and two sub-offices.

The three departments are the Institutional Services Department (ISD), the Finance Services Department (FSD) and the Technical Services Department (TSD). The functions and scope of responsibilities of each department are clearly determined to avoid work duplication. The Internal Audit, although an independent body, is placed under the office of the General Manager.

In order to provide efficient service delivery to far-flung barangays and to impart consistent action and fast decision-making to complaints, the coop created two (2) Sub-offices---in Aras-asan, Cagwait and in the Town of Madrid, and three (1) Service Centers---in San Miguel, San Agustin and in Lianga

As of to date, SURSECO II has 122 regular employees.

ECONOMIC PROFILE

Considering the current status of the coop especially in the economic situation of the province, SURSECO II is presently projecting that the local government would pursue its involvement in the agri-business, irrigation project, mining, low-cost housing and road buildings, eco-tourism and water projects where industrial and commercial establishments are concentrated. The combined KW capacity of these projects if materialized could easily reach a staggering amount thereby increasing coop’s revenue and projects, generate more jobs for the jobless, encourage and invite not only local investors but also foreign investments, enhance tourism and other socio-economic activities in the province.

HUMAN RESOURCE/ CONSUMERS’ PROFILE

The coop has continuously upheld the organization and operation of Barangay Power Association (BAPA) which operates as a “coop within a coop”. As of to date, there are 67 organized BAPAs and there are 57 operational BAPAs with a total of 5,836 member-consumers.

Also, the coop has continually enhanced the Multi-sectoral Advsiory Council (the former MCEC) to strengthen member-consumers’ awareness and involvement for the intensification of institutional consciousness, system loss reduction and improvement of collection efficiency. The coop has also furthered its relationship with barangay electrician association for the efficient implementation and monitoring of housewiring-related policies.

Pre-membership seminar is being continuously conducted. The coop’s radio program, “Takna sa SURSECO II” is also regularly aired for one hour over DXGB FM every Saturday; and over DXJR FM every Wednesday and Friday for half an hour. These radio stations are all in Tandag City. Just recently, the coop has tapped another radio station, the DXBB FM, for strengthened information dissemination. Also, the coop is regularly submitting news articles to the Gold Star Daily, a daily newspaper circulating throughout Mindanao, and to Karaga Balita, a newspaper circulating throughout the region.

Enhancement of corporate culture by developing a well-informed, efficient and productive human resource through training and seminars are still top priorities. And thus most employees and all members of the Board of Directors have already attended the regular trainings and seminars conductive by the NEA in association with the Office of the Presidential Adviser on Rural Electrification (PARE) at the People’s Development Academy in CEBECO III in Toledo City. The coop is also regularly participating in seminars and trainings sponsored by the Association of Institutional Managers (AIM); the Association of Mindanao Electric Cooperatives (AMRECO) and to seminars and conferences sponsored by the Philippine Rural Electric Cooperatives Association (PHILRECA) and the National Rural Electric Cooperatives Association (NRECA).

Representatives from the Board of Directors and the employees have also attended the series of Power System Engineering seminars at the University of the Philippines in Diliman, Quezon City. Management and staff have also participated in the Chief Executive Officer Leadership Development Program and the Professional Managers Competency-Based Leadership Program conducted by the NEA. In fact, Engr. Iglorio R. Hinayon, SURSECO II General Manager, has successfully completed and has recently graduated from the course.

In line with the coop’s vow to enhance and inspire solidarity with the member-consumers and the community through the upgraded “Tanglaw ng Tahanan” program, Hon. Philip A. Pichay, Representative, 1st District of Surigao del Sur, has allocated P1.7M of his priority development assistance fund to SURSECO II specifically for the “Tanglaw” program. The provincial government has also immensely contributed to the program. The “Tanglaw ng Tahanan” program is the allocation of free housewiring materials and labor to indigent applicants aside from the usual free kWh meter and 30-meter service drop wire.

The coop has also amended Policy No. 8-0014 making it into a full scholarship program to poor-but-deserving dependents of member-consumers in the area coverage.

With these efforts through the undying cooperation and participation of member-consumers and support of local leaders, the coop received the following awards in CY 2008:

• a. Administrator’s Award;
• b. Sec. Francisco G. Silva Leadership Award to EC Board of Directors;
• c. Sec. Francisco G. Silva Leadership Award to Engr. Iglorio R. Hinayon, General Manager;
• d. Special Citation for Excellent Rating in the Scorecard on EC Corporate Governance; and
• e. Model Headquarters Facilities Award;

and the following awards in CY 2009:

• a. Sec. Francisco G. Silva Grand Leadership Award to Engr. Iglorio R. Hinayon, General Manager;
• b. General Manager of the Year Award to Engr. Iglorio R. Hinayon (Large Electric Cooperative);
• c. EC of the Year Award to SURSECO II (Large EC); and
• d. Best Region of the Year Award to Caraga;

SURSECO II is consecutively categorized as Class A+ Large Coop.