The Kalinga-Apayao Electric Cooperative, Inc. (Kaelco) has finally liquidated around P113-million
worth of subsidy funds barely a month since the National Electrification Administration (NEA)
assigned a project supervisor to manage the affairs of the struggling distribution utility.

The amount was part of the P236-million financial aid used to bankroll several electrification projects
from 2011 to 2018 for the benefit of rural communities in the Cordillera Administrative Region under
the Kaelco franchise, Engr. Ricardo Pallogan has reported.

Pallogan, who heads the Power Generation Operations Department of Benguet Electric
Cooperative, Inc. (Beneco), was recently tapped by the NEA to help out Kaelco in its daily
operations including the liquidation of its state-funded projects.

Since assuming his post last June 8, he said P113-million out of the P236-million unliquidated funds
for the Sitio Electrification and Barangay Line Enhancement projects of Kaelco from the NEA has
already been cleared, which he described as their "biggest accomplishment" so far.
NEA Administrator Edgardo Masongsong appointed Pallogan as project supervisor of Kaelco last
May 31. As indicated in the office order, he is tasked to approve or reject board resolutions in
consultation with concerned departments in the electrification agency.

Pallogan is also authorized to review financial, institutional and technical reports including action
plans for operational efficiency. He is likewise mandated to countersign checks, withdrawal slips,
and other banking transactions, as well as perform further tasks that may be assigned for the
purpose of operational efficiency.

Up for the Challenge
A native of Lubuagan, Kalinga, Pallogan admitted that being a project supervisor for Kaelco is not an
easy assignment. He said he is aware of the tough challenges he would encounter given the present
situation of the utility.

His key priorities include creating a capital expenditure (capex) planning that will help improve
distribution system efficiency and reliability, lower the system loss, increase the collection efficiency,
as well as minimize the power interruptions within Kaelco’s coverage area.
Kaelco’s system loss and collection efficiency stand at 12.18 percent and 88 percent, respectively,
as of March 31, 2018.

Pallogan said a Strategic Development Plan has been submitted to the NEA covering the period
January to December, which contains the activities that aim to enhance operational performance in
the financial and institutional operations of Kaelco.

In an interview, the Beneco official promised that he will do his best for the betterment of Kaelco.
“This is a big challenge. Hopefully, the Board and the employees will cooperate. To the consumers, I
assure you that I will do my best,” he said.

To date, Kaelco has reached 47,915 households in its entire coverage area out of its 56,600 total
potential connections. It is classified as an extra large electric cooperative (EC) and rated A by the
NEA based on its 2017 EC Overall Performance Assessment.