REPUBLIC OF THE PHILIPPINES CORDILLERA ADMINISTRATIVE REGION PROVINCE OF KALINGA Capitol, Bulanao, Tabuk City OFFICE OF THE PROVINCIAL

TREASURER

December 6, 2007

TAX BILL NO. 002

MR. ARTHUR N. AGUILAR
President & Chief Executive Officer National Transmission Corporation (TransCo) Power Center, Quezon Ave, Cor. BIR Rd. Diliman, Quezon City Sir: We are furnishing you a copy of the Audited Statement of Gross Receipts of the Kalinga-Apayao Electric Cooperative, Inc. reflecting the Cost of Power Generation remitted to your office from 2002 to 2006. Relative thereto, indicated below is a computation of the Franchise Tax payable by the National Transmission Corporation (TransCo) to the Provincial Government of Kalinga pursuant to Section 2.13, Article III of Provincial Ordinance No. 95-01 in relation to Section 3.b.3 of Local Finance Circular No. 1-07 dated June 28, 2007 of the Department of Finance. Total Gross Receipts: (from 2002 to 2006) = Tax Due: (P 328,292,912.14 x 1%) x 50% = P 328,292,912.14 P 1,641,464.56

This office appreciates very much the early settlement of this tax obligation.

JUAN M. BOGUEN Provincial Treasurer Copy Furnished: 1. TransCo Regional Operations & Maintenance Office Puro Point, San Fernando, La Union 2. Provincial Governor Capitol, Bulanao, Tabuk City 3. Sangguniang Panlalawigan of Kalinga Capitol, Bulanao, Tabuk City