OFFICE OF THE GENERAL MANAGER

03 June 2019

MR. EDGARDO R. MASONGSONG

Administrator
National Electrification Administration

Thru: MS. LEILA B. BONIFACIO

Manager
Accounts Management & Guarantee Department

Dear AERM,

Greetings of peace and progress!

This request pertains to the restatement of FIBECO’s Financial Statement

(FS) that has been formerly submitted before your good office due to the
reason of unaccounted revenues and expenditures which shall be
incorporated in the herein proposed restated FS which shall be matched to
our audited FS.

It can be recalled during the month of May 2018 wherein, the FDC- Misamis,
one of our major power suppliers has finally implemented their new rates
and the same was never forecasted. As a result, it bloated our power
expense in the month of May 2018 being that our basis of revenue was
based on April of that year thus, below are the proposed restatement:

 As there has been recognition of under recovery of Transmission,

Generation, System Loss for 2018 amounting to PhP58, 813,127.74;
 There was an overstatement of power expense for 2018 occurred in
May DET upon the implementation of FDC- approved rates
amounting to PhP38, 672, 472.57

Further, it is highly besought that the restatement be also made to our

December 2018 FS, incorporating our external auditors’ findings for your
appropriate reconsideration to wit:
 1. The overstatement of other unbundled revenue to consumer
accounts amounting to PhP854, 534. 34
2. Recognition of depreciation of SEP projects for 2018 - PhP 30, 245,
945.15 as a result of income from government grants
3. Understatement of administrative expenses- PhP 6, 900, 73888. 13
4. Understatement of interest expense/finance cost PhP217, 099.57

The above restatement in effect will further show FIBECO’s financial

standing as reflected on its FS.

In great anticipation that the above shall request for restated be given due
merit.

Thank you and more power!

In genuine service to the member- consumer- owners,

REYNALDO B. BALABA, CPA

General Manager