ELECTRIC INDUSTRY OPERATIONS AND MARKETS

The Manila Electric Company (Meralco), is an electric power distribution company

in the Philippines. Meralco is the largest private sector electric distribution utility company in
the Philippines covering 36 cities and 75 municipalities. Its franchise area of over 9,685 km2 is
just 3% of the total land area of the Philippines, but accounts for 55% of the country’s electricity
output. The name "Meralco" is an acronym for Manila Electric Railroad and Light
Company, which was the company's official name until 1919.

.
9,685km² Franchise Area. 7 million customers

The power segment, primarily power distribution, consists of operations of Meralco

and its 65%-owned subsidiary, Clark Electric Distribution Corporation (CEDC), a
registered private distribution utility serving exclusively within its franchise area including
the Clark Freeport Zone and the sub-zone as determined pursuant to Presidential Decree
No. 66.
The Company participates in retail electricity supply (RES), through a Local RES
known as MPower, a business unit within Meralco, and a wholly-owned subsidiary,
Vantage Energy Solutions and Management, Inc., which was granted a license to operate
as a RES by the Energy Regulatory Commission (ERC) in 2017.
Meralco through wholly-owned subsidiary, Meralco PowerGen Corporation
(MGen) is developing a portfolio of power generation plants with 3,000 MW total
combined capacity, including 1,000 MW in renewable energy. It also has a minority equity
interest in power generating company Global Business Power Corporation (GBPC). FPM
Power, which is 40% owned by Meralco through MGen, has a 70% interest in PacificLight
Power Limited, which owns and operates a 2x400 MW LNG-fired power plant in Jurong
Island, Singapore.
Through several subsidiaries in the services segment, Meralco provides
engineering, design, construction and consulting services, bill collection services,
distribution and energy management services, and communications, information systems
and technology services. The Company formalized its entry into the renewable energy
space with the creation of MSpectrum, Inc. a wholly-owned subsidiary.

History
Established as Manila Electric Railroad and Light Company to provide
electric light and power and an electric street railway system to Manila and
its suburbs. The facilities that Meralco built to provide these two services
represented for many years the largest single investment of American
private capital and know-how in the whole of East Asia.
For a little more than four decades, Meralco provided Manileños their first
modern mass public transportation system with electric streetcars. These
1903 were supplemented by buses in the 20s.

World War II destroyed the railway system beyond rehabilitation. Meralco

gave up its transportation business, instead focusing on providing electricity.
The electric service powered much of the postwar rehabilitation and early
industrialization of the young republic, which gained independence in 1946

1948

In a move considered daring at the time, a group of Filipino investors, led by

the entrepreneur Eugenio Lopez Sr., bought Meralco from its American
owners, the first major American enterprise to be 'Filipinized.' During the
decade that followed, the new Filipino management built electric-generating
and distributing facilities at an unprecedented pace to meet the burgeoning
needs of its franchise area. This was made possible by earning the
confidence of international credit institutions like the Ex-Im Bank of the
United States, the Ex-Im Bank of Japan, the International Finance
Corporation (IFC), Kreditanstalt fur Wiederaufbau (KFW), and other banks,
insurance companies, and major American, German and Japanese
suppliers.
Meralco was the first Philippine company to issue mortgage trust indenture
1961 bonds successfully in the US financial market on Wall Street. Meanwhile, an
enlightened human resource management regime ensured industrial peace
 and employee loyalty at home.

Meralco became the very first billion-peso company in the Philippines. This
was all the more remarkable because much of it had been achieved without
recourse to government guarantees.

1969

The Philippine Government made it a state policy for the government to own
all major generating facilities. Meralco sold its generating plants to the
National Power Corporation, and electric distribution became its core
business. Indeed, in the first half of the 1980s, Meralco's franchise area
tripled in area from 2,678 square kilometers to 9,337 square kilometers,
mainly because provincial consumers preferred the rates and service of
Meralco to every other alternative. 

1970

Meralco, upon the request of the government, organized, started up and

operated the country's first elevated light rail transit (LRT) system in Manila
between Baclaran and Caloocan. It was reminiscent of the prewar role of
Meralco in the city's streetcar system. 
At the end of the decade, Meralco turned over the efficiently functioning
system to the government

1980

More than ever, much of Meralco's management has been directed towards
enabling the organization to react nimbly to the changing structures and
environments in which it operates, despite its continuing status as one of the
oldest and biggest Philippine companies. Drives have gone under different
names and slogans, e.g, TQM, re-engineering, Meralco Transformation
Program, etc., but they share certain common emphases: customer
satisfaction, world-class efficiency and productivity, performance-driven
rewards, good corporate citizenship, transparent good governance, and
1995 process, organizational and human resource development towards these
values.

Major stock transactions took place and Meralco partnered with two other
giant Philippine conglomerates, the PLDT and San Miguel groups. These
synergistic partnerships not only led to increased business opportunities and
cost reductions, but also to new, expanded and more affordable services.

2009
 BOARD OF DIRECTORS
 Manuel V. Pangilinan
Filipino, 73 years old
Chairman of the Board of Directors
Chairman of the Executive Committee
Chairman, Remuneration and Leadership Development Committee
Director of Manila Electric Company since May 26, 2009

 Lance Y. Gokongwei
Filipino, 53 years old
Vice-Chairman of the Board of Directors
Member, Executive Committee
Member, Finance Committee
Member, Remuneration and Leadership Development Committee
Director of Manila Electric Company since December 16, 2013
 

 Ray C. Espinosa
Filipino, 64 years old
President and CEO since May 28, 2019
Director of Manila Electric Company since May 26, 2009

 Frederick D. Go
Filipino, 50 years old
Member, Nomination and Governance Committee
Member, Audit Committee
Member, Risk Management Committee
Member, Related Party Transactions Committee
Director of Manila Electric Company since November 25, 2019
 
 James L. Go
Filipino, 81 years old
Member, Executive Committee
Member, Audit Committee
Member, Risk Management Committee
Member, Finance Committee
Member, Nomination and Governance Committee
Member, Related Party Transactions Committee
 Director of Manila Electric Company since December 16, 2013
 Anabelle Lim Chua
Filipino, 59 years old
Chairperson, Finance Committee
Member, Audit Committee
Member, Risk Management Committee
Member, Nomination and Governance Committee
Member, Related Party Transactions Committee
Director of Manila Electric Company since May 31, 2016
 

 Jose Ma. K. Lim

Filipino, 69 years old
Chairman, Risk Management Committee
Member, Executive Committee
Member, Audit Committee
Member, Related Party Transactions
Member, Nomination and Governance Committee
Director of Manila Electric Company since May 29, 2012
 
 Victorico P. Vargas

Filipino, 68 years old

Position and Membership in Other Organizations and Companies
▪ Associate Director of First Pacific Company Limited
▪ Head of the Business Transformation Office of the PLDT Group ▪ President of the Board of
Trustees of First Pacific Leadership Academy
▪ Trustee of the MVP Sports Foundation and Ideaspace Foundation
▪ President of PhilPop Music Fest Foundation, Philippine Olympic Committee, and
Association of Boxing Alliances in the Philippines
▪ Member of the Executive Committee of the Asian Boxing Confederation
▪ Former President and Chief Executive Officer of Maynilad Water Services, Inc.
▪ Former Chairman of the Philippine Basketball Association
▪ Former Vice Chairman of the Samahang Basketbol ng Pilipinas

 Lydia B. Echauz
Filipino, 73 years old
  Artemio V. Panganiban
Lead Independent Director
Filipino, 83 years old
Independent Director
Chairman, Audit Committee
Member, Executive Committee
Member, Risk Management Committee
Member, Related Party Transactions Committee
Independent Director of Manila Electric Company since May 27, 2008

 Pedro E. Roxas
Filipino, 64 years old
Independent Director
Chairman, Nomination and Governance Committee
Chairman, Related Party Transactions Committee
Member, Finance Committee
Member, Audit Committee
Member, Risk Management Committee
Member, Remuneration and Leadership Development Committee
Independent Director of Manila Electric Company since May 25, 2010
 
MERALCO SUBSIDIARIES

.
. .
 .

.
 Meralco Shareholding Structure
As of June 30, 2021, the remaining 24.92% are held by institutional investors, Directors, Officers
and employees of the Company, and other investors (individuals and corporations).
Compliance and Performance
Meralco annually complies with the disclosure and reportorial requirements of the Securities and
Exchange Commission (SEC). These include:

 Certification by the Compliance Officer of the Company's compliance with the Revised Manual of

Corporate Governance.

 Disclosure requirements on direct and indirect ownership of securities under the Securities

Regulation Code (SRC), and the reporting of trading transactions of directors and concerned

officers of the Company by the Compliance Officer not later than the following day after the

required event or transaction. There has never been any case of insider trading involving

directors and Management of the Company.

 The certification of Board attendance, regular reports involving financial statements, disclosure of

material information and events, and trainings attended by key officers and Board members on

corporate governance.

 Clarifications on news articles referring to the Company's strategies such as officer appointments,

billing rates and major agreements.

 Related party transactions (RPTs) in accordance with the revised Philippine Financial Reporting

Standards (PFRS) and set on an arm's length basis in a manner similar to the transactions with

third parties. These RPTs are disclosed through the consolidated financial statements, annual

reports, Meralco website. No disputes in connection with RPTs were reported in the past.

AWARDS AND RECOGNITIONS

.
BIBLIOGRAPHY
https://www.jgsummit.com.ph/business-units/manila-electric-company
https://company.meralco.com.ph/corporate-profile/history
https://biz.meralco.com.ph/meralco-subsidiaries
https://company.meralco.com.ph/corporate-profile/meralco-shareholding-structure
https://company.meralco.com.ph/corporate-governance/compliance-and-performance
https://adobomagazine.com/awards/awards-meralco-wins-best-in-covidcommunications-other-top-honors-
in-recent-18th-philippine-quill-awards/
https://www.google.com/amp/s/tribune.net.ph/index.php/2021/08/19/meralco-recognized-for-
communication-excellence-csr-on-a-global-stage/amp/