The primary purpose for the organization of REC is based on the three (3) premises as follows:
1. to provide electricity for all the people;
2. the electric power shall be adequate, reliable and of high quality; and
3. the cost of electricity shall be reasonable

These can only be achieved through non-stock, non-profit REC - the real and ultimate goal of our electric cooperative.

Judging from the above premises and taking into consideration the achievements of PENELCO in making Bataan the first province in the entire country to have energized all barangays, receiving citations and awards as "Most Outstanding Electric Cooperative" and imposing the lowest rates in Luzon, PENELCO has served well the people of Bataan.

We believe in the saying "Primum Non Nocere", meaning, as PENELCO, which is a non-stock, non-profit REC and is operating very well at its present structure, why do we have to change it. If a person is not sick, why do we have to give him medication, or even far yet an operation?

The non-stock, non-profit REC have adequate power supply and lower rate than stock cooperative. This encourages more investors that would open greater opportunities to populace and uplift the standard of living in the rural area. Meanwhile, stock cooperative have to raise their rates in order to have dividends. Worse, it will not risk constructing more Service Centers that are convenient to all member-consumers

Another disadvantage that we may mention having a stock cooperative is that it is not pro-progress and in fact anti-poor since usually the interest of the stockholders is limited to their stock investments and stock dividends, not the energization of remote areas. This will hamper the progress of that area and deny the poor the benefits of electricity. This is proven true in the First and Second BECO (Bulacan Electric Cooperative, Inc.). In 1985, before these were transferred to MERALCO, there was only one (1) barangay in the area, which was not energized. After twenty (20) long years of its operation under MERALCO, that same barangay remains unenergized simply because energizing it is not profitable to the stockholders.

One more drawback of stock cooperative is the elevation of system loss resulting from apathy and transgression of consumers. In effect, rates will continuously increase and the coop will become bankrupt, until it gravitates toward Stock Corporation. Entering stock cooperative is one step towards Stock Corporation.

For the sake of discussion, we would also like to mention that out of more than 1,000 non-stock, non-profit REC organized in America, which are very advanced and more progressive than ours, not a single one tried to convert into stock cooperative.

Based on our study, there is no existing stock REC in the Philippines, even in Asia, America and Europe serving the rural areas, which have been successful in its operation. So there is no reason for us at all to convert into stock cooperative when we have no model or existing successful one to follow.

The REC in the country, like ours, follow the principle which limits the financial gain on share capital and does not issue capital stock and so we pay no interest or dividends on capital credits held in the members' accounts. Meaning, we do not have to worry about the dividends to be shared by and distributed to all member-consumers. Instead, we divert them for reduction of rates and expansion of lines, which speed up the development of the province.

A stock coop in many aspects deprives the members of some benefits. Sometimes, it may seem or look attractive that members can get stock dividends out of stock shares. But, where or from whom are those dividends taken? Obviously, from the member-consumers also. And if the contention revolves in dividends, the most striking question that we should ask is: "Which is better and more important, to have monthly returns in terms of lower rate or the annual dividend yet has to wait for the year-end status?" It should be taken into account that our member-consumers are already enjoying rate P2/kWh lower than MERALCO, aside from the continuous programs of the REC to reach out the far-flung areas.

The coop in its present status, NEA has the authority to give sanctions or take preventive or disciplinary measures including suspension or removal of Board of Directors or General Managers who abuse their power, hence, protect the interest of member-consumers. (By: Sol G. Tria)