WHEREAS, the Department of Energy (DOE) in consonance with Rule 3, Section l(e)(i) of the Implementing Rules and Regulations (IRR) of Republic Act No. 9136 otherwise known as the "Electric Power Industry Reform Act of 200 1 " or EPIRA, has to. encourage private sector investmebts in the electric power industry;

WHEREAS, Section 1 (e)(ii) of Rule 3 of the IRR also mandates DOE to facilitate and encourage reforms in the structure and operations of distribution utilities for greater efficiency and lower cost;

WHEREAS, Section 1(j) of Rule 3 of the IRR also requires that DOE shall endeavor to provide an environment conducive to free and active private participation and investment in all energy activities;

WHEREAS, Section 7, Rule 7 of the IRR provides for the structural and operational reforms between and among Distribution Utilities which shall include but not limited, to mergers, consolidation, integration, bulk procurement and joint Ventures;