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Republic of the Philippines ENERGY REGULATORY COMMISSION San Miguel Avenue, Pasig City ERC RESOLUTION NO. _26, Series of 2006 WHEREAS, there has been a steady of negative publicity concerning the privatization of the Masinloc Power Plant and involving a private entity, YNN Holdings; WHEREAS, the aforementioned negative publicity has, in several instances, unduly and unfairly alluded to individual members of the Commission, as well as to the Commission as a whole; WHEREAS, the issue of power sector privatization is outside the ambit of the powers and functions of the Commission, and as such, does not concem its members or the Commission as a whole; WHEREAS, the continuing negative publicity on YNN Holdings and the Masinioc privatization has tended to put at risk the individual and collective honor and reputation of the Commission NOW WHEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED THAT THE COMMISSION: 1. Expresses in the strongest possible terms its displeasure over the apparent attempts at smearing the honor and reputation of its members, Particularly that of Commissioner Jesus N. Alcordo; Resolution No. __ Page 2 of 2 2. Reiterates its faith in the integrity of Commissioner Alcordo and in the transparency with which he has discharged his functions as member of the Commission, particularly in his consistent inhibition from hearings, deliberations and decisions affecting corporations and interests with which he may have been identified in the past; 3. Calls on the persons/parties behind the apparent smear drive to cease from the undue and unfair allusions to the Commission and its members since such would not help the persons/parties prosper in whatever motives they have regarding the privatization of the aforementioned power plant; and 4. Urges the return of decency and sobriety in the handling of issues in media, particularly those affecting the policies, programs and persons involved in the power sector. Pasig City, June 9, 2006 RODOLFO B. ALBANO, JR. Chairman (On Leave) (Took No Part) OLIVER B. BUTALID JESUS N. ALCORDO Commissioner Commissioner it i BL FA. TAN JANDRO Z. BAI Commissioner Commissioner