OMECO is a non-stock, non-profit service-oriented rural electric cooperative, duly organized under PD 269, as amended and incorporated on March 25, 1974.OMECO is the holder of an exclusive franchise issued by the then National Electrification Commission (“NEC”) now National Electrification Administration (“NEA”) to operate the electric power distribution system in the Municipalities of Abra de Ilog, Mamburao, Sta. Cruz, Sablayan, Calintaan, Rizal, San Jose and Magsaysay. For a time, the Municipality of Paluan had its self-generated distribution system and operated by the LGU of Paluan using the line facilities borrowed from OMECO.