NEWSFLASH

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GOVT AUDIT FINDS MERALCO PROFITS EXCESSIVE

Manila, Nov. 25, 1997 - The Energy and Regulatory Board is due to decide on punitive action against the Manila Electric Company which was found by the Commission on Audit to have earned more than the allowable 12 percent revenue limit for electric distributors.

According to the Special Office Audit report no. 95-07, Meralco enjoyed a return-on-rate- base by 32.05 percent at cost and 21.04 percent at appraised values of properties amounting to P4.4 billion and P2.7 billion, respectively.

The audit covered Meralco operations from Feb 1, 1994 to Jan 31, 1995. COA said Meralco adopted "the provision for income taxes amounting to P2.14 billion" as non-operating expense.

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