Rising from the Ruins In the 1950s, La Union, like the rest of the country, was adamantly rising from the ruins of war. It was a period of massive reconstruction. New schoolhouses, government buildings and roads were being built, the railroad system was extended, and new municipalities were added to the province’s juridical territory. The robust business and investment environment attracted major investors, such as those in cement manufacturing and power generation. The vigorous tobacco trade encouraged the organization of tobacco farmers’ and dealers’ cooperatives. Trailblazer Blazing the trail in the utility industry was the La Union Electric Company. Started with a modest investment by American businessman Benjamin B. George, it came decades before other utility companies, including those for potable water, started operating in the province.

After a few years in operation, a group of businessmen from San Fernando pooled their resources and bought the utility franchise from George. The new company was named La Union Electric Company, Inc. which was registered with the Securities and Exchange Commission in December 1954. The original incorporators were: Ruben L. Valero Sr., Antonio Nibungco, Estrella L. Valero, Jesus L. Valero (all deceased) and Esther Montemayor. Initial capital of P200,000 They started their operations with an initial capital of P200,000 and a generator large enough to supply about 2,000 households. At that time, the company had 20 employees, half of whom were linemen/electricians, and the other half were either meter readers/collectors or office staff. In 1956, after two years of selling generator-powered electricity, the Board decided to source power from the government-owned National Power Corporation. Subsequently, the Valero family assumed full ownership of the company and increased its capitalization.

In the 1970s, government went full swing in its rural electrification program and established an electric cooperative that would supply electricity primarily to the southern towns of Agoo, Tubao, Aringay, Caba and Pugo. LUECO complemented government’s efforts by expanding its coverage to towns adjacent to and north of San Fernando. By 1978, LUECO’s capitalization has reached five million pesos. LUECO today, after 48 years of operation (year 2004), LUECO services 88 barangays in San Fernando City, Bauang and San Juan. One hundred percent of the 51 barangays in San Fernando are supplied with electricity. It has 119 employees and more than 28,000 customers, about 87 percent of whom are residential users. Being located in the regional and provincial capital, it also services a substantial number of government accounts. (WordWise)