Taking cue from the earnestness of the government through the Rural Electrification Program, a group of civic-minded citizens in the province responded and organized themselves into a cooperative, hence the inauguration of the CENTRAL PANGASINAN ELECTRIC COOPERATIVE, INC. or better known as CENPELCO.
It was registered with the National Electrification Administration (NEA) on October 6, 1975 where it consequently acquired its legal personality.
Initially, CENPELCO was granted a loan as seed capital in the amount of P 27,895,000.00 by the NEA payable in thirty (30) years with an interest rate of 3% per annum. Its actual operation started on May 1,1976.Republic Act No. 9136 otherwise known as the "Electric Power Reform Act" (EPIRA) of 2001 was signed into law on June 8, 2001. As a result of this act, the residential end-users were granted a rate reduction of 30 centavos per kilowatt-hour(P0.30/KWH).
Upon effectivity of this act, all outstanding obligations of Electric Cooperatives(EC's) to NEA and other government agencies incurred for the purpose of financing the rural electrification shall be assumed by the Power Sectors Assets and Liabilities Management Corporation(PSALM). Within five(5) years from the condonation of the debts, any electric cooperative which shall transfer ownership or control of its assets, franchise or operations, shall repay PSALM the total debts including accrued interest thereon