The following are the legal and regulatory basis of the Power Supply Procurement Plan (PSPP):

1. Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001, mandates competitive and transparent power supply procurement by Distribution Utilities (Dus);

2. Department of Energy (DOE) Department Circular No. DC2018-02-0003, entitlesd "Adopting and Prescribing the Policy for the Competitive Selection Process (CSP) in the Procurement by the Distribution Utilities of Power Supply Agreement for the Captive Market." This requires DUs to prepare a PSPP as part of their Distribution Development Plan (DDP).

NORECO I prepares its Power Supply Procurement Plan annually. The plan is reviewed first by the National Electrification Administration (NEA), and subsequently by the Department of Energy (DOE), before receiving the final acceptance of the latter.