In May, Mr. Reyes told shareholders that the company had identified microgrids as a prospective new business for Meralco, which has a 25-year franchise valid through June 28, 2028 to construct, operate and maintain an electric distribution system. Meralco serves the cities and municipalities of Bulacan, Cavite, Metro Manila and Rizal, and certain cities, municipalities and barangays in the provinces of Batangas, Laguna, Pampanga and Quezon. Asked where the planned microgrid would be built, Mr. Reyes said back then: "Outside the franchise area."