Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 380)
The primary objective of NPC is the comprehensive development, utilization, and conservation of Philippine water resources for all beneficial uses including power generation, and the total electrification of the Philippines, especially through the development of power from all sources to meet industrial development and rural electrification needs.
Section 3(g) authorizes NPC to construct, operate, and maintain power plants and other related facilities to develop hydraulic power and generate electric power from other sources, and to sell electric power in bulk to industrial enterprises, government systems, electric cooperatives, franchise holders, and real estate subdivisions under certain conditions.
NPC may sell power in bulk when the power requirement is at least 100 kilowatts, if the local cooperative or franchise holder cannot adequately supply it, or without restriction if the enterprise is registered with the Board of Investments and power cost exceeds 10% of production cost.
NPC has the right to enter private property for transmission line construction, paying compensation as follows: a nominal easement fee up to 10% of land value for easement rights; fair market value for land purchased; and additional compensation for improvements damaged. Actions for compensation must be filed within five years after facility establishment.
The Corporation shall be under the direct supervision of the Office of the President, with legal matters handled by the Corporation's Chief Legal Counsel and court cases supervised by the Solicitor General's Office.
All industrial disputes in the Corporation shall be settled by compulsory arbitration, given the public nature of its business affecting convenience and welfare.
The authorized capital stock is ₱2 billion divided into 20 million shares of ₱100 par value each. Shares are inalienable and non-transferable, and a large portion must be subscribed and paid by the government, with specific provisions for payment through conversion of bonded indebtedness and surpluses.
The total principal indebtedness of the Corporation, excluding interest, shall not exceed three billion pesos at any time.
NPC is authorized to contract foreign loans, credits, or issue bonds up to a total of one billion US dollars or equivalent in other currencies, under terms deemed appropriate by the Corporation.
NPC is exempt from all taxes, duties, fees, imposts, charges, and restrictions imposed by the government on the Corporation, including costs in court proceedings and all taxes and duties on petroleum products used for electric power generation, transmission, utilization, and sale.