QuestionsQuestions (Commonwealth Act No. 120)
Section 1 creates the National Power Corporation as a public corporation, for the purpose of undertaking the development of hydraulic power and the production of power from other sources, and for other purposes specified in the Act.
They are enumerated in Section 2 of CA No. 120.
NPC may prescribe its by-laws, and may adopt and use a seal and alter it at its pleasure.
Section 2 authorizes NPC to conduct investigations and surveys for the development of water power in any part of the Philippines.
NPC may take water from public streams, rivers, creeks, lakes, springs, or waterfalls for the purposes specified in the Act, and may intercept/divert flow even from lands of riparian owners or persons owning or interested in waters necessary for the purposes, upon payment of due compensation.
NPC may alter, straighten, obstruct, or increase the flow of water in streams or water channels intersecting or connecting with or contiguous to its works or any part thereof.
NPC may construct, operate, and maintain power plants, auxiliary plants, dams, reservoirs, pipes, mains, transmission lines, power stations and substations, and other works for developing hydraulic power and supplying electricity to inhabitants; and establish and administer power and lighting systems for the Government and the general public.
NPC may fix rates and provide for collection of charges for services; however, the proviso states that the rates of charges shall not be subject to revision by the Public Service Commission.
NPC may construct works across streams, watercourses, canals, ditches, flumes, streets, avenues, highways, or railways of private and public ownership as required by location, but must not endanger life or property. The crossed/intersected right-of-way must be restored as near as possible to former state (or not impair usefulness). The affected owner/entity must not obstruct the crossing/intersection and must grant the proper authority for execution.
NPC or its representative may enter upon private property in lawful performance/prosecution of its business and purposes, but the owner must be indemnified for any actual damage caused.
Section 2 authorizes NPC to exercise the right of eminent domain for the purposes of the Act, in the manner provided by law for instituting condemnation proceedings by the national, provincial, and municipal governments.
All corporate powers are vested in a National Power Board composed of five members appointed by the President with the consent of the Commission on Appointments of the National Assembly. Members have three-year terms.
The Board must pass a resolution stating the purpose/conditions, with affirmative vote of at least three members, and then obtain approval by the President upon recommendation of the Secretary of Finance.
Section 2 provides that total bonded indebtedness of all classes shall not at any time exceed twenty million pesos. This operates as a statutory ceiling on NPC’s bond-financing capacity.
Examples include: registered form and transferable at specified offices; not sold at less than par; payable 30 years after issue with possible redemption after 10 years at Board’s pleasure; interest rate determined by the Secretary of Finance; and payment terms in gold coin (or equivalent) in the discretion of the Secretary of Finance.
The Commonwealth guarantees payment of principal and interest. If NPC fails, the Commonwealth must pay principal and interest and sums are appropriated from general funds not otherwise appropriated, with reimbursement by NPC of sums paid.
Work with estimated cost of three thousand pesos or more must be let by the Manager (with approval of the Board) to the responsible bidder who made the lowest and most advantageous bid, with notice published in the Official Gazette as provided by law. If no satisfactory bid, the Manager may re-advertise or proceed by administration with Board approval. Contractors must also be required to give adequate bond before award, except for emergency work.