Question & AnswerQ&A (Act No. 3636)
The primary purpose of Act No. 3636 is to prescribe the form for bills granting electric light and power franchises, and to set conditions and regulations related to such franchises in the Philippines.
A grantee must be a corporation duly organized under the laws of the Philippine Islands and domiciled in the municipality or province where the franchise is granted.
The grantee has the right to construct, maintain, and operate an electric light, heat, and power system for generating and distributing these services for sale within the municipality's limits. They may also install apparatus on public property for transmission and distribution of electric current and charge regulated rates.
The grantee must supply electric power, heat, or light to any applicant within fifteen days after the application, subject to the capacity limits of the plant as determined by the Public Service Commission.
The grantee must increase the plant's capacity to a reasonable extent within a reasonable time as fixed by the Public Service Commission or its legal successor.
The grantee is not obliged to serve locations more than thirty meters from their lines unless they receive additional prices and rates determined just and reasonable by the Public Service Commission.
The grantee must compensate municipalities for damage to public property caused by construction or neglect and is responsible for damages to individuals or corporations arising from their fault or negligence.
All apparatus must be modern, safe, and first-class, with proper insulation and secure connections. The grantee must place wires underground if required by the Public Service Commission, and poles must be erected to maintain safe heights without disfiguring streets.
The franchise granted by this Act shall become null and void if the grantee does not file the proper application within ninety days from approval of the Act.
The grantee shall pay taxes on real estate, buildings, plants, and other properties like other entities, but shall pay a special tax to the municipal treasury equal to two percent of gross earnings from electric current sold, which shall be the only tax on poles, wires, and franchise rights.