Question & AnswerQ&A (Republic Act No. 3843)
Republic Act No. 3843 grants the Lingayen Gulf Electric Power Company Inc. a franchise to construct, maintain, and operate an electric light, heat, and power system in the Municipalities of Lingayen and Binmaley, Province of Pangasinan.
The franchise is granted for a period of fifty years from the date of approval of the Act.
The company is allowed to install, lay, and maintain poles, wires, transformers, capacitors, overhead protective devices, pole line hardware, and other necessary equipment on streets, public thoroughfares, bridges, and public places within the municipalities.
The National Power Corporation may only make power and heat available after negotiation with and through the Lingayen Gulf Electric Power Company Inc. or with the consent and approval of the grantee.
The rates are subject to the regulations of the Public Service Commission.
The company must pay a tax of two percent of gross receipts from electric current sold or supplied under this franchise to the Internal Revenue Office of each municipality where it operates, payable quarterly.
No, the company is expressly exempted from all other taxes and licenses, municipal, provincial, or national, on its franchise, rights, privileges, receipts, revenues, profits, and physical assets used in service after the date the original franchise was granted.
The grantee must surrender its franchise and turn over all serviceable equipment to the government at cost less reasonable depreciation.
The municipal franchise granted to Lingayen Gulf Electric Power Company Inc. terminates and is replaced by the franchise under this Act.
The Act took effect upon its approval on June 22, 1963.