Question & AnswerQ&A (Act No. 2847)
Act No. 2847 grants B. A. Green a franchise to install, operate, and maintain an electric light, heat, and power system in the municipality of Orion, Province of Bataan, Philippine Islands.
The franchise is granted for a period of fifty years from the approval of the Act.
The grantee must obtain a certificate of public necessity and convenience from the Public Utility Commission, file this certificate with the Secretary of Commerce and Communications, and apply for the certificate within three months of the Act's approval.
The prices charged shall not exceed thirty centavos per kilowatt and are subject to rules provided by the Philippine Legislature or authorized entities.
Poles must maintain wires at least twenty feet above ground, not disfigure streets, be safe, and follow a plan approved by the municipal authorities.
The grantee must bind himself and his representatives to not engage in or support propaganda against the U.S. government's policy and Filipino people's aspirations as communicated in 1913 messages.
The grantee must increase the plant's capacity upon authorization by the municipal council if demand exceeds the current plant's capacity.
The grantee must replace pavements or sidewalks properly after pole erection, remove all debris, and leave them in as good condition as before.
The person requesting the removal or move pays half the actual cost; if the grantee refuses to comply, the municipal council can order removal at the grantee's expense.
The grantee is liable to the municipality for injuries or damages caused by accidents due to construction or neglect in keeping poles and wires safe.
Work must begin within six months of accepting the franchise and be completed within eighteen months, barring force majeure or similar causes.
The grantee shall allow the municipality a 10% rebate on consumed current, supply electric connections for public lighting (except globes), and pay quarterly a percentage of gross earnings to the municipal treasury (0.5% for the first 20 years and 1.5% for the following 30 years).
The grantee must deposit 1,000 pesos or equivalent securities as a guarantee to begin the electric service and fully equip and prepare for operation.
Yes, with prior approval of the Public Utility Commission and filing a written agreement ensuring the transferee complies with the franchise terms.
The franchise may be forfeited by the municipal council, with approval from the Secretary of Commerce and Communications, for failure to comply with franchise terms unless caused by force majeure or similar causes.
The municipality can use the poles without compensation to install telephone or fire and police alarm systems, provided no interference with the grantee's electric wires occurs.
Property used in connection with the franchise reverts to the Insular Government, and rights to land revert to the governmental entity owning it at the time the franchise was granted.
The grantee must pay the same taxes on real estate, buildings, plant, machinery, and personal property as other persons under law.
The grantee may only issue stock or bonds in exchange for actual cash or property at fair valuation, with Public Utility Commission approval, and cannot declare stock or bond dividends.
Valuation is based on net earnings and determined by the Supreme Court of the Islands acting as a board of arbitrators, whose decision is final.