Question & AnswerQ&A (Act No. 2843)
The franchise is granted for a period of fifty years from the approval of the Act.
The franchise grants the right, privilege, and authority to construct, maintain, and operate poles, wires, and necessary apparatus for the transmission and distribution of electric power, heat, and light within the municipality of Guinobatan, Albay, including charging and collecting fees for these services.
The grantee must obtain a certificate from the Public Utility Commission showing the public necessity and convenience of the franchise and file such certificate with the Secretary of Commerce and Communications. Failure to apply for this certificate within three months from the Act's approval renders the franchise null and void.
The price shall not exceed thirty centavos per kilowatt and is subject to regulation by the Philippine Legislature or authorities authorized by law.
The grantee must bind himself and his successors not to engage in or support any propaganda against the policy of the United States Government as outlined in the 1913 messages and Philippine Assembly's reply, and must require the same from his administrators, agents, successors, and assigns.
Poles must maintain wires at least twenty feet above ground, be aesthetically acceptable, placed for public safety, and comply with municipal plans to avoid danger and disfigurement.
The grantee must supply electric power, heat, and light to any applicant within fifteen days of application, up to the plant's capacity, prioritizing by the order of application and may increase plant capacity upon municipal council authorization.
The grantee must replace or relocate poles at his expense promptly as directed by the municipal council, restoring any pavement or sidewalks disturbed during pole erection or removal to their original condition.
A deposit of one thousand pesos or approved securities must be made as good faith. Failure to commence work within six months or operate within eighteen months after acceptance leads to forfeiture of the deposit to the municipality as damages.
The municipality may use the grantee's poles without compensation for installing, maintaining, and operating telephone or fire and police alarm systems, provided the wires do not interfere with the electric service wires.
The municipal council, with the Secretary of Commerce and Communications' approval, can declare forfeiture for failure to comply with franchise terms, unless caused by force majeure or similar events. The grantee may seek relief from courts within 60 days of forfeiture.
The government or its political subdivision may purchase all plant, poles, wires, buildings, real estate, and other property at a valuation determined by the Supreme Court of the Islands as a board of arbitrators, whose decision is final.
The grantee is forbidden to issue stock or bonds except in exchange for actual cash or property at fair valuation and upon Public Utility Commission authorization. Stock or bond dividends shall not be declared.
The provincial treasurer or a deputy designated by him may inspect the grantee’s books, and the grantee must submit quarterly duplicate reports to the provincial treasurer, one of which goes to the Insular Auditor.
The grantee must pay the same taxes on real estate, buildings, plant, machinery, and other personal property as required by law from other persons.