Question & AnswerQ&A (Republic Act No. 10891)
The main purpose is to grant First Bay Power Corp. (FBPC) a franchise to construct, install, establish, operate, and maintain a distribution system for the conveyance of electric power to end users in the Municipality of Bauan, Province of Batangas.
It refers to the systems of wires and associated facilities including subtransmission lines belonging to a franchised distribution utility extending between the delivery point on the national transmission system or generating facility and the metering point/facility of the end users.
The grantee must operate and maintain the electric distribution facilities at all times in a superior manner, and modify, improve, or change such facilities as progress in science and improvement in electric power services may render reasonable and proper, upon requirements by the ERC, DOE, or relevant agencies.
The grantee must secure necessary certificates, permits, and licenses from the ERC/DOE for the construction and operation of its electric distribution system. They also have supervisory roles including dispute resolution and ensuring compliance with regulatory standards.
With prior approval from DPWH or LGU, the grantee may dig or lay conduits on public roads for installation and maintenance. After work, the grantee must restore the affected public places to good condition at its own expense, and failure to do so after notice may result in repair by authority at double the grantee's expense.
The retail rates and charges for distribution are regulated and subject to ERC approval. The grantee must identify and segregate retail rate components in bills as per Republic Act No. 9136, keep rates public and transparent, and implement lifeline rates for marginalized end users.
In times of war, rebellion, public peril, calamity, emergency or disturbances, the President may temporarily take over, operate, suspend operations, or authorize government agency use of the grantee's stations or facilities with due compensation.
The grantee cannot sell, lease, transfer, grant usufruct, assign, merge, or transfer controlling interest without prior Congressional approval, and must inform Congress within 60 days of such transactions. Failure to do so renders the franchise revoked.
The franchise is valid for 25 years from the Act's effectivity date unless sooner cancelled. It will be revoked ipso facto if the grantee fails to continuously operate for two years.
Failing to submit the report results in a fine of five hundred pesos (P500.00) per working day of noncompliance, collected by the ERC. The fine proceeds go to the ERC's monitoring fund, and a compliance certificate from Congress is required for permit applications.