Question & AnswerQ&A (Act No. 2701)
The franchise is granted for a period of fifty years from the passage of the Act.
The rights to construct, maintain, and operate electric light, heat, and power systems including poles, wires, and necessary apparatus within the municipality of Dumaguete, Oriental Negros, and to furnish electric power, heat, and light for municipal, domestic, manufacturing, and other uses.
Prices charged for electric power, heat, and light shall in no case exceed thirty centavos per kilowatt and are subject to rules provided by the Philippine Legislature or authorized entities.
The grantee must accept in writing that it is informed of the 1913 messages of the U.S. President and the Philippine Assembly and must bind itself not to engage in or aid propaganda against U.S. government policy or Filipino aspirations outlined therein.
Poles must maintain wires at least twenty feet above ground, not disfigure streets, be installed as approved by municipal authorities, use modern apparatus, with insulated wires carefully fastened to avoid ground contact and interference with street use.
The grantee must supply electric service within fifteen days after application, serving applicants in order of application date up to plant capacity, and increase plant capacity if demand exceeds supply with municipal council authorization.
The grantee shall pay quarterly to Dumaguete one percent of gross earnings for the first twenty years and two percent for the remaining thirty years of the franchise.
The deposit of one thousand pesos or securities made as a good faith guarantee shall be forfeited to the municipality as damages for failure to comply, unless prevented by force majeure or other unavoidable causes.
Yes, but only with prior approval of the Public Utility Commission and by filing an agreement agreeing to comply with all terms and accepting the franchise subject to existing conditions.
The municipality can use poles to install and operate telephone or fire and police alarm systems, provided the wires do not interfere with or damage the electric service wires.
After hearing the grantee and with Governor-General approval, the municipal council can declare forfeiture for failure to comply with franchise terms unless caused by force majeure; the grantee may seek court relief within sixty days or waive rights.
The government or its political subdivisions may purchase all property and rights used under the franchise at a valuation determined by the Supreme Court sitting as arbitrators, whose decision is final.
They shall pay taxes on real estate, buildings, plant, machinery, and other personal property equal to taxes required by law from other persons.
The grantee must keep books open for inspection by the provincial treasurer or deputy and submit quarterly reports showing gross and net receipts and business condition, with copies forwarded to the Insular Auditor.
The grantee cannot issue stock or bonds except in exchange for actual cash or property at fair valuation, subject to Public Utility Commission approval, and cannot declare stock or bond dividends.