Title
Franchise for Electric Power in Bugasong
Law
Republic Act No. 798
Decision Date
Jun 21, 1952
Republic Act No. 798 grants Lucas Martinez a franchise to construct and operate an electric light, heat, and power system in Bugasong, Antique, with the condition that he must start operations within a specified timeframe or risk cancellation of the franchise, which can be taken over by the government at cost, less reasonable depreciation.

Questions (Republic Act No. 798)

Lucas Martinez was granted the franchise to construct, maintain, and operate an electric light, heat, and power plant for generating and distributing electricity, heat and/or power for sale within the municipality of Bugasong, Province of Antique.

The franchise authorizes the sale and distribution of electric light, heat, and/or power within the municipality of Bugasong, Province of Antique.

For a period of twenty-five (25) years from the approval of the Act.

It is subject to the terms and conditions established in Act No. 3636, as amended by Commonwealth Act No. 132, and also to the provisions of the Constitution.

The grantee must start operation within one and one-half (1½) years if he is a new operator, and within six (6) months if he is an existing holder of a municipal franchise. Failure to comply results in the franchise ipso facto canceling and becoming void.

A new operator has one and one-half years to start operations; an existing municipal franchise holder has six months to start operations.

The franchise is expressly stated to be ipso facto cancelled and void.

If the Government desires to maintain and operate the plant and enterprise for itself, it may require the grantee to surrender the franchise and turn over all serviceable equipment.

The Government must pay at cost, less reasonable depreciation, for all serviceable equipment.

All serviceable equipment in the authorized plant and enterprise.

R.A. No. 798 expressly states that the franchise is subject to the terms and conditions established in Act No. 3636 as amended by Commonwealth Act No. 132.

It imposes conditions—especially the start-of-operations timelines—with a specific consequence (ipso facto cancellation and voidness) for failure.

It takes effect upon its approval.

To allow the grantee to generate and distribute electric light, heat, and/or power for sale within Bugasong.

Yes. Section 2 allows the Government, if it desires, to maintain and operate the plant for itself, requiring the grantee to surrender the franchise and turn over equipment at the specified terms.


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