Question & AnswerQ&A (Act No. 3661)
The franchise is granted for a period of fifty years from the approval of the Act.
The grantee has the right to construct, maintain, and operate an electric light, heat, and power system within the municipality of San Antonio, Nueva Ecija, including the right to install and maintain apparatus on public property and to supply electric current to various entities within the municipality.
The grantee must supply electric power, heat, or light to any applicant within fifteen days from the date of application, subject to the capacity of the plant and regulations by the Public Service Commission.
If the point to be supplied is more than thirty meters from the grantee's lines, the grantee is not obligated to supply service unless additional prices are paid as determined by the Public Service Commission.
The grantee agrees to compensate the municipality for damages to its property caused by construction or negligence and is responsible for damages to third parties arising from such fault or negligence.
All apparatus must be modern, safe, and first-class. Wires must be carefully connected, fastened, insulated, and when required by the Public Service Commission, placed underground at the grantee's expense.
The grantee must promptly make the change at their own expense as directed by municipal authorities upon the determination of necessity by the Public Service Commission.
The franchise shall become null and void if the grantee does not file the proper application within ninety days from the approval of the Act.
The grantee must deposit not less than one thousand pesos or equivalent bonds/securities as earnest of good faith to guarantee commencement and completion of work within the period fixed.
The grantee must pay taxes on real estate and personal property but is exempt from taxes on poles, wires, and franchise rights. Additionally, the grantee must pay a tax equal to two percent of gross earnings from electric current sold in the municipality, payable quarterly.
The municipality may use the grantee's poles, pipes, and conduits without compensation for police telephone and fire-alarm systems, provided no interference or damage occurs to the grantee's service.
Yes, with the approval of the Philippine Legislature and upon filing an agreement bound to comply with all terms and conditions of the franchise and certificates of public necessity and convenience.
The Public Service Commission can declare forfeiture of the franchise after notice and hearing if the grantee fails to comply with the terms, except where failure is due to uncontrollable causes.
Upon termination or repeal, any lands or rights obtained by the grantee revert to the respective insular, provincial, or municipal governments from which they were obtained.
The grantee must submit quarterly reports on gross and net receipts and the condition of business, and their books and records must be open for inspection by the provincial treasurer or authorized representative.