Question & AnswerQ&A (EXECUTIVE ORDER NO. 289)
The main purpose of Republic Act No. 4556 is to grant Louber Enterprises, Inc. a franchise to install, maintain, and operate an electric light, heat, and power system in specified municipalities of Camarines Sur, and to sell and distribute light, heat, and/or power therein.
The franchise covers the municipalities of San Fernando, Pamplona, and Cabusao, as well as other municipalities in the Province of Camarines Sur not presently being served.
The franchise is granted for a period of twenty-five years from the approval of the Act.
The company must comply with the terms and conditions established in Republic Act No. 4556, Act Numbered 3636 (as amended), Commonwealth Act Nos. 132 and 146 (as amended), and the provisions of the Philippine Constitution.
The Public Service Commission is authorized to regulate the schedule of prices and rates that Louber Enterprises, Inc. charges and collects for the electricity furnished under the franchise.
If Louber Enterprises, Inc. secures power from the National Power Corporation, the latter is authorized to negotiate and transact on behalf of and for the benefit of public consumers with reference to rates.
A franchise tax equal to five percent of the gross earnings under the franchise is imposed, with three percent accruing to the National Government and two percent accruing to the municipality where the franchise operates.
The National Government receives three percent, and the municipality where the franchise is operated receives two percent of the franchise tax.
The Act took effect upon its approval on June 19, 1965.
Yes, the franchise includes such other municipalities in Camarines Sur not presently being served that might be covered during the franchise period.