Expanded Role and Responsibilities of National Power Corporation (NPC)
- NPC is responsible for constructing transmission line grids and associated generation facilities across Luzon, Mindanao, Visayas, and other major islands.
- NPC will own and operate all generating facilities supplying power to areas within its grids as an integrated system.
- Due to expanded responsibilities, NPC's capital requirements for generation and transmission expansion and acquisition of existing facilities have increased significantly.
Amendment to NPC Powers: Construction and Operation of Power Facilities
- NPC authorized to build, operate, and maintain power plants and related infrastructure to develop hydraulic power and supply electricity nationwide.
- NPC may acquire and operate engines and equipment for electric power production.
- It can establish and manage power systems for transmission and utilization.
- NPC may sell power in bulk to industrial enterprises, government systems, electric cooperatives, franchise holders, and real estate subdivisions, with conditions:
- Bulk sales to industrial enterprises or subdivisions require a minimum of 100 kW demand and the cooperative or franchise holder's inability or refusal to supply power unless consented.
- No restrictions apply to enterprises registered with the Board of Investments if power cost exceeds 10% of production costs.
- Existing contracts with industrial enterprises remain valid.
Right of Way and Compensation for Transmission Lines
- NPC may construct works across private and public properties, waterways, roads, and railways without endangering life or property.
- Restoration to original state or functional equivalent is required after construction.
- Property owners must not obstruct NPC's lawful crossings and must grant access.
- NPC is granted right of way over government lands and may enter private lands for business-related activities.
- Compensation for private property:
- Nominal easement fee up to 10% of land value for easement rights.
- Fair market value for outright purchase based on tax declaration at entry or complaint filing.
- Compensation for damages to improvements such as structures and crops.
- Actions for compensation must be filed within 5 years of facility establishment; otherwise, no claims may be made.
Corporate Powers and Cooperation
- NPC may exercise all powers necessary to achieve its purposes, including establishing subsidiaries.
- NPC must coordinate with the Power Development Council, National Electrification Administration, and other public service entities.
- Must implement environmental protection and conservation measures in its operations.
- NPC is tasked with promoting tourism and beautification associated with its reservoirs and facilities.
Uniform Rate Schedule and Contractual Provisions
- NPC must adopt a uniform schedule of rates for customers in the same classification within interconnected systems.
- Prescribes standard forms of contracts and rules for electricity sale, to be uniformly applied and effective after proper notice.
- All existing contracts are considered revised to comply with uniform rate requirements.
Capital Stock and Financial Provisions
- Authorized capital stock set at 2 billion pesos divided into 20 million shares with 100 pesos par value; shares are non-transferable and cannot be used as security.
- 300 million pesos already subscribed and paid by the government.
- Remaining capital to be subscribed by government via paid-in subscription for reparations goods and conversion of bonded indebtedness, surpluses, or bond issues.
Board Compensation and Administrative Authority
- Board members receive per diem of up to 300 pesos per regular meeting and 100 pesos per special meeting, capped at 1,500 pesos monthly.
- Board authorized to adopt annual and supplemental budgets including financial aid (up to 10,000 pesos each) to municipalities affected by hydroelectric projects.
- Authority to organize staffing, fix salaries, and appoint or remove key officials subject to presidential approval.
Borrowing Powers and Loan Limits
- Total principal indebtedness capped at 3 billion pesos (excluding interest).
- Authority to contract foreign loans up to 1 billion USD or equivalent for project financing.
- President authorized to negotiate, contract, and guarantee loans on behalf of NPC and the Republic.
- Loans and related imports are exempt from all Philippine taxes, fees, and restrictions.
Tax Exemptions
- NPC exempted from all national, provincial, city, municipal taxes, fees, imposts, charges, and court service fees.
- Exempted from taxes and charges on petroleum products used in power generation and transmission.
Administrative Supervision and Dispute Resolution
- NPC placed under direct supervision of the Office of the President.
- Legal matters handled by NPC’s Chief Legal Counsel, except court cases overseen by Solicitor General’s Office.
- Industrial disputes within NPC resolved through compulsory arbitration.
Effectivity and Repeals
- This amendment is immediately effective upon issuance.
- Conflicting provisions of existing laws, executive and administrative orders are modified or repealed accordingly.