Operation and Maintenance of Facilities
- CLPC must maintain electric distribution facilities in superior condition.
- Required to upgrade and improve facilities as mandated by the Energy Regulatory Commission (ERC) or Department of Energy (DOE).
- May allow third-party use of pole spaces for reasonable compensation.
- ERC resolves disputes on such uses.
Regulatory Compliance and Authorization
- CLPC must secure certificates and permits from the ERC or relevant government agencies before operation.
Excavation and Restoration
- CLPC can excavate public places, roads, and public infrastructure with prior approval of DPWH or local government units (LGUs).
- Must restore affected areas to standards set by DPWH or LGUs at their own expense.
- Failure to repair after a 10-day notice allows DPWH or LGUs to repair at double cost charged to CLPC.
Public Service Obligations
- Must supply electricity at least cost, ensuring efficient and reliable service.
- Required to give nondiscriminatory access per Electric Power Industry Reform Act.
- Prohibited from engaging in monopolistic or unfair trade practices.
Rate Regulation
- Electricity retail rates regulated and approved by ERC.
- Must provide transparency by itemizing billing components.
- Implementation of lifeline rates for marginalized consumers is mandatory.
Consumer Protection
- Required to establish a consumer desk for complaints.
- Must act promptly to resolve consumer issues.
Government’s Special Rights
- President has right to temporarily take over or suspend operations during emergencies with due compensation.
Eminent Domain
- CLPC authorized to exercise eminent domain for installation and maintenance.
- May acquire private property by condemnation with just compensation.
Liability and Indemnity
- CLPC holds government entities free from claims arising from accidents caused by its operations.
- Liable for damages from defective construction or neglect in maintenance.
Franchise Transfer and Ownership Changes
- Sale, lease, transfer, or assignment prohibited without prior Congressional approval.
- Congress must be notified within 60 days of any transactions.
- Failure to notify results in automatic revocation.
- Assignees subjected to same franchise conditions.
Equal Treatment Clause
- Any privileges or advantages granted to other franchises shall apply to CLPC except territorial, duration, or service-type provisions.
- Does not apply to franchise transfers requiring congressional approval.
Franchise Duration and Continuity
- Franchise valid for 25 years from expiration of previous franchise.
- Automatic revocation if operation ceases for two consecutive years.
Dispersal of Ownership
- Must offer at least 30% of capital stock to Filipino citizens within 5 years.
- Alternative public participation methods allowed if stock offering is impracticable.
- Failure to comply leads to franchise revocation.
Compliance with Existing Laws
- Subject to the Public Service Act and Electric Power Industry Reform Act.
Reporting Requirements
- Annual report to Congress on franchise compliance and operations mandatory by April 30.
Penalties for Non-Compliance
- Fine of P500 per working day for failure to submit annual reports.
- ERC collects fines which fund monitoring activities.
- Reportorial compliance certificate is prerequisite for permits from ERC.
Acceptance of Franchise
- Written acceptance to Congress required within 60 days from effectivity.
- Franchise void upon non-acceptance.
Separability Clause
- Invalidation of any provision does not affect the validity of remaining provisions.
Amendment and Nonexclusivity
- Congress may amend or repeal franchise as public interest requires.
- Franchise is nonexclusive.
Publication Requirement
- CLPC must publish this Act within 15 days of enactment.
Repeal of Conflicting Laws
- Previous inconsistent laws or regulations are repealed or modified accordingly.
Effectivity
- The Act takes effect 15 days after publication in two newspapers of general circulation.