Regulation of Rates for Services
- Rates for electricity, heat, and power sales to consumers by the grantee are regulated by the Energy Regulatory Board.
Government's Right to Operate the Electric System
- Should the government decide to operate and maintain the electric system, the grantee must surrender the franchise.
- The grantee must turn over all equipment to the government at fair market value.
Tax Obligations
- The grantee is subject to payment of all applicable taxes, duties, fees, and other charges under the National Internal Revenue Code of 1997 and other laws.
- Specific tax exemptions or incentives granted by other laws remain unaffected.
- The grantee must file tax returns with the city or province where facilities are located and pay taxes due to the Commissioner of Internal Revenue.
- The Bureau of Internal Revenue may audit these returns.
- All benefits and exemptions accorded to private electric utilities also apply to the grantee.
Restrictions on Franchise Transfer and Corporate Changes
- The franchise or rights and privileges cannot be leased, transferred, sold, assigned, or granted as usufruct without Congressional approval.
- The grantee cannot merge or transfer controlling interest without such approval.
- Any transferee of the franchise is subject to the same terms, conditions, restrictions, and limitations.
Separability Clause
- If any provision of the Act is declared invalid, the other provisions not affected will remain valid and enforceable.
Amendability and Nonexclusivity of Franchise
- The franchise may be amended, altered, or repealed by Congress when public interest requires.
- The franchise is not an exclusive grant of privileges.
Reportorial Requirements
- The grantee must submit an annual report to Congress within 60 days after the end of each year.
- The report must cover compliance with the franchise terms and conditions and operational status.
Effectivity
- The Act takes effect 15 days after its publication in at least two newspapers of general circulation.
- Publication must be initiated by the grantee.
Summary: This law extends the franchise of Davao Light and Power Company, Inc. under existing terms, imposes regulatory and reporting requirements, ensures government rights, regulates taxes, restricts transfer of the franchise without Congressional approval, and allows for amendments and nonexclusivity of the franchise.