Title
Extension of Lealda Electric Company franchise for 50 years
Law
Republic Act No. 3730
Decision Date
Jun 22, 1963
Republic Act No. 3730 grants an extension of the franchise term to Lealda Electric Company, Incorporated, subject to various provisions including the height and appearance of poles, supply of electric power, liability for accidents, and the privilege for the government and localities to use the grantee's poles, among others.

Law Summary

Pole Installation Standards

  • Poles must maintain wires at least fifteen feet above ground.
  • Poles should not disfigure streets and must ensure public safety.
  • Installation must follow a plan approved by the Public Service Commission after consulting local authorities.

Supply of Electric Power, Heat, and Light

  • The grantee must supply requested electric power, heat, or light within fifteen days in order of application date.
  • Supply capacity is limited to the plant's ability, as determined by the Public Service Commission.
  • If demand exceeds capacity, the grantee shall increase plant capacity with public service commission approval.
  • Supply points must be within 80 meters of the existing wires.

Quality and Safety of Equipment and Installation

  • All apparatus and equipment must be modern, safe, and of first-class quality.
  • Electric transmission wires must be insulated and securely fastened to prevent grounding.
  • Wires must not obstruct public thoroughfares.
  • The Public Service Commission may require placing wires underground at the grantee's expense.

Repairs and Restoration After Installation Work

  • The grantee must promptly repair sidewalks and public property disturbed during pole erection or underground conduit installation.
  • All debris and excavation materials must be removed, restoring areas to their original condition.

Liability for Injuries and Damages

  • The grantee is liable for injuries or damages caused by accidents related to construction or negligence in maintaining safe poles and wires.

Use of Poles by City and Municipality

  • City of Legazpi and Municipality of Daraga may use the grantee's poles for telephone or fire and police alarm systems without compensation.
  • Installation of these wires must not interfere with the grantee's electric service.

Government Purchase Option

  • The government may purchase all property related to the electric system from the grantee during or upon termination of the franchise.
  • Purchase price is based on fair valuation approved by the Public Service Commission, excluding the earning capacity and deducting accrued depreciation.

Fees and Rates

  • The grantee continues charging fees authorized by law or PSC regulations until changed or new rates are approved.
  • Changes require a public hearing and approval by the Public Service Commission.

Inspection of Records

  • The Auditor General or authorized representatives may inspect the grantee’s books and accounts upon request of the Public Service Commission.

Transfer and Assignment of Franchise

  • The grantee may transfer or assign the franchise and related properties with prior congressional approval.
  • Transfers require filing an agreement with the Public Service Commission, ensuring the transferee complies with all franchise terms.

Tax Payments

  • Grantee shall pay a quarterly tax of 2% of gross earnings from electricity sales in Legazpi and Daraga.
  • This tax substitutes all other property taxes except real property taxes.

Incorporation of Prior Act Provisions

  • Provisions from Act Numbered 2475 that are consistent with this Act remain applicable.

Effectivity

  • The Act takes effect immediately upon approval.

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