Form and conditions for electric power franchises

The grantee must supply electric power, heat, or light within 15 days of application, prioritized by order of application date and within plant capacity.
Plant capacity limits are determined by the Public Service Commission.
The grantee must increase plant capacity within a reasonable time as dictated by the Commission when demand grows beyond current capacity.
No obligation exists to supply electricity if the supply point is more than 30 meters from the grantee's lines unless additional rates are paid as determined by the Commission.

The grantee is liable to compensate municipalities for any damage caused to public property due to construction or negligence.
The grantee assumes responsibility for damages to individuals or entities resulting from neglect or fault related to the franchise's electric facilities.

All apparatus must be modern, safe, and first class.
Wires must be properly connected, fastened, and insulated.
The grantee must place wires underground at its own expense when required by the Public Service Commission.
Poles must be at least 20 feet high, aesthetically acceptable, and safe, complying with plans approved by the Commission and municipal authorities.

If necessary in the public interest, poles and underground conduits must be relocated promptly by the grantee at its expense, as directed by the Commission after municipal consultation.
Any sidewalk or street excavation caused by such work must be promptly restored, and rubbish cleared, leaving property as before.

Upon notice from the municipal council, the grantee must raise or remove poles or wires that obstruct lawful use of public property by others.
Notice must be given 48 hours in advance in writing.
Costs of raising or removal are shared equally between the grantee and the requesting party.
Failure to comply permits the Public Service Commission to order such works at the grantee’s sole expense.

The grantee must file an application for a certificate of public necessity and convenience within 90 days from approval; failure voids the franchise.
Construction or exercising franchise rights cannot commence until filing acceptance documents and deposits within specified periods.
The Public Service Commission issues certificates after hearing, imposing necessary conditions to protect public interest.
Failure to commence service within the fixed period, except due to force majeure causes, may result in certificate nullification and forfeiture of deposits as liquidated damages.

For each certificate, the grantee must deposit at least 1,000 pesos or equivalent securities with the Insular Treasury.
Deposits guarantee commencement and completion of work within fixed periods.
Violation results in forfeiture of deposits as liquidated damages to the municipality concerned.
Upon satisfactory completion, deposits plus interest are returnable.

The grantee pays taxes on real estate, buildings, plants, machinery, and personal property as imposed on similar entities.
The grantee pays a franchise tax of two percent of gross earnings from sales in each municipality.
Poles, wires, and related equipment placed on public property are exempt from other taxes.

Municipalities may use the grantee’s poles without compensation for police telephone and fire alarm systems.
Municipalities must ensure these systems do not interfere with electricity services.
Municipalities are liable for damages arising from use of poles.

The franchise is subject to the provisions of existing corporation and franchise laws, including Acts Numbered 3108 and 1459 and related U.S. Congressional Acts.
The franchise is subject to amendment, alteration, or repeal by the Congress of the United States under specified conditions.

All lands or usage rights granted revert to the insular, provincial, or municipal governments after franchise termination, revocation, or repeal.

The grantee’s books and accounts must be open to inspection by the provincial treasurer or authorized representatives.
Quarterly reports of gross receipts are required to be submitted to the provincial treasurer, with one copy forwarded to the Insular Auditor.

The grantee may transfer the franchise and property rights to qualified entities with the approval of the Philippine Legislature.
Transfers are ineffective until the new holder files a written agreement to comply with all franchise terms and conditions with the Public Service Commission.

The Public Service Commission may declare forfeiture after due notice and hearing for failure to comply with terms.
Forfeiture will not apply if failure is due to force majeure or other causes beyond control.
The grantee may seek remedies under existing laws and regulations.

Should a competitor obtain a franchise with more favorable terms, those terms shall apply equally to the grantee to prevent disadvantage.