Law Summary
1. Grant of Franchise
- Legal Principle/Provision: This section grants the Bagatayam Electric Co. the rights to construct, maintain, and operate an electric light, heat, and power plant in the municipalities of Sogod and Catmon, Cebu Province.
- Key Definitions:
- Electric Light, Heat, and Power Plant: The facility for generating and distributing electric services.
- Franchise: The legal right granted to operate a public utility in a specified area.
- Requirements/Procedures:
- The operation must commence within one and a half years from the approval of the franchise.
- Timeframes/Deadlines:
- Commencement of Operations: Must begin within 1.5 years from the approval date.
- Cross-References:
- Subject to the terms of Act No. 3636 and Commonwealth Act No. 132, which govern the granting of public utility franchises.
2. Government Right to Assume Operations
- Legal Principle/Provision: Should the government decide to take over the electric plant, the franchise holder must relinquish their rights and transfer serviceable equipment to the government at cost.
- Key Definitions:
- Grantee: The entity (Bagatayam Electric Co.) receiving the franchise.
- Requirements/Procedures:
- The grantee is required to surrender the franchise and equipment if the government opts to operate the plant.
- Consequences:
- The grantee must comply with the surrender of rights and equipment upon government request.
3. Effectivity of the Act
- Legal Principle/Provision: The Act becomes effective upon its approval.
- Timeframes/Deadlines:
- Effectivity Date: June 8, 1950, the date of approval.
Key Takeaways
- The Bagatayam Electric Co. is granted a 25-year franchise to operate an electric utility in specific municipalities, with a strict deadline for commencing operations.
- The government reserves the right to take over the operation of the plant, requiring the franchise holder to surrender rights and equipment at cost.
- The Act is effective immediately upon approval.