Law Summary
1. Grant of Franchise
- Explanation: This section grants Dumlao Enterprises, Inc. the authority to construct, maintain, and operate an electric light, heat, and power system in Batac, Ilocos Norte.
- Key Definitions:
- Franchise: The right, privilege, and authority to operate the specified utility service.
- Requirements/Procedures:
- The operation is subject to the terms and conditions established in Act No. 3636 and Commonwealth Act No. 132.
- The franchise is valid for 50 years from the approval date of the Act.
- Timeframes:
- Effective for a period of 50 years from June 19, 1959.
- Cross-References:
- Act No. 3636 (as amended) and Commonwealth Act No. 132.
2. Power Purchase Agreement
- Explanation: This section allows Dumlao Enterprises, Inc. to purchase electric heat and power from the National Power Corporation (NPC) and establishes NPC's role in negotiating rates.
- Key Definitions:
- National Power Corporation: The government corporation responsible for generating and distributing electric power.
- Requirements/Procedures:
- NPC is authorized to negotiate for rates that benefit public consumers.
3. Government's Right to Operate
- Explanation: This provision allows the government to operate the electric system if it chooses to do so, requiring Dumlao Enterprises to surrender its franchise.
- Key Definitions:
- Serviceable Equipment: All equipment that remains functional and operational.
- Requirements/Procedures:
- In the event the government opts to take over the operations, Dumlao Enterprises must surrender the franchise and transfer all serviceable equipment at cost, minus reasonable depreciation.
- Consequences:
- If the government exercises this right, Dumlao Enterprises loses its franchise and must comply with the surrender and transfer of equipment.
4. Effectivity
- Explanation: This section specifies when the Act will take effect.
- Timeframes:
- The Act shall take effect upon its approval on June 19, 1959.
Key Takeaways
- Dumlao Enterprises, Inc. is granted a 50-year franchise to operate an electric system in Batac, Ilocos Norte, subject to existing laws.
- The National Power Corporation is involved in rate negotiations if Dumlao purchases power from them.
- The government reserves the right to take over operations, requiring the franchisee to surrender the franchise and equipment under specified conditions.
- The Act becomes effective immediately upon its approval date of June 19, 1959.