Constitutional and statutory conditions
- The franchise is granted subject to the provisions of the Constitution.
- The franchise is also granted subject to the terms and conditions established in Act No. 3636, as amended by Commonwealth Act No. 132.
Power procurement and rate negotiation
- If the grantee purchases and secures energy and power from the National Power Corporation and/or the Manila Electric and Railway Company, the latter entities are authorized to negotiate and transact for the benefit and in behalf of the public consumers regarding rates.
Public Service Commission rate regulation
- The rates for the sale of electric light, heat and power under the franchise are always subject to regulation by the Public Service Commission.
Tax liability and franchise tax
- The grantee must pay the same taxes, unless exempted, on the grantee’s:
- business,
- real estate,
- buildings, and
- personal property,
- exclusive of this franchise, consistent with taxes required by law for other persons or corporations.
- In consideration of the franchise, the grantee must pay a franchise tax equal to five per centum (5%) of the gross earnings for electric current sold under the franchise.
- The franchise tax is allocated as follows:
- three per centum (3%) accrues to the national government, and
- two per centum (2%) accrues to the municipality where the system is operating.
Effectivity and timing rule
- Republic Act No. 6013 takes effect upon the expiration of the municipal franchise previously granted to Leopoldo T. Calderon, Jr..
- The Act was enacted without Executive approval on August 4, 1969.
- H. No. 18900 corresponds to the legislative measure leading to enactment, and the Act is reported in 66 OG No. 14, 3400 dated April 6, 1970.