Coordination with National Power Corporation
- Should National Power Corporation (NPC) establish power lines within or adjacent to the franchise area, NPC may supply power and heat only after negotiation with Lingayen Gulf Electric Power Company or with its consent.
Regulation of Rates
- All rates charged for electric light, heat, and power sales are subject to regulation by the Public Service Commission.
Franchise Tax and Tax Exemptions
- The grantee must pay a quarterly tax of 2% of its gross receipts from electric current sales to the Internal Revenue Office of each municipality it serves.
- This franchise tax replaces all other taxes and licenses on equipment and infrastructure (poles, wires, insulators, switches, transformers, structures, conductors, accessories) placed on public property.
- The grantee is expressly exempt from any other municipal, provincial, or national tax or license on its franchise, rights, receipts, revenues, or profits except for the specified 2% franchise tax.
- Any conflicting laws to the contrary are superseded, ensuring that only the franchise tax applies.
Government Option to Operate the System
- The government reserves the right to maintain and operate the electric system itself.
- In such event, the grantee must surrender its franchise and transfer all serviceable equipment to the government at cost less reasonable depreciation.
Termination of Previous Franchise
- Upon approval of this act, any previously granted municipal franchise to the Lingayen Gulf Electric Power Company Inc. is terminated.
- This law's franchise replaces the former franchise.
Effectivity
- The act takes effect immediately upon its approval on June 22, 1963.