Franchise to Buhi for Electric Power System

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Republic Act No. 2286: Franchise to Buhi for Electric Power System

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Title Source: Supreme Court: Franchise to Buhi for Electric Power System

Law: Republic Act No. 2286

Decision Date: Jun 19, 1959

Republic Act No. 2286 grants the Municipality of Buhi, Camarines Sur a franchise to construct and operate an electric light, heat, and power system for twenty-five years, with the option for the government to take over the system in the future.

Purchase of Electric Heat and Power from the National Power Corporation (NPC)

If the Municipality opts to purchase electric heat and power from NPC, NPC is authorized to negotiate and conduct transactions regarding rates.
Such negotiations and transactions are to benefit public consumers, ensuring fair and reasonable rates.

Government's Right to Operate and Surrender of Franchise

Provides that the Philippine Government may elect to operate the electric system itself.
Upon such decision, the Municipality must surrender its franchise.
Municipality must transfer all serviceable equipment to the Government, with compensation based on cost minus reasonable depreciation.

Effectivity of the Act

The law takes effect immediately upon its approval on June 19, 1959.

END