Law Summary

Section 1: Grant of Franchise

• Legal Principle/Provision: This section grants Pablo R. Halili, Inc. a franchise to construct, maintain, and operate an electric light, heat, and power system in the municipalities of Paombong and Hagonoy, Bulacan.
• Key Definitions Introduced:
  • Franchise: The right to operate an electric light, heat, and power system.
  • Grantee: Pablo R. Halili, Inc.
• Important Requirements/Procedures:
  • The operation is subject to the provisions of the Philippine Constitution and specific terms in previous legislation (Act No. 3636 and Commonwealth Act No. 132).
• Relevant Timeframes: The franchise is granted for a period of twenty-five years from the date of approval of this Act.
• Consequences: The grantee is authorized to generate and distribute electric light, heat, and power for sale within the designated municipalities.

Section 2: Procurement of Energy and Power

• Legal Principle/Provision: This section allows Pablo R. Halili, Inc. to purchase energy from the National Power Corporation (NPC).
• Key Definitions Introduced:
  • National Power Corporation: The government agency from which the grantee may procure energy and power.
• Important Requirements/Procedures:
  • NPC is authorized to negotiate on behalf of public consumers regarding rates.

Section 3: Government's Right to Operate

• Legal Principle/Provision: This section outlines the conditions under which the government may choose to operate the electric system.
• Key Definitions Introduced:
  • Serviceable Equipment: Equipment used in the electric system that is still functional.
• Important Requirements/Procedures:
  • If the government decides to take over, the grantee must surrender the franchise and transfer all serviceable equipment to the government.
  • The transfer must occur at cost, minus reasonable depreciation.

Section 4: Effectivity

• Legal Principle/Provision: This section states when the Act takes effect.
• Relevant Timeframes: The Act shall be effective upon its approval.

Key Takeaways

• Franchise Duration: Pablo R. Halili, Inc. is granted a 25-year franchise to operate an electric system in specific municipalities.
• Government Oversight: The government retains the right to take over the operations, requiring the grantee to relinquish the franchise and equipment under certain conditions.
• Energy Procurement: The grantee is permitted to procure energy from the NPC, which will negotiate rates for the public.
• Immediate Effect: The Act becomes effective upon approval, ensuring timely implementation of the franchise.

This summary encapsulates the essential elements of Republic Act No. 4610, highlighting the rights, responsibilities, and conditions associated with the franchise granted to Pablo R. Halili, Inc.