Law Summary

Overview

• Title: Republic Act No. 3202
• Approval Date: June 17, 1961
• Publication: 58 OG No. 6, 1056 (February 5, 1962)
• Purpose: Grants a franchise to Talibon Business Enterprises to operate an electric light, heat, and power system in the Municipality of Talibon, Province of Bohol.

Grant of Franchise

• Legal Provision: Section 1

  • Explanation: This section grants Talibon Business Enterprises the right to construct, maintain, and operate an electric light, heat, and power system within Talibon for 25 years.
  • Key Definitions:
    • Grantee: Talibon Business Enterprises.
    • Municipality: Talibon, Province of Bohol.
  • Important Requirements:
    • Operations must comply with Act No. 3636 (as amended by Commonwealth Act No. 132) and the Constitution.
  • Timeframe: Valid for 25 years from the Act's approval.

  • Talibon Business Enterprises authorized to generate and distribute electric services. • Compliance with existing laws required.

Purchase of Power

• Legal Provision: Section 2

  • Explanation: Allows the grantee to purchase electric heat and power from the National Power Corporation (NPC) and authorizes NPC to negotiate rates for public consumers.
  • Key Definitions:
    • National Power Corporation: The government entity responsible for power generation and distribution.
  • Important Requirements:
    • NPC must negotiate on behalf of public consumers regarding rates.

  • NPC is authorized to negotiate rates for power purchased by the grantee. • Benefits consumers in terms of fair pricing.

Surrender of Franchise

• Legal Provision: Section 3

  • Explanation: Specifies that if the government decides to operate the electric system itself, the grantee must surrender the franchise and return all serviceable equipment at cost minus reasonable depreciation.
  • Key Definitions:
    • Serviceable Equipment: Equipment that is still functional and can be used by the government.
  • Important Requirements:
    • The grantee must comply with the government's request to transfer operations and equipment.

  • Franchise must be surrendered if the government opts to take over the system. • Equipment is to be turned over at cost less reasonable depreciation.

Effectivity

• Legal Provision: Section 4

  • Explanation: This section states that the Act shall become effective upon its approval.

  • Act takes effect immediately upon approval on June 17, 1961.

Key Takeaways

• Republic Act No. 3202 grants a 25-year franchise to Talibon Business Enterprises to operate an electric system in Talibon, Bohol.
• The grantee must follow existing laws and is required to cooperate with the National Power Corporation for the purchase of electricity.
• In case of government takeover, the grantee will surrender operations and equipment with a depreciation adjustment.
• The Act is effective immediately upon approval, facilitating prompt initiation of the electric service project.