Title
Franchise for Electric Light in Orion, Bataan
Law
Act No. 2847
Decision Date
Mar 8, 1919
Act No. 2847 grants B.A. Green a franchise to operate an electric power system in Orion, Bataan, with conditions on pricing, safety, and maintenance.

Conditions of Acceptance

  • The grantee must acknowledge awareness of and agree not to support any propaganda against U.S. government policy or Filipino aspirations as expressed in 1913 communications.
  • This agreement extends binding obligations on grantee's agents, administrators, successors, and assigns.

Physical Infrastructure and Service Obligations

  • Poles must maintain a clearance of at least 20 feet above ground and be aesthetically acceptable without compromising public safety.
  • Placement and design must be approved by municipal authorities.
  • Grantee must supply electricity within 15 days to applicants, prioritized by application date and plant capacity.
  • Capacity must be expanded with municipal council authorization if demand exceeds current plant capability.
  • Service points must be within 30 meters of existing lines.

Equipment Standards and Underground Wires

  • All apparatus must be modern, first-class, and wires insulated to prevent grounding.
  • Wires must not obstruct public thoroughfares and must be installed to avoid public inconvenience.
  • Upon legislative directive, wires must be placed underground at the grantee's expense without cost to the municipality.

Restoration and Relocation of Infrastructure

  • Any disturbance to public pavement or sidewalks during pole erection must be repaired properly and promptly.
  • Pole relocation due to municipal street extensions must be undertaken by the grantee at their expense without delay.

Adjustments for Municipal Uses

  • Upon 48 hours' written notice, grantee must raise or remove poles or wires impeding municipal works or building removals.
  • Cost of such alterations is shared: one-half borne by the requesting party.
  • Municipal president and council may order compliance if grantee fails to act, with appeal rights to the provincial board.

Liability

  • Grantee is liable for any injuries or damages caused by construction or neglect in maintaining safe poles and wires.

Acceptance, Deposit, Construction, and Operation Timeline

  • Written acceptance of franchise conditions must be filed within 120 days after receiving the required certificate.
  • Construction must commence within 6 months and completed with operation within 18 months barring force majeure.
  • Grantee must provide a first-class electric service.
  • Municipality entitled to 10% rebate on consumed current and free use of connections for public lighting except globes.
  • Quarterly payments to municipal treasury: 0.5% of gross earnings first 20 years; 1.5% for remaining 30 years.

Good Faith Deposit

  • Upon acceptance, grantee must deposit 1,000 pesos or approved securities as good faith guarantee.
  • Deposit is forfeited if grantee fails to commence work or be ready for operation within prescribed periods unless prevented by force majeure.
  • Interest from deposit belongs to grantee during deposit term.
  • Deposit refunded upon commencement of operations within timeline.

Municipal Use of Poles

  • Municipality may use grantee's poles without compensation for telephone or alarm systems.
  • Such usage must not interfere with or damage the grantee's electric wires.

Amendment and Reversion Clauses

  • Franchise subject to amendment, alteration, or repeal by U.S. Congress or Philippine Legislature.
  • Upon termination, lands and rights revert to government entities originally owning them.
  • Franchise-related property becomes Insular Government property after franchise expiry.

Restrictions on Stock and Bond Issuance

  • Grantee prohibited from issuing stock or bonds except for actual cash or fair-valued property exchanges.
  • Prior Public Utility Commission approval required.
  • No stock or bond dividends may be declared.

Financial Transparency and Taxation

  • Grantee's books must be open to the provincial treasurer or deputy.
  • Quarterly reports on gross and net receipts and business condition must be submitted.
  • Grantee subject to taxes on real estate, plant, machinery, and personal property as per law.

Transfer and Assignment of Franchise

  • Grantee may sell, lease, or assign franchise and properties with Public Utility Commission approval.
  • Transferee must file a written agreement to comply with franchise terms.

Forfeiture of Franchise

  • Municipal council, with Secretary of Commerce and Communications' approval, may forfeit franchise for non-compliance.
  • Non-compliance must not be caused by force majeure or uncontrollable events.
  • Grantee can seek judicial relief within 60 days, or rights to contest are waived.

Government Purchase Option

  • After 20 years, Philippine Government or political subdivisions may purchase grantee's properties at valuation decided by the Supreme Court acting as arbitrators.
  • The valuation is based on net earnings.

Definition of Grantee

  • The term "grantee" applies to B. A. Green and his representatives, successors, or assigns.

Effectivity

  • Act becomes effective upon approval.

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