Obligation to Supply and Capacity Expansion
- The grantee must supply electric power, heat, and/or light within 15 days of a valid application, subject to the plant’s capacity.
- The Public Service Commission determines the capacity limits through certification of public necessity and convenience.
- If demand exceeds plant capacity, the grantee must increase capacity within a reasonable time as set by the Commission.
- Supplying service beyond 30 meters from existing lines requires additional charges as determined by the Commission.
Liability and Compensation for Damages
- The grantee must compensate the municipality for damages to public property caused by construction or neglect.
- The grantee is liable for any damages to individuals or entities arising from fault or negligence related to the installation or operation of electrical facilities.
Standards for Equipment and Installation
- All apparatus must be modern, safe, and of first-class quality.
- Wires must be properly insulated and connected; the Commission may require underground installations at the grantee’s expense.
- Poles must maintain a minimum wire height of 20 feet, be aesthetically acceptable, and approved by municipal authorities considering public safety.
Relocation of Facilities
- The grantee must promptly relocate poles, underground pipes, or conduits when required by public interest, at their own expense, upon direction by municipal authorities.
Restoration of Public Property
- Any sidewalk or ground disturbance for installation must be restored promptly and properly by the grantee after work completion, with removal of rubbish and dirt.
Removal of Facilities for Other Public Uses
- Upon written notice by municipal council, the grantee must remove or adjust poles and wires that interfere with authorized uses of public property by others.
- Costs of removal and replacement are shared equally between the grantee and the requesting party.
- Failure to comply allows the municipal president to order removal at the grantee’s expense.
Certificate of Public Necessity and Convenience and Conditions for Exercise of Franchise
- The franchise becomes void if the grantee fails to apply for the required certificate within 90 days from approval.
- The grantee cannot exercise rights or commence construction until filing written acceptance of the franchise and certificate conditions within 120 days of certificate issuance.
- The Commission grants certificates after hearing and may impose conditions to protect public interest.
- Failure to commence service within the prescribed period allows the Commission to void the certificate and forfeit deposits as liquidated damages.
Deposit Requirement as Security for Performance
- The grantee must deposit at least 1,000 pesos (or approved securities) with the Insular Treasury as good faith guarantee for project commencement and completion.
- The deposit may be forfeited after a hearing if conditions are violated, and returned upon satisfactory compliance with conditions.
Taxation and Exemptions
- The grantee pays regular taxes on real estate and other property.
- The grantee must pay the municipality a tax of 2% of gross earnings from electricity sales within the municipality.
- This tax is in lieu of all other taxes on poles, wires, installations, franchise rights, revenues, and profits concerning the municipal public property.
Use of Facilities by Municipality for Public Safety Systems
- The municipality may use the grantee’s poles and conduits without compensation for police telephone and fire-alarm systems.
- Municipal installation of such systems must not interfere with the grantee’s electrical service.
- The municipality assumes liability for damages arising from these public safety installations.
Subject to Existing Laws and Amendments
- The franchise is subject to all relevant Philippine laws and amendments, as well as acts of the U.S. Congress relating to Philippine governance and franchises.
- Rights of use or occupation of public lands obtained under the franchise revert to the government upon termination or revocation.
Inspection, Reporting, and Accountability
- The grantee’s books and accounts must be open to inspection by the provincial treasurer or representative.
- Quarterly reports of gross and net receipts and general business conditions must be submitted to the provincial treasurer and forwarded to the Insular Auditor.
Transfer and Assignment of Franchise
- The franchise may be transferred, leased, or assigned with prior approval of the Philippine Legislature.
- Transfer is ineffective without filing a binding agreement with the Public Service Commission wherein the transferee agrees to comply with all franchise terms and existing certificates.
Forfeiture of Franchise for Non-Compliance
- The Public Service Commission may forfeit the franchise for failure to comply with any terms or conditions after notice and hearing.
- Forfeiture is subject to exceptions for causes beyond the grantee’s control, such as force majeure or civil unrest.
- The grantee may seek legal remedies as provided in applicable laws.
Amendment Contingency
- If House Bill No. 2713 becomes law prescribing the form for electric franchise bills, this franchise shall be deemed amended to conform to such form.
Effectivity
- The Act takes effect immediately upon approval.