Republic of the Philippines
Congress of the Philippines
Metro ManilaTwelfth Congress
Third Regular SessionBegun and held in Metro Manila, on Monday, the twenty-eight day of July, two thousand and three.
Republic Act No. 9284 March 31 2004
AN ACT AMENDING AND EXTENDING THE TERM OF THE FRANCHISE GRANTED TO CAGAYAN ELECTRIC POWER AND LIGHT CO., INC. UNDER REPUBLIC ACT NUMBERED THIRTY-TWO HUNDRED FORTY-SEVEN, AS AMENDED BY REPUBLIC ACT NUMBERED THIRTY-FIVE HUNDRED SEVENTY AND REPUBIC ACT NUMBERED SIXTY HUNDRED TWENTY
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
ARTICLE 1:
GENERAL PROVISIONS:
Section 1. Republic Act No. 3247, as amended, is hereby further amended to read as follows:
"Section 1. Nature and Scope of Franchise. – Subject to the provisions of the Constitution and applicable laws, rules and regulations, there is hereby granted to Cagayan Electric Power and Light Co., Inc. (CEPALCO), hereunder referred to as the grantee, its successors or assigns, a franchise to construct, operate and maintain in the public interest and commercial...
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Republic Acts
AN ACT AMENDING AND EXTENDING THE TERM OF THE FRANCHISE GRANTED TO CAGAYAN ELECTRIC POWER AND LIGHT CO.
Republic Act No. 9284
Summary of Republic Act No. 9284
Nature and Scope of Franchise (Section 1):
- Grants Cagayan Electric Power and Light Co., Inc. (CEPALCO) a franchise to construct, operate and maintain a distribution system for electric power in Cagayan de Oro City, Tagoloan, Villanueva and Jasaan in Misamis Oriental, except certain areas.
- Defines "distribution system" as the system of wires and facilities extending between the delivery point and the end-user.
Manner of Operations (Section 2):
- CEPALCO must operate and maintain facilities in a superior manner.
- CEPALCO must modify, improve and change facilities as required by the Energy Regulatory Commission (ERC) or Department of Energy (DOE).
- CEPALCO may allow use of its poles and facilities by other parties for reasonable compensation, with ERC resolving disputes.
Authority of ERC/DOE (Section 3):
- CEPALCO must secure necessary permits and licenses from ERC/DOE for construction and operation.
Ingress and Egress (Section 4):
- CEPALCO may make excavations or lay conduits in public places with prior approval from DPWH or LGUs, and must restore disturbed areas.
Responsibility to the Public (Section 5):
- CEPALCO must supply electricity to its captive market in the least cost manner.
- CEPALCO must modify facilities as required by ERC for efficient service and reduced costs.
- CEPALCO must charge reasonable rates to allow businesses to compete.
- CEPALCO must provide open and non-discriminatory access to its distribution system.
- CEPALCO must not engage in activities that constitute abuse of market power.
Rates for Services (Section 6):
- Retail rates to captive market are regulated by and subject to approval of ERC/DOE.
- CEPALCO must identify and segregate rate components in bills to end-users.
- CEPALCO must implement lifeline rate to marginalized end-users.
Promotion of Consumer Interests (Section 7):
- CEPALCO must establish a consumer desk to handle complaints and promote consumer interests.
Right of the Government (Section 8):
- The President may take over CEPALCO's distribution system in times of war, rebellion, peril, calamity, emergency, disaster or disturbance, with due compensation.
Tax Provisions (Section 9):
- CEPALCO is subject to taxes, duties and fees applicable to private electric utilities under relevant laws.
- CEPALCO must file returns and pay taxes where its facility is located.
Right of Eminent Domain (Section 10):
- CEPALCO may exercise the right of eminent domain as reasonably necessary for efficient operation, with proper condemnation proceedings and just compensation.
Acceptance and Compliance (Section 11):
- CEPALCO must accept the franchise in writing within 60 days after effectivity of the Act.
Warranty in Favor of National and Local Government (Section 12):
- CEPALCO must hold national, provincial and municipal governments harmless from claims arising out of accidents caused by its operations.
Liability for Damages (Section 13):
- CEPALCO is liable for injury and damage caused by defective construction or neglect in keeping facilities safe.
Sale, Lease, Transfer, Usufruct, etc. (Section 14):
- CEPALCO cannot lease, transfer, grant usufruct or sell the franchise without prior approval of Congress, except to a wholly-owned subsidiary where CEPALCO is the surviving corporation.
Equality Clause (Section 15):
- If any competing entity receives a franchise with more favorable terms, CEPALCO shall enjoy those terms, except for territory covered and life span.
Separability Clause (Section 16):
- If any section is declared unconstitutional or invalid, the other parts shall remain in full force.
Applicability Clause (Section 17):
- CEPALCO must comply with the Public Service Act and Electric Power Industry Reform Act of 2001.
Repealability and Nonexclusivity Clause (Section 18):
- The franchise is subject to amendment, alteration or repeal by Congress when public interest requires, and is not an exclusive grant.
Reportorial Requirement (Section 19):
- CEPALCO must submit an annual report of finances and operations to Congress.
Extension/Renewal of Franchise (Section 2):
- The franchise granted under Republic Act No. 3247 is extended/renewed for 25 years from its expiration date.
- The franchise shall be deemed revoked if CEPALCO fails to operate continuously for 2 years.
Effectivity Clause (Section 3):
- The Act takes effect 15 days after publication in at least two newspapers of general circulation, upon CEPALCO's initiative.
Nature and Scope of Franchise (Section 1):
- Grants Cagayan Electric Power and Light Co., Inc. (CEPALCO) a franchise to construct, operate and maintain a distribution system for electric power in Cagayan de Oro City, Tagoloan, Villanueva and Jasaan in Misamis Oriental, except certain areas.
- Defines "distribution system" as the system of wires and facilities extending between the delivery point and the end-user.
Manner of Operations (Section 2):
- CEPALCO must operate and maintain facilities in a superior manner.
- CEPALCO must modify, improve and change facilities as required by the Energy Regulatory Commission (ERC) or Department of Energy (DOE).
- CEPALCO may allow use of its poles and facilities by other parties for reasonable compensation, with ERC resolving disputes.
Authority of ERC/DOE (Section 3):
- CEPALCO must secure necessary permits and licenses from ERC/DOE for construction and operation.
Ingress and Egress (Section 4):
- CEPALCO may make excavations or lay conduits in public places with prior approval from DPWH or LGUs, and must restore disturbed areas.
Responsibility to the Public (Section 5):
- CEPALCO must supply electricity to its captive market in the least cost manner.
- CEPALCO must modify facilities as required by ERC for efficient service and reduced costs.
- CEPALCO must charge reasonable rates to allow businesses to compete.
- CEPALCO must provide open and non-discriminatory access to its distribution system.
- CEPALCO must not engage in activities that constitute abuse of market power.
Rates for Services (Section 6):
- Retail rates to captive market are regulated by and subject to approval of ERC/DOE.
- CEPALCO must identify and segregate rate components in bills to end-users.
- CEPALCO must implement lifeline rate to marginalized end-users.
Promotion of Consumer Interests (Section 7):
- CEPALCO must establish a consumer desk to handle complaints and promote consumer interests.
Right of the Government (Section 8):
- The President may take over CEPALCO's distribution system in times of war, rebellion, peril, calamity, emergency, disaster or disturbance, with due compensation.
Tax Provisions (Section 9):
- CEPALCO is subject to taxes, duties and fees applicable to private electric utilities under relevant laws.
- CEPALCO must file returns and pay taxes where its facility is located.
Right of Eminent Domain (Section 10):
- CEPALCO may exercise the right of eminent domain as reasonably necessary for efficient operation, with proper condemnation proceedings and just compensation.
Acceptance and Compliance (Section 11):
- CEPALCO must accept the franchise in writing within 60 days after effectivity of the Act.
Warranty in Favor of National and Local Government (Section 12):
- CEPALCO must hold national, provincial and municipal governments harmless from claims arising out of accidents caused by its operations.
Liability for Damages (Section 13):
- CEPALCO is liable for injury and damage caused by defective construction or neglect in keeping facilities safe.
Sale, Lease, Transfer, Usufruct, etc. (Section 14):
- CEPALCO cannot lease, transfer, grant usufruct or sell the franchise without prior approval of Congress, except to a wholly-owned subsidiary where CEPALCO is the surviving corporation.
Equality Clause (Section 15):
- If any competing entity receives a franchise with more favorable terms, CEPALCO shall enjoy those terms, except for territory covered and life span.
Separability Clause (Section 16):
- If any section is declared unconstitutional or invalid, the other parts shall remain in full force.
Applicability Clause (Section 17):
- CEPALCO must comply with the Public Service Act and Electric Power Industry Reform Act of 2001.
Repealability and Nonexclusivity Clause (Section 18):
- The franchise is subject to amendment, alteration or repeal by Congress when public interest requires, and is not an exclusive grant.
Reportorial Requirement (Section 19):
- CEPALCO must submit an annual report of finances and operations to Congress.
Extension/Renewal of Franchise (Section 2):
- The franchise granted under Republic Act No. 3247 is extended/renewed for 25 years from its expiration date.
- The franchise shall be deemed revoked if CEPALCO fails to operate continuously for 2 years.
Effectivity Clause (Section 3):
- The Act takes effect 15 days after publication in at least two newspapers of general circulation, upon CEPALCO's initiative.