AN ACT FURTHER AMENDING THE FRANCHISE OF ANGELES ELECTRIC CORPORATION GRANTED UNDER REPUBLIC ACT NO. 2341
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AN ACT FURTHER AMENDING THE FRANCHISE OF ANGELES ELECTRIC CORPORATION GRANTED UNDER REPUBLIC ACT NO. 2341
Republic Act No. 9381
March 9, 2007
Case Overview and Summary
Summary of Republic Act No. 9381Nature and Scope of Franchise (Section 1):
- Grants Angeles Electric Corporation (the grantee) a franchise to construct, operate and maintain a distribution system for the conveyance of electric power to end-users in Angeles City, Pampanga.
- Defines "distribution system" as the system of wires and associated facilities including sub-transmission lines belonging to a franchised distribution utility extending between the delivery point on the national transmission system or generating facility and the metering point/facility of the end-user.
Manner of Operations of Facilities (Section 2):
- The grantee shall operate and maintain its electric distribution facilities, lines and systems in a superior manner.
- The grantee shall modify, improve and change such facilities or systems as required by the Energy Regulatory Commission (ERC), the Department of Energy (DOE), or any other government agency concerned.
- The grantee may allow the use of free spaces in its poles, facilities or right-of-way by interested parties upon reasonable compensation, subject to the ERC's decision in case of dispute.
Authority of the Energy Regulatory Commission (Section 3):
- The grantee shall secure from the ERC, or any other government agency with jurisdiction, the necessary certificate of public convenience and necessity and other appropriate permits and licenses for the construction and operation of its electric distribution system.
Ingress and Egress (Section 4):
- The grantee, with prior approval from the Department of Public Works and Highways (DPWH) or the local government units (LGUs), may make excavations or lay conduits in public places, highways, streets, lanes, alleys, avenues, sidewalks or bridges for the purpose of erecting and maintaining poles and other supports or laying wires, cables or other conductors.
- The grantee shall immediately repair and properly restore any public place, highway, street, lane, alley, avenue, sidewalk or bridge disturbed, altered or changed, in accordance with the standards set by the DPWH and LGUs.
Responsibility to the Public (Section 5):
- The grantee shall supply electricity to its captive market in the least cost manner.
- The grantee shall modify, improve or change its facilities, poles, lines, systems and equipment for the purpose of providing efficient and reliable service and reduced electricity costs, whenever required by the ERC.
- The grantee shall charge reasonable and just power rates to all types of consumers within its franchised areas.
- The grantee shall provide open and non-discriminatory access to its distribution system and services for any end-user within its franchise area, consistent with Republic Act No. 9136.
- The grantee shall not engage in any activity that will constitute an abuse of market power.
Rates for Services (Section 6):
- The retail rates to its captive market and charges for the distribution of electric power by the grantee to its end-users shall be regulated by and subject to the approval of the ERC.
- The grantee shall identify and segregate in its electric bill to the end-users the components of the retail rate pursuant to Republic Act No. 9136.
- The grantee shall implement lifeline rate to marginalized end-users as mandated under Republic Act No. 9136.
Promotion of Consumer Interests (Section 7):
- The grantee shall establish a consumer desk that will handle consumer complaints and ensure adequate promotion of consumer interests.
- The grantee shall act with dispatch on all complaints brought before it.
Right of the Government (Section 8):
- The President of the Philippines has a special right, in times of war, rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, to take over and operate the distribution system of the grantee or to authorize the temporary use and operation thereof by any agency/department of the government upon due compensation to the grantee.
Tax Provisions (Section 9):
- The grantee shall be subject to the payment of all taxes, duties, fees or charges and other impositions applicable to private electric utilities under the National Internal Revenue Code (NIRC) of 1997, as amended, the Local Government Code and other applicable laws.
- The grantee shall file the return with the city where its principal place of business is located and pay the taxes due thereon to the Commissioner of Internal Revenue or his duly authorized representative in accordance with the NIRC.
- All rights, privileges, benefits and exemptions accorded to existing and future private electric utilities by their respective franchises shall likewise be extended to the grantee.
Right of Eminent Domain (Section 10):
- The grantee is authorized to exercise the right of eminent domain insofar as it may be reasonably necessary for the efficient maintenance and operation of services, subject to the limitations and procedures prescribed by law.
- The grantee is authorized to install and maintain its poles, wires and other facilities over and across public property, including streets, highways, forest reserves and other similar property of the Government of the Philippines, its branches or any of its instrumentalities.
- The grantee may acquire such private property as is actually necessary for the realization of the purposes for which this franchise is granted, provided that proper condemnation proceedings shall have been instituted and just compensation paid.
Warranty in Favor of National and Local Governments (Section 11):
- The grantee shall hold the national, provincial and municipal governments of the Philippines harmless from all claims, accounts, demands or actions arising out of accidents or injuries, whether to property or persons, caused by the construction, installation, operation and maintenance of the distribution system of the grantee.
Liability for Damages (Section 12):
- The grantee shall be liable for any injury and damage arising from or caused by accident to persons and property by reason of any defective construction under this franchise or of any neglect or omission to keep its poles and wires in a safe condition.
Nontransferability of Franchise (Section 13):
- The grantee shall not lease, transfer grant the usufruct of nor sell this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity nor merge with any other corporation or entity, nor shall the controlling interest of the grantee be transferred whether in whole or in part, and whether simultaneously or contemporaneously, to any such person, firm, company, corporation or entity without the prior approval of the Congress of the Philippines.
- Any transfer of franchise in violation of this section shall render the franchise ipso facto revoked.
Equality Clause (Section 14):
- In the event that any competing individual, partnership or corporation shall receive a similar permit or franchise with terms and/or provisions more favorable than those herein granted or which tend to place the herein grantee at any disadvantage, such terms and/or provisions shall be deemed part hereof and shall operate equally in favor of the herein grantee.
- Any term and/or provision herein granted which are not contained in other franchises that may hereafter be granted shall likewise be enjoyed by the future grantees.
- The foregoing shall neither apply to nor affect the provisions concerning territory covered by the franchise and the life span of the franchise.
Separability Clause (Section 15):
- If, for any reason, any of the sections or provisions of this Act is declared unconstitutional or invalid, the other parts or provisions hereof which are not affected thereby shall continue to be in full force and effect.
Applicability Clause (Section 16):
- The grantee shall comply with and be subject to the provisions of Commonwealth Act No. 146, as amended, otherwise known as the "Public Services Act" and Republic Act No. 9136, otherwise known as the "Electric Power Industry Reform Act of 2001".
Repealability and Non exclusivity Clause (Section 17):
- This franchise shall be subject to amendment, alteration or repeal by the Congress of the Philippines when the public interest so requires and shall not be interpreted as an exclusive grant of the privileges herein provided for.
Reportorial Requirement (Section 18):
- The grantee shall submit an annual report of finances and operations to the Congress of the Philippines.
Renewal/Extension of the Term of Franchise (Section 2):
- The term of the franchise granted under Republic Act No. 2341, as amended, is hereby extended/renewed for a period of twenty-five (25) years from the date of effectivity of this Act.
- This franchise shall be deemed ipso facto revoked in the event that the grantee fails to operate continuously for two years.
Acceptance and Compliance (Section 3):
- Acceptance of the amendment and extension/renewal of the franchise shall be given in writing within sixty (60) days from the date of effectivity of this Act.
Repealing Clause (Section 4):
- All laws, decrees, orders, resolutions, instructions and rules and regulations or parts thereof, which are inconsistent with this Act, are hereby deemed repealed or modified accordingly.
Effectivity Clause (Section 5):
- This Act shall take effect fifteen (15) days from the date of its publication, upon the initiative of the grantee, in at least two newspapers of general circulation in the Philippines.
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AN ACT FURTHER AMENDING THE FRANCHISE OF ANGELES ELECTRIC CORPORATION GRANTED UNDER REPUBLIC ACT NO. 2341
Republic Act No. 9381
•March 9, 2007
Republic of the Philippines
Congress of the Philippines
Metro Manila
Thirteenth CongressFirst Regular Session
Begun and held in Metro Manila, on Monday, the twenty-fourth day of July, two thousand and six.
Republic Act No. 9381            
AN ACT FURTHER AMENDING THE FRANCHISE OF ANGELES ELECTRIC CORPORATION GRANTED UNDER REPUBLIC ACT NO. 2341, AS AMENDED, TO CONSTRUCT, OPERATE AND MAINTAIN A DISTRIBUTION SYSTEM FOR THE CONVEYANCE OF ELECTRIC POWER TO THE END-USERS IN THE CITIES OF ANGELES, PROVINCE OF PAMPANGA AND RENEWING /EXTENDING THE TERM OF THE FRANCHISE TO ANOTHER TWENTY-FIVE (25) YEARS FROM THE DATE OF APPROVAL OF THIS ACT
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. The franchise granted to Angeles Electric Corporation, under Republic Act No. 2341, 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 Angeles Electric Corporation, hereunder...
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