AN ACT GRANTING A FRANCHISE FOR AN ELECTRIC LIGHT

Case Overview and Summary

Summary of Republic Act No. 6013

Granting of Franchise
- Leopoldo T. Calderon, Jr. is granted a franchise for 25 years to construct, operate and maintain an electric light, heat and power system in the Municipality of Pulilan, Province of Bulacan. (Section 1)
- He has the right to install necessary equipment on streets, public thoroughfares, bridges and public places within the municipality. (Section 1)

Power Purchase and Rates
- If the grantee purchases energy and power from the National Power Corporation or the Manila Electric and Railway Company, the latter is authorized to negotiate and transact for the benefit of public consumers with reference to rates. (Section 2)
- The rates for the sale of electric light, heat and power shall be subject to regulation by the Public Service Commission. (Section 3)

Taxes and Franchise Tax
- The grantee shall pay the same taxes as other persons or corporations, unless exempted, on his business, real estate, buildings, and personal property, exclusive of this franchise. (Section 4)
- The grantee shall pay a franchise tax equal to 5% of the gross earnings for electric current sold under this franchise, with 3% accruing to the national government and 2% to the municipality where it is operating. (Section 5)

Effectivity
- This Act shall take effect upon the expiration of the municipal franchise previously granted to Leopoldo T. Calderon, Jr. (Section 6)