REPUBLIC ACT No. 3043
AN ACT TO FURTHER AMEND COMMONWEALTH ACT NUMBERED ONE HUNDRED TWENTY, AS AMENDED BY REPUBLIC ACT NUMBERED TWENTY-SIX HUNDRED AND FORTY-ONE.
Section 1. Section two-A of Commonwealth Act Numbered One hundred twenty, as such section was inserted therein by Republic Act Numbered Twenty-six hundred and forty-one, is hereby amended to read as follows:
"Sec. 2-A. The National Power Corporation shall have an authorized capital stock of two hundred and fifty million pesos divided into two and one-half million shares having a par value of one hundred pesos each, which shares may not be transferred, negotiated, pledged, mortgaged, or otherwise given as security for the payment of any obligation. The said capital stock shall be subscribed wholly by the Government of the Philippines and shall be paid as follows:
"The sum of eighty-two million pesos advanced to the National Power Corporation by the Government of the Philippines pursuant to the provisions of Republic Act Numbered Two hundred sixty-six shall be the paid-in subscription for eight hundred twenty thousand...
Details
Amends
n/a
Amended by
n/a
Republic Acts
AN ACT TO FURTHER AMEND COMMONWEALTH ACT NUMBERED ONE HUNDRED TWENTY
Republic Act No. 3043
Summary of Republic Act No. 3043
Amendments to the National Power Corporation's Capital Stock
- The authorized capital stock of the National Power Corporation is increased to 250 million pesos, divided into 2.5 million shares with a par value of 100 pesos each. (Section 1)
- The shares cannot be transferred, negotiated, pledged, mortgaged, or used as security for payment of obligations. (Section 1)
- The Philippine government will fully subscribe to the capital stock, paid as follows:
- 82 million pesos advanced by the government under Republic Act No. 266 will be paid-in subscription for 820,000 shares. (Section 1)
- 10 million pesos surplus of the National Power Corporation will be capitalized and paid-in subscription for 100,000 shares. (Section 1)
- The remaining 158 million pesos will be paid through conversion of existing bonded indebtedness into equity capital, surpluses of the Corporation, and bond issues for specific projects approved by the President. (Section 1)
- Interest on the bonded indebtedness incurred by the government to capitalize the National Power Corporation will be paid by the Corporation from its net earnings after project completion. Interest up to July 1, 1970, will be capitalized as additional authorized capital. (Section 1)
- From July 1, 1970, the National Power Corporation shall begin redeeming the additional capital of 158 million pesos at a yearly sinking fund rate as provided in Section 4 of Commonwealth Act No. 120. (Section 1)
Investment Allocation
- The National Power Corporation shall invest 30% of the additional capital in projects in the Visayas, 35% in Luzon, and 35% in Mindanao, Sulu, and Palawan. (Section 2)
Regulation of Franchise Holders
- The National Power Corporation is authorized to represent and transact for the benefit of public consumers. (Section 3)
- In contracts for power supply to franchise holders receiving at least 50% of their power from the National Power Corporation, the franchise holder shall not realize a net profit of more than 12% annually of its investments plus two-month operating expenses. (Section 3)
- The National Power Corporation shall renew existing contracts with franchise holders to give effect to this provision. (Section 3)
- If the net profit verified by the Public Service Commission exceeds 12%, the excess shall be returned pro rata to customers either in cash or as credit for future electric bills. (Section 3)
Transmission Lines
- Transmission lines from the National Power Corporation's power plant or main substation to the substation serving a power distributor shall be at the expense of the National Power Corporation, and no rent or charge shall be imposed without prior agreement. (Section 4)
Procurement Preference
- In purchasing machineries, equipment, supplies, and materials for projects under this Act, priority shall be given to Filipino companies or entities manufacturing the same, all things being equal. (Section 5)
Effectivity
- This Act shall take effect upon its approval. (Section 6)
Amendments to the National Power Corporation's Capital Stock
- The authorized capital stock of the National Power Corporation is increased to 250 million pesos, divided into 2.5 million shares with a par value of 100 pesos each. (Section 1)
- The shares cannot be transferred, negotiated, pledged, mortgaged, or used as security for payment of obligations. (Section 1)
- The Philippine government will fully subscribe to the capital stock, paid as follows:
- 82 million pesos advanced by the government under Republic Act No. 266 will be paid-in subscription for 820,000 shares. (Section 1)
- 10 million pesos surplus of the National Power Corporation will be capitalized and paid-in subscription for 100,000 shares. (Section 1)
- The remaining 158 million pesos will be paid through conversion of existing bonded indebtedness into equity capital, surpluses of the Corporation, and bond issues for specific projects approved by the President. (Section 1)
- Interest on the bonded indebtedness incurred by the government to capitalize the National Power Corporation will be paid by the Corporation from its net earnings after project completion. Interest up to July 1, 1970, will be capitalized as additional authorized capital. (Section 1)
- From July 1, 1970, the National Power Corporation shall begin redeeming the additional capital of 158 million pesos at a yearly sinking fund rate as provided in Section 4 of Commonwealth Act No. 120. (Section 1)
Investment Allocation
- The National Power Corporation shall invest 30% of the additional capital in projects in the Visayas, 35% in Luzon, and 35% in Mindanao, Sulu, and Palawan. (Section 2)
Regulation of Franchise Holders
- The National Power Corporation is authorized to represent and transact for the benefit of public consumers. (Section 3)
- In contracts for power supply to franchise holders receiving at least 50% of their power from the National Power Corporation, the franchise holder shall not realize a net profit of more than 12% annually of its investments plus two-month operating expenses. (Section 3)
- The National Power Corporation shall renew existing contracts with franchise holders to give effect to this provision. (Section 3)
- If the net profit verified by the Public Service Commission exceeds 12%, the excess shall be returned pro rata to customers either in cash or as credit for future electric bills. (Section 3)
Transmission Lines
- Transmission lines from the National Power Corporation's power plant or main substation to the substation serving a power distributor shall be at the expense of the National Power Corporation, and no rent or charge shall be imposed without prior agreement. (Section 4)
Procurement Preference
- In purchasing machineries, equipment, supplies, and materials for projects under this Act, priority shall be given to Filipino companies or entities manufacturing the same, all things being equal. (Section 5)
Effectivity
- This Act shall take effect upon its approval. (Section 6)