H. No. 16174 / 65 OG No. 25, 6364 (June 23, 1969)

[ REPUBLIC ACT NO. 5360, June 15, 1968 ]

AN ACT GRANTING A FRANCHISE FOR AN ELECTRIC LIGHT, HEAT AND POWER SYSTEM TO PANAY ELECTRIC COMPANY, INC. IN THE CITY OF ILOILO, AND IN THE MUNICIPALITIES OF SANTA BARBARA AND PAVIA, BOTH IN THE PROVINCE OF ILOILO.

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled;SECTION 1. Subject to the provisions of the Constitution and to the terms and conditions established in Act Numbered Thirty-six hundred thirty-six, as amended by Commonwealth Act Numbered One hundred thirty-two, there is granted to Panay Electric Company, Inc. for a period of twenty-five years  from the  date  of  approval  of this Act, the right, privilege and authority to construct, maintain and operate an electric light, heat and power system for  the purpose of generating and/or distributing electric light, heat and/or power for sale within the City of Iloilo and the municipalities of Santa Barbara and Pavia, both in the Province of Iloilo. The grantee shall further have the right and privilege  to  install,  lay  and maintain  on all streets, public thoroughfares, bridges and public places within said limits, poles, wires, transformers, capacitors, lead protective devices, and pole line hardware, and other equipment necessary  for  the  safe   distribution of electric current to the public.SEC. 2. In the event that the National Power Corporation shall have established its line in the areas adjacent  to or over the territory covered by this franchise, the  National Power Corporation may make available its power and  heat  only  after negotiations  with  and  through or with the authority  and  consent  of the  grantee which shall be the exclusive distributor of whatever power the  aforenamed corporation may make available adjacent or within the territory covered by this franchise.SEC.  3. The  rates  for  the  sale  of electric  light,  heat and/or power shall  be subject to the  regulation by the Public Service Commission.SEC. 4. It is expressly  provided  that   in the event the Government should desire to operate and maintain for itself  the   system   and   enterprise   herein   authorized,   the  grantee shall surrender its franchise and will turn over to the government all equipment therein at fair market value.SEC.  5. In   consideration   of  the   franchise   and  rights hereby granted, the grantee shall pay a franchise tax equal to  two  per  centum  of  the   gross   earnings  for  electric current  sold   under   this   franchise:  Provided,  That the said franchise tax of two per centum of the gross earnings shall be in lieu of taxes, duties and assessments, licenses and fees  of whatever nature  and  which  may be levied by any governmental  authority now  and  in  the future upon privileges, earnings, income, machinery and equipment, watt-hour meters, poles,  wires, transformers, and  insulators used by the grantee, from which taxes, duties, licenses,   fees   and   assessments   the   grantee   is   hereby expressly exempted.SEC. 6. Upon   approval   of   this  Act,  Acts   Numbered Twenty-nine   hundred   and   eighty-three   and   Thirty-six hundred   and   sixty-five   are   hereby   repealed   and   this franchise shall be in lieu thereof.SEC. 7. This Act shall take effect upon its approval.Enacted without Executive approval, June 15, 1968.

Source: Supreme Court E-Library