Act No. 3491

 

 

AN ACT

GRANTING TO THE MUNICIPALITY OF ISABELA, PROVINCE OF OCCIDENTAL NEGROS, PHILIPPINE ISLANDS, A FRANCHISE TO INSTALL, OPERATE, AND MAINTAIN AN ELECTRIC LIGHT, HEAT, AND POWER SYSTEM

 

Be it enacted by the Senate and House of Representatives of the Philippines in Legislature assembled and by the authority of the same:

 

SECTION 1.  Subject to the conditions established in this Act and the provisions of Act Numbered Thirty-one hundred and eight and its amendments applicable thereto, there is hereby granted to the municipality of Isabela, Province of Occidental Negros, Philippine Islands, for a period of fifty years from the 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 distributing electric light, heat, and power for sale within the limits of the municipality of Isabela, Province of Occidental Negros.  The grantee shall further have the right and privilege to install, lay, and maintain on all the streets, public thoroughfares, bridges, and public places within said limits, poles, conductors, interrupters, transformers, cables, wires, and other overhead appliances, and all other necessary apparatus and appurtenances for the furnishing and distribution of electric current, and to supply, sell, and furnish such current to any person, corporation, or public or private concern within said limits for municipal, domestic or manufacturing uses and for any other use to which electricity may be put, and to charge and collect a schedule of prices and conventional rates for the use of same:  Provided, That the grantee shall not exercise any right or privilege under this concession nor commence any construction thereunder unless and until it shall have obtained from the Public Service Commission a certificate showing the public necessity and convenience of the exercise of such rights and privileges and such construction, in accordance with Act Numbered Thirty-one hundred and eight, as amended, and shall have filed such certificate with the Secretary of Commerce and Communications upon accepting the terms and conditions of this franchise:  And provided, further, That if the grantee does not file the proper application for said certificate with the Public Service Commission within three months from the date of the approval of this Act, this franchise shall become null and void.

 

SEC. 2.  The poles erected by the grantee shall be of such a height as to maintain the wires stretched on the same at a distance of at least twenty feet above the level of the ground, and shall be of such appearance as not to disfigure the streets, and shall be placed with due regard for the public safety so as not to be a danger for the same, in accordance with a plan approved by the provincial authorities, represented by the provincial governor, and said grantee shall supply electric power, heat, and light to any applicant for the same, within fifteen days after the date of his application, and as between such applicant and other like applicants, in the order of the date of his application, up to the limit of the capacity of the plant of said grantee, to be determined by the electrical engineer of the Public Service Commission on the application of said grantee; and should the demand for electric power, heat, and light at any time increase beyond the capacity of the plant of said grantee to supply the same, the capacity of said plant shall be increased by said grantee to meet such demand, as the Public Service Commission or its legal successor may decide:  Provided, however, That in case the point at which the electric light, heat, or power is to be supplied, is more than thirty meters from the lines or wires operated by said grantee, the latter shall not be obliged to furnish said service.

 

SEC. 3.  All apparatus and appurtenances used by the grantee shall be modern and first class in every respect, and said wires shall be insulated and carefully connected and fastened so as not to come in direct contact with any object through which a “ground” could be formed, and shall be stretched so as not to interfere with the free use of said streets and public thoroughfares nor cause any injury to the public, danger of fire, or damage and inconvenience to the owners of property:  Provided, That in the maintenance and operation of its plant and system for the transmission and distribution of electric current, the grantee shall always be subject to such reasonable regulations as the provincial board of Occidental Negros may promulgate in the premises, and also to the regulations prescribed by the “National Electric Code” of America:  Provided, further, That the grantee shall, whenever the Philippine Legislature, upon recommendation of the Public Service Commission or its legal successor, so directs, place said wires in underground pipes or conduits at its own expense.

 

SEC. 4.  Whenever it shall be necessary in the erection of said poles to take up any portion of the sidewalks or dig up the ground of the public streets or thoroughfares, then the said grantee shall, after said poles are erected, without delay replace said sidewalks in the proper manner or arrange said streets or public thoroughfares, removing from the same all rubbish, dirt, refuse, or other material which may have been placed there, taken up or dug up in the erection of said poles, leaving them in as good condition as they were before the work was done; and whenever it shall become necessary, by reason of the extension of roads determined upon by the provincial board of Occidental Negros, or by reason of the extension of streets or plazas determined upon by the municipal council of Isabela, to change the location of said poles, such change shall be made by the grantee, its successors or assigns, at their expense, without delay, and said poles shall be placed where directed by said provincial board or said municipal council.

 

SEC. 5.  Whenever any person has obtained permission to use any of the streets or public thoroughfares of the municipality of Isabela for the purpose or removing any building or in the prosecution of any municipal work or for any other cause, making it necessary to raise or remove any of said poles or electric wires which may obstruct the removal of said building or hinder the prosecution of said work, the said grantee, upon written notice by the provincial governor of Occidental Negros, served upon said grantee at least forty-eight hours in advance, shall raise or remove any of said wires which may hinder the prosecution of such work or obstruct the removal of said building so as to allow the free and unobstructed passage of said building and the free and unobstructed prosecution of said work, and the person or entity at whose request the building has been moved or the construction undertaken, shall pay one-half of the actual cost of removing or raising and of replacing the poles, wires, and other overhead or underground conductors.  The notice shall be served in the usual form; and in case of the refusal or failure of the grantee to comply with such notice, the said provincial governor, with the proper approval of his provincial board first had, shall order such poles or wires to be raised or removed at the expense of said grantee, for the purposes aforesaid.

 

SEC. 6.  The grantee shall be liable for any injury arising from any claims caused by accidents to person or property by reason of the construction under this franchise or of any neglect or omission to keep the said poles and wires in a safe condition.

 

SEC. 7.  The grantee shall file its acceptance of this franchise with the Secretary of Commerce and Communications within one hundred and twenty days from the date when it obtained the certificate required by section one of this Act and shall commence work under the supervision and subject to the approval of the electrical engineer of the Public Service Commission and in accordance with the plan, specifications, and estimate previously approved by said Public Service Commission, within six months’ time from and after the date of filing such acceptance, unless prevented by act of God or force majeure, usurped or military power, martial law, riot, or civil commotion or other inevitable cause, and shall complete the system and have the same in operation within eighteen months from the date of such acceptance, and shall thereafter maintain a first-class electric light, heat, and power service:  Provided, That the time during which such grantee has been prevented by any of the causes above referred to from carrying out the terms and conditions of this franchise, shall be added to the time granted by this franchise for the fulfillment of its conditions:  Provided, further, That in case of the lease, conveyance, sale, assignment, or giving in usufruct of this franchise and all the property and rights acquired thereunder to any person, association, company, or corporation, the assignee shall pay quarterly into the municipal treasury of Isabela, Occidental Negros, two per centum of the gross earnings of its electrical business during the remainder of the life of this franchise.

 

SEC. 8.  This franchise is granted with the understanding and upon the condition that it shall be subject to amendment, alteration, or repeal by the Congress of the United States as provided in section twenty-eight of the Act of Congress approved August twenty-ninth, nineteen hundred and sixteen, entitled “An Act to declare the purpose of the people of the United States as to the future political status of the people of the Philippine Islands, and to provide a more autonomous government for those Islands,” or by the Philippine Legislature, and that it shall be subject, in all respects, to the limitations upon corporations and the granting of franchises contained in said Act of Congress, and that all lands or rights of use or occupation of lands secured by virtue of this franchise shall revert upon its termination to the Insular or provincial governments which were the owners thereof upon the date on which this franchise was granted, and all property of the grantee used in connection with this franchise shall become the property of the Insular Government.

 

SEC. 9.  In case the grantee sells, conveys, leases or gives in usufruct this franchise to any association, company, or corporation, the assignee shall be forbidden to issue stock or bonds under this franchise except in exchange for actual cash or for property at a fair valuation equal to the par value of the stock or bonds issued and upon prior authority of the Public Service Commission.  Nor shall said assignee declare any stock or bond dividend.

 

SEC. 10.  The books and accounts of the electrical business of the grantee shall be kept in accordance with the uniform accounting system prescribed by the Commission and shall be subject to inspection by the provincial treasurer of Occidental Negros, and in case of the lease, conveyance, sale, assignment, or giving in usufruct of this franchise and the property and rights acquired thereunder to any person, association, company or corporation, the assignee shall submit to said provincial treasurer quarterly reports in duplicate showing the gross receipts for the quarter past and the general condition of the business, one of which shall be forwarded by the provincial treasurer to the Insular Auditor.

 

SEC. 11.  In case of the lease, conveyance, sale, assignment or giving in usufruct of this franchise and the property and rights acquired thereunder to any person, association, company, or corporation, the assignee shall pay on its real estate, buildings, plant, machinery, and other personal property the same taxes as are now or may hereafter be required by law from other persons.

 

SEC. 12.  The grantee herein shall not, without the approval of the Philippine Legislature first had, lease, grant, sell, convey or give in usufruct this franchise and the property and rights acquired thereunder to any person, association, company or corporation:  Provided, That for the purpose of such lease, granting, sale, conveyance, or giving in usufruct, it shall be necessary to file in the office of the Secretary of Commerce and Communications an agreement in writing by which the person, association, company, or corporation in whose favor such lease, grant, sale, conveyance, or giving in usufruct is made, shall bind himself to comply with all the terms and conditions imposed upon the grantee by this franchise and to accept the same subject to all existing terms and conditions.

 

SEC. 13.  The Public Service Commission or its legal successor, after hearing the interested parties, upon notice and order in writing, shall have the power to declare the forfeiture of this franchise and all rights inherent in the same for failure on part of the grantee to comply with any of the terms and conditions thereof, unless such failure shall be directly and primarily due to any of the causes cited in section seven of this Act.  Against such declaration of forfeiture by the Public Service Commission or its legal successor, the grantee may apply for the remedies provided in section thirty-five of Act Numbered Thirty-one hundred and eight as amended.

 

SEC. 14.  The rates for the light service, flat rate as well as meter rate, fixed by the grantee, shall always be subject to regulation by Act of the Philippine Legislature or by the authorities authorized by law, and shall in no case be in excess of forty centavos per kilowatt hour.

 

SEC. 15.  Wherever in this franchise the term “grantee” is used, it shall be held and understood to mean and represent the municipality of Isabela, Province of Occidental Negros, its representatives, successors, or assigns.

 

SEC. 16.  This Act shall take effect on its approval.

 

Approved, December 8, 1928

 

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