[ Act No. 3078, March 16, 1923 ]

AN ACT GRANTING TO "THE LAOAG- ELECTRIC LIGHT AND POWER COMPANY" A FRANCHISE TO INSTALL, OPERATE, AND MAINTAIN AN ELECTRIC LIGHT, HEAT, AND POWER SYSTEM IN THE MUNICIPALITY OF LAOAG, PROVINCE OF ILOCOS ITORTE, PHILIPPINE ISLANDS

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 Twenty-three hundred and seven and amendments thereof, applicable thereto, there is hereby granted to "The Laoag Electric Light and Power Company," 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 Laoag, Province of Ilocos Norte. 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  this franchise  shall not take  effect until the grantee shall have obtained from  the Public Utility Commission a certificate showing the public necessity  and convenience of the same, in accordance with  the purpose of section twenty-three of  Act Numbered  Twenty-three  hundred and seven, as amended, and shall have filed such certificate with the Secretary of Commerce and Communications upon accepting this franchise: And provided, further, That if the grantee does not file the proper application for said certificate with the Public Utility Commission within three months from the date of the approval of this Act, this franchise shall become null and void.SEC.  2. The concession of  the right,  privilege, and authority mentioned in the preceding section shall  not  take effect unless the grantee shall accept in writing and make part of this concession the following condition, to wit:

"That the grantee state in writing that it is informed of the message of the President of the United States addressed to the Filipino people and communicated to said people by the Governor-General of the Philippine Islands on the sixth day  of October, nineteen hundred and thirteen, and of the reply  message  of the  Philippine  Assembly made  in the name of the Filipino people and approved and sent on October  sixteenth, nineteen hundred  and thirteen;  that  said grantee binds itself not to  engage in or aid, by means of contribution in cash or otherwise,  any propaganda directed against the policy of the Government of the United States outlined in  such message of the President  and the aspirations of the Filipino people  set forth in said reply  message of the Philippine Assembly, whether under the pretext of vested interest  or  under  any  other  pretext, and  that said grantee shall further bind itself to  exact a similar engagement from its administrators, agents,  successors,  and assigns.

SEC.  3. 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  or municipal authorities  concerned,  represented by  the  provincial governor or the municipal president,  as the case may be, and said grantee shall supply electric power, heat, and light  to  any applicant  for  the same, within fifteen days after the date of its 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 Utility 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, in accordance with the decision of the Public Utility Commission  or its legal successor: 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. 4. 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 the plant and system for the transmission and distribution ox electric current, the grantee shall always be  subject to such reasonable regulations as the municipal council of Laoag and the Provincial  Board of Ilocos Norte may promulgate  in the premises, and also to the regulations prescribed by  the National  Electrical Code of  Fire  Underwriters  Rules  of America:  Provided, further, That the grantee shall, whenever the Philippine Legislature, upon recommendation of the Public Utility Commission or its legal successor,  so directs, place said  wires in underground  pipes  or conduits at its own expense, and without any cost and prejudice to the municipality of Laoag.SEC.  5. 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 Ilocos Norte, or  by  reason of the extension of  streets  or plazas  determined upon by  the municipal  council of Laoag, 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. 6. Whenever any person has obtained  permission to  use  any of the streets or  public thoroughfares of the municipality of  Laoag for the purpose of removing any building or in the prosecution of any municipal work or for any other just  cause whatsoever,  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 municipal president of  said municipality, 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 municipal president, with  the proper approval of the municipal council first had, shall order such poles or wires to be raised or removed at the expense of said grantee, for the  purposes  aforesaid: Provided,  however,  That  the grantee may appeal from any such decision to the  Provincial Board of Ilocos Norte, whose decision shall be final.SEC. 7.  The  grantee  shall  be liable to the  municipality of Laoag 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. 8.  Said grantee shall file his written acceptance of this franchise with the Secretary of Commerce and Communications within one hundred and twenty days from the date when he 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 Utility Commission, in accordance  with the plan, specifications, and estimates previously  approved by the  Public  Utility 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 in consideration  of the  franchise hereby  granted, ' the grantee shall pay quarterly into the municipal treasury of Laoag, one per centum of the gross earnings of his electrical business during the first twenty years, and  two per centum during the remaining thirty years of the life of this franchise.SEC. 9. Upon the acceptance of this franchise as provided in the last preceding section, the grantee shall deposit in the Insular Treasury  or with any of its agents in the Province of Ilocos Norte, one thousand pesos, or negotiable bonds of the United States or other securities approved by the Secretary of Commerce and Communications, of the face value of one thousand  pesos, as an earnest of good faith and a guarantee that he will begin the electric light, heat, and power business and may be completely provided with the necessary equipment therefor and ready to begin operation in  accordance  with the  terms of this franchise: Provided, however, That if such deposit is in cash, it may be made in some official depository of the Government in the name of the grantee and subject to the order of the Insular Treasurer, who shall retain the evidence of the deposit so made.   In this case, as well as in the  case of the deposit being made in negotiable bonds or other securities, as provided in this  section,  the  interest of the cash deposit or of the bonds or securities deposited, if any, shall belong to the grantee.In case such grantee shall fail, refuse, or neglect, unless prevented by fortuitous cause or force  majeure, the public enemy,  usurped or military power, martial law, riot, civil commotion, or other inevitable cause, to commence the work for the  electric light,  heat, and power service within six months  from the date  of the acceptance of this franchise, or shall fail to  provide the necessary equipment and be ready to operate within eighteen months  after the date of such acceptance, in accordance  with the terms of this franchise, then the-deposit  prescribed in this section and in the possession of the Insular Treasurer, whether in cash, bonds, or other securities, shall be forfeited to the provincial government of Ilocos  Norte, as damages for the breach of the implied  contract  involved  in the  acceptance of this franchise.   In  case the grantee begins to operate the electric light, heat, and power service, and is ready for operation under this franchise, within the time limits specified, the deposit  provided for in this section shall, upon recommendation by the Public Utility Commission or its legal  successor, be returned by the Insular Treasury to said grantee: 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.SEC.  10. The municipality of Laoag shall have  the privilege, without  compensation,  of  using the poles  of  the grantee  for the  purpose   of installing, maintaining,  and operating a police  telephone and fire alarm system; but the wires of such telephone or alarm system shall be placed and stretched in such manner as to cause no interference with or damage to the wires of the electric service of the grantee.SEC.  11. 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, provincial, or municipal 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.  12. The grantee of this  franchise is  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 Utility Commission.   Nor shall said grantee declare any stock or bond dividend.SEC. 13. The books  and accounts of the grantee  shall always be open to the inspection of the provincial treasurer of Ilocos Norte or his authorized representative,  and it shall  be the duty of the grantee to submit to the provincial treasurer quarterly reports in duplicate showing the gross receipts  and the net 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, who shall keep the same on file.SEC. 14. The grantee shall pay on his 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. 15. The grantee herein shall not, without prior authorization of the Philippine Legislature,  lease, grant, sell, convey, or give in usufruct this franchise and all property and rights acquired thereunder to any person  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 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. 16. The Public Utility 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  have been directly and primarily  caused by the act of God, the public enemy, or force majeure.  Against such declaration of forfeiture by the Public Utility Commission or its legal successor, the grantee may apply for the remedies provided in sections thirty and thirty-one of Act Numbered Twenty-three hundred and  seven, as amended.SEC. 17. At any time after twenty years from the date of this Act,  the Government of the  Philippine Islands or any political subdivision thereof to which the right may be assigned, may purchase, and the grantee, shall sell thereto all of his plant, poles, wires, buildings, real estate, and all other property used in the enjoyment of this  franchise, at a valuation based upon the net earnings of the grantee, the valuation to be determined, after  hearing evidence,  by the Supreme Court  of the Islands, sitting as  a board of arbitrators, whose decision, by a majority of the  members thereof, shall be final.SEC. 18. 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 entities authorized by law, and shall in no case be in excess of thirty centavos per kilowatt hour: Provided, That  only subscribers who have more than eight outlets  installed in one building shall be entitled to be furnished with a meter. SEC. 19. Wherever in this franchise the term "grantee" is used, it shall be held and understood to mean and represent "The Laoag Electric Light and Power Company," its representatives, successors, or assigns.SEC. 20. This Act shall take effect on its approval. Approved, March  16,  1923.

Source: Supreme Court E-Library