PHILIPPINE LAWS, STATUTES, CODES & ISSUANCES
PHILIPPINE LAWS, STATUTES AND CODES
REPUBLIC ACTS
REPUBLIC ACT NO. 1979 - AN
ACT GRANTING THE MUNICIPALITIES OF TAYUG, SAN NICOLAS, ASINGAN,
UMINGAN, AND SAN QUINTIN, PROVINCE OF PANGASINAN, A FRANCHISE EACH FOR
AN ELECTRIC LIGHT, HEAT AND POWER SYSTEM |
Section
1. Subject to the terms and conditions established in
Act Numbered Thirty-six hundred and thirty-six, as amended by
Commonwealth act Numbered one hundred and thirty-two, and to the
provisions of the Constitution, there is granted to the municipalities
of Tayug, San Nicolas, Asingan, Umingan, and San Quintin, Province of
Pangasinan, for a period of twenty-five 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/or power for sale
within the said municipalities, respectively.
Sec. 2. Rates for electricity � Limit of net
profit. � The rates for electricity shall be fixed so that the grantees
obtain profit of not more than six per centum per annum of the rate
base as defined herein: Provided, That no grantee shall start operation
unless the original rate shall have been previously approved by the
Public Service Commission: Provided, further, That the grantee which
shall have reported profits in excess of six year per centum per annum
for the first year of its operation shall effect immediate reduction in
its existing rates by a percentage which the reported profits in excess
of six per centum per annum bear to the reported revenue in that year:
Provided, further, That during each succeeding year, the grantee
reporting profits still in excess of six per centum per annum,
notwithstanding the rate reduction of the immediately preceding year,
shall effect reduction in rates by a percentage which the reported
profits in excess of six per centum per annum during the preceding year
bear to the reported revenue of the same year, such reduction to be
made not later than April first of each year retroactive to January
first of the same year: Provided, further, That where the applicable
reduction to customers will mean less than one per centum reduction in
the prevailing rates or will include such a fraction, no reduction in
rates shall be made to the extent of such fraction but such amount
shall be placed in a special fund of the grantee available only for the
improvement and expansion of the system: Provided, further, That the
reduction to be effected by the grantee in accordance with the next
preceding proviso shall not be conclusive but may be further increased
at such rates as shall be found justifiable in the verifications that
shall be undertaken by the Public Service Commission, with the
cooperation of the General Auditing Office and such other agencies of
the Government as the President may designate, of the rate base of the
revenue, and of the operating expenses: Provided, further, That any
violation of any provision of this section, including inflation of the
rate base, padding of operating expenses, and understatement of
revenues, shall be penalized with dismissal from the office, and by
imprisonment for not less than one year and not more than five years,
of the public officers and employees responsible for the violation,
without prejudice to the civil liability of the grantee concerned to
the consumers in double the amount of the over charge plus attorneys
fees and costs of litigation, which liability may be enforced
independently of the criminal action arising from the same act.
Sec. 3. Records of assets, liabilities, capital,
income, etc. � The grantees shall make and keep complete records of
their assets, liabilities, capital, revenues, expenses, income, and
operations in accordance with a detailed system of accounts which shall
embody the cost principle as defined in section five hereof, and which
shall be prescribed by the Public Service Commission or its legal
successor, and such accounting system shall conform to the system
approved by the Auditor General. The grantees shall account for
retirements or replacements of, or additions to, their properties
according to a classified list of units of property which the Public
Service Commission or its legal successor shall prescribe. Until the
Public Service Commission or its legal successor prescribes the
aforementioned list of units of property, the grantees may adopt their
own lists of properties which they shall submit to the Public Service
Commission or its legal successor for approval.
Sec. 5. Definition of terms. � For purposes of
this Act, the following terms are defined as follows: "Cost" means the amount of money
actually paid for property or services or their cash value at the time
of the transaction.
"Units of property" means those items of property which when retired, with or without replacement, are accounted for by crediting the book cost thereof to the property account in which included. "Straight-line method" of depreciation means the spreading of depreciation of depreciable property in equal amounts monthly over its estimated service life. "Rate base" means the money honestly and prudently invested in the used and useful property and equipment less accrued depreciation plus one-twelfth of the annual case operating expenses as working capital. Sec. 6. Limit of operating expenses, quality of service. � The grantees shall abide by the limit of operating expenses that the Public Service Commission or its legal successor may impose and shall comply with the safety rules and render the quality of service which said Commission may provide. Sec. 7. Power to borrow from government banking institutions.� In order to finance their projects, the grantees are empowered to borrow from any financial institution or incur indebtedness in excess of its borrowing capacity, notwithstanding any provision of law to the contrary.
Sec. 8. Administration of franchise on
non-partisan basis. � The franchise granted herein shall be
administered entirely on a non-partisan basis, and in the appointment
of officials, selection of employees and promotion of any such
officials or employees, no political test or qualification shall be
permitted or given consideration, but all such appointments and
promotions shall be given and made on the basis of merit and
efficiency. The benefits of this franchise shall be made available
without discrimination to any person, group or association,
irrespective of color, race, creed, religion or political
party.
Section 10. Penal Provisions. � Any public officer or
employee found directly or indirectly responsible for the use of the
net profit of any grantee for any purpose other than the improvement
and expansion of the system shall be punished by a fine of not more
than five thousand pesos or imprisonment for not more than two years,
or both. Section 11. Repeal or modification of other laws, executive orders, etc. � All laws or parts of laws and all executive orders, rules and regulations or parts thereof inconsistent with the provisions of this Act are repealed or modified accordingly.
Section 12. Separability clause. � If any provision
of this Act or the application of such provision to any person or
circumstance is declared invalid, the remainder of the Act or the
application of such provision to other persons or circumstances shall
not be affected by such declaration. Approved: June 22, 1957 |