Grant of Electric Light, Heat and Power System Franchise to Gapan Rural Electric Service Cooperative, Inc.

June 19, 1971

REPUBLIC ACT NO. 6252

AN ACT GRANTING GAPAN RURAL ELECTRIC SERVICE COOPERATIVE, INC. A FRANCHISE FOR AN ELECTRIC LIGHT, HEAT AND POWER SYSTEM IN THE BARRIOS OF SANTO CRISTO SUR, MALIMBA, SAN ROQUE AND A PORTION OF SANTO CRISTO NORTE, ALL LOCATED IN THE MUNICIPALITY OF GAPAN, IN THE PROVINCE OF NUEVA ECIJA

SECTION 1. Subject to the terms and conditions established in Act Numbered Thirty-six hundred thirty-six, as amended by Commonwealth Act Numbered One hundred thirty-two, except with reference to the fixing of the schedule of prices and rates, and to the provisions of the Constitution, there is granted to Gapan Rural Electric Service Cooperative, Inc., for a period of twenty-five years from the approval of this Act, the right, privilege and authority to install, maintain and operate an electric light, heat and power system for the purpose of generating and distributing electric light, heat and power for sale to its members in the barrios of Santo Cristo Sur, Malimba, San Roque and a portion of Barrio Santo Cristo Norte, all located in the Municipality of Gapan in the Province of Nueva Ecija: Provided, That existing connections of the Gapan Electric Corporation and its future connections to non-members of Gapan Rural Electric Service Cooperative, Inc., in the Barrio of Santo Cristo Norte shall be excluded from this franchise. acd

SECTION 2. The Cooperative shall operate according to the "area-coverage" principle; shall be "non-profit" and pursuant to Section four of Republic Act Numbered Six thousand thirty-eight, shall be exempt from all taxes, duties, and fees of whatever kind and nature.

"Area-coverage" means that if a person lives in the territory of a rural electric system, he can receive electric service regardless of how remote he may be from the nearest other consumer. The rural electric cooperative does not figure the cost of serving him alone, and whether the cost of such service would make that particular service unprofitable; rather, the feasibility of providing him service is based on the system as a whole, taking into consideration all the consumers of a group.

"Non-profit" means that the Cooperative shall be operated without profit to its members, but the rates, fees, rents or other charges for electric energy and other facilities, supplies, equipment or services furnished by the Cooperative shall be sufficient at all times: (a) to pay all operating and maintenance expenses necessary or desirable for the prudent conduct of its business and the principal of and interest on the obligations issued or assumed by the Cooperative in the performance of the purposes for which it was organized; and (b) for the creation of reserves. casia

SECTION 3. This Act shall take effect upon its approval.

Approved: June 19, 1971

Published in the Official Gazette, Vol. 67, No. 42, p. 8307 on October 18, 1971