Republic Act No. 3402, enacted on June 18, 1961, grants Jose S. Magallanes a franchise to construct, operate, and maintain an electric light, heat, and power system in Tagum, Davao for fifty years. The act stipulates that if Magallanes purchases power from the National Power Corporation, the Corporation is authorized to negotiate rates for public consumers. Additionally, if the government decides to operate the system, Magallanes must surrender the franchise and turn over all equipment at cost, minus reasonable depreciation. This law became effective upon its approval and was published in the Official Gazette on June 25, 1962.
June 18, 1961
REPUBLIC ACT NO. 3402
AN ACT GRANTING JOSE S. MAGALLANES A FRANCHISE TO INSTALL, OPERATE AND MAINTAIN AN ELECTRIC LIGHT, HEAT AND POWER SYSTEM IN THE MUNICIPALITY OF TAGUM, PROVINCE OF DAVAO
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 Jose S. Magallanes, for a period of fifty years from the approval of this Act, the right, privilege and authority to construct, operate and maintain an electric light, heat and power system for the purpose of generating and distributing electric light, heat and/or power for sale within the Municipality of Tagum, Province of Davao.
SECTION 2. In the event that the grantee shall purchase and secure from the National Power Corporation electric heat and power, the National Power Corporation is hereby authorized to negotiate and transact for the benefit and in behalf of the public consumers with reference to rates. cdt
SECTION 3. 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 his franchise and turn over to the Government all serviceable equipment therein, at cost, less reasonable depreciation.
SECTION 4. This Act shall take effect upon its approval.
Enacted without Executive approval, June 18, 1961.
Published in the Official Gazette, Vol. 58, No. 26, p. 4703 on June 25, 1962