Republic Act No. 3806

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

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 the Hidalgo Enterprises, Inc., a corporation duly organized and existing under the laws of the Republic of the Philippines, for a period of fifty years from the date of 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/or distributing electric light, heat and/or power for sale within the Municipalities of Daet, Talisay, Basud, Paracale, Jose Panganiban and Capalonga, all in the Province of Camarines Norte.

Section 2

In the event that the National Power Corporation shall have established its lines in the areas adjacent to or over the territory covered by this franchise, the National Power Corporation may make available its power and heat only after negotiation with and through the Hidalgo Enterprises, Inc., or with the authority and consent of the grantee.

Section 3

The rates for the sale of electric light, heat and/or power shall be subject to the approval of the Public Service Commission.

Section 4

In consideration of the franchise and rights hereby granted, the grantee shall pay into the Treasury of the Philippines a franchise tax equal to two per centum of the gross earnings for electric current sold under this franchise: Provided, That the said franchise tax of two per centum of the gross earnings shall be in lieu of all taxes and assessments of whatever authority upon privileges, earnings, income, franchise, and poles, wires, transformers, and insulators of the grantee, from which taxes, fees and assessments the grantee is hereby expressly exempted.

Section 5

Upon approval of this Act, the municipal franchises granted to the Hidalgo Enterprises, Inc., for the Municipalities of Paracale, Jose Panganiban (formerly Mambulao) and Talisay, all in the Province of Camarines Norte, shall terminate and this franchise shall take its place, and Act Numbered Thirty-two hundred and fifteen, as amended by Republic Act Numbered Two hundred fifty-five, as amended by Republic Act Numbered Three hundred seventy-eight, shall be repealed.

Section 6

It is expressly provided that in the event the government should desire to maintain and operate for itself the system and enterprise herein authorized, the grantee shall surrender its franchise and will turn over to the government all serviceable equipment therein, at cost, less reasonable depreciation.

Section 7

This Act shall take effect upon its approval.

Approved: June 22, 1963.