Republic Act No. 4158

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 Tagum Electric Company, Inc., a corporation duly organized and existing under the laws of the Republic of the Philippines, for a period of twenty-five (25) years from the date of 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/or distributing electric light, heat and power for sale within the municipality of Tagum, Province of Davao. The grantee shall further have the right and privilege to install, lay and maintain on all streets, public thoroughfares, bridge and public places within said limits, poles, wires, transformers, capacitors, overhead protective devices, and pole line hardware, and other equipment necessary for the safe distribution of electric current to the public.

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 hear only after negotiation with and through the Tagum Electric Company, 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 always be subject to the regulation by the Public Service Commission.

Section 4

In consideration of the franchise and rights hereby granted, the grantee shall pay a franchise tax equal to two per centum of the gross earning 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 now and in the future upon privileges, earnings, income, franchise, and poles, wires, machinery and equipment, transformers, watt-hour meters and insulators of the grantee, from which taxes and assessments the grantee is hereby expressly exempted: Provided, further, That the said franchise tax of two per centum of the gross earnings shall take effect upon the date the original franchise was granted.

Section 5

Upon approval of this Act, the municipal franchise heretofore enjoyed by the Tagum Electric Company, Inc., shall terminate and this franchise shall take place.

Section 6. Republic Act Numbered Thirty

four hundred and two is hereby repealed.

Section 7

This Act shall take effect upon its approval.

Approved: June 20, 1964.