Republic Act No. 6420

Be it enacted by the Senate and House of Representatives of the Philippines in 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 Sablayan Development Corporation, for a period of twenty-five years from the date of 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/or distributing electric light, heat and/or power for sale within the Municipality of Sablayan, Province of Occidental Mindovo.  The grantee shall further have the right and privilege to install, lay and maintain on all streets, public thoroughfares, bridges 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 grantee shall purchase and secure electric heat and power from the National Power Corporation, the latter is hereby authorized to negotiate and transact for the benefit and in behalf of the public consumers with reference to rates.

Section 3

The rates for the sale of electric light, heat and/or power shall always be subject to regulations 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 five per centum of the gross earnings for electric current sold under this franchise, three per centum of which shall accrue to the National Government and two per centum to the municipality where the franchise is in operation.

Section 5

The grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise or the rights, privileges, acquired thereunder to any person, firm, company, corporation or other commercial or legal entity, nor merge with any other person, company or corporation organized for the same purpose without the approval and/ or consent of the Congress of the Philippines.

Section 6

If the grantee shall not commence the operation of the electric light, heat and power system within two years from the approval of this Act, unless prevented by an act of God, force majeure, martial law, riot, civil commotion, usurpation by a military power or any other cause beyond the grantee's control, this franchise shall become null and void.

Section 7

This Act shall take effect upon its approval.

Enacted without Executive approval, October 4, 1971.