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Act
Approved September 30, 1968

Republic Act No. 5454

An act granting lipa electric company, incorporated a franchise to install, operate and maintain an electric light, heat and power system in the municipality of padre garcia, province of batangas, and in the city of lipa

An Act Granting Lipa Electric Company, Incorporated a Franchise to Install, Operate and Maintain an Electric Light, Heat and Power System in the Municipality of Padre Garcia, Province of Batangas, and in the City of Lipa

In plain language

Republic Act No. 5454 grants a 25‑year franchise to Lipa Electric Company for the installation, operation and maintenance of an electric light, heat and power system in Padre Garcia and Lipa, with provisions on service obligations, tax payments, and surrender of franchise if the government takes over.

  • Grant of a 25‑year franchise renewable for another 25 years
  • Service obligation to cover all areas within five years
  • Franchise tax of 5% of gross earnings (3% national, 2% local)
  • Right of National Power Corporation to supply current after negotiation
  • Surrender clause if government takes over
  • Supersession of prior municipal franchise
  • Effective upon approval
Electricity
Franchise
Municipal
Republic Act
Lipa Electric Company

REPUBLIC ACT No. 5454

An Act Granting Lipa Electric Company, Incorporated a Franchise to Install, Operate and Maintain an Electric Light, Heat and Power System in the Municipality of Padre Garcia, Province of Batangas, and in the City of Lipa

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

Section 1

Subject to the terms and conditions established in Act Numbered Thirty-six hundred and thirty-six, as amended by Commonwealth Act Numbered One hundred and thirty-two, and to the provisions of the Constitution, there is granted to Lipa Electric Company, Incorporated, for a period of twenty-five years from the approval of this Act, renewable for another twenty-five years, the right, privilege and authority to install, 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 Padre Garcia, Province of Batangas, and within the City of Lipa: Provided, That the franchise holder shall extend service to all the areas covered by the franchise, particularly the barrios therein, within five years from the commencement of service; and any area not served within the said period shall be deemed excluded from this franchise.

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 electric current only after negotiation with, through, or by authority and consent of the grantee.

Section 3

In consideration of this franchise and the 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 and city where the franchise is being operated.

Section 4

It is expressly provided that in the event the Government shall 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 5

This Act shall supersede the municipal franchise of the grantee.

Section 6

This Act shall take effect upon its approval.

Approved: September 30, 1968.

For information and research only, and not legal advice. This text may not reflect later amendments. For certified copies, refer to the Official Gazette or the issuing agency.