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Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 380
PRESIDENTIAL DECREE NO. 380 -
AMENDING CERTAIN SectionS OF REPUBLIC ACT NUMBERED SIXTY-THREE HUNDRED
NINETY-FIVE, ENTITLED "AN ACT REVISING THE CHARTER OF THE NATIONAL
POWER CORPORATION"
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WHEREAS,
under Republic Act No. 6395, it has been declared that: (1) the
comprehensive development, utilization and conservation of Philippine
water resources for all beneficial uses, including power generation,
and (2) the total electrification of the Philippines through the
development of power from all sources to meet the needs of industrial
development and dispersal and the needs of rural electrification are
primary objectives of the nation which shall be pursued coordinately
and supported by all instrumentalities and agencies of the government,
including its financial institutions; chanroblesvirtualawlibrary
WHEREAS, under Presidential Decree No. 40, dated November 7, 1972,
certain basic policies for the attainment of the objectives for the
speedy electrification of the country more particularly the rural
areas, have been established;chanroblesvirtualawlibrary
WHEREAS, under the basic policies for the electric power industry
established under Presidential Decree No. 40, the National Power
Corporation (NPC) is also given the responsibility for the setting up
of transmission line grids and the construction of associated
generation facilities in Luzon, Mindanao, and major islands of the
country, including the Visayas and to own and operate as a single
integrated system all generating facilities supplying electric power to
the entire area embraced by any grid set up by the NPC;chanroblesvirtualawlibrary
WHEREAS, the additional responsibilities and expanded activities of NPC
under Presidential Decree No. 40 will more than treble the capital
requirements needed for the expansion of generation and transmission
facilities, in addition to the funds necessary for the acquisition of
existing generation facilities in areas embraced by grids set up by NPC;chanroblesvirtualawlibrary
WHEREAS, in order to attain expeditiously the declared objective of
total electrification of the country and to implement the basic
policies established under Presidential Decree No. 40, certain sections
of Republic Act Numbered Sixty-Three Hundred Ninety-Five should be
amended;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution as
Commander-in-Chief of the Armed Forces of the Philippines, and pursuant
to Proclamation No. 1081, dated September 21, 1972, and General Order
No. 1, dated September 22, 1972, do hereby amend certain sections or
provisions of the Charter of the National Power Corporation, Republic
Act Numbered Sixty-Three Hundred Ninety-Five, to wit:cralaw:red
Section 1. Section 3 (g) of the Charter of the
National Power Corporation, Republic Act Numbered Sixty-Three Hundred
Ninety-Five, is hereby amended to read as follows: chanroblesvirtualawlibrary
"(g) To construct, operate and maintain power plants,
auxiliary plants, dams, reservoirs, pipes, mains, transmission lines,
power stations and substations, and other works for the purpose of
developing hydraulic power from any river, creek, lake, spring and
waterfall in the Philippines and supplying such power to the
inhabitants thereof; to acquire, construct, install, maintain, operate,
and improve gas, oil or steam engines, and/or other prime movers,
generators and machinery in plants and/or auxiliary plants for the
production of electric power; to establish, develop, operate, maintain
and administer power and lighting system for the transmission and
utilization of its power generation; to sell electric power in bulk to
(1) industrial enterprises, (2) city, municipal or provincial systems
and other government institutions, (3) electric cooperatives, (4)
franchise holders, and (5) real estate subdivisions; Provided, That the
sale of power in bulk to industrial enterprises and real estate
subdivisions may be undertaken by the Corporation when the power
requirement of such enterprises or real estate subdivisions is not less
than 100 kilowatts, when in the judgment of the Board of Power and
Waterworks the cooperative supplying electric power or franchise holder
of the area is not in a position by itself, or fails or refuses to
adequately supply such power requirement, unless the electric
cooperative or franchise holder consents thereto; Provided, further,
That no restriction shall apply to sale of power in bulk to enterprises
registered with the Board of Investment, wherein the cost of power,
based on the Corporation's then prevail-tariffs, is more than ten per
cent (10%) of the total production cost of the goods or commodities
produced; Provided, finally, That the Corporation shall continue to
sell electricity to industrial enterprises under existing contracts,
and provide for the collection of charges for any service
rendered;" chanroblesvirtualawlibrary
Section 2. Section 3 (i) of the Charter of the
National Power Corporation, Republic Act Numbered Sixty-Three Hundred
Ninety-Five, is hereby amended to read as follows: chanroblesvirtualawlibrary
"(i) To construct works across, or otherwise, any
steam, watercourse, canal, ditch, flume, street, avenue, highway or
railway of private and public ownership, as the location of said works
may require; Provided, That said works be constructed in such a manner
as not to endanger life or property; and Provided, further, That the
stream, watercourse, canal, ditch, flume, street, avenue, highway or
railway so crossed or intersected be restored as near as possible to
their former state, or in a manner not to impair unnecessarily their
usefulness. Every person or entity whose right of way or property is
lawfully crossed or intersected by said works shall not obstruct any
such crossings or intersections and shall grant the Corporation or its
representative, the proper authority for the execution of such work.
The Corporation is hereby given the right of way to locate, construct,
and maintain such works over and throughout the lands owned by the
Republic of the Philippines or any of its branches and political
subdivisions. The Corporation or its representatives may also enter
upon private property in the lawful performance or prosecution of its
business or purposes, including the construction of the transmission
lines thereon; Provided, That the owner of such private property shall
be compensated as follows: chanroblesvirtualawlibrary
"(a) In case only an easement of right of way for a
transmission line is required, then only a nominal easement fee shall
be paid which shall be in an amount equivalent to not more than ten per
cent of the value of the land or portion thereof required for the right
of way of the line, based on the tax declaration that is valid and
effective at the time of the filing of the complaint for eminent domain
or actual entry into the property by the corporation, whichever is
earlier;chanroblesvirtualawlibrary
"(b) In case the land shall be acquired by purchase,
the fair market value thereof, which shall be the value of the land
based on the tax declaration that is valid and effective at the time of
the filing of the complaint for eminent domain, or the taking of said
land by the Corporation, whichever is earlier; and
"(c) In addition, the owner shall be compensated for
the improvements such as houses, buildings, structures, and/or
agricultural crops and the like, actually damaged during the
construction, operation and maintenance of such works on the land, in
amounts based on the value of such improvements appearing on the tax
declaration that is valid and effective and/or the prevailing valuation
of such agricultural crops and the like made by the appropriate
appraisal body authorized by law at the time of filing of the complaint
for eminent domain or taking of said improvements by the Corporation,
whichever is earlier;chanroblesvirtualawlibrary
Provided, further, That any action for compensation and/or damages
under (a), (b), and (c) above, is filed within five years after the
rights of way, transmission lines, substations, plant or other
facilities shall have been established; provided, finally, That after
the said period no suit shall be brought to question the said rights of
way, transmission lines, substations, plants or other facilities, nor
the amounts of compensation and/or damages involved."
Section 3. Section 3, paragraphs (1), (m) and (o) of
the Charter of the National Power Corporation, Republic Act Numbered
Sixty-Three Hundred Ninety-Five, is hereby amended to read as follows:cralaw:red
"(1) To exercise such powers and do such things as
may be reasonably necessary to carry out the business and purposes for
which it was organized, or which, from time to time, may be declared by
the Board to be necessary, useful, incidental or auxiliary to
accomplish the said purpose, including the establishment of
subsidiaries; chanroblesvirtualawlibrary
"(m) To cooperate with, and to coordinate its
operations with those of the Power Development Council, the National
Electrification Administration and public service entities;chanroblesvirtualawlibrary
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"(o) In the prosecution and maintenance of its
projects and plants, the Corporation shall adopt measures to prevent
environmental pollution and enhance the conservation, development and
maximum utilization of natural resources, including the improvement and
beautification of its reservoirs and other areas to promote tourism and
related purposes, and to provide for the necessary corporate funds
therefor; and" chanroblesvirtualawlibrary
Section 4. Section 4, fourth paragraph of the Charter
of the National Power Corporation, Republic Act Numbered Sixty-Three
Hundred Ninety-Five, is hereby amended to read as follows:cralaw:red
"The Corporation shall charge in any interconnected system a uniform
schedule of rates for all its customers that fall within the same
classification. Towards this end, the Corporation shall prescribe a
standard form of contract and appropriate rules and regulations for the
sale of electricity, which shall be uniformly applied and become
effective on all power customers after they are duly notified or
fifteen days after their publication in newspapers of general
circulation. All subsisting power contracts are hereby considered
revised to give immediate effectivity to the provisions."
Section 5. Section 5 of the Charter of the National
Power Corporation, Republic Act Numbered Sixty-Three Hundred
Ninety-Five, is hereby amended to read as follows:cralaw:red
"Sec. 5. Capital Stock of the Corporation. — The
authorized capital stock of the Corporation is two billion pesos
divided into twenty million shares having a par value of one hundred
pesos each, which shares are not to be transferred, negotiated,
pledged, mortgaged or otherwise given as security for the payment of
any obligation. The sum of three hundred million pesos of said capital
stock has been subscribed and paid wholly by the Government of the
Philippines in accordance with the provisions of Republic Act Numbered
Four Thousand Eight Hundred Ninety-Seven.
"The remaining one billion seven hundred million shall be subscribed by
the Government of the Philippines and shall be paid as follows:cralaw:red
"(a) The sum of twenty-nine million two hundred
sixty-seven thousand six hundred pesos representing outstanding cost
and interest of reparation goods procured by the Corporation pursuant
to the provisions of Republic Act Numbered Seventeen Hundred
Eighty-Nine, shall be additional paid-in subscription of the Government
of the Philippines for two hundred ninety-two thousand six hundred
seventy-six shares of stock of said capital stock;chanroblesvirtualawlibrary
"(b) The balance of said subscription shall be paid
by the conversion into equity capital of the existing bonded
indebtedness, cost of reparations goods that may be allocated to the
Corporation in the future, and surpluses of the Corporation, and in the
absence thereof, from bond issue upon request of the Corporation for
specific projects duly approved from time to time by the President of
the Philippines." chanroblesvirtualawlibrary
Section 6. Section 6, sixth paragraph of the Charter
of the National Power Corporation, Republic Act Numbered Sixty-Three
Hundred Ninety-Five, is hereby amended to read as follows:cralaw:red
"The members of said Board shall receive a per diem of not to exceed
three hundred pesos for each special meeting actually attended by them;
Provided, That such per diems shall not exceed one thousand five
hundred pesos during any month for each member."
Section 7. Section 6, paragraphs (b), (c), (d), and
(e) of the National Power Corporation, Republic Act Numbered
Sixty-Three Hundred Ninety-Five, is hereby amended to read as follows:cralaw:red
"(b) To adopt an annual and supplemental budget of
receipts and expenditures of the Corporation according to its
requirements, which may include financial assistance of not more than
ten thousand pesos each to municipalities that are contiguous to
watersheds, lakes or natural sources which are proven to have suffered
material damages due to the harnessing of hydroelectric power being
utilized by the Corporation, subject to the approval of the Office of
the President; Provided, That copies of the budgets of receipts and
expenditures herein referred to shall be submitted to the National
Assembly within fifteen (15) days from the transmission thereof to the
Office of the President;chanroblesvirtualawlibrary
"(c) Subject to the provisions of existing laws and
regulations and upon the recommendation of the General Manager, to
organize, reorganize in a manner other than what is provided for under
this Act and Section 3 of Republic Act No. 4177 and determine the
Corporation's staffing pattern and the number of personnel, to fix
their salaries and to define their power and duties subject to approval
of higher authorities;chanroblesvirtualawlibrary
"(d) To appoint and fix the compensation of the
General Manager, Assistant General Manager, regional managers and
department chiefs subject to the approval of the President of the
Philippines; chanroblesvirtualawlibrary
"(e) For cause to suspend or remove by a majority
vote of all members, with the approval of the President of the
Philippines, the General Manager, Assistant General Manager, regional
managers and department chiefs;"
Section 8. Section 8 (a), last paragraph, of the
Charter of the National Power Corporation, Republic Act Numbered
Sixty-Three Hundred Ninety-Five, is hereby amended to read as follows:cralaw:red
"The total principal indebtedness of the Corporation under this
subsection, exclusive of interest, shall not at any time exceed three
billion pesos."
Section 9. Section 8 (b) of the Charter of the
National Power Corporation, Republic Act Numbered Sixty-Three Hundred
Ninety-Five is hereby amended to read as follows:cralaw:red
"(b) Foreign Loans. — The Corporation is hereby
authorized to contract loans, credits, any convertible foreign currency
or capital goods, and indebtedness from time to time from foreign
governments, or any international financial institutions or funds
sources, or to issue bonds, the total outstanding amount of which,
exclusive of interests, shall not exceed one billion United States
dollars of the equivalent thereof in other currencies, on such terms
and conditions as it shall deem appropriate for the accomplishment of
its purposes and to enter into and execute agreements and other
documents specifying such terms and conditions as it shall deem
appropriate for the accomplishment of its purposes and to enter into
and execute agreements and other documents specifying such terms and
conditions.
"The President of the Philippines, by himself, or through his duly
authorized representative, is hereby authorized to negotiate and
contract with foreign governments or any international financing
institution or fund sources in the name and on behalf of the
Corporation, one or several loans, for the purpose of assisting in the
reconstruction, or promoting the development of the economy of the
country. chanroblesvirtualawlibrary
"The President of the Philippines, by himself, or through his duly
authorized representative, is hereby further authorized to guarantee,
absolutely and unconditionally, as primary obligor and not as surety
merely, in the name and on behalf of the Republic of the Philippines,
the payment of the loans, credits, indebtedness and bonds issued up to
the amount herein authorized, which shall be over and above the amount
which the President of the Philippines is authorized to guarantee under
Republic Act Numbered Sixty-One Hundred Forty-Two, as amended, as well
as the performance of all or any of the obligations undertaken by the
Corporation in the territory of the Republic of the Philippines
pursuant to loan agreements entered into with foreign governments or
any international financial institutions or fund sources. chanroblesvirtualawlibrary
"The loans, credits and indebtedness contracted under this subsection
and the payment of the principal, interest and other charges thereon,
as well as the importation of machinery, equipment, materials, supplies
and services, by the Corporation, paid from the proceeds of any loan,
credit or indebtedness incurred under this Act, shall also be exempt
from all direct and indirect taxes, fees, imposts, other charges and
restrictions, including import restrictions previously and presently
imposed, and to be imposed by the Republic of the Philippines, or any
of its agencies and political subdivisions."
Section 10. Section 13, paragraphs (a) and (d), of
the Charter of the National Power Corporation, Republic Act Numbered
Sixty-Three Hundred Ninety-Five, is hereby amended to read as follows:cralaw:red
"(a) From the payment of all taxes, duties, fees,
imposts, charges and restrictions to the Republic of the Philippines,
its provinces, cities, municipalities and other government agencies and
instrumentalities, including the taxes, duties, fees, imposts, and
other charges provided for under Tariff and Customs Code of the
Philippines, Republic Act Numbered Nineteen Hundred Thirty-Seven, as
amended, and as further amended by Presidential Decree No. 34, dated
October 27, 1972, and Presidential Decree No. 69, dated November 24,
1972, and costs and service fees in any court or administrative
proceedings in which it may be a party;chanroblesvirtualawlibrary
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"(d) From all taxes, duties, fees, imposts, and all
other charges imposed directly or indirectly by the Republic of the
Philippines, its provinces, cities, municipalities and other government
agencies and instrumentalities, on all petroleum products used by the
Corporation in the generation, transmission, utilization and sale of
electric power." chanroblesvirtualawlibrary
Section 11. A new section shall be inserted to be
known as Section 15-A of the Charter of the National Power Corporation,
Republic Act Numbered Sixty-Three Hundred Ninety-Five, which provides
as follows:cralaw:red
"Sec. 15-A. The Corporation shall be under the
direct supervision of the Office of the President and all legal matters
shall be handled by the Chief Legal Counsel of the Corporation,
provided that the Solicitor General's Office shall have supervision in
the handling of court cases only of the Corporation.
"Considering that the operation of the business of the Corporation
affects public convenience and welfare, all industrial disputes in the
Corporation shall be settled by the compulsory
arbitration." chanroblesvirtualawlibrary
Section 12. This Decree is hereby made part of the
law of the land and provisions of existing laws, executive and
administrative orders, or parts thereof, in conflict with this Decree
are hereby modified and repealed.
Section 13. This Decree shall take effect immediately.
Done in the City of Manila,
this 22nd day of January, in the year of Our Lord, nineteen hundred and
seventy-four.
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