Section
1. Creation of the Cavite Electricity Distributing
Authority; its general purposes; zone and extent of jurisdiction;
domicile and place of business of the corporation. – For the purpose of
consolidating and centralizing the generation and distribution of
electric light, heat and/or power in the Province of Cavite, under one
control direction, management and supervision, there is hereby created
a public corporation to be known as the Cavite Electricity Distributing
Authority, which shall be organized immediately after the approval of
this Act.cralaw
The Cavite Electricity Distributing Authority shall own and/or have
jurisdiction and supervision over all electric systems within the
boundaries of cities and municipalities in Cavite.
The domicile and place of business of the Authority shall be determined
by the Board of Directors.cralawSec. 2. Powers and General Functions of the
Authority. – The powers, functions and activities of the Cavite
Electricity Distributing Authority shall be the following:
(a) To have the continuous succession under its
corporate name until otherwise provided by law;
(b) To prescribe its by-laws;
(c) To adopt and use a seal and alter it at pleasure;
(d) To sue and be sued in court;
(e) To construct, maintain, and operate distribution
lines for the purpose of supplying electric light, heat and/or power to
the inhabitants of its zone, both for domestic and other purposes;
regulate the control and use, and prevent the wastage and pilferage of
electricity; to fix electric rates and provide for the collection of
fees therefor;
(f) To acquire, purchase, hold, transfer, sell,
lease, rent, mortgage, encumber, and otherwise dispose of real and
personal property, including rights and franchises, within its
jurisdiction, as authorized by the purposes for which the Authority was
created and reasonably and necessarily required for the transaction of
the lawful business of the same, unless otherwise provided in this Act;
(g) To underwrite, purchase, own, sell, mortgage or
otherwise dispose of stocks, bonds, debentures, securities and other
evidences of indebtedness issued for and in connection with its
functions;
(h) To construct works across, or otherwise, any
stream, watercourse, canal, ditch, flume, street, avenue, highway, or
railway, as the location of said works may require: Provided, That such
works be constructed in such manner as to afford security for life and
property: And, provided, further, That the stream, watercourse, canal,
ditch, flume, street, avenue, highway, or railway so crossed or
intersected be restored to their former state as near as may be, or in
a manner not to impair unnecessarily their usefulness. Every person or
entity whose right of way is crossed or intersected by said works shall
not obstruct the forming of such crossing or intersection and shall
grant the Authority the proper authority, upon payment of just
compensation, for the execution of such work. The Authority is hereby
given the right of way to locate, construct and maintain such works
over and through any of the lands which are now or may be the property
of the Government of the Republic of the Philippines or any of its
branches and political subdivisions;
(i) To exercise the right of eminent domain for the
purpose for which the Authority was created, in the manner provided by
law for condemnation proceedings by the national, provincial, and
municipal government;
(j) When essential to the proper administration of
its corporate affairs or when necessary for the proper transaction of
its business or for carrying out the purposes for which it was
organized, to contract indebtedness and issue bonds, subject to the
approval of the Provincial Governor of Cavite and the Secretary of
Finance. The bonded indebtedness of the Authority, of all classes,
shall not at any time exceed ten million pesos, and the issue thereof
shall be subject to the conditions set forth in section five of this
Act;
(k) To issue such regulations as may be necessary for
the proper distribution of electric light, heat and/or power, and for
the protection of its distribution systems, as soon as established, any
violation of which shall be punished by a fine of not more than five
hundred pesos or by imprisonment for not more than six months, or both
such fine and imprisonment in the discretion of the court; and
(l) To transact the business for which it was
organized and do such things as may be reasonably necessary to carry
out the purposes for which it was established.cralaw Sec. 3. Exercise of corporate power; conduct of
affairs and current business; officers and employees of the Authority,
their appointment and qualifications, their salaries and functions. –
Unless otherwise provided by law, all corporate powers of the Cavite
Electricity Distributing Authority shall be exercised, its business
managed, and its properties kept and preserved, by a Board of Directors
to be composed of five members, a chairman and four other members.cralaw
The affairs and current business of the Cavite Electricity Distributing
Authority shall be conducted under the direction of the Board, by a
general manager, a chief engineer, a treasurer, an auditor, and such
additional officers and employees as the Board may provide.cralaw
The duties and powers as well as the compensation of said officers and
employees shall be such as may be defined and prescribed or fixed by
the Board which shall not be inconsistent with the provisions of this
Act and other existing laws.cralaw
(a) Chairman-General Manager. – The Chairman shall be
appointed by the Provincial Governor of Cavite, with the consent of the
Public Utilities Commission, and may be removed for cause by the
Provincial Governor of Cavite. He shall, as ex officio General Manager
of the Authority, represent the Authority in all its business matters;
shall submit to the Board an annual report and such partial reports as
may be required by it or he may see fit to render from time to time,
regarding the condition of the business, or of any part of the business
of the Cavite Electricity Distributing Authority; and shall perform
such other executive duties as may be prescribed by law or may be
required of him by resolution of the Board.cralaw
(b) Board Member-Chief Engineer. – One member of the
Board shall at least be an electrical engineer, who shall be appointed
by the Provincial Governor of Cavite with the consent of the Board of
Directors of National Power Corporation, and may be removed for cause
by the Provincial Governor of Cavite. He shall, as ex officio Chief
Engineer of the Authority, perform such duties as may be required of
him by the Board or by the General Manager. He shall act as general
manager in case of the temporary disability or absence of the general
manager.cralaw
(c) Board Member-Treasurer. – One member of the Board
shall possess knowledge of business management and finance, who shall
be appointed by the Provincial Governor of Cavite, with the consent of
the Board of Directors of the Rehabilitation Finance Corporation, and
may be removed for cause by the Provincial Governor of Cavite. He
shall, as ex officio treasurer of the Authority, perform such duties as
may be required of him by the Board or by the General Manager.cralaw
(d) The two other members of the Board, who shall
represent the consumers, shall be appointed by the Provincial Governor
of Cavite, upon election by the city and municipal mayors of Cavite in
meeting assembled, and shall hold office for two years unless otherwise
removed for cause by the Provincial Governor of Cavite: Provided, That
at any time existing conditions may warrant, the Board may change the
purpose and procedure of selecting the board members mentioned in this
paragraph.cralaw
(e) Auditor. – The Provincial Auditor of Cavite, who
is hereby designated as ex officio Auditor of the Cavite Electricity
Distributing Authority, shall be the representative of the Auditor
General. He shall be the chief of its auditing and accounting
department. He shall audit, examine and settle all accounts of the
Cavite Electricity Distributing Authority according to existing law and
regulations, and shall perform such other duties as the Auditor General
or the Board may require of him from time to time.cralaw
(f) Other officers and employees of the Authority. –
All other officers and employees of the Authority shall be appointed by
the Chairman-General Manager with the approval of the Board, subject to
the Civil Service Law and Rules.cralaw
The employees of the Auditor's office shall be appointed by the Auditor
General, who, with the approval of the Board, shall fix the number and
salaries of said employees.
No appointment under paragraph (f) shall be considered permanent until
after one year from the date of appointment.cralaw
The Chairman-General Manager, Board Member-Chief Engineer and Board
Member-Treasurer of the Cavite Electricity Distributing Authority shall
each receive an annual salary which shall be fixed by the Board with
the approval of the Provincial Governor of Cavite and the Secretary of
Finance. The two Board Members representing the consumers and the
Auditor shall be entitled to collect per diem and transportation
expenses incurred in connection with their functions with the
Authority.cralaw Sec. 4. First meeting of the Board; quorum; votes
necessary, in general, for adoption of resolutions; Secretary of the
Board and his salary; annual reports. – The Chairman of the Board
shall, immediately after the formation thereof, fix a time and place
for the first meeting, at which the Board shall adopt rules of
procedure and fix a time and place for holding regular meetings.cralaw
Not less three members of the Board shall constitute a quorum for the
transaction of business, and three affirmative votes shall be necessary
for the adoption of any resolution or motion, except as herein
otherwise provided.cralaw
The Board shall appoint its secretary and fix his salary.cralaw
The Board shall render annual reports of the Provincial Governor of
Cavite, the Public Utilities Commission, the National Power Corporation
and the Rehabilitation Finance Corporation.cralaw Sec. 5. Resolution to issue bonds, debentures,
securities and collaterals and incur other obligations. – Whenever the
Board may deem it necessary for the Authority to incur indebtedness or
issue bonds, debentures, securities and collaterals, it shall by
resolution so declare and state the purpose for which the proposed debt
is to be incurred and the condition of the bonds, debentures,
securities and collaterals; which resolution, however, shall be subject
to the approval of the Provincial Governor and the Secretary of
Finance. These bonds and other obligations shall be redeemable at the
pleasure of the Board after ten years from date of issue; payable forty
years after date of issue, and shall bear such interest as may be fixed
by the Secretary of Finance; and shall be in registered form and
transferable at the Office of the National Treasurer. The said bonds
are hereby declared exempt from taxation by the Government of the
Republic of the Philippines, or by any authority, branch, division or
political subdivision thereof, which fact shall be stated upon the face
of said bonds. The bonds shall be receivable as security in any
transaction with the Government of the Republic of the Philippines in
which such security is required.cralaw
A sinking fund shall be created for the payment of the bonds issued
under the provisions of this Act in such manner that the total amount
thereof on each annual due date of the bonds issued shall be equal to
the total of annuity of such a sum for each million pesos of the bonds
outstanding that, together with interest at a rate to be determined by
the Secretary of Finance, shall be sufficient to retire the bonds at
maturity. The sinking fund shall be under the custody of the Central
Bank of the Philippines, which shall invest the same in such manner as
the Monetary Board and the Secretary of Finance may approve in
accordance with Act Numbered Three thousand fourteen, and shall credit
to the same the interest on investment and other incomes accruing to
it.cralaw
The Government of the Republic of the Philippines hereby guarantees the
payment by the Cavite Electricity Distributing Authority of both the
principal and the interest of the bonds issued by said Authority by
virtue of this Act, and shall pay such principal and interest in case
the said Authority fails to do so; and there are hereby authorized to
be appropriated, out of any fund in the National Treasury not otherwise
appropriated, the sums necessary to make the payments guaranteed by
this Act: Provided, That the sums so paid by the Government of the
Republic of the Philippines shall be refunded by the Cavite Electricity
Distributing Authority, and if said Authority fails to refund the same
within thirty days after such payment has been made by the Government
of the Republic of the Philippines, the National Treasurer is hereby
authorized and directed to retain out of the revenues of the provinces,
cities and municipalities included in the Authority, that may come into
his possession as belonging to said provinces, cities and
municipalities, the sum necessary to refund the payments made by the
Government of the Republic of the Philippines in any proportion which
the Auditor General may approve and which will insure their collection.cralaw Sec. 6. Acquisition by the Cavite Electricity
Distributing Authority of franchises and serviceable equipment of
electric operators. – Upon resolution of the Board of Directors and
approval by the Provincial Governor of Cavite, the Cavite Electricity
Distributing Authority may acquire by purchase all serviceable
equipment and franchises of electric operators within the zone of
jurisdiction of the Authority.
Sec. 7. Fixing, charging and collection of rates.
– The Cavite Electricity Distributing Authority is hereby authorized to
fix, charge and collect rates for all services rendered in each sector,
city, municipality, or group of consumers, whether to any person,
corporation, firm, government body, municipal entity or religious or
charitable institutions, subject to review by the Public Utilities
Commission.cralaw
The Authority shall exist as an independent agency of the Government
under the Office of the Provincial Governor of Cavite for
administrative purposes.cralaw Sec. 8. Tenure of Authorization. – The duration of
authorization granted to the Cavite Electricity Distributing Authority
granted under this Act shall be for a period of fifty years computed
from the date of approval of this Act.cralaw Sec. 9. Exemption from payment of all taxes. – The
Cavite Electricity Distributing Authority shall be exempt from all
taxes incidental to its operation except as herein provided for.cralaw Section 10. Letting of contracts for public works of
the Authority. – All construction and repair works authorized by the
Authority involving an estimated cost of ten thousand pesos or more
shall be let by the General Manager with the approval of the Board of
Directors to contract under the usual bidding procedure of the
Government, except in the case of construction or repair of
distribution systems, and such other projects which, in the discretion
of the Board, due to its urgent nature, shall be undertaken by the
Authority by administration.cralaw Section 11. Repeal or modification. – The public
interest so requiring, all acts, executive orders, administrative
orders, proclamations and municipal ordinances or parts thereof
inconsistent with any of the provisions of this Act are hereby repealed
or modified accordingly.
Section 12. Effective date of this Act. – This Act
shall take effect upon its approval.cralaw
Enacted, without Executive
Approval, June 23, 1957.
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