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”
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;
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;
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;
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;
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;
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:
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:
“(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;”
SEC.
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:
“(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
“(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;
“(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;
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.”
SEC.
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:
“(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;
“(m)
To cooperate with, and to coordinate its operations with those of the
Power
Development Council, the
National
Electrification Administration and public service entities;
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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”
SEC.
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:
“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.”
SEC.
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:
“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
“The
remaining one billion seven hundred million shall be subscribed by the
Government of the
“(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;
“(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.”
SEC.
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:
“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.”
SEC.
7. Section 6, paragraphs (b),
(c), (d), and (e) of the Charter of the
National Power
Corporation,
Republic Act Numbered Sixty-Three Hundred
Ninety-Five, is hereby amended to read as follows:
“(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;
“(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;
“(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;
“(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;”
SEC.
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:
“The
total principal indebtedness of the
Corporation
under this subsection, exclusive of interest, shall not at any time exceed
three billion pesos.”
SEC.
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:
“(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.
“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.
“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.”
SEC.
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:
“(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 the 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;
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“(d)
From all taxes, duties, fees, imposts, and all other charges imposed directly
or indirectly by the Republic of the
SEC.
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:
“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.”
SEC.
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.
SEC.
13. This Decree shall take effect
immediately.
Done
in the City of
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