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 Leopoldo T. Calderon, Jr., 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 in the Municipality of Pulilan, Province of Bulacan, for the purpose of generating and distributing electric light, heat and power for sale within the said municipality. 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.

SEC. 2. In the event that the grantee shall purchase and secure energy and power from the National Power Corporation or the Manila Electric and Railway Company, or both, the latter is hereby authorized to negotiate and transact for the benefit and in behalf of the public consumers with reference to rates.

SEC. 3. The rates for the sale of electric light, heat and power shall always be subject to the regulation by the Public Service Commission.

SEC. 4. The grantee shall be liable to pay the same taxes, unless exempted therefrom, on his business, real estate, buildings, and personal property, exclusive of this franchise, as other persons or corporations are now or hereafter may be required by law to pay.

SEC. 5. 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 it is operating.

SEC. 6. This Act shall take effect upon the expiration of the municipal franchise granted to Leopoldo T. Calderon, Jr.

Enacted without Executive approval, August 4, 1969.