Section 1Sec./Art. 1

Nature and Scope of Franchise. Subject to the provisions of the Constitution and applicable laws, rules and regulations, there is hereby granted to the Bases Conversion and Development Authority (BCDA), a government entity created pursuant to Republic Act No. 7227, as amended, otherwise known as the "Bases Conversion and Development Act of 1992", and hereunder referred to as the grantee, its successors or assignees, a franchise to construct, install, establish, operate, lease, own, manage and maintain for commercial purposes and in the public interest, distribution systems for the conveyance of electric power to end users in selected areas covered by the grantee pursuant to Republic Act No. 7227, as amended.

Specifically, the areas covered by this franchise are the following:

(a) John Hay Station (Baguio City);

(b) Wallace Air Station (Poro Point, La Union);

(c) ODonnell Transmitter Station (Capas, Tarlac);

(d) Capas Relay Station (Capas, Tarlac); and

(e) Portion of the Clark Special Economic Zone (CSEZ)' covering the new Clark City (Tarlac).