Section 1Sec./Art. 1

Nature and Scope of Franchise. -Subject to the provisions of the Constitution and applicable laws, rules and regulations, the franchise granted to Davao Light and Power Company, Inc., hereunder referred to as the grantee, its successor or assignees, under Republic Act No. 8960, to construct, install, establish, operate, and maintain for commercial purposes and in the public interest, an electric, light, heat and power system for the conveyance, distribution and sale of electric power to the end users in Davao City, Panabo City, and the Municipalities of Carmen, Dujali, and Santo Tomas in the Province of Davao del Norte is hereby extended for another twenty-five (25) years after the expiration date of the franchise under Republic Act No. 8960.

As used in this Act, distribution system refers to the system of wires and associated facilities, including subtransmission lines belonging to or used by a franchised distribution utility, extending between the delivery point on the national transmission system or generating facility and the metering point or facility of the end user.