Case Digest (G.R. No. 46001)
Facts:
Manila Electric Company v. Vicente De Vera, G.R. No. 46001. September 12, 1938, Supreme Court En Banc, Laurel, J., writing for the Court. Petitioner Manila Electric Company (MECo) sought review of a decision of the Public Service Commission (PSC) that approved revised residential rate schedules subject to reductions in the minimum charges for several residential classes. Two related PSC proceedings underlie the dispute: Case No. 46482, a formal complaint filed by Dr. Pedro Gil seeking reduction of MECo's residential rates within Manila and its suburbs; and Case No. 47991, MECo's application to cancel certain rate schedules and to obtain temporary approval of revised schedules. Because of their close relation, the PSC set the two matters for joint hearing on January 15, 1937 despite MECo's objection that Case No. 46482 had been previously dismissed on September 26, 1936 and that the PSC therefore lacked jurisdiction to reopen it.Multiple hearings were held. At the PSC's suggestion MECo filed amended rate schedules, and on November 11, 1937 submitted its final revised residential schedules classified as Schedules A, B, C and D (differentiated by gross floor area and kilowatt-hour blocks), which included specified minimum charges. The respondent Commissioner modified MECo's proposed schedules by reducing the minimum charges for Schedules A–D (e.g., reducing Schedule D's minimum to P0.50), and otherwise approved the revised schedules. MECo moved for reconsideration of the reduction in minimum charges; the PSC denied the motion.
MECo petitioned this Court for review of the PSC's disposition. In its petition MECo assigned five errors, but in oral argument pressed principally the third assignment concerning the reduction of minimum charges, especially the reduction of Schedule D to P0.50. MECo also contended that the PSC had improperly relied on an auditor's report and an Accounting Division memorandum that had not been introduced in evidence. The PSC record, however, contained those documents as official records.
After MECo filed its petition, Dr. Pedro Gil and intervenors led by Radio Theater, Inc., et al. moved to intervene; this Court granted intervention by resolution of May 5, 1938. Intervenors sought broader modifications (e.g., abolition of block charges and imposition of a straight residential rate). The Court received briefs from intervenors but noted the PSC had not ruled on many of the factual matters raised by intervenors' audit r...(Subscriber-Only)
Issues:
- May the Public Service Commission properly consider its auditor's report and an Accounting Division memorandum that were not formally offered in evidence at the hearing?
- Did the Public Service Commission err in reducing the minimum charges in MECo's revised residential schedules (notably reducing Schedule D to P0.50)?
- Was the PSC's finding that MECo realized a 12.27% net profit in 1936 unsupported by the evidence?
- Did the PSC err in d...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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