G.R. No. 166471 - Tawang Multi-purpose Cooperative vs. La Trinidad Water District

On 9 October 2000, Tawang Multi-Purpose Cooperative (TMPC) filed with the National Water Resources Board (NWRB) an application for a Certificate of Public Convenience (CPC) to operate a waterworks system in Barangay Tawang, La Trinidad, Benguet.
La Trinidad Water District (LTWD), a local water utility created under PD No. 198, opposed, invoking Section 47 of its charter which it claimed grants it an “exclusive franchise” over domestic, industrial, and commercial water service in its district.

On 23 July 2002, NWRB Resolution No. 04-0702 approved TMPC’s CPC application.
In its 15 August 2002 Decision, the NWRB ruled exclusive franchises unconstitutional, found TMPC qualified, and granted the CPC.
LTWD’s motion for reconsideration was denied by NWRB on 18 November 2002.

On 1 October 2004, RTC Branch 62, La Trinidad, set aside the NWRB’s Resolution and Decision, cancelled TMPC’s CPC, and upheld the validity of Section 47.
On 6 November 2004, the RTC denied TMPC’s motion for reconsideration.
TMPC filed this petition for review on certiorari under Rule 45 (G.R. No. 166471), challenging the RTC’s rulings.

Whether the RTC erred in upholding the validity of Section 47 of PD No. 198 as an exclusive franchise provision, contrary to the constitutional prohibition on exclusive public utility franchises.