Case Digest (G.R. No. 23769)
Facts:
The case involves Teresa Electric and Power Co., Inc. (petitioner), a domestic corporation operating an electric plant in Teresa, Rizal, under a valid certificate of public convenience and necessity issued on June 2, 1960. The respondent, Filipinas Cement Corporation (Filipinas), also a domestic corporation primarily engaged in cement manufacturing, sought to establish, maintain, and operate its own electric plant within its factory site in Teresa, Rizal. On May 24, 1962, Filipinas filed an application with the Public Service Commission (PSC) for a certificate of public convenience and necessity to operate said electric plant, limited exclusively to supplying power to its cement factory and its employees residing inside the compound, for a period of fifty years starting June 26, 1958.
Petitioner opposed the application on grounds that Filipinas was unauthorized by its articles of incorporation to operate an electric plant, lacked municipal council approval, was unwilling to sup
Case Digest (G.R. No. 23769)
Facts:
- Parties and background
- Teresa Electric Light and Power Co., Inc. (Petitioner) is a domestic corporation operating an electric plant in Teresa, Rizal, holding a certificate of public convenience and necessity issued June 2, 1960.
- Filipinas Cement Corporation (Respondent) is a domestic corporation engaged in the manufacture and sale of cement, operating a factory in Teresa, Rizal.
- Application for certificate and opposition
- On May 24, 1962, Filipinas filed an application with the Public Service Commission (PSC) for a certificate of public convenience and necessity to establish, maintain and operate an electric plant at its factory site to supply electric power and light exclusively to its factory and employees.
- Petitioner filed a written opposition alleging:
- Petitioner’s exclusive authorization to operate electric service in Teresa, Rizal.
- Filipinas lacked authority under its Articles of Incorporation to operate an electric plant.
- The Municipality of Teresa did not authorize Filipinas to operate the proposed service.
- Petitioner was willing to supply Filipinas’ electric needs.
- The electric business is not under PSC jurisdiction for Filipinas’ purpose.
- Proceedings and Commission decision
- Hearing held before the Public Service Commission included presentation of evidence by Filipinas and cross-examination by petitioner’s counsel.
- Petitioner's request to postpone the presentation of its evidence was denied.
- The PSC evaluated evidence showing:
- Filipinas’ proposed electric service limited to its factory and employees only.
- Filipinas would purchase electric current from MERALCO, not generate its own.
- No municipal streets would be crossed by electrical wiring, only portions of private property.
- On March 15, 1963, the PSC granted Filipinas a certificate of public convenience and necessity for fifty years, subject to conditions.
- Petitioner moved to set aside the decision and reopen the case; the motion was denied en banc on August 12, 1963.
- Petitioner’s petition for a writ of preliminary injunction was denied on September 11, 1963.
- The present petition for review was filed on September 9, 1963, challenging the PSC decision.
Issues:
- Whether Filipinas Cement Corporation was required to secure a municipal or legislative franchise before being granted a certificate of public convenience and necessity to operate its electric plant.
- Whether Filipinas Cement Corporation’s Articles of Incorporation authorized it to operate and maintain an electric plant.
- Whether Filipinas could be granted a certificate of public convenience and necessity to operate an electric plant despite the existence of another electric plant operator within the same municipality.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)