Question & AnswerQ&A (Act No. 3108)
The Public Utility Commission is a commission created under Act No. 3108, designated to supervise and regulate all public utilities in the Philippines, consisting of a Public Utility Commissioner and an Assistant Public Utility Commissioner.
They are appointed by the Governor-General of the Philippine Islands with the advice and consent of the Philippine Senate.
They must be citizens of the United States or of the Philippine Islands, residents of the Philippine Islands, and be not under thirty nor over sixty-five years old.
The Commission has general supervision, jurisdiction, and control over public utilities including their property, rights, equipment, facilities, and franchises necessary for carrying out the Act.
Public utility includes any individual, corporation, association, or government entity owning, operating, managing, or controlling common carriers, transportation lines, public warehouses, utilities like gas, electric, water, telephone systems, and others serving the public.
The Commission can fix just and reasonable individual rates, joint rates, tolls, charges, and schedules including commutation and mileage rates after a hearing.
No public utility shall operate without securing a certificate of public convenience showing their operation promotes public interest, and those requiring government franchises must obtain a certificate of public necessity and convenience from the Commission.
Penalties vary: fines up to twenty-five thousand pesos for corporations, personal fines up to two thousand pesos and imprisonment up to two years for individuals knowingly violating the Act's provisions.
The Commission may conduct hearings, issue subpoenas and subpoenas duces tecum, administer oaths, and require the production of documents, with enforcement support from the courts for non-compliance.
Yes, orders can be reviewed by the Supreme Court via certiorari within thirty days from the order's effectivity, and the Court may modify or set aside orders lacking evidence or jurisdiction.
No, members and employees of the Commission cannot hold any official, professional relation, or stock in any public utility to avoid conflicts of interest.
The Public Utility Commissioner receives an annual salary of 12,000 pesos, and the Assistant receives 10,000 pesos. Both enjoy the privileges of classified civil service officers.
The sale, alienation, mortgage, encumbrance, lease, merger, or consolidation of public utility properties or franchises requires prior approval from the Commission unless exempted due to minimal public interest impact.
Public utilities cannot issue stocks, bonds, or evidences of indebtedness maturing over one year without prior approval from the Commission to ensure compliance with regulations and financial prudence.
Unauthorized sale or transfer of shares resulting in control shifts without Commission approval is void, and such transactions cannot be recorded in the corporation's books.
Public utilities can only provide free passes to certain specified groups like employees, charitable work persons, indigent individuals, peace officers, and certain government officials; other free passes require prior Commission authorization.
The utility must give written notice 30 days before proposed rate changes, and the Commission may suspend such changes pending a hearing and determination if rates are found unjust or unreasonable.
The Commission can order installation of gates or other safety devices at crossings to protect the traveling public when crossing conditions are deemed unsafe.
Persons guilty of obstruction or disrespectful conduct before the Commission may be fined up to 1,000 pesos or imprisoned for up to six months, or both, at the court's discretion.