Title
Creation of Public Utility Commission
Law
Act No. 2694
Decision Date
Mar 9, 1917
Act No. 2694 amends Act No. 2307, establishing the office of a Public Utility Commissioner with the same powers and duties as the former Board of Public Utility Commissioners, including general supervision, regulation, jurisdiction, and control over all public utilities and their property, equipment, facilities, and franchises.

Questions (Act No. 2694)

It is Act No. 2694 (March 9, 1917). Its main purpose is to abolish the Board of Public Utility Commissioners as then constituted and create in its place a Public Utility Commission/Commissioner.

The Commissioner must be (1) a citizen of the United States or of the Philippine Islands, (2) a resident of the Philippine Islands, and (3) at least thirty (30) years of age.

The Commissioner is appointed by the Governor-General, with the advice and consent of the Philippine Senate.

The term is six (6) years. Vacancies (except expiration of term) are filled for the unexpired term only.

The Secretary of Justice designates the officer temporarily performing the functions, subject to approval by the Governor-General.

The text states that removal is in the manner and for the reasons prescribed in Section 195, Article IX, Chapter X, Title IV, Book I of the Administrative Code.

The Commissioner receives an annual compensation of eight thousand pesos, paid in equal monthly payments by the Insular Treasurer.

They are granted privileges similar to those provided by the Revised Civil Service Act to officers and employees of the classified civil service. They are also entitled to necessary traveling expenses while traveling on Commission business, payable from funds for contingent expenses, with vouchers approved by the Secretary of Justice.

Upon authorization by the Secretary of Justice, the Commissioner may appoint a secretary and other employees as necessary and authorized by law, and fix their duties and compensation.

It includes individuals, partnerships, associations, corporations, or joint stock companies (domestic or foreign), their lessees/trustees/receivers, or even government departments/units that own, operate, manage, or control within the Philippines specified services for public use—especially transportation (rail, street/traction railway, steamboats/steamships, bancas/virais/lorehas, freight/passenger automobiles, ferries), marine services (shipyard, marine railway, repair shops), and various utilities (public warehouses/wharves/docks, ice/refrigeration/cold storage, canal, irrigation, express, subway, telephone, wire/wireless telegraph), subject to exceptions stated in the same section.

The Commission has no jurisdiction over ice plants/cold storage plants (or similar utilities) operated exclusively by the Federal Government for its own and not for public use. Also, the Commissioner cannot exercise control or supervision over the Manila Railroad while it is controlled by the Government of the Philippine Islands, except regarding its rates.

They must file complete schedules showing every classification and every individual or joint rate/toll/fare/charge for products or services within the Philippines. For public carriers, they must file statements of itineraries/routes served. For new utilities, these must be filed before beginning operations.

It provides that inspection and regulation for sanitation and safety of vessels operated within the Philippines remain under the jurisdiction of the Insular Collector of Customs or duly authorized agents.

Reports must include detailed items such as issued and paid-up capital stock, dividends, surplus, stockholders, consolidated and pending obligations and interest, value of property/equipment/concessions/franchises, employees and salaries, accidents and causes, improvement expenditures and investment details, receipts and profits by branch/source, operating/other expenses, balance of profits/losses, and a full statement with an annual balance sheet—sworn to by the authorized officer.

The utility must give written notice to the Commission thirty (30) days prior, unless the Commission orders consent to a shorter notice. The burden of proof to show the proposed change is just and reasonable lies with the public utility.

Upon notice and receipt, the Commission may order suspension of the proposed increase/reduction/change/alteration pending hearing and determination, and the suspension cannot exceed three (3) months.

No. It cannot operate in the Philippines without first securing a certificate that its operation and authorization to do business will promote the public interest in a proper and suitable manner; the rule does not apply to businesses already being operated and subject to the Act.

For free tickets/passes or free/reduced transportation, it generally prohibits issuing them without Commission authority, with listed exceptions (e.g., officers/employees, certain charity-related persons, government officers in pursuit of duties, certain official/legal/medical or safety-related contexts, etc.). For sale/alienation/mortgage/encumbrance/lease/merger/consolidation of property or rights, the utility needs prior Commission approval after notice to the public and a hearing.


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