Title
Amend Public Service Act provisions
Law
Republic Act No. 2677
Decision Date
Jun 18, 1960
Republic Act No. 2677 establishes the Public Service Commission to regulate and oversee all public services, granting it the power to regulate rates, issue certificates of public convenience, and investigate complaints, with exemptions for government-owned services.

Tenure, Succession, and Procedural Rules of Commissioners

  • Commissioners serve until age 70 or removal following the Revised Administrative Code procedures.
  • Upon retirement, Commissioners receive judicial retirement benefits or those under applicable retirement laws.
  • In the absence of the Public Service Commissioner, the senior Associate Commissioner acts as Commissioner.
  • For absences or vacancies causing quorum issues or tied votes, the Secretary of Justice may designate Judges or legal division attorneys to temporarily serve as Commissioners.
  • The PSC may sit en banc or in two divisions (three Commissioners each).
  • The Public Service Commissioner presides en banc and in one division; the senior Associate Commissioner presides the other division.
  • A quorum is five Commissioners en banc and two Commissioners in division sessions.
  • Powers vested in the Commission can be exercised individually or jointly.
  • Case assignments are equitably divided; uncontested cases are decided by one Commissioner.
  • Contested cases and rate-fixing cases require at least two Commissioners’ concurrence.
  • Motions for reconsideration of decisions are heard by the en banc Commission requiring four Commissioners’ concurrence.

Compensation and Staff of the Commission

  • Public Service Commissioner receives an annual salary of ₱13,000.
  • Associate Commissioners receive ₱12,000 each annually.
  • Staff includes: Chief Attorney, Finance and Rate Regulation Officer, Chief Utilities Regulation Engineer, Transportation Regulation Chief, Secretary, and two Public Utilities Advisers (each earning ₱7,200/year).
  • Five Assistant Chiefs of Division receive ₱6,000 annually each.
  • Eleven Attorneys receive ₱5,400 annually each.

Office Location and Sessions

  • The PSC has its office in Manila at a designated location.
  • Hearings may be held anywhere in the Philippines as ordered in writing.
  • During April and May, at least three Commissioners must be on duty, rotating vacations biennially.
  • The Secretary of Justice may require Commissioners on vacation to perform duties if public interest demands.

Jurisdiction and Regulatory Scope of the Commission

  • The PSC has jurisdiction, supervision, and control over all public services, their franchises, equipment, and properties.
  • It wields necessary powers including the aid of the public force.
  • Government-owned or controlled public services are regulated similarly but do not require certificates of public convenience or necessity.
  • Steamboats, motorships, and steamship lines, whether private or government-operated, are exempt from certificate and route regulation.
  • "Public service" includes persons or entities operating common carriers, railroads, subways, motor vehicles, shipping lines, marine services, utilities (gas, electric, water), communications, and similar services for hire or compensation.
  • Persons engaged in agriculture using motor vehicles for themselves or under special contract for agricultural transport are generally exempt.
  • The term "person" covers individuals, partnerships, corporations, lessees, trustees, municipalities, provinces, government entities, and others.

Exemptions from Regulation

  • Warehouses are exempt.
  • Animal-drawn vehicles, bancas propelled by oar or sail, tugboats, and lighters are exempt.
  • Airships within the Philippines are regulated only for freight and passenger rate fixing.
  • Radio companies are regulated only with respect to rate fixing.
  • Public services owned or operated by government instrumentalities or government-owned corporations are exempt except as to rate fixing.

Appropriations and Effectivity

  • An appropriation of ₱150,000 is allocated for Commission expenses, sourced from collected fees or the National Treasury.
  • Savings from previous budget appropriations are available for use.
  • Inconsistent laws are repealed.
  • The Act takes effect upon approval.

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