Terms, Powers, and Removal
- Both Commissioners hold office until removal for cause.
- The Assistant Commissioner acts on matters delegated or in absence of the Commissioner.
- Powers vested equally in both Commissioners.
- Removal only for physical incapacity, misconduct, incompetency, negligence, irregularity, or misdemeanor with Senate approval.
Compensation and Civil Service Status
- Annual salaries fixed: twelve thousand pesos for the Commissioner, ten thousand pesos for the Assistant.
- Officers and employees enjoy classified civil service privileges.
- Traveling expenses reimbursed for official business.
Staff and Administrative Support
- Appointment of secretary, auditors, engineers, inspectors, and other necessary employees with duties and salaries fixed by the Commissioner with Council of State approval.
- Secretary serves as the official reporter of proceedings.
Publication and Equipment
- Publication of Commission's findings and decisions as "Reports of the Public Utility Commission of the Philippine Islands".
- Authorized to purchase necessary office equipment and supplies with Emergency Board approval.
Conflict of Interest Restrictions
- Members and employees prohibited from holding stock or official relations with any public utility or other government office of profit or trust.
Location and Procedures
- Commission's office located in Manila.
- Authority to hold hearings anywhere in the Philippines.
- Power to make governing rules and adopt a common seal.
Annual Reporting
- Required annual report to the Secretary of Justice, to be submitted to the Legislature.
Jurisdiction and Definition of Public Utilities
- General supervision and control over all public utilities and their assets.
- Defines "public utility" broadly to include carriers, railroads, vessels, warehouses, utilities supplying gas, electric, water, telegraph, telephone, and similar services.
- Exceptions: no jurisdiction over Manila Railroad Company rates or Federal government exclusive utilities.
Powers of the Commission
- Conduct investigations and appraisals;
- Fix just and reasonable rates and charges after hearing;
- Require filing of rate schedules and route itineraries;
- Prescribe standards, classifications, measurements, and regulations for service quality and metering accuracy;
- Inspect facilities and premises;
- Fix testing fees and handle disputes on equipment accuracy;
- Order railroads/street railways to establish junctions or connections as necessary;
- Approve gauge changes for street railway or traction companies.
Duties and Regulatory Powers
- Enforce compliance with laws, local ordinances, and charters.
- Require safe, adequate service and maintenance.
- Authorize extensions and construction conditional on business and financial feasibility.
- Mandate uniform accounting systems and detailed annual financial reports.
- Require proper depreciation accounting and establishment of depreciation funds.
- Investigate accidents and order corrective measures.
- Control changes in rates or classifications, requiring prior notice and permitting suspension pending review.
- Mandate Certificates of Public Convenience for operation; mandatory for existing and new utilities.
Prohibitions and Restrictions on Public Utilities
- Prohibition of unjust, unreasonable, discriminatory, or preferential rates.
- Ban on unjust classifications, unfair practices, and refusal of reasonably demanded service.
- Prohibit unauthorized discounts, rebates, or preferences.
- Restriction on issuing stock/bonds without Commission approval.
- Prohibition on capitalizing franchises beyond government payment.
- Ban on issuance of free passes/tickets except specific exempted persons.
- Prohibit sale, lease, merger, or encumbrance of property/franchises without Commission approval, with exceptions for minor transactions.
- Stock transfers requiring Commission approval, especially those granting majority control.
Operational Restrictions
- Railroads may not abandon stations or change service schedules without approval.
- Prohibition on new grade crossings without Commission permission.
- Authority to require safety devices at crossings.
Administrative Transparency
- Requirement for public utilities to file detailed statements of officers’ powers and duties.
Franchise and Privilege Approval
- No franchise granted by political subdivisions valid without Commission approval.
- Commission may impose conditions when approving franchises.
- Certification of public necessity required before legislative franchise petitions.
Hearings and Evidence
- Rules governing hearings.
- Power to issue subpoenas and compel production of documents.
- Aid of courts in enforcing subpoenas.
- Power to administer oaths and punish perjury.
- Witness fees stipulated.
- Penalties for refusal to comply or obstruction.
- Expenses of investigation may be charged to offending utilities.
Depositions and Testimony
- May order depositions of witnesses inside or outside the Philippines.
- Compelled testimony with exception against self-incrimination.
- Confidentiality for Commission employees in civil suits.
Fees and Revenues
- Prescribed filing and certification fees varying by type and size of public utility.
- Fees paid into Insular Treasury.
- Commission-certified copies admissible as evidence in court.
Review and Appeals
- Commission may order rehearings and modify or revoke its orders.
- Appeals to Supreme Court allowed within 30 days.
- Supreme Court review based on evidence and jurisdiction.
- Hearing records certified to Supreme Court.
- Stay of Commission orders may be granted by the Supreme Court.
Enforcement and Penalties
- Noncompliance penalties up to two hundred pesos per day.
- Penalties for wilful violations include fines and imprisonment.
- Corporate fines up to twenty-five thousand pesos.
- Injunctions and mandamus available.
Relations With Courts and Government
- Preference given to Commission-related cases in courts.
- Attorney-General charged with representing Commission in judicial proceedings and intervention.
Organizational Transfers and Continuity
- Authority to transfer relevant government bureaus to Commission control.
- Supervision of provincial/municipal plants subject to Commission authority.
- Provision ensuring severability of invalid provisions.
- Repeals previous inconsistent Acts.
- Commission inherits duties, records, and properties from predecessor commission.
- Appropriation of funds for Commission operations provided.
- Act effective upon approval.