Terms of Office, Vacancies, and Removal
- Commissioners serve six-year terms after initial incumbents' terms expire.
- Vacancies filled for unexpired terms.
- Governor-General may remove commissioners for neglect of duty or misconduct following due notice and hearing.
Compensation and Expenses
- President receives Php 12,600 annually; other members receive Php 12,000.
- Traveling expenses for commissioners, secretary, and employees reimbursed by the government upon approved vouchers.
Officers and Personnel
- President designated by Governor-General.
- Board appoints secretary, counsel, and other employees, fixes duties, compensation, and terms.
- Initial appropriations for salaries and expenses capped at Php 40,000.
Records, Reports, and Publications
- Secretary keeps minutes and reports proceedings.
- Board compiles findings and decisions in official reports published for public use.
Prohibited Conflicts of Interest
- Members and employees forbidden from having official or professional relations, or holding stock in any public utility.
- Also barred from holding other government offices of profit or trust.
Office, Meetings, and Seal
- Board established office in Manila and other places as designated.
- Authorized to adopt rules for governance and have a common seal.
Decision-Making and Voting
- Members may take testimony individually.
- Majority vote required to issue orders.
Annual Reporting
- Board must submit annual report with recommendations to the Governor-General and Legislature.
General Jurisdiction and Definition of Public Utilities
- Board supervises, regulates, and controls all public utilities and related property within Philippine Islands.
- "Public utility" includes entities operating railroads, telecommunication, power, water, gas, and similar services.
Powers of the Board
- Investigate public utilities on own initiative or complaint.
- Appraise and value property.
- Fix just and reasonable rates and classifications after hearing.
- Require filing of rate schedules.
- Fix standards of service, measurement, and ensure accuracy of meters.
- Enter premises for inspections and tests.
- Fix fees for consumer-requested tests.
- Order establishment of necessary connections or gauge changes in railways.
Regulatory Requirements on Public Utilities
- Must comply with laws and ordinances.
- Provide safe, adequate service and maintain properties accordingly.
- Construct reasonable extensions when justified.
- Maintain uniform accounting and file annual financial reports.
- Carry proper depreciation accounts.
- Report accidents and comply with Board investigations.
- Justify any increases or changes in rates, subject to Board approval and possible suspension pending hearing.
Prohibitions on Public Utilities
- Prohibited from making unjust, discriminatory, or preferential rates or classifications.
- Cannot grant undue preference or discrimination.
- Must obtain Board approval before issuing stocks, bonds, or incurring indebtedness beyond one year maturity.
- Cannot capitalize franchises beyond paid amount or merge/dispose of property without Board consent.
- Must refrain from discriminatory gratuities to officials.
Control Over Stock Transfers and Corporate Actions
- Sale or transfer of capital stock to other public utilities or corporations requires Board approval.
- Unauthorized transfers or contracts are void.
Specific Provisions on Railroads and Crossings
- Cannot abandon stations or cease necessary services without approval.
- Must obtain Board permission before constructing new grade crossings or track intersections.
- Board can order protective devices at dangerous grade crossings.
Information and Disclosure Requirements
- Utilities must file verified statements describing officers, powers, and administrative acts.
Approval of Privileges and Franchises
- Privileges or franchises granted by political subdivisions require Board approval after hearing based on public convenience and interest.
Municipal Utilities
- Municipal utilities must keep accounts as prescribed and file statements with the Board.
Hearings and Investigations Procedures
- Governed by Board rules; not strictly bound by technical legal evidence rules.
- Board can compel witness attendance, administer oaths, and subpoena documents.
- Noncompliance punishable by court order and contempt.
- Depositions may be taken.
- Immunity from self-incrimination except for perjury.
Evidence and Orders
- Certified copies of Board documents are admissible evidence with a fee.
- Board may rehear, modify, or revoke orders.
- Orders served personally or by certified mail; effective dates specified.
Enforcement and Penalties
- Failure to comply with orders results in a daily penalty of Php 200.
- Mandamus, injunction, or equity suits for enforcement.
- Misdemeanor penalties for willful violations or advising violations by persons or utilities.
Rights and Remedies
- Act does not waive any pre-existing rights or actions.
- Penalties under this Act do not bar other legal actions.
Judicial Review
- Orders subject to Supreme Court review by certiorari within 30 days.
- Supreme Court may set aside orders lacking evidence or jurisdiction.
- Review procedures governed by Supreme Court rules.
- Review does not stay Board orders unless court-ordered, with possible bond requirement.
- Proceedings involving Board orders have court preference.
Exemptions for Free Passes and Franks
- Utilities may issue free passes to certain employees and families and interchange such passes.
Severability Clause
- Invalidity of any part does not affect the remainder of the Act.
Transfer of Powers
- Powers and duties of former Board of Rate Regulation transferred to this Board.
- Inconsistent laws repealed.
Effectivity
- Act effective upon passage.