I dunno. I think this is a very complicated case. For some reason I couldn't find any readied digested case online. Law students must have found this case an ordeal to read and condense the whole damn thing. Well I can't promise you anything but, let's see what I can do.
You may have noticed in my digested cases I don't usually give emphasis on the dates except when really needed in order to understand what really happened. In this case do make an exception.
Take note of 3 things. 1. The dates, 2. The companies and its acronyms, 3. The enabling law or the law creating the said body. 4. Its functions.
Here's the facts..
(CEPALCO)
On 1961, the Cagayan Electric and Power Light Company (CEPALCO) was enfranchised by Republic Act No. 3247 "to construct, maintain and operate an electric light, heat and power system for the purpose of generating and/or distributing electric light, heat and/or power for sale within the City of Cagayan de Oro for fifty (50) years.
So ito yung parang Meralco nila.. Meralco I think was enfranchised by Congress around 1903, it was an American owned company. By this date 1961 eh.. I think binibili pa lang ni Eugenio Lopez Sr. ang Meralco noon. They were Philipinizing it, so to speak.
So ito yung parang Meralco nila.. Meralco I think was enfranchised by Congress around 1903, it was an American owned company. By this date 1961 eh.. I think binibili pa lang ni Eugenio Lopez Sr. ang Meralco noon. They were Philipinizing it, so to speak.
(PHIVIDEC)
P.D. 243, was issued on 1973 which created a "body corporate and politic" to be known as the Philippine Veterans Investment Development Corporation (PHIVIDEC) vested with authority to engage in commercial, industrial, mining, agricultural and other enterprises.
So panahon to ni Marcos.. in order to promote regional development, they were dispersing the industries and encouraging them to go to the countryside, this is one of the reasons why they put up the export processing zone in Bataan. Pero ewan ko ba kung bakit ang stakeholders nito mga veterans and retired AFP personnel. So..
So panahon to ni Marcos.. in order to promote regional development, they were dispersing the industries and encouraging them to go to the countryside, this is one of the reasons why they put up the export processing zone in Bataan. Pero ewan ko ba kung bakit ang stakeholders nito mga veterans and retired AFP personnel. So..
(PIA). (PIE-MO)
On 1974, P.D. 538 was promulgated to create the PHIVIDEC Industrial Authority (PIA), a subsidiary of PHIVIDEC, to carry out the government policy to encourage, promote and sustain the economic and social growth of the country. Under Sec. 3 of P.D. No. 538, the first area for development shall be located in the municipalities of Tagoloan and Villanueva. This area forms part of the PHIVIDEC Industrial Estate Misamis Oriental (PIE-MO).
So they created a subsidiary under PHIVIDEC which is PIA. and the first area they aimed on was Misamis Oriental
So PHIVIDEC manages PIA and PIA manages PIE-MO. So syempre in order for PIA to get things done and execute its mandate kelangan mo ng contractors.. so kumuha sya ngayon ng contractors for PIE-MO.
So they created a subsidiary under PHIVIDEC which is PIA. and the first area they aimed on was Misamis Oriental
So PHIVIDEC manages PIA and PIA manages PIE-MO. So syempre in order for PIA to get things done and execute its mandate kelangan mo ng contractors.. so kumuha sya ngayon ng contractors for PIE-MO.
(PIE-MO), (FPI) and (MAC)
As manager of PIE-MO, PIA granted the Ferrochrome Philippines, Inc. (FPI) and Metal Alloys Corporation (MAC) authority to operate in its area of development.
Here comes the controversy.. Pasok ngayon ang CEPALCO ng Cagayan, (teka san ba Misamis Oriental sa Cagayan? aahhh... Cagayan ang nasa Misamis Oriental, CDO is a municipality of the province of MO)
On 1979, PIA granted CEPALCO a temporary authority to retail electric power to the industries operating within the PIE-MO. The Agreement executed by PIA and CEPALCO authorized CEPALCO "to operate, administer, construct and distribute electric power within the PHIVIDEC Industrial Estate, Misamis Oriental, such authority to be co-extensive with the territorial jurisdiction of PHIVIDEC Industrial Estate, as defined in Sec. 3 of P.D. No. 538 and shall be for a period of five (5) years, renewable for another five (5) years at the option of CEPALCO."
Here comes the controversy.. Pasok ngayon ang CEPALCO ng Cagayan, (teka san ba Misamis Oriental sa Cagayan? aahhh... Cagayan ang nasa Misamis Oriental, CDO is a municipality of the province of MO)
On 1979, PIA granted CEPALCO a temporary authority to retail electric power to the industries operating within the PIE-MO. The Agreement executed by PIA and CEPALCO authorized CEPALCO "to operate, administer, construct and distribute electric power within the PHIVIDEC Industrial Estate, Misamis Oriental, such authority to be co-extensive with the territorial jurisdiction of PHIVIDEC Industrial Estate, as defined in Sec. 3 of P.D. No. 538 and shall be for a period of five (5) years, renewable for another five (5) years at the option of CEPALCO."
So may infrastructure na ang PIA and within the PIE-MO area kelangan nila ng kuryente and CEPALCO is the franchised so sino pa ba..
kaya lang may problema..
According to PIA, CEPALCO proved no match to the power demands of the industries in PIE-MO that most of these companies operating therein closed shop.
E siguro nagfaflactuate o kaya rasyon yun kuryente.. pag 6pm lang malakas pag di na ginagamit ng mga pabrika.. (I dunno, don't quote me on that I'm just inferring) tapos ang mahal-mahal pa.. so..
Impelled by a "desire to provide cheap power costs to power-intensive industries operating within the Estate," PIA applied with the National Power Corporation (NPC) for direct power connection which the latter in due course approved. One of the companies which entered into an agreement with the NPC for a direct sale and supply of power was the Ferrochrome Phils., Inc. (FPI).
So I think PIA entered into a MOA with FPI.. parang 'ikaw na mag apply GOCC ako eh wala sa charter ko yan.. basta I-directa mo lang saken lahat ng power supply' (hahaha gumawa ng storya)..
Pasok ngayon si CEPALCO "p'taena nyo pinagkakaisahan nyo ako ah!! Ako lang ang taga supply ng kuryete dito wala ng iba!!! sabi ng batas yan!!" (LOLs)
E siguro nagfaflactuate o kaya rasyon yun kuryente.. pag 6pm lang malakas pag di na ginagamit ng mga pabrika.. (I dunno, don't quote me on that I'm just inferring) tapos ang mahal-mahal pa.. so..
Impelled by a "desire to provide cheap power costs to power-intensive industries operating within the Estate," PIA applied with the National Power Corporation (NPC) for direct power connection which the latter in due course approved. One of the companies which entered into an agreement with the NPC for a direct sale and supply of power was the Ferrochrome Phils., Inc. (FPI).
So I think PIA entered into a MOA with FPI.. parang 'ikaw na mag apply GOCC ako eh wala sa charter ko yan.. basta I-directa mo lang saken lahat ng power supply' (hahaha gumawa ng storya)..
Pasok ngayon si CEPALCO "p'taena nyo pinagkakaisahan nyo ako ah!! Ako lang ang taga supply ng kuryete dito wala ng iba!!! sabi ng batas yan!!" (LOLs)
Contending that the said agreement violated its right as the authorized operator of an electric light and power system in the area and the national electrification policy, CEPALCO filed a petition for prohibition, mandamus and injunction before the QC-RTC against the NPC. Notwithstanding NPC's claim that it was authorized by its Charter to sell electric power "in bulk" to industrial enterprises.
Sabi ng NPC "Teka teka teka! may mandate ako ng batas na magbenta ah?"...
RTC rendered a decision favoring CEPALCO and restraining the NPC from supplying power directly to FPI upon the ground that such direct sale, supply and delivery of electric power by the NPC to FPI was violative of the rights of CEPALCO under its legislative franchise.
CA denied the appeal interposed by NPC on the ground that the statutory authority given to the NPC as regards direct supply of power to BOI-registered enterprises "should always be subordinate to the 'total-electrification-of-the-entire-country-on-an-area-coverage basis policy' enunciated in P. D. No. 40."
ISSUE
The principal and common question raised is whether or not the NPC may supply power directly to PIA through FPI in the PIE-MO area where CEPALCO has a franchise.
PIA asserts that it may receive power directly from the NPC because it is a public utility. It avers that P.D. No. 538, as amended, empowers PIA "as and to be a public utility to operate and serve the power needs within PIE-MO, i.e., a specific area constituting a small portion of petitioner's franchise coverage," without, however, specifying the particular provision which so empowers PIA.
So in a way PIA is saying, "we are created as a public utility pursuant to P.D. 538, as such we may be regulated but let's not forget here, we have a mandate to serve the public. Our application with NPC for a direct power connection presupposes the need for us to execute our mandate which carry with it public interest." (don't quote me I just added that)
HELD
A "public utility" is a business or service engaged in regularly supplying the public with some commodity or service of public consequence such as electricity, gas, water, transportation, telephone or telegraph service. The term implies public use and service.
Petitioner PIA is a subsidiary of the PHIVIDEC with "governmental and proprietary functions." Sec. 4 of P.D. No. 538 specifically confers upon it the following powers To operate, administer and manage the PHIVIDEC
Clearly then, the PIA is authorized to render indirect service to the public by its administration of the PHIVIDEC industrial areas like the PIE-MO and may, therefore, be considered a public utility. As it is expressly authorized by law to perform the functions of a public utility, a certificate of public convenience, as suggested by the Court of Appeals, is not necessary for it to avail of a direct power connection from the NPC. However, such authority to be a public utility may not be exercised in such a manner as to prejudice the rights of existing franchisees. In fact, by its actions, PIA recognized the rights of the franchisees in the area.
Yan kase.. unahan ba daw naunang naenfranchised... although I don't think this will prejudice CEPALCO. Exclusivity of any public franchise has not always been favored by the Court.
and..
Clearly, NPC's assertion that its "authority to entertain and hear direct connection applications is a necessary incident of its express authority to sell electric power in bulk" is baseless. It is certainly irregular, if not downright anomalous for the NPC itself to determine whether it should supply power directly to the PIA or the industries within the PIE-MO.
Yan kase.. unahan ba daw DOE, that's like usurping the powers of the Department of Energy and arrogating it unto itself..
Court said ...
It simply cannot arrogate unto itself the authority to exercise non-rate fixing powers which now devolves upon the Department of Energy and to hear and eventually grant itself the right to supply power in bulk.
Petitions of both camps respectively were DENIED. The Department of Energy was directed to conduct a hearing with utmost dispatch to determine whether it is the CEPALCO or the NPC, through the PIA, which should supply electric power to the industries in the PIE-MO.
So.. Yun ang decision ng SC.. it was remanned to an administrative body which is the Department of Energy to determine which has a better right. Di ko na sinundan don.. tingnan nyo na lang decisions ng DOE.
As far as this case is concern, the petitions of both parties (co'z take note these are consolidated cases if you take a close look at the actual case in the image inserted) were denied.
Who wins?.. that's for you to find out. Tsk! ;)
Sabi ng NPC "Teka teka teka! may mandate ako ng batas na magbenta ah?"...
RTC rendered a decision favoring CEPALCO and restraining the NPC from supplying power directly to FPI upon the ground that such direct sale, supply and delivery of electric power by the NPC to FPI was violative of the rights of CEPALCO under its legislative franchise.
CA denied the appeal interposed by NPC on the ground that the statutory authority given to the NPC as regards direct supply of power to BOI-registered enterprises "should always be subordinate to the 'total-electrification-of-the-entire-country-on-an-area-coverage basis policy' enunciated in P. D. No. 40."
ISSUE
The principal and common question raised is whether or not the NPC may supply power directly to PIA through FPI in the PIE-MO area where CEPALCO has a franchise.
PIA asserts that it may receive power directly from the NPC because it is a public utility. It avers that P.D. No. 538, as amended, empowers PIA "as and to be a public utility to operate and serve the power needs within PIE-MO, i.e., a specific area constituting a small portion of petitioner's franchise coverage," without, however, specifying the particular provision which so empowers PIA.
So in a way PIA is saying, "we are created as a public utility pursuant to P.D. 538, as such we may be regulated but let's not forget here, we have a mandate to serve the public. Our application with NPC for a direct power connection presupposes the need for us to execute our mandate which carry with it public interest." (don't quote me I just added that)
HELD
A "public utility" is a business or service engaged in regularly supplying the public with some commodity or service of public consequence such as electricity, gas, water, transportation, telephone or telegraph service. The term implies public use and service.
Petitioner PIA is a subsidiary of the PHIVIDEC with "governmental and proprietary functions." Sec. 4 of P.D. No. 538 specifically confers upon it the following powers To operate, administer and manage the PHIVIDEC
Clearly then, the PIA is authorized to render indirect service to the public by its administration of the PHIVIDEC industrial areas like the PIE-MO and may, therefore, be considered a public utility. As it is expressly authorized by law to perform the functions of a public utility, a certificate of public convenience, as suggested by the Court of Appeals, is not necessary for it to avail of a direct power connection from the NPC. However, such authority to be a public utility may not be exercised in such a manner as to prejudice the rights of existing franchisees. In fact, by its actions, PIA recognized the rights of the franchisees in the area.
Yan kase.. unahan ba daw naunang naenfranchised... although I don't think this will prejudice CEPALCO. Exclusivity of any public franchise has not always been favored by the Court.
and..
Clearly, NPC's assertion that its "authority to entertain and hear direct connection applications is a necessary incident of its express authority to sell electric power in bulk" is baseless. It is certainly irregular, if not downright anomalous for the NPC itself to determine whether it should supply power directly to the PIA or the industries within the PIE-MO.
Yan kase.. unahan ba daw DOE, that's like usurping the powers of the Department of Energy and arrogating it unto itself..
Court said ...
It simply cannot arrogate unto itself the authority to exercise non-rate fixing powers which now devolves upon the Department of Energy and to hear and eventually grant itself the right to supply power in bulk.
Petitions of both camps respectively were DENIED. The Department of Energy was directed to conduct a hearing with utmost dispatch to determine whether it is the CEPALCO or the NPC, through the PIA, which should supply electric power to the industries in the PIE-MO.
So.. Yun ang decision ng SC.. it was remanned to an administrative body which is the Department of Energy to determine which has a better right. Di ko na sinundan don.. tingnan nyo na lang decisions ng DOE.
As far as this case is concern, the petitions of both parties (co'z take note these are consolidated cases if you take a close look at the actual case in the image inserted) were denied.
Who wins?.. that's for you to find out. Tsk! ;)
