G.R. No. 19857 ; March 2, 1923
THE ILOILO ICE AND COLD STORAGE COMPANY, petitioner, vs. PUBLIC UTILITY BOARD, respondent.

FACTS

The Iloilo Ice and Cold Storage Company, a corporation operating an ice plant in Iloilo since 1908, was ordered by the Public Utility Commissioner to show cause why it should not be considered a public utility subject to regulation under Act No. 2694 , which amended the Public Utility Act to include “ice, refrigeration, cold storage” plants. The company argued it was a private enterprise, selling ice only to selected customers under written contracts that explicitly stated the company was not obligated to provide future service. It posted notices that “No ice is sold to the public” and that purchases were by private contract only. The company had no competitors in Iloilo, and its production capacity was limited, often insufficient to meet demand. The Public Utility Commissioner and the Public Utility Board ruled the company was a public utility. The company appealed via certiorari.

ISSUE

Whether the Iloilo Ice and Cold Storage Company is a “public utility” as defined by Act No. 2694 , and therefore subject to the jurisdiction of the Public Utility Commissioner.

RULING

No. The Supreme Court ruled that the company is not a public utility. The Court examined the definition under Act No. 2694 , which includes plants “for public use.” Applying American jurisprudence, the Court distinguished between a “public use,” which implies a use by the public upon which the business depends for its subsistence, and a “private use,” where service is extended only to selected individuals under private contracts without a public duty to serve all who apply. The company’s practice of limiting its clientele through contracts that disclaim any obligation to future service, its posted notices, and its selective sales demonstrated it did not hold itself out as serving the public generally. The fact that it had a monopoly in Iloilo was not determinative. The Court declared the company’s business was not a public utility and revoked the decisions of the Public Utility Commissioner and Board.