G.R. No. 26771, September 23, 1927
RUPERTO SANTOS, petitioner, vs. THE PUBLIC SERVICE COMMISSION, respondent.

FACTS

Petitioner Ruperto Santos challenges the jurisdiction of the Public Service Commission over the business “El Tren de Aguadas,” which supplies water to ships in the Pasig River and Manila Bay. The business was organized in 1894. In 1920, the Public Utility Commission (predecessor to the Public Service Commission) took cognizance of it after a complaint was filed regarding its refusal to serve a motorship. “El Tren de Aguadas” initially complied with the Commission’s directives, submitting and amending its tariff of charges. However, in 1921, it sought exemption from the Commission’s jurisdiction. The Commission denied the petition and ordered the business to comply with its regulations and obtain a Certificate of Public Convenience.

ISSUE

Whether “El Tren de Aguadas” is a “public utility” under the old Public Utility Law (Act No. 2307, as amended) or a “public service” under the new Public Service Law (Act No. 3108, as amended), thereby subject to the jurisdiction of the Public Service Commission.

RULING

Yes. The Supreme Court affirmed the decision of the Public Service Commission, holding that “El Tren de Aguadas” is subject to its jurisdiction.

The Court compared the definitions under the old and new laws. The old law defined a “public utility” as an entity operating a business “for public use.” The new law defines a “public service” as an entity operating a business “for hire or compensation.” The Court found that “El Tren de Aguadas” falls under both definitions. It operates a water system, and the evidence shows it sold water to numerous entities and the public at large, indicating its service was for public use and for hire/compensation. The business had also previously submitted to the Commission’s authority and proposed tariffs for its services.

Therefore, “El Tren de Aguadas” is a public utility/public service, and the Public Service Commission has jurisdiction over it. The petition was denied, and the Commission’s decision was affirmed.