G.R. No. 45426; July 9, 1938
MANILA ELECTRIC COMPANY, petitioner, vs. ISABEL ABLAZA, respondent.

FACTS

Respondent Isabel Ablaza, an operator of autocalesas (small public utility vehicles), held a certificate of public convenience with a flat rate of P0.10 per passenger within Manila city limits. She petitioned the Public Service Commission (PSC) to reduce and modify her rates to a graduated scale based on districts traveled. The Manila Electric Company (Meralco), a bus operator, opposed the petition. The PSC, after notice and hearing, issued an order fixing new graduated rates (e.g., P0.03 minimum within a district, P0.05 to an adjoining district) and characterized the order as an experimental measure for four months, subject to modification. Meralco appealed, alleging the PSC rendered its decision without a formal hearing.

ISSUE

Whether the Public Service Commission acted without jurisdiction or in excess of its authority in modifying the rates without a formal hearing and in setting the new graduated rates.

RULING

The Supreme Court affirmed the PSC’s order. The allegation of lack of a formal hearing was without merit, as the record showed Meralco received notice, filed an opposition, and appeared at the hearing. The PSC has the power to alter the rates in an original certificate due to changed circumstances. The modification was justified because the old flat rate made Ablaza’s service non-competitive and impractical against bus operators like Meralco, which could carry more passengers at lower zonal rates. The experimental nature of the order, allowing for future recommendations and modifications, was a valid exercise of the PSC’s regulatory authority to adjust rates for public convenience.

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