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Rule 65-2 ROSALES Vs ERC

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ROSALES vs ERC

GR 201852

Energy Regulation Commission, on 23 September 2009, issued Resolution 20 Series of 2009


establishing the Rules for Setting the Electric Cooperatives’ Wheeling Rates which then
provides for the establishment of the Members’ Contribution for Capital Expenditures. Said MCC
envisioned to fund the amortization or debt service of its indebtedness associated with the
expansion, rehabilitation o upgrading of the existing electric power system of the ECs.

On 06 July 2011, ERC issued Resolution 14 Series of 2011 amending the MCC to
Reinvestment Fund for Sustainable Capital Expenditure.

Petitioners filed a petition for certiorari under Rule 65 on the unconstitutionality of the Members’
Contribution for Capital Expenditures (MCC) later renamed as Reinvestment Fund for
Sustainable Capital Expenditures (RFSC) imposed by Electric Cooperatives pursuant to the
Rules and Resolution of the Energy Regulation Commission

Petitioners claim the imposition of MCC or RFSC by te ERC as a form of investment solicitation
to fund the expansion and other capital expenditures of electric cooperatives is highly irregular,
oppressive, and unconstitutional as it directly violates the due process and equal protection
clauses on property under Section 1 Article III of the 1987 Constitution.

They further averred that ruling of ERC allowing the mandatory collection f MCC or RFSC by the
electric cooperatives is undoubtedly unconstitutional as it directly violates Section 10, Article II
and Section 1 and 15 Article XII of the Constitution.

Issue:
Whether the special civil action under Rule 65 is the appropriate remedy for the petitioner

Held: (NO)

Section 1, Rule 65 of the Rules mandates:

SECTION 1. Petition for certiorari. - When any tribunal, board or officer exercising judicial or
quasi-judicial functions has acted without or in excess of its or his jurisdiction, or with grave
abuse of discretion amounting to lack or excess of its or his jurisdiction, and there is no appeal,
or any plain, speedy, and adequate remedy in the ordinary course of law, a person aggrieved
thereby may file a verified petition in the proper court, alleging the facts with certainty and
praying that judgment be rendered annulling or modifying the proceedings of such tribunal,
board or officer, and granting such incidental reliefs as law and justice may require.

A respondent is said to be exercising judicial function where he has the power to determine


what the law is and what the legal rights of the parties are, and then undertakes to determine
these questions and adjudicate upon the rights of the parties.

Quasi-judicial function, on the other hand, is "a term which applies to the actions, discretion,
etc., of public administrative officers or bodies … required to investigate facts or ascertain the
existence of facts, hold hearings, and draw conclusions from them as a basis for their official
action and to exercise discretion of a judicial nature."
ERC exercised neither judicial nor quasi-judicial function. In issuing and implementing the
RSEC-WR and Resolution No. 14, it was not called upon to adjudicate the rights of contending
parties to exercise, in any manner, discretion of a judicial or quasi-judicial nature. Instead,
RSEC-WR and Resolution No. 14 were done in the exercise of the ERC's quasi-legislative and
administrative functions. It was in the nature of subordinate legislation, promulgated in the
exercise of its delegated power. Quasi-legislative power is exercised by administrative agencies
through the promulgation of rules and regulations within the confines of the granting statute and
the doctrine of non-delegation of powers flowing from the separation of the branches of the
government. Particularly, the ERC applied its rule-making power as expressly granted by
Republic Act (R.A.) No. 9136 ("Electric Power Industry Reform Act of 2001" or EPIRA),

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