Press Release

PUC Approves Conditional License for Uber to Operate Statewide

Published on 11/13/2014

Filed under: Transportation and Safety

HARRISBURG – The Pennsylvania Public Utility Commission today approved with conditions the application by Uber affiliate Rasier-PA to offer experimental service for two years throughout the Commonwealth, excluding the City of Philadelphia.

            “The Commission…has shaped conditions that allow for this exciting new business model to thrive in the Commonwealth while at the same time ensuring that the necessary public protections are in place,” said PUC Chairman Robert F. Powelson and Commissioner Pamela A. Witmer in a joint motion.

The Commission voted 4-1 on the joint motion to issue the company an experimental license once the company complies with a list of conditions outlined in the motion.  The conditions are designed to ensure driver integrity, vehicle safety and insurance protections.

PUC Vice Chairman John F. Coleman Jr. issued a dissenting statement: “Specifically, I am gravely concerned that the safety of the drivers, passengers and other members of the public will be unnecessarily compromised under the Applicant’s current business model. I appreciate the majority’s well-intentioned effort to bring the Applicant into accord with reasonable safety and insurance requirements by making the grant of permanent authority contingent on compliance by a date certain. However, I am very skeptical that the Applicant will satisfy these conditions.”

Commissioner Gladys M. Brown issued a statement: “This Commission is certainly not against new and innovative services, but we have a responsibility to uphold the laws as they are currently written. That being said, the success or failure of transportation network companies, such as Rasier, depends solely on their propensity to operate safety and within the confines of our laws. Rasier’s conduct over the next few months will establish its future operations in Pennsylvania. If it chooses not to comply with the regulatory requirements established in this order, I will not hesitate to seek further enforcement action.”

“Most of the conditions we adopt today not only largely mirror our regulations, but also Rasier-PA’s existing operating practices, such as vehicle inspection, driver background checks, zero tolerance for drug and alcohol use while operating a vehicle, and insurance, as well as other aspects of Rasier-PA’s proposed business model,” the joint motion said.

The service will not be licensed in Pennsylvania until the company has demonstrated full compliance with the list of conditions. If the company rejects the conditions, it will be not licensed to operate anywhere in the state, and its current Emergency Temporary Authority in Allegheny County will be immediately revoked.

Even with the conditional approval, which is good for two years, the Commission continues to maintain that a legislative solution for transportation network companies (TNCs) such as Uber is the best answer for Pennsylvania.

“The Commission intends to continue working with the General Assembly to pass legislation that will create a new category of passenger service designed to recognize the TNC business model and refine the regulatory approach we take here,” the joint motion said.   

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility.  “Like” PAPowerSwitch on Facebook for easy access to information on electric shopping.

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Docket No. A-2014-2424608; A-2014-2416127

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