Originally published May 10, 2016
The Pennsylvania Public Utility Commission's attempt to deregulate the entry requirements for passenger motor carriers (think taxi and paratransit service) continues to make its way through the regulatory process. As I reported previously, the proposed regulation eliminates the requirement that new applicants demonstrate a "need" for the proposed service.
Now, the Independent Regulatory Review Commission (IRRC) has weighed in based on comments that carriers and legislators submitted last month. The IRRC asked the Commission to provide more information and justification for its position that increased competition will benefit the industry and better establish that the Commission has fully explored:
- whether the regulation represents a policy decision of such a substantial nature that requires legislative review;
- the economic impact of the regulation;
- protection of the public health, safety and welfare;
- need for the regulation;
- implementation procedures;
- whether the regulation is supported by acceptable data; and
- whether a less costly or less intrusive alternative of achieving the goal of the regulation has been considered.
Not surprisingly, the IRRC questioned whether the Commission fully considered the interplay between the proposed regulation and SB984 (the pending legislation that would allow companies like Uber and Lyft to operate).
The Commission has two years to address the IRRC's concerns. I will continue to update you as the regulation makes its way through the regulatory process.
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