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Pennsylvania PUC Approves Emergency Applications for Rideshares in Allegheny County

The agency's Bureau of Technical Utility Services recommended approving the applications, allowing Uber and Lyft to begin experimental use in the state and invalidating the cease-and-desist order.

The Pennsylvania Public Utility Commission this morning approved emergency applications for ride-share companies Lyft and Uber to operate in Allegheny County.

The vote by the five commissioners was unanimous.

The agency's Bureau of Technical Utility Services recommended approving the applications, even though the PUC's Bureau of Investigation and Enforcement had previously recommended denial.

A panel of administrative law judges with the PUC issued cease-and-desist orders for both companies July 1, but neither was deterred. Despite proposed fines of $1,000 per day and citations and fines against individual drivers, the companies have continued to operate.

Both companies have formal applications to begin experimental service in Pennsylvania which are still pending.

The emergency temporary authority licenses, which are valid for 60 days, come with conditions. The companies must file "proper insurance paperwork and a rate structure with the Commission," according to the official news release announcing the approvals.

Once the companies have complied with those conditions, the cease-and-desist order will be invalidated, a PUC spokeswoman said.

Lyft spokeswoman Paige Thelen said the decision marked a "significant step" toward ride-share companies' future in Pittsburgh.

"With this decision, the PUC has recognized that regulations can and should be modernized to allow innovative industries to thrive while maintaining the highest level of public safety," Ms. Thelen said. "We applaud the PUC for these efforts as an important first step in ensuring the people of Pittsburgh have transportation options."

"These proposals, while temporary in nature, foster the ability for Allegheny County residents to avail themselves of regulated transportation service that uses modern technology to serve traveling customers in that county," said Commissioner Pamela Witmer, in a joint statement with PUC Chairman Robert Powelson. "As evidenced by our action today, the commission strives to ensure that its current regulatory structure is not a barrier to technological advances and desirable changes in the transportation industry."

Uber spokeswoman Taylor Bennett said today's decision by the PUC showed it was listening to Pittsburgh consumers.

"As the Commission confirmed, the people of Pittsburgh have been heard loud and clear, and will continue to have access to the safest ride on the road and the ability to take advantage of the opportunity and flexibility Uber provides," she said.

?Pittsburgh Mayor Bill Peduto, who has been a vocal supporter of ride-share companies in the city, thanked the PUC for its decision.

"This unanimous vote underscores Pittsburgh’s leadership in supporting 21st-century transportation options, and I will keep working with the PUC and others in Harrisburg to allow for them permanently," the mayor said in a statement.

Gov. Tom Corbett praised the PUC's decision, which he said supports "innovative thinking" for Allegheny County.

“I look forward to working with the General Assembly in the fall to ensure these innovative companies can continue to operate throughout Pennsylvania,” the governor said in a statement.

Sen. Wayne Fontana, D-Brookline, who has introduced legislation to establish a new kind of transportation network, had also urged the PUC to expedite the ride-share companies' emergency applications.

“Today’s unanimous decision demonstrates the PUC’s commitment to embracing modern technology, accommodating transportation alternatives and giving citizens more choices,” ?Mr. Fontana said. “I will continue to work closely with PUC and Allegheny County officials to assure that this promising transportation alternative remains available, regulated and safe.”

The commission will continue its consideration of the companies' formal applications for experimental authority to operate, filed in April, which are pending before the administrative law judges' office.

In addition, the PUC announced today that the commissioners will hold a hearing Aug. 28 "to examine issues in the state's transportation industry, including adequacy of driver integrity regulations, vehicle safety regulations and current insurance requirements."

©2014 the Pittsburgh Post-Gazette