STATEMENTS OF POLICY
Title 52--PUBLIC UTILITIES
PENNSYLVANIA PUBLIC UTILITY COMMISSION
[52 PA. CODE CH. 41]
[L-00010152]
Evidentiary Criteria Used to Decide Motor Common Carrier Applications
[31 Pa.B. 5948] Public Meeting held
October 12, 2001Commissioners Present:
Glen R. Thomas, Chairperson; Robert K. Bloom, Vice-Chairperson; Aaron Wilson, Jr.; Terrance J. Fitzpatrick
Evidentiary Criteria Used to Decide Motor Common Carrier Applications; Doc. No. L-00010152
Generic Investigation Re Eliminating the Evidentiary Criteria contained in 52 Pa. Code § 41.14(a) and (c); Doc. No. I-00010089
Order By Order entered March 23, 2001, the Commission issued a Proposed Policy Statement on the Evidentiary Criteria Used to Decide Motor Common Carrier Applications. The proposed policy statement sought to eliminate two elements of the Commission's current evidentiary standards used in determining whether to grant a motor carrier application for authority as ''necessary or proper for the service, accommodation, convenience, or safety of the public,'' in accordance with section 1103(a) of the Public Utility Code, 66 Pa.C.S. § 1103(a).
The standards found in 52 Pa. Code § 41.14(a) and (c) that we sought to eliminate are: (1) a requirement that the applicant prove a ''public demand or need'' for the service; and (2) a provision that an application may be denied where it threatens the operations of existing carriers. The purpose for the proposed changes was the Commission's view that it is difficult to justify the continuation of burdensome entry standards for potential motor common carriers in this era of increasing competition. The proposed policy statement was published on May 5, 2001, in the Pennsylvania Bulletin at 31 Pa.B. 2389, with a 30-day comment period.
In response to the publication, 164 comments were filed. Twenty-nine comments were late-filed. In addition to numerous comments received from the household movers industry and the taxicab industry, numerous comments were filed by members of the State legislature.
The Commission has decided to withdraw the proposed policy statement at this time. Instead of finalizing the proposed policy statement, we hereby initiate an investigative proceeding in order to hold hearings and gather additional information regarding the issues raised by the proposed policy statement. By this Order, we hereby direct the Office of Administrative Law Judge (OALJ) to hold hearings and issue a Recommended Decision that will address, at a minimum, the following issues:
1) Whether eliminating the evidentiary requirement that an individual applicant prove that its application will ''serve a useful public purpose, responsive to a public demand or need,'' pursuant to 52 Pa. Code § 41.14(a), is consistent with the Commission's policies to promote competition and is in the public interest;
2) Whether eliminating the evidentiary requirement that an application may be denied where ''it is established that the entry of a new carrier into the field would endanger or impair the operations of existing common carriers'' pursuant to 52 Pa. Code § 41.14(c), is consistent with the Commission's policies to promote competition and is in the public interest;
3) Whether eliminating the evidentiary requirements described in 1 and 2 would preclude the Commission from fulfilling its statutory duty to determine whether the granting of an individual application is necessary or proper for the service, accommodation, convenience or safety of the public, in accordance with 66 Pa.C.S. § 1103(a);
4) Whether the Commission should adopt a pro-competitive motor carrier policy that reduces entry standards for new applicants? If not, why not?
5) Whether strengthening the Commission's current standards dealing with an applicant's technical and financial fitness, pursuant to 52 Pa. Code § 41.14(b), would be in the public interest (assuming the policy changes described are adopted).
In addition, the OALJ is directed to commence the proceedings no later than Tuesday, November 13, 2001, and provide its findings and recommendations to the Commission no later than March 22, 2002. Should the OALJ recommend any changes to the Commission's existing evidentiary requirements, a determination should be made regarding the best means available to the Commission to implement such changes (i.e., by policy statement, regulation, or proposed legislation). The Recommended Decision should also address whether differences among providers (such as taxicab, household movers, group and party, and paratransit) within the motor carrier industry warrant different evidentiary standards. Finally, in order to maximize participation from interested persons, hearings shall be conducted in Altoona, Harrisburg, Philadelphia, Pittsburgh, and Scranton; Therefore,
It Is Ordered:
1. That the proposed policy statement to eliminate the evidentiary requirements contained in 52 Pa. Code § 41.14(a) and (c) is hereby withdrawn.
2. That the Commission's Law Bureau place notice in the Pennsylvania Bulletin advising the public and interested parties of this generic investigation and soliciting public input.
3. That the Office of Administrative Law Judge is hereby directed to commence an investigation by holding hearings and issue a Recommended Decision, as detailed.
JAMES J. MCNULTY,
Secretary
[Pa.B. Doc. No. 01-1920. Filed for public inspection October 26, 2001, 9:00 a.m.]
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