Press Release

PUC Finalizes Rulemaking to Simplify Rate Increase Request Process for Some Motor Carriers of Passengers

Published on 12/2/2010

Filed under: Transportation and Safety

HARRISBURG – The Pennsylvania Public Utility Commission today approved a rulemaking, which will streamline the current procedures for rate increase requests submitted by motor carriers of passengers with gross operating revenues of less than $500,000.

The Commission voted 5-0 to approve the rulemaking. 

 “As a whole our new regulations will increase the Commission’s efficiency in handling small passenger carrier rate increase requests and, more importantly, will assist these carriers in receiving necessary revenue increases in an equitable and reasonable manner,” said Vice Chairman Tyrone J. Christy in a statement. 

The Commission has found that small motor carriers may lack the expertise in the ratemaking process that can result in legal and consulting fees or denial or lengthy delays in deciding of a carrier’s proposed rate increase.

The proposed regulations define small motor carriers of passengers as those with gross operating revenues of less than $500,000. The proposed regulations also contain a one-year stay-out provision for those receiving a rate increase unless the carrier’s operating revenue is above 93 percent.

The Commission proposes simplifying the rate process by permitting a small carrier to request a revenue increase each year by filing:

• Total gross annual intrastate revenue for the most recent fiscal year;
• The dollar amount of the increase revenue that the projected rate increase is expected to produce;
• Total projected operating revenue after the revenue increase;
• Total projected operating expenses; and
• The resulting operating ratio.

The regulations will become final when published in the Pennsylvania Bulletin. 

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No. L-2008-2057661

Contact:

• Press Secretary
  717-787-5722