Pennsylvania Public Utility commissioners denied a request to overturn their record-setting fine against Uber, and the company said it will appeal the ruling to Commonwealth Court.
The commissioners contended during a meeting Thursday that Uber failed to present any legal arguments or factual evidence that warranted reconsidering the $11.36 million fine the company faces for operating in Pennsylvania without approval and in spite of an order to cease.
Uber officials in a written statement said they were “shocked that the PUC would compound its past mistakes and send the troubling message that Pennsylvania is unwelcoming to technology and innovation.”
Commission Chairwoman Gladys Brown, who read a joint statement for herself and Vice Chairman Andrew Place, said the PUC was “unable to verify critical safety standards” related to Uber's services while the company operated without approval. She also said the PUC did not take the large penalty lightly, but the PUC was faced with “an unprecedented number of violations” committed by Uber.
“When a regulated entity is given notice that it is violating the law, given numerous opportunities to comply with the law and ignores those notices, it does so to its own detriment,” she said.
Commissioner Robert Powelson, who originally opposed the stiff fine, cast the only dissenting vote during Thursday's meeting. He reiterated his position that the penalty was “inappropriate and inconsistent with commission precedent.”
“Assessing an $11 million fine in a situation where no one was injured, there is very little evidence of actual harm, is an abuse of the commission's discretion,” he said. “As Uber asserted in its petition, the harshness of the penalty vastly exceeded the gravity of the offense in this particular case.”
Commissioner David Sweet said laws must be obeyed, but he also said they must be “modernized to address new realities.” He called for state lawmakers to focus their attention on the regulatory framework under which companies like Uber and competitor Lyft are supposed to operate.
“Otherwise, we'll again be in this same room trying to figure out again how to put the proverbial square peg in a round hole,” Sweet said.
Uber also called for new legislation.
“For technical violations in bringing Uber to Pennsylvanians, the PUC has imposed an absurd and record-breaking fine which demonstrates why the Commonwealth needs permanent, statewide ridesharing legislation as soon as possible.”
One piece of proposed legislation, Senate Bill 984, seeks to establish new conditions, requirements and the regulatory framework for Uber, Lyft and other transportation networks in Pennsylvania, according to the General Assembly's website. The legislation has earned approval in the Senate and is awaiting action on the House floor.
Uber officials on Thursday also announced a ride scheduling expansion in Pittsburgh. The expansion allows users to schedule rides up to 30 days in advance.
Michael Walton is a Tribune-Review staff writer. He can be reached at 412-380-5627 or mwalton@tribweb.com.
