Elite Indus., Inc. v. Pennsylvania Public Utility Commission

In Elite Indus., Inc. v. Pennsylvania Public Utility Commission, 574 Pa. 476, 832 A.2d 428 (2003), the Public Utility Commission changed a regulation and exempted limousine license applicants from a requirement to show public necessity for the service while an appeal was pending from denial of an application. The Court reversed the grant of authority, but the Supreme Court disagreed. In Elite Indus. the requirement to show a public demand or need was contained in 52 Pa. Code 41.14, which specified the detailed requirements for an application for a motor common carrier certificate of public convenience. Section 1103(a) of the Public Utility Code, as amended, 66 Pa. C.S. 1103(a), provided that the Commission should grant a certificate "only if the commission shall find or determine that the granting of such certificate is necessary or proper for the service, accommodation, convenience, or safety of the public." The Supreme Court quoted the Rohrbaugh discussion of legislative versus interpretive rule-making and quoted Seaboard Tank Lines, Inc. v. Pennsylvania Public Utility Commission, 93 Pa. Commw. 601, 502 A.2d 762 (Pa. Cmwlth. 1985), describing the Commission's mandate to grant certificates of public convenience pursuant to Section 1103(a) as broad and noting that the legislature left the formulation of the criteria for grants of certificates to the Commission. The court held that the Commission's change in policy and regulations as to limousine applications was made in consideration of the public interest. Thus Elite Indus. was a case where an agency exercised legislative rule-making power and so was free to alter past policies regardless of prior court interpretations.