NYC To Increase Fleet Of Hybrid Taxis

(AP)  The city soon will have more cabs running on alternative fuel.

The number of hybrid-electric taxis and taxis powered by compressed natural gas is increasing more than tenfold to 281 after the city's first major auction for permits to operate them.

The Taxi and Limousine Commission wasn't sure if cab drivers would embrace the new technology, so it opened the bidding at discounted prices as an incentive.

The concern proved meritless. When the sealed bids were opened Thursday, some buyers had offered record prices. One paid $554,147, the highest sum ever spent for the privilege of operating a hybrid or natural-gas cab in New York. The minimum bid set by the commission was $320,000.

Hybrid taxis can get double the gas mileage of traditional cabs and generate less pollution. The agency has approved nine different hybrid models for use as taxis, from the tiny Toyota Prius to the luxury Lexus RX 400h.

The taxi commission gives medallion owners the sole right to pick up passengers hailing cabs on the city's streets.