SEPTA may lose the $24 million it spent on electric battery buses

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SEPTA may lose the $24 million it spent on electric battery buses
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The 25 Proterra electric buses have been sidelined for more than three years. Proterra's Chapter 11 filing complicates the next steps.

The transit agency and Proterra had been negotiating over repairs that would get the EV buses back in service. Those talks have not produced a solution and they were canceled abruptly after the Aug. 7 bankruptcy filing, SEPTA officials said.

“At this point we don’t know what the path forward would be and what SEPTA’s [legal] remedies are, and we can’t say when the buses would come back into service,” said Andrew Busch, an agency spokesperson.The company says it intends to continue operating, seeking more capital or a buyer while holding creditors at bay in Chapter 11.

Some transit agencies say Proterra has told them buses they ordered will be delivered. SEPTA was an earlier purchaser of the company’s buses and they were in use on several routes.The California-based company has been a leader in the drive toward converting transit buses into EVs to meet climate goals, frequently praised by the White House. It makes transit buses, as well as heavy-duty electric drivetrains, batteries and charging technology.

Transit vehicle orders are awarded to the lowest responsible bidder, which can tighten margins, and also are specific to each agency.that align with the other buses in their respective fleets,” Proterra wrote in the filing. “Therefore, the manufacturing process requires much customization, which makes scaling the business difficult and requires an extensive amount of working capital.

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