The Colorado Public Utilities Commission this morning went against an administrative law judge’s decision granting 300 new taxi permits — 150 each for Denver Yellow Cab and start-up Liberty Taxi — voicing concern that Lower Downtown is simply too congested with cabbies.

Two commissioners of the three-member panel decided Liberty had not proven it was financially viable to pull off a virtual cabstand idea that requires an expensive dispatch system reliant on Internet and telephone messaging reservations. Deciding against Yellow Cab, the commissioners sided with industry leader Metro Taxi’s contention that too many taxis are battling for what little business there is downtown, most of it to Denver International Airport.

The companies can petition the commission to either reopen hearings on the case or reconsider its decision before making it final. Failing that, the companies can file an appeal to the district court.