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Lacamas Life Magazine
Public Counsel Raises Questions About
Qwest Alternative Regulation Petition
The
Washington State Attorney General’s Public Counsel Section filed
testimony today with the
Washington Utilities and Transportation
Commission (WUTC) questioning key parts of a proposal by Qwest that
would allow the company to increase residential telephone service
prices without review by the WUTC. Customers can share their
thoughts about the proposal during a hearing March 6 in Tacoma.
Qwest petitioned the commission on Oct.
20, 2006 for an alternate form of regulation. The proposal would
reduce or eliminate many consumer protections currently in place,
including the regulation of basic telephone rates, and service
quality performance reports. Qwest claims that the changes would
allow the company to be more competitive.
Qwest subscribers now pay $12.50 per month
for basic phone service. Under the company’s proposal, Qwest would
be allowed to increase that rate by $2 over four years (50 cents
annually) so that customers would ultimately pay $14.50. The
increases would occur without further WUTC approval or a review of
company earnings to determine if the increase is warranted.
“You wouldn’t expect a company facing real
competition to need to raise rates to meet that competition,” said
Public Counsel Section Chief Simon ffitch. “Customers expect to see
lower prices as a benefit of competition, not rate increases; it’s
basic economics. While Qwest is seeing increased competition from
cable and wireless companies, the company continues to be the
dominant company in the local telephone service market because it
possesses by far the largest market share,” ffitch said.
He said a study by Public Counsel also
found that wireless service is an add-on service for most customers,
rather than a replacement for local phone service. Voice over
Internet Protocol (VOIP) service requires customers to have
broadband Internet service, making it unavailable to some consumers
and an expensive alternative to land lines for basic phone service.
Public Counsel recommended that if the
WUTC adopts an alternative regulatory plan for Qwest, it should keep
basic residential rates at current levels, and establish a service
quality incentive plan to make sure that service does not
deteriorate. In addition, Public Counsel recommended that
individual services continue to be available separately as well as
in bundles or packages, and that Qwest should make broadband DSL
available to more of its customers. An alternative regulatory plan
should be in place for up to four years and then reviewed prior to
being allowed to continue.
The WUTC is expected to rule on the case
by July.
How to voice your opinion:
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The UTC will hold a public comment hearing in
Tacoma on Tuesday, March 6, at Tacoma Community College, 6501 South
19th St., Tacoma, in the Senate Room in Building 11. The hearing
will be held 6:30-8:30 p.m.
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Customers may also submit comments in writing to
WUTC, P.O. Box 47250, Olympia, WA, 98504; by e-mail at
comments@wutc.wa.gov
or by fax at (360)664-4291. Include your
name and mailing address, the name of the company (Qwest), and
docket no. UT-061625.
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Consumer tip: The most helpful comments are
brief, specific to the issue and include your opinion and supporting
facts.
For more information, customers may
contact either the WUTC or Public Counsel:
·
WUTC – (800) 562-6150, e-mail at
comments@wutc.wa.gov
. Information is available online at
www.wutc.wa.gov
. Enter 061625 in the docket lookup field.
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Attorney General’s Office Public Counsel Section
-- Public Counsel, Attorney General’s Office, 900 Fourth Avenue,
Suite 2000, Seattle, WA 98164-1012, or e-mail
utility@atg.wa.gov
The Public Counsel Section advocates for
the interests of consumers on major rate cases, mergers and other
rulemakings before the UTC. Public Counsel also advocates for
consumers in court appeals, through technical study groups and
before the Legislature and other policy makers. The office maintains
contact with the public through a citizen advisory committee,
community organizations, public hearings and personal contact with
consumers in major cases. More information about Public Counsel’s
work is available online at
www.atg.wa.gov/utility/index.shtml
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