Office of the Ohio Consumers' Counsel

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Consumers' Counsel calls for local public hearings on telephone deregulation rules

Rates for basic service could go up 20 percent per year

COLUMBUS, Ohio - November 28, 2005 - Consumers deserve a chance to voice their opinion about proposed telephone rules that could allow the prices of basic service and Caller ID to increase 20 percent each year, the Office of the Ohio Consumers' Counsel (OCC) said. Later today, the OCC will file a request for a series of local public hearings with the Public Utilities Commission of Ohio (PUCO), where the rules proposed by its staff are currently being considered.

"The proposed rules could allow local telephone companies to raise many customers' rates without the oversight, review and consumer protections that are currently in place," said Janine Migden-Ostrander, Consumers' Counsel. "Consumers deserve a voice and we urge the PUCO to hold local public hearings."

The OCC, the residential utility consumer advocate, will be joined by the Appalachian People's Action Coalition, Consumers for Fair Utility Rates, Edgemont Neighborhood Coalition and Neighborhood Environmental Coalition in the request. The groups will ask for local public hearings to be held in at least 11 locations, including Akron, Athens, Chillicothe, Cincinnati, Cleveland, Columbus, Dayton, Lima, Mansfield, Marion and Toledo.

Under the proposed rules, local telephone companies could apply for the price of basic local telephone service and Caller ID rates to be deregulated. As part of the request, a company would need to meet a test related to the alternative choices available to customers. After receiving PUCO approval, the company could raise its basic local telephone rates and the price of Caller ID by 20 percent per year.

In addition to rate increases for basic service and Caller ID, a company operating under the proposed rules could impose unlimited increases to the price of Call Waiting and consumers' second telephone lines at any time.

Seven of Ohio's eight largest local telephone companies - SBC, Cincinnati Bell, Sprint, Western Reserve, Alltel, CenturyTel and Chillicothe Telephone - are currently able to raise the prices of commonly-used services and features due to rules adopted by the PUCO in 2001. While allowing certain price increases, those rules also require the companies to cap the price of basic local service and Caller ID, and to make commitments involving low-income assistance and broadband coverage.

Since those rules were adopted, some of these companies have increased the prices for services such as Call Forwarding and Three-Way Calling by as much as 60 percent.

The proposed rules are meant to implement a law passed by the Ohio General Assembly earlier this year. While the law sets out general principles regarding alternative regulation for basic service, the PUCO can set rules that establish eligibility requirements, pricing limitations and consumer benefits that companies must provide in exchange for the rate deregulation.

According to a PUCO schedule, comments by interested parties on the proposed rules are due on December 2. The OCC will file comments and advocate throughout the case on behalf of residential telephone customers.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC website at www.pickocc.org.