Office of the Ohio Consumers' Counsel

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Consumers receive local public hearings on proposed telephone rules

COLUMBUS, Ohio - December 21, 2005 - In a decision today by state regulators, residential consumers across Ohio have been granted local public hearings on proposed telephone rules which could lead to price increases of up to 20 percent per year for basic local service and basic Caller ID.

On November 28, the Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, and other consumer groups had requested public hearings in at least 11 locations throughout the state. The Public Utilities Commission of Ohio (PUCO) has ordered hearings in seven communities including Athens, Cincinnati, Cleveland, Columbus, Dayton, Mansfield and Toledo.

"We are pleased that many residential consumers will be provided a voice through a series of local public hearings," said Janine Migden-Ostrander, Consumers' Counsel. "Under the proposed rules, a local telephone company could become eligible to raise its basic rates by 20 percent per year without any oversight or justification. Now, those who pay monthly telephone bills will have the opportunity to express their opinions at a local hearing. The rules are important and customers deserve this avenue to participate."

The hearings will take place as follows:

Athens - Tuesday, January 24, 2006, 2 p.m., Athens City Hall, Council Chambers, 8 E. Washington Street, 3rd Floor.

Cincinnati - Friday, January 20, 2006, 2 p.m., Cincinnati City Hall, Council Chambers, 801 Plum Street.

Cleveland - Wednesday, January 11, 2006, 5 p.m., Lausche State Office Tower, 615 W. Superior Avenue, 2nd Floor Auditorium.

Columbus - Wednesday, January 18, 2006, 10:00 a.m., Public Utilities Commission of Ohio, 180 E. Broad Street, 11th Floor.

Dayton - Thursday, January 26, 2006, 5 p.m., Dayton Municipal Building, City Commission Chambers, 101 W. Third Street.

Mansfield - Friday, January 13, 2006, 2 p.m., Mansfield City Hall, Council Chambers, 30 N. Diamond Street, 3rd Floor.

Toledo - Monday, January 23, 2006, 5 p.m., Toledo Government Center, Lucas County Commissioners Hearing Room, 1 Government Center, 1st Floor.

A law passed in June by the Ohio General Assembly sets out general principles regarding how the regulation of basic telephone service could change if a telephone company can prove that barriers to competition for basic service do not exist. The PUCO is writing rules that detail the eligibility criteria and process for the local telephone companies to operate under the new law and how much rates could increase.

The PUCO staff has proposed rules which would allow eligible companies to increase their rates for basic local service and basic Caller ID up to 20 percent each year. The price of Call Waiting and a customer's second telephone line could increase without limit.

The OCC has filed comments on the PUCO proposal, recommending significant changes to protect residential consumers. For example, the OCC advocates that before any company is permitted to increase its own rates, customers should have real alternatives for purchasing basic local service. Bundled packages, cell phones and Internet-based services which require broadband are not comparable substitutes for basic service and are more costly.

The OCC also believes the potential rate increases are too dramatic. The OCC believes that any increased rates should be phased in over a five to seven year time period. The total increase over that timeframe should equal no more than 20 percent of the current price.

In addition, the OCC is advocating for more time for public input before a telephone company can receive approval to operate under the rules, better customer notification of price increases and the inclusion of customer benefits as a condition of a company being able to increase its basic rates without any oversight or justification.

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.