Office of the Ohio Consumers' Counsel

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Verizon customers paying more for local telephone packages, features

COLUMBUS, Ohio – August 10, 2006 – The Office of the Ohio Consumers’ Counsel (OCC), the residential utility advocate, is alerting Verizon customers of increased prices for several local telephone packages and commonly used services. The increases are permitted without review by state regulators after the Public Utilities Commission of Ohio (PUCO) allowed Verizon to operate under “elective alternative regulation” rules.

This is the first increase Verizon has implemented since it was granted elective alternative regulation in June. Verizon customers, who have few choices in alternative telephone providers, will now see monthly rate increases for several services, including:

Call Forwarding - now $2 per month, up from $0.75
Caller ID w/ Name and Number - now $9.25 per month, up from $7.95
Three-Way Calling - now $3.50 per month, up from $2.75
"Big Deal" calling features packages - now $3 more per month.

The prices, some of which increased 200 percent, were filed with the PUCO Aug. 1 and went into effect immediately.

"Verizon customers are seeing higher prices but still have very few competitive options," said Janine Migden-Ostrander, Consumers' Counsel. "These significant increases affect the way some households are trying to manage their budgets."

In a June filing at the PUCO, the OCC adamantly opposed Verizon's ability to raise rates of its local telephone services because of the lack of competition in its service area and the ongoing problems regarding service quality. The OCC has appealed to the PUCO for a rehearing of its decision.

Elective alternative regulation allows local telephone companies to raise their rates for commonly used features while agreeing to cap the rates of basic local service and basic Caller ID.

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.