State Regulators Deny Verizon's Request for Interim Rate Increase
By: Source: AARP.org Date Posted: 2004-11-09 15:33:00-05:00
A general rate-hike proposal will be decided early next year.
State regulators have denied a request from Verizon Communications for a $30 million interim rate increase. The company's request would have amounted to a $3.54 monthly rate increase for Verizon's 620,000 residential phone customers in Washington, from $13 to $16.54. Business customers would have paid $33.24 monthly rather than the current $29.70.
In a split 2-1 decision, the Washington Utilities and Transportation Commission (WUTC) denied the company's proposed short-term rate increase, saying that Verizon was required to show emergency need but had not done so.
"There is no financial emergency to be staved off," said the WUTC. "Neither the company as a whole nor the overall Washington operations of the company are in an emergency financial situation. Verizon's own projections show that the company expects its Washington operations will cover expenses, interest and new investment while generating a significant surplus without the requested interim rate relief."
The State Attorney General's Office and Washington Electronic Business and Telecommunications Coalition (WEBTEC ) joined AARP Washington in opposing the rate hike.
"This decision was an important victory for Washington consumers," said AARP spokesperson Jason Erskine. "But we're not out of the woods yet. Verizon's general rate-hike proposal is still pending and threatens to raise rates by a whopping 75%."
Verizon's short-term request was part of a general rate increase asking for an additional $110 million a year in revenue. The larger proposal calls for basic telephone rates to go up by $9.80 a month - from $13 to $22.80 for residential customers. Business customers would pay $39.50 monthly, up from $29.70 currently. The commission will hold several public meetings on the general-rate increase request early next year.
AARP is urging consumers to contact the WUTC via email to oppose the rate increase. So far the commission has received 594 public comments, most opposed to the rate hike.
Verizon, formerly known as GTE, is the second largest telephone provider in Washington, serving 850,000 customers in cities such as Redmond, Kirkland, Everett, Bothell, Woodinville, Wenatchee, Kennewick, Pullman, Chelan, Richland, Naches, Westport, Lynden, Anacortes, Mount Vernon and Camas-Washougal.
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