Office of the Ohio Consumers' Counsel

Media Center

Consumers’ Counsel reacts to decision on potential AT&T basic rate increases

COLUMBUS, Ohio – June 27, 2007 – A decision today by state regulators means that basic local service rates could increase for AT&T Ohio customers in eight areas, however three communities were spared, the Office of the Ohio Consumers’ Counsel (OCC) said.

The OCC opposed AT&T’s request for all of the 11 areas in which the company asked for the ability to raise its rates annually without any future regulatory review. Today, the Public Utilities Commission of Ohio (PUCO) granted AT&T’s ability to raise basic rates each year in Barnesville, Belfast, Dresden, East Liverpool, Harrisburg, Lewisville, Salineville and St. Clairsville exchanges. The PUCO denied for the second time AT&T’s ability to raise basic rates in the central Ohio communities of Canal Winchester, Groveport and New Albany.

“As the residential utility consumer advocate, our office is disappointed that customers in another eight communities could see, potentially, annual rate increases for the most basic of telephone services,” said Janine Migden-Ostrander, Consumers’ Counsel. “AT&T failed to meet requirements that these local areas first be open to competition for basic local service and that residents have reasonably available alternatives. We are pleased state regulators spared customers in three communities a potential increase each year, however other communities are not so fortunate.”

The OCC believes that in the eight affected communities, residential consumers who simply want basic dial tone service could see their bills increase while having few, if any, comparable choices. AT&T can increase its monthly basic local rate by $1.25 each year and the price of basic Caller ID by 50 cents each year in those communities.

“Customers need to be able to count on reasonably priced telephone service, especially those customers who want the security of having a traditional telephone line, or who do not desire or cannot afford a package of features or a cell phone,” said Migden-Ostrander.

The PUCO granted AT&T pricing flexibility for 136 of its other exchanges in Ohio through a prior decision.

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.