Office of the Ohio Consumers' Counsel

Media Center

Contact: Ryan Lippe
(614) 466-7269

Verizon granted basic local service pricing freedom for 21 exchanges, denied for three exchanges

COLUMBUS, Ohio – March 18, 2009 – Basic local service rates could increase for Verizon customers in 21 exchanges, however three communities were spared due to a decision released today by state regulators, according to the Office of the Ohio Consumers’ Counsel (OCC).

The Public Utilities Commission of Ohio (PUCO) granted Verizon’s request to be able to annually raise basic rates through “alternative regulation” in 21 exchanges. The OCC opposed alternative regulation in 22 of 24 exchanges.

“If Verizon uses its new authority to raise prices for basic telephone service in the other 21 exchanges, it will create an added burden on some customers’ already strapped household budgets,” said Janine Migden-Ostrander, Consumers’ Counsel. However, we are pleased that Verizon was denied the authority to impose annual rate increases for basic telephone services in three exchanges.”

“Customers who want or need basic local service should be able to purchase it at a reasonable price. The fact is that choices are not available to those who want dial tone service without any bells and whistles,” Migden-Ostrander said.

The OCC asserted that Verizon did not demonstrate that residents in 22 of the exchanges have competitive choices for basic local telephone services. Alternative regulation allows telephone companies the ability to raise rates if the PUCO decides a competitive test is met demonstrating that an exchange is open to competition and residential customers have reasonably available alternatives.

Under alternative regulation, a telephone company can increase its monthly basic local rate by $1.25 each year, and the monthly price of basic Caller ID by 50 cents each year. Lifeline customers are exempt from these increases.

Editor’s note:

Below are listings of the individual exchanges for which Verizon was granted alternative regulation today: Ashland, Athens, Bowling Green, Brunswick, Cambridge, Circleville, Delaware, Englewood, Marion, Medina, Montrose, New Philadelphia, Norwalk, Plain City, Port Clinton, Sylvania, Tipp City, Trotwood, Troy, Wadsworth and Wilmington.

Below are listings of the individual exchanges for which Verizon was denied alternative regulation today: Chesapeake, Jackson and Portsmouth.

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 Web site at www.pickocc.org.