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Florida Public Service Board Dismisses Phone Companies' Rate Hike Proposals

Posted on: Tuesday, 30 September 2003, 06:00 CDT

Oct. 1--The Florida Public Service Commission dismissed the rate hike proposals filed by BellSouth Corp. and the state's two other major local telephone companies on Tuesday, but allowed the three carriers to amend their proposals within 48 hours to change the disputed timing of the planned increases.

BellSouth filed its amended proposal late Tuesday afternoon.

The motion to dismiss had been filed by the Office of Public Counsel, the state's consumer advocate, over differing interpretations of the phrase in the law ordering the rate adjustments to be made "in not less than two years and not more than four."

AARP, which represents 2.6 million seniors in Florida, had filed a similar motion to dismiss.

The law, passed last spring, authorized the companies to raise their local rates while reducing the access fees they charge long-distance carriers. Those reductions, for in-state long-distance calls only, are supposed to be passed on to consumers.

BellSouth, Verizon and Sprint Florida interpreted the law to mean they could apply their increases once a year for two years. Charles Beck, the state's public counsel, had argued that the dates proposed for the new rates -- Jan. 1, 2004, and Jan. 1, 2005 -- were only 12 months apart. The PSC staff agreed with Beck's office and recommended the commission dismiss the proposals.

BellSouth submitted its amended proposal, adjusting the residential rates by smaller amounts in each of three years. Originally, BellSouth had proposed its basic rate of $11.04 a month would be raised $1.75 next year and another $1.75 the following year for residential customers, excluding those who qualify for LifeLine Assistance, a program to subsidize low-income consumers. The new plan calls for a $1.25 hike in 2004; and estimated increases of $1 to $1.25 in 2005 and 2006.

Beck could not be reached for comment on BellSouth's amended version.

However, Mike Twomey, AARP spokesman, pointed out in his testimony that consumer advocates were especially unhappy with the two one-year hikes in the original proposal because BellSouth had assured legislators during the debate over the bill that it would spread the increases over three years to "reduce rate shock."

The commission said it will also extend the deadlines for testimony and reschedule technical hearings by more than a month to Dec. 10-12.

Public hearings, which begin Oct. 1 in Jacksonville, will not be rescheduled. The Fort Lauderdale public hearing is scheduled for 6:30 p.m., Oct. 8, at the Broward County Governmental Center Commission Chambers, Room 422, 115 S. Andrews Ave., Fort Lauderdale.

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(c) 2003, South Florida Sun-Sentinel. Distributed by Knight Ridder/Tribune Business News.

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