Cal. PUC Comr. Rachelle Chong proposed a retail rate deregulation...
Cal. PUC Comr. Rachelle Chong proposed a retail rate deregulation plan for the state’s largest incumbent telcos that would end price regulation of all residential and business bundled services, newly introduced services, customer specific contracts and promotions, along with…
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
basic local services to most customers. Under this proposal, filed in the PUC’s uniform regulatory framework docket (Case R-05- 04-005), rate regulation would remain only on local residential services subsidized by universal service funds, including Lifeline and high-cost assistance, and any bundles that include subsidized residential local service. Chong said the Big 4 Cal. incumbents -- AT&T, Verizon, SureWest and Frontier -- lack the market power to sustain prices above what competition would produce. She also said they are subject to real competition from wireless and VoIP providers. The 248-page proposal would allow price decreases to become effective 24 hours after filing the tariff; but rate increases would require 25 days’ notice to affected customers. Telecom service contracts would be effective upon signing, but would have to be filed with the PUC within 15 days. The PUC would review these pacts for unfair discrimination. The proposal also would streamline reporting requirements and adopt a single set of requirements for the 4 carriers. The plan also would adopt FCC accounting standards across the board for the telcos. The proposal would leave service quality standards and enforcement issues for resolution in a separate docket (Case 02-12-004). The Chong plan could come before the PUC as early as its Aug. 24 meeting. But if an alternative proposal is filed by another PUC member before then, the matter likely will be put off until late Sept.