Thursday, July 22, 2004

Verizon Proposes Higher Local Telephone Rates in WA

Verizon filed a rate design proposal with the Washington Utilities and Transportation Commission (WUTC) for a substantial increase in the basic monthly rate the company charges for telephone service. Under the proposal, Verizon's basic monthly rate in the state would increase by $9.80 - from $13 to $22.80 for residential customers and from $29.70 to $39.50 for business customers.



Verizon estimates that these and other proposed changes would generate about $109.8 million in revenue. It noted that the filing represents its first general rate proceeding before the WUTC in 22 years and that its local network currently has a revenue shortfall of $239.5 million a year. The company said it would use the higher rates to reinvest in customer service. The company said that the proposal would not affect consumers in low-income households who are eligible for the Washington Telephone Assistance Program. These customers would continue to pay $8 a month for basic services.



Verizon operates about 850,000 lines in Washington, most of them clustered in the Puget Sound area from Blaine to Redmond, as well as the Pullman, Tri- Cities and Wenatchee areas of Eastern Washington. http://www.verizon.com/.