PUCO grants Embarq’s request for basic local telephone service pricing flexibility in nine exchanges

COLUMBUS, OHIO (June 3, 2009) – The Public Utilities Commission of Ohio (PUCO) today granted Embarq’s request for pricing flexibility of basic local telephone service and caller ID rates in the Bellefontaine, Eaton, Greenville, Hebron, Mount Gilead, North Benton, Sunbury, West Manchester and Wauseon exchanges.

The PUCO adopted rules on March 7, 2006 in accordance with House Bill 218 to allow incumbent local telephone companies with an approved elective alternative regulation plan to apply for pricing flexibility of basic local telephone service and caller ID. Companies are prohibited from applying for pricing flexibility until they meet the advanced telecommunications service requirements in their market and offer the enhanced Lifeline assistance program to qualifying low-income customers. Applicants must then prove, on an exchange-by-exchange basis, that residential telephone competition exists and that no barriers stand in the way of competition.

Embarq cannot increase rates in the approved exchanges by more than $1.25 annually for basic local telephone service and 50 cents annually for caller ID. The company must notify affected customers 30 days prior to the effective date of any rate increase. The rates paid by low-income customers who qualify for Lifeline assistance will not change. Embarq must continue to follow the PUCO’s minimum telephone service standards that ensure customers are provided with quality telephone service and protected from unfair practices.

A copy of today’s Commission opinion and order is available at www.PUCO.ohio.gov. Click on the link to Docketing Information System and enter the case number 09 -151-TP-BLS.

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09-151-TP-BLS