Eureka Times Standard (California)
Deregulation will lead to lower rates. Do those words sound familiar? Wasn’t that the song and dance we heard in support of deregulating the power companies? Does anyone need to be reminded of how royally we got screwed going down that road? The telephone companies are currently pursuing a “Uniform Regulatory Framework” (URF) claiming that telephone deregulation will lead to lower rates.
The consumer organization TURN (The Utility Reform Network) sees it much differently. They say that the URF will not only allow phone companies like AT&T, Verizon and Citizens to raise rates for all users, it will also “destroy vital rules that protect rural, low-income, senior and other phone customers from price discrimination and gouging.”
The URF will, like the deregulation of the power companies, be a disaster for all Californians. But rural areas will be particularly hard hit. It will allow “de-averaging” — a discriminatory practice that allows phone companies to profit by charging customers different rates for the same basic service and gouge rural areas where they have monopolies. It will also allow even higher rates for all those who do not purchase additional services such as the Internet.
Bill Nusbaum, senior attorney for TURN, has accused the California Public Utilities Commission (CPUC) of having a “warped perspective” of its duties to regulate the state utilities for the benefit of the public. The Commissioners, he said, are “busy patting themselves on the back for being such ‘enlightened’ regulators when all they have done is to continue what the commission is so good at — corporate giveaways.”
TURN says that local phone rates have skyrocketed in states that have pursued similar measures. We all remember what deregulation did to the price of our electricity. There is absolutely no reason to believe deregulating the telephone companies would be any better.
Everyone in the state should take up arms against this proposed “deregulation” of the telephone companies, but we in the rural areas have more reason than most. You can call the CPUC at (1-866-849-8390) to urge the rejection of the proposed URF. You can also call the local offices of Sen. Wesley Chesbro (707-445-6508) and Assemblymember Patty Berg (707-445-7014). They are both members of the California Legislative Rural Caucus whose purpose, their website says, is to “ensure a voice for rural communities.”
While you are on the phone to the offices of our local legislators, you might also want to give them your thoughts regarding AB2987. This bill would allow the telephone and cable companies to abandon existing franchises with cities and counties in favor of franchises from the CPUC. Not unexpectedly, cities and counties are voicing their opposition. Patty is supporting the bill and as of yet Wes hasn’t taken a position.
The telephone and cable companies claim all they want is a level playing field. To that, I say horse-pucky. Foundation for Taxpayer and Consumer Rights president Jamie Court says: “Nobody cared about leveling the playing field for the consumer. The consumer gets the shaft here.”
