Wash. regulators set a Nov. 8 prehearing conference on a Qwest pr...
Wash. regulators set a Nov. 8 prehearing conference on a Qwest proposal to end rate-of-return regulation in favor of a price-based system capping retail residential basic service and deregulating retail rates for everything else. Qwest also wants to end…
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Qwest-specific retail service quality standards and reporting requirements, binding it only to the same retail quality standards and reports as Verizon, CenturyTel and Embarq. Qwest has broad retail pricing flexibility for its interexchange and business telecom services, but revenues continue to count in rate-of-return calculations. Qwest in Case UT-061625 said rate-of-return constraints hinder it from pricing its services to market, and RoR is obsolete since Qwest no longer exercises monopoly market power. Under the Qwest proposal, the only rate- regulated services would be stand-alone residential basic exchange, local operator services, Lifeline and 911. All other stand-alone retail services would be priced to market, along with all service bundles. Earnings no longer be would regulated. Qwest said its proposal would give it the price flexibility it needs to counter “pervasive competition” for all services from cable, wireless and CLEC rivals. Qwest said its plan fits state goals such as promoting advanced services, ensuring reasonable rates, and facilitating competition.