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The Washington Utilities and Transportation Commission set two ma...

The Washington Utilities and Transportation Commission set two major conditions on its approval of price-based rules for Qwest that will replace rate-of-return regulation. The plan (Case UT-06-1625), based on an eight-party agreement filed in March, will let Qwest raise…

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monthly residential basic exchange $1 over its four-year life. The current rate is $12.50 monthly. It also requires cost justification for any changes to tariffed rates of Qwest operator services, 911 services, Lifeline and Link-Up, unlisted numbers, line hunting and public response calling services. Rates for retail service bundles and all other stand-alone retail services will be deregulated. Earnings won’t be reviewed while the plan is in effect. The plan ends free-call allowances for directory assistance but requires that the services comprising a bundle also be offered on a stand-alone basis. Before Qwest can put the plan into action, it must file an “acceptable plan” for guaranteeing wholesale service quality, including performance measurements, standards and penalties for service quality failures. Parties to the pact have 30 days to propose a plan. Qwest must commit $4 million to get broadband to unserved areas and to underserved customer classes. It will have 90 days to file a detailed deployment plan. Commission Chairman Mark Sidran called the Qwest plan “a pilot project” destined for extensive review in 2011, when it comes up for renewal. He said the plan will let the Bell “compete fairly with the unregulated companies while protecting customers in areas where Qwest still has undue market power.” Qwest said it’s still reviewing the order but “appreciates the commission’s recognition of the state’s highly competitive environment.” Washington is one of three states regulating Qwest by rate of return. The others are Arizona and Montana.