DRA INITIATES CAMPAIGN FOR RATEPAYER PROTECTION
On July 29, 2008, DRA filed the Ratepayer Protection Initiative asking the Commission to extend rate protections for residential telephone services in California until 2012. The Initiative is supported by a Report on Rate Increases and a Petition for Modification of Commission Decision 06-08-030 relating to price controls. Currently, a rate freeze on basic phone services offered by companies like AT&T and Verizon, virtually the last price control before complete deregulation, is set to expire on January 1, 2009.
DRA 's comments in two current proceedings also address the issues of consumer affordability and continued protection by using monitoring reports and other regulatory tools.
Advocacy
California consumers expect affordable rates and reliable access to basic telephone services. DRA launched the Ratepayer Protection Initiative on July 29, 2009 asking the Commission to extend the existing rate caps and conduct a study of consumer affordability needs before companies are given carte blanche to increase rates. View our press release at DRA Guards Affordable Phone Rates.
Consumers responded. On August 17, 2008, David Lazarus, in his Consumer Confidential column in the Los Angeles Times, reported on rate hikes by AT&T and Verizon, and quoted from DRA's July 29, 2008 Report on Rate Increases.
DRA is asking the Commission to:
Extend Existing Price Controls Until Affordability Can Be Determined. The Commission should extend existing pricing controls for essential residential telephone services for three years to allow for the completion of an affordability study. These controls are scheduled to expire on January 1, 2009.
Conduct a Study of Affordability. The Commission should conduct a study to determine what rates are affordable to consumers within the context of today’s communications marketplace.
Initiate a Proceeding to Determine Consumers’ Basic Needs. The Commission should initiate a proceeding to determine whether large incumbent telephone companies should offer important basic services and essential features on a stand-alone basis at affordable prices.
Reinstitute Critical Monitoring. As DRA requests in its comments on two pending Proposed Decisions, the Commission should re-examine its plans to forego necessary monitoring of ILEC services and prices.