Indiana Utility Regulatory Commission
302 West Washington Street, Room
306
Indianapolis Indiana 46204
317.232.2297 office
317.233.1982 fax
Today the IURC approved the
alternative regulatory plan for Ameritech, known as Opportunity Indiana
2000. The order signed by the
Commissioners contains clarifications and adjustments to protect customers.
In Cause Nos. 40785-S1, 40849, and
41058 the settlement agreement reached between Ameritech, the Intellinet
Commission, Indiana Office of the Utility Consumer Counselor and A T &T is
the foundation for this order. The
Commission applauds the efforts of all parties in this complex case. There are a number of elements in the
agreement that are beneficial to Ameritech customers in Indiana, and the
Commission believes its clarifications enhance the agreement, as it relates to
consumer protection and telephone competition.
Maintaining quality service is of
key importance not only to customers of Ameritech Indiana but also to the
IURC. Today’s order establishes
quarterly service quality reviews and assesses penalties in a matter of weeks
rather than months in the event that any of the service quality standards are
not met.
It also clarifies the penalty
structure in the event customer service problems are not addressed in a timely
way. Both set $30 million as the
maximum amount the utility can be fined annually.
The clarifications mean Hoosiers
are protected from the poor service they experienced from Ameritech last year
and are covered if service falters again.
The agreement reduces and caps prices, requires deployment of broadband,
provides funding for education and funding for improvements in infrastructure
in Indiana.
The clarifications also address
infrastructure investments that won’t be completed before the settlement
expires December 1, 2003, and returns the company to full Commission oversight
in the event that a new alternative regulatory agreement is not reached by
then.
A part of the agreement the
Commission felt limited competition from other carriers in the Ameritech
territory was also adjusted.
Nothing in the agreement prevents
the Commission from fulfilling its statutory obligations and carrying out any
mandates from the Federal Telecommunications Act. The regulatory framework is not substantially different than the
framework established in the first alternative regulatory plan approved in
1994.
Consumer
benefits in the agreement include:
There
are minor rate reductions in the flat rate for residential customers, and a
more significant cut in the flat rate for multi-line business customers and
single line business customers through Dec. 2003.
Service quality standards and
penalties up to $30 million annually for service quality violations, plus
individual customer credits for missed installation commitments, missed repair
commitments and out-of-service greater than 24-hours.
Ongoing Commission oversight of
service quality through monthly service quality reports and quarterly service
quality meetings with the Commission Staff and the OUCC. The Commission has enforcement authority,
including penalties of up to $3 million per violation.
A $20 million credit for
residential customers in the form of monthly credits.
Residents and businesses with
single line BLS service will be allowed two free calls to directory assistance
each month through December 31, 2003.
Ameritech agrees to make 578-million dollars in
infrastructure investments and will provide the OUCC, IURC, and Intellinet
Commission with a written report of the investments 30-days after the agreement
is signed. Then, for the life of the
agreement Ameritech Indiana will provide written monthly reports on
infrastructure investments.
Ameritech Indiana will provide the
infrastructure to provide xDSL and ADSL to certain wire centers through its
subsidiary AADS. Asymetric Digital
Subscriber Lines allow customers to use both a voice and high-speed data line
over the same pair of wires.
Ameritech
Indiana will continue to provide $5 million annually to assist elementary and
secondary schools, public libraries and rural health care providers in the use
of broadband and digital technology.
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