Public Utilities Reports

PUR Guide 2012 Fully Updated Version

Available NOW!
PUR Guide

This comprehensive self-study certification course is designed to teach the novice or pro everything they need to understand and succeed in every phase of the public utilities business.

Order Now

LEC Rejects Price-cap Plan

Fortnightly Magazine - May 1 1995

While reconsidering an earlier rate case order for New England Telephone & Telegraph Co., a telecommunications local exchange carrier (LEC), the Vermont Public Service Board (PSB) has approved an incentive regulation plan for the LEC and set out a series of recommendations to guide the development of a full price-cap regulation plan. Nevertheless, the PSB noted that a problem had developed in the case as a result of combining the revenue requirement aspect of the rate proceeding with consideration of the LEC's price-cap plan. According to the PSB, the LEC has exercised its statutory right to refuse to accept regulation under the price-cap plan it negotiated in the case because of the $14.9-million rate reduction ordered in the same proceeding. Hearing the two matters in separate dockets would have placed the LEC in a position to propose a price-cap plan that it could accept if approved, the PSB said. Re New England Telephone and Telegraph Co., Docket No. 5700/5702, Feb. 2, 1995 (Vt.P.S.B.). t

Phillip S. Cross is an associate legal editor of PUBLIC UTILITIES FORTNIGHTLY.


Articles found on this page are available to Internet subscribers only. For more information about obtaining a username and password, please call our Customer Service Department at 1-800-368-5001.