Local Rules Fall Under Telephone Price Cap

Fortnightly Magazine - June 15 1996
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The Wisconsin Public Service Commission (PSC) has completed its mandated annual review under a price-cap plan elected in 1994 by Wisconsin Bell, Inc., saying the company must reduce rates for intraLATA message telecommunications service (MTS) under the price-cap formula. (It noted, however, that Wisconsin Bell had filed a separate application to suspend the price-cap formula for MTS, the only service subject to price changes under the plan.)

DC PSC RFP Technical Consultant for Formal Case (FC) No. 1156

The PSC refined operating components of the pricing mechanism, including the company-specific benchmarks for service quality as well as for infrastructure investment and deployment. Using a

3-percent productivity offset against an increase of 2.88 percent in the gross domestic product price index observed during the 1994-95 rate period, the PSC found a price reduction necessary for MTS to maintain a price-cap index of 99.94, as compared to the initial index of 100.

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