Sourth Carolina Tries LEC Price Caps

Fortnightly Magazine - July 15 1996
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The South Carolina Public Service Commission (PSC) has adopted an alternative regulation plan for BellSouth Telecommunications, Inc, a local exchange carrier (LEC). The plan replaces an incentive regulation plan adopted by the PSC in 1991, but subsequently reversed by the state supreme court. See, South Carolina Cable Television Association v. South Carolina Pub. Service Commission et al., 437 S.E.2d 38, 150 PUR4th 216 (S.C. 1993).

The PSC found the LEC subject to competition

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in numerous markets, including intraLATA long

distance and custom-calling services. Thus, the approved plan caps basic local exchange as well rates for a three-year period. After three years, rate increases are limited by inflation as offset by a

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