LECs Get Price Caps; IXCs Told to Reduce Rates

Fortnightly Magazine - July 1 1996
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The North Carolina Utilities Commission (NCUC) has approved price-cap regulation plans for four major telecommunications local exchange carriers (LECs) in the state: BellSouth Telecommunications Inc. (BellSouth), Carolina Telephone and Telegraph Co. (Carolina), Central Telephone Co. (Central), and GTE South, Inc. (GTE). The NCUC rejected allegations by AT&T Communications of the Southern States, Inc., an interexchange carrier (IXC), that a separate "general rate case" was needed to gauge how the shift to price regulation affected LEC earnings. The NCUC declared that a scheduled review of each plan after five years and a requirement that the LECs file annual earnings surveillance reports adequately protected the public. Further, it directed IXCs in the state to reduce long-distance rates to reflect reduced access charges under the price-cap plans.

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