Mich. PSC gave incumbent telcos until March 7 to file plans for e...

areas be expanded to include calling areas immediately adjacent to current local calling zones. PSC is leaving it to telcos to propose specific boundaries of new expanded calling areas. Agency ruled that law didn’t permit local rate increases because of calling area expansion, but did allow rate adjustments where expansion put customer into higher rate group. Law allows incumbent telcos other than Ameritech and Verizon to petition for exemption from expanded-calling requirement, and PSC set March 7 deadline for such applications. In separate action, Verizon asked Mich. PSC for permission to restructure its rates in return for immediately terminating its $3.50 state subscriber line charge. Restructuring would shift revenues to residential service from business, with residential rates rising up to 16% while business rates decline 3%. Verizon and Ameritech are suing in federal court to overturn state telecom act’s provision abolishing their state subscriber line charges. Verizon continues to bill its charge pending outcome of lawsuit. It said proposed rate restructuring would allow it to avoid most of $34 million revenue shortfall it would suffer if its subscriber line charge were abolished. But consumer interests say granting Verizon’s request effectively would move subscriber line charge into company’s basic rates, contrary to intent of legislature.