N.M. Public Regulation Commission (PRC) adopted price cap regulat...
N.M. Public Regulation Commission (PRC) adopted price cap regulation plan for Qwest, putting end to rate-of-return regime for state’s largest incumbent telco. PRC made some changes in Qwest proposal, and company has 2 weeks to accept modifications. Agency agreed…
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to Qwest proposal to invest $788 million in N.M. network over 5 years, but included requirements to ensure that rural areas would benefit immediately from network investments. Plan freezes basic business rates through 2005. Qwest will be allowed 15% residential rate boost in 2002 and another 10% in 2003 if it meets network investment schedule and plan’s service quality standards. Other noncompetitive services are capped at average of rates in Qwest region, and competitive service rates are deregulated. If Qwest fails standards, it would forfeit residential rate increases and incur penalties. Rate increases aren’t automatic. PRC said any party could challenge whether Qwest had met requirements for increases. Agency also required that intrastate toll be cut to 8 cents per min. from 12 cents and elimination of rural zone charges for 120,000 customers. Plan gives Qwest 18 months to eliminate all service order backlogs and requires it to make digital subscriber line services available in Alamogordo, Farmington, Gallup, Roswell, Taos.