SBC Southwestern Bell will raise local rates in Austin, Dallas, F...
SBC Southwestern Bell will raise local rates in Austin, Dallas, Ft. Worth and 29 other Tex. cities and towns by $29 million annually, effective Nov. 15, after Tex. Supreme Court upheld company’s right to do so. But SBC also…
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is seeking $142.7 million in retroactive increases covering last 4 years. Case grew out of 1997 Southwestern Bell petition seeking to reclassify 50 exchanges into higher rate groups because of access line growth. PUC in Jan. 1999 reclassified 18 exchanges but denied remaining 32 after adjusting exchange boundaries. SBC appealed and won lower court ruling that PUC was wrong to deny reclassification. State Supreme Court affirmed lower court ruling, saying PUC wasn’t authorized to circumvent otherwise appropriate rate-group reclassification by adjusting boundaries. As result, SBC will implement rate boosts of up to 65 cents per line for residential service and up to $3 per line for business service to generate $29 million annually. SBC also filed petition with PUC (Case 26719) for recovery of $142.7 million in retroactive increases for period between Jan. 1999 and Nov. of this year. SBC said that wouldn’t be retroactive ratemaking because PUC acted illegally when it denied rate increases. SBC has proposed putting surcharges on local bills for next 4 years until back principal plus interest is recovered. Procedural schedule will be set soon.