
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, October 10, 1993                   TAG: 9310100148
SECTION: VIRGINIA                    PAGE: C3   EDITION: STATE 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Medium

PHONE COMPANIES WANT SERVICE PROFITS TO STAY UNREGULATED

Five of the state's largest telephone companies have asked the State Corporation Commission to leave in place an experimental program that allows them unregulated profits on competitive services.

The request Friday comes as some consumer groups are asking the SCC to look into those unregulated profits and declare some of the services, such as Yellow Pages advertising, monopolies whose profits would be regulated by the state.

"In light of undeniable, dramatic change in telecommunications competitiveness, the commission cannot . . . undertake a proceeding to rehash every conceivable regulatory rate-making issue that the staff and opponents of the plan can envision," said the request from Chesapeake & Potomac Telephone Co. of Virginia, GTE Virginia, Central Telephone Co. of Virginia, United Telephone-Southeast Inc. and GTE South.

The American Association of Retired Persons said reclassification of Yellow Pages advertising is its top priority. The Virginia Citizens Consumer Council also called for the SCC to reconsider its classification of the service, and some others, as competitive.

Under the experimental plan, profits on competitive services are not subject to state regulation, which limits earnings on monopoly utility service. The plan was designed to help telephone companies deal with emerging competition while protecting ratepayers.

A SCC staff report released Friday found the plan was fulfilling its objectives but suggested the commission look at reclassifying some services, including Yellow Pages advertising.

The General Assembly gave the SCC authority this year to adopt the experimental plan, or other forms of alternative regulation, on a permanent basis.

And that is what the telephone companies want, with the option of change as developments warrant.

The companies called the plan "Virginia's first step in accommodating the new competitive environment," but said that as competition "continues to reshape telecommunications, plans will need to be altered accordingly."

by CNB