HELENA, Mont.—Montana regulators have approved the settlement of a complaint against Qwest Communications that means lower phone rates for residential and business customers in the state and access to high-speed Internet for 27 small towns.
The PSC voted 4-0 Tuesday to approve the settlement order. The rate reduction goes into effect May 1, 2009, and will be in effect for 5 years.
Ken Toole, now a member of the PSC, filed a consumer complaint against Denver-based Qwest two years ago, arguing the company was receiving more than its allowable rate of return on its investment in Montana. Toole excused himself from the vote.
Under the settlement, most residential customers will receive a $4.72 decrease in their monthly phone bills, while most businesses will see a reduction of $6.66. Residential reductions will be at least $2 a month and could be as large as $10.47 a month. Business reductions will be at least $4 a month, while some will be as high as $12.41 a month, the PSC said.
The new plan deletes “zone charges” that can currently top $5 a month for suburban Qwest customers, the PSC said. It also eliminates the $2.72 “extended area service” charge, which 85 percent of Qwest customers are required to pay.
In addition to rate reductions of $16 million a year, Qwest has agreed to expand high-speed internet to 27 of the state’s small towns within the next three years. The towns are: Amsterdam, Boulder, Bridger, Canyon Ferry, Cascade, Clancy, Clyde Park, Cooke City, Darby, Dutton, East Glacier Park, Forsyth, Fromberg, Gardiner, Joliet, Opportunity, Park City, Pray, Roberts, Saint Mary, Townsend, Ulm, Victor, Warm Springs, West Glacier, Wilsall, and Wolf Creek.
“The positive aspects of this order, for both rural and urban customers, are enormous,” said PSC Chairman Greg Jergeson. “The vote we took (Tuesday) will result in real rate relief to Qwest customers and goes a long way in closing the digital divide for many Montanans.”
As part of the agreement, Qwest must keep its regulated prices below a rate cap, but can offer a mix of other data and telephone services at non-regulated prices.
