Verizon and the State Corporation Commission would like to extend the period that limits  price increases for basic telephone service. They are seeking comments on whether to extend the five-year period by two more years. The increase cap is currently set to $1 per year for basic phone service and will expire Dec. 31 unless extended. Comments on the proposal must be submitted to the SCC by April 13.

Here is a press release from the State Corporation Commission.

RICHMOND – The State Corporation Commission (SCC) is seeking comments on whether to extend a five-year period in which price increases for basic local residential telephone service are limited to one dollar ($1) per year. Both Verizon, Virginia’s largest provider of local telephone service, and the staff of the SCC have proposed that the period be extended an additional two years.

The five-year period has been in place since January 1, 2008 and will expire on December 31, 2012, unless extended. The price caps on residential and business basic local exchange service are applicable in Verizon exchanges which are deemed to be competitive.

Basic local exchange telephone service (“BLETS”) is limited to basic dial-tone service and does not include such features as call waiting, voicemail, and caller ID. Approximately one-third of Verizon’s customers still receive basic service. The majority of Verizon’s customers are on plans that “bundle” a number of services and such customers are unaffected by this proposal.

For business service, the price increase limit is currently three dollars ($3) per year, per line. That price protection will expire on December 31, 2012, with no extension being proposed.

Written comments on the proposal must be submitted by April 13, 2012. All correspondence should be sent to the Clerk of the State Corporation Commission, Document Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118, and refer to case number PUC-2012-00008.

Interested persons desiring to submit comments electronically may do so at the SCC’s website: www.scc.virginia.gov/case. Click on the PUBLIC COMMENTS/NOTICES link and then the SUBMIT COMMENTS button for case number PUC-2012-00008.

PUC-2012-00008 – Order for notice and comment on Verizon price safeguard extension
PUC-2007-00008 – Original order determining competitiveness of Verizon retail services