Consolidated Gets More Vt. Deregulation

Consolidated Communications may set its own rates for basic local exchange service in competitive parts of Vermont, under a three-year incentive regulation plan (IRP) adopted Wednesday (case 21-4060-PET). It replaces an IRP that expires this year. "With appropriate conditions to protect consumers ... alternative regulation will provide benefits to Vermont ratepayers,” the Vermont Public Utility Commission said in a final decision that largely tracked last month’s draft (see 2210030064). The PUC said competition including from wireless and VoIP providers increased since the first reduced-regulation IRP in 2000. "To protect against a sudden increase in the rates for basic services,” the new IRP includes “stepped limits on rate increases” over three years. “We expect that the freedom provided in the Successor IRP will be an incentive for Consolidated to invest in its network and offer new and improved services to remain a viable option in competitive areas, resulting in benefits to its Vermont customers in both regulated and non-regulated municipalities.” A Consolidated spokesperson said the "changes adopted are important in light of the rapidly changing and competitive telecommunications landscape in Vermont. This new plan will allow us pricing flexibility in competitive markets within Vermont and reduce and streamline regulatory reporting requirements."