Michigan AG Cox and AARP Announce Savings in Telephone Rate Case

By admin - Posted on August 8th, 2007

August 6, 2007 -- LANSING - Michigan Attorney General Mike Cox and AARP's Associate State Director for Government Affairs, Bill Knox, today announced a settlement agreement in a Verizon telephone rate case. This agreement will result in Verizon lowering its low-cost, no-frills Call Plan 100 or Value Pak 100 plan by 80¢ a month and freezing the rate until July 1, 2009. Yearly savings will approach $250,000, based on the total number of customers.

"Today's settlement agreement is a victory for Michigan consumers," said Cox. "I am proud to announce a rate decrease in the last telephone plan that is regulated by the Michigan Public Service Commission."

Verizon had increased its Value Pak-100 Plan rates by $1.20 in April 2006. The increase was challenged by the Attorney General and the AARP before the Michigan Public Service Commission. As a result of the settlement reached today, Verizon's Value Pak-100 Plan customers will see a reduction of 80¢ per month effective September 1, 2007.

When the Legislature enacted a new telecommunications law in November 2006, it created a new basic service plan that included a minimum of 100 calls per month. Now Verizon customers will be able to receive this plan for less money. The agreement also freezes the new rate through July 1, 2009.

"This is a significant victory for consumers", said Knox. "It means that Verizon's residential customers will be able to receive the benefit that the Legislature intended."

"I applaud AARP, Verizon and the MPSC staff for working hard to settle this matter. This will especially help seniors and low-income customers," continued Cox. "I also encourage all consumers, especially those on fixed incomes to look into this plan, if you make less than 100 calls a month - this plan could save consumers real money."

The proposed settlement agreement is expected to be approved by the Commission at its next meeting.

Attorney General Mike Cox has intervened in more than 120 utility cases in front of the Michigan Public Service Commission. Between January 2003 and December 2006, these interventions have saved Michigan ratepayer's $1.78 billion in utility rate increases.

Source: Michigan Attorney General

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