PR-09-109 -- Embarq Missouri, Inc. Becomes Competitive Company In All Of Its Exchanges

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- DECEMBER 12, 2008

JEFFERSON CITY---Embarq Missouri, Inc. (Embarq) has been declared a competitive telecommunications company, having met the statutory test in House Bill 1779 (HB 1779), passed by the Missouri legislature this year.

As a competitive company, Embarq will no longer be subject to price or rate regulation by the Missouri Public Service Commission in any of its exchanges. 

Under a state law passed in 2005 (SB 237), Embarq sought and received competitive classification for residential services in 18 exchanges and for business services in 50 exchanges.  As a result of being deemed competitive, the marketplace determines the price for services in those exchanges.  

Under HB 1779, a telecommunications company shall be deemed a competitive company if 55% or more of its total subscriber access lines (customer telephone lines) are in exchanges where its services have been declared competitive. 

In Embarq’s filing with the PSC, the company states subscriber access lines in its current competitively classified exchanges constitute approximately 68% of its total subscriber access lines. In a filing with the commission, the PSC staff stated Embarq met the criteria to become a competitive company.

Under this current Embarq case, the remaining 61 exchanges will be designated as competitive for residential services.  In these exchanges, HB 1779 states any annual increase in rates for residential basic local telecommunications service shall not exceed $2.00 per line per month for the next four years.   

The commission will continue to monitor Embarq’s residential basic local rates as well as the percentage of residences and businesses that subscribe to Embarq’s services.  If, for example, the PSC staff determines that Embarq has not complied with the rate limitations of the law or that its rates have become so high that they serve as a deterrent to receiving service from the company, the staff is to notify the commission in a written report.

The Embarq exchanges that will become competitive under this filing for residential services include: Appleton City, Blackburn, Blairstown, Brazito, Butler, Calhoun, California, Camden Point, Centertown, Centerview, Chilhowee, Clarksburg, Clinton, Coal, Cole Camp, Craig, Dearborn, Deepwater, Edgerton, Eugene, Fairfax, Green Ridge, Hardin, Harrisonville, Henrietta, Holden, Holt, Hopkins, Houstonia, Ionia, King City, Kingsville, Leeton, Lexington, Lincoln, Malta Bend, Maryville, Missouri City, Montrose, Mound City, New Bloomfield, Newburg, Orrick, Otterville, Pickering, Richland, Russellville, Smithton, St. Thomas, Strasburg, Sweet Springs, Syracuse, Taos, Tarkio, Tipton, Urich, Warrensburg, Warsaw, Waverly, Wellington and Windsor.    

Prior to being designated as competitive, the above exchanges were under price cap regulation for residential services.  Under price cap regulation, basic local telephone rates changed, up or down, based upon a consumer price index. 

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Case No. TO-2009-0160