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Florida Legislature 2005 (click for ongoing coverage)

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Crist says he is wary of bill to hike phone rates

The state attorney general says he wants its language reviewed as it could restrict the prosecution of deceptive or unfair trade practices.

By LOUIS HAU
Published April 6, 2005

State Attorney General Charlie Crist said Tuesday he was skeptical about the need for proposed legislation that would allow phone companies to pass through some of their catastrophic storm costs to customers.

In an interview, Crist acknowledged that concerns about future weather events were heightened after the devastation wrought by last year's hurricanes, saying "a year in which you have four storms we hope and pray is a unique kind of event."

But Crist, who is embroiled in a battle with phone carriers over their efforts to implement sharp increases in their local phone rates, expressed reservations about allowing the companies to add surcharges to customer bills to defray storm costs.

"I'm not sure there is a need for it," he said. "It seems that the phone companies are already making a heck of a lot of money."

Crist said he was concerned about language in the legislation that specifies, "Activities regulated under laws administered by the Florida Public Service Commission are exempt from Chapter 501" of the state statute that outlines consumer protection laws.

Crist said he and his staff were concerned the language could restrict the attorney general's ability to pursue cases involving deceptive or unfair trade practices. Crist said he sent letters Tuesday to the sponsors of the legislation - Rep. Ken Littlefield, R-Wesley Chapel, and Sen. Lee Constantine, R-Altamonte Springs - urging them to review the language of the bills to ensure the interests of the consumers are protected.

"It seems to me that there may be a way to do so in a way that is protective of everybody," he said.

In January 2004, Crist and other consumer advocates appealed a December 2003 PSC decision to approve requests by Verizon Communications Inc., BellSouth Corp. and Sprint Corp. to raise their local basic phone rates by 26 to 90 percent over two years, the highest such hikes in the state's history. The PSC approved the requests after Gov. Jeb Bush signed new rules drafted by the phone industry that significantly relaxed the state's regulation of local phone rates. The state Supreme Court is expected to issue a ruling on the appeals this year.

The state House and Senate bills that have proposed allowing phone companies to pass through a portion of their storm costs to customers would permit a surcharge of up to 50 cents per phone line during a 12-month period, subject to PSC approval.

Constantine said the Senate version would cap surcharges at 50 cents per line per year. The Senate communications and public utilities committee voted 8-0 Tuesday to approve the Senate bill. The House version of the bill doesn't include language preventing companies from seeking more than one surcharge.

[Last modified April 6, 2005, 01:06:15]