Santa takes sides with consumer groups in phone rate battle

--Elves deliver lumps of coal to lawmakers who supported the largest phone rate hike in Florida history--

December 7, 2005

TALLAHASSEE - Better watch out lawmakers! Florida consumer groups including the Consumer Federation of the Southeast and the Florida Consumer Action Network have made a list, checked it twice and determined who was naughty or nice on the phone rate issue. Their message to lawmakers this holiday season: We know who our friends and our foes are and we'll continue to keep the pressure on until this issue is revisited and made right.

"The rate increases are the ultimate in grinch behavior," said FCAN Executive Director Bill Newton. "They're costing consumers upwards of $500,000 a day with no end in sight. That won't help anyone's holiday shopping and it won't help legislators on election day if we have our way."

Slated to receive lumps of coal in their stockings - 120 legislators who voted for the phone rate increases that went into effect on November 1. The 32 lawmakers who voted against the legislation will receive stockings filled with candy and other goodies, encouraging them to continue their good work on behalf of consumers in the New Year.

The over $344 million annual rate hike was approved two years ago by the Public Service Commission after the state's major phone providers successfully pushed through a rewrite of the state's phone regulations. After implementing the initial increases, companies will be free to automatically raise rates up to 20 percent a year every year. Under the new law, the Public Service Commission also will lose authority to regulate the telephone companies' quality of service once the initial increases are imposed.

"We want lawmakers to know that we aren't going to let them off the hook on this one," said Walter Dartland, executive director of the Consumer Federation of the Southeast and state chair of Common Cause Florida. "They'll have another chance to make it right before the election rolls around and we're going to do everything we can to keep the pressure on to make sure they're motivated to turn that coal into a diamond next session by repealing future rate increases and restoring regulatory oversight."