Connecticut Regulators Deny Verizon Request for Deregulation

By Hugh McQuaid

October 24 @ 9:30 am

Verizon will remain subject to Connecticut regulations and consumer protections under a ruling issued last week by the Public Utilities Regulatory Authority, which denied the company’s request to reclassify its remaining services in the state.

In its final decision on Oct. 18, PURA refused to approve a request by the New York-based company, which would have changed the classification of its services to “competitive.” Among the reasons for denying the request, the regulators cited the effect such a reclassification would have on the application of state regulations.

“[T]he Authority assigns considerable weight to the impact reclassification would have on the public interest, particularly how the loss of certain consumer protections may impact customers,” the agency’s three commissioners wrote.

The decision mirrored points raised in a September letter to PURA by Senate President Martin Looney and Majority Leader Bob Duff, who detailed concerns that Verizon’s deregulation could deprive customers of key consumer protections. The senators also raised questions related to the company’s obligations under its ownership interest in utility poles and its proposed purchase of Frontier.

PURA cited the senators’ letter in its denial of Verizon’s request.

Both senators applauded the agency’s move to block the deregulation when PURA issued a proposed decision several weeks ago. The potential risk of reclassification came as Verizon sought to acquire Frontier, the senators noted.

“This decision will ensure continued oversight of that acquisition and we urge PURA to thoroughly examine whether the purchase will genuinely serve the public’s best interests, or whether it will simply benefit the companies and their investors,” Looney said. “Deregulation almost always entails diminished accountability and compromised safeguards for consumers.”

Meanwhile, Duff argued that companies with an ownership interest in utility poles had an obligation to Connecticut consumers and needed to be subject to continued regulation.

“Given that reports already suggest that Verizon is failing to meet its obligations to replace double poles, this is no time to relieve the company of other critical safeguards involving public safety and outage response in the aftermath of storms,” Duff said.

PURA’s final decision denying the request received praise from Connecticut Consumer Counsel Clair E. Coleman, who told CTNewsJunkie that the decision would benefit consumers.

“Verizon, as a public service company, must adhere to certain standards and consumer protection regulations while utilizing Connecticut’s public infrastructure,” Coleman said. “PURA correctly ruled that reclassifying Verizon’s services would have jeopardized protections, particularly our state’s most vulnerable and elderly residents.”