A32-Lancaster Farming, Saturday, April 27, 1996
State Grange Leads Fight Against Rural Phone Rate Increase
(Continued trow Page A 1)
depressed areas such as Couders
port, Potter County, and Altoona in
Butler County, while lowering the
rates where economic activity has
been increasing Pittsburgh,
Chestnut Hill, Scranton,
etc. and where competition is
picking up to undercut Atlantic’s
rales and services.
In its filing of a rate rebalancing,
it gave an example of the effect of
its proposal, assuming a typical
residential dial tone line with touch
tone service and local unlimited
calling.*
Just as most statewide business
or service organizations divide the
state into regions, the phone com
pany calls them “cells.”
Bell provided a comparison for
Cell 1 Pittsburgh city stating that
the assumed typical customer there
would currently be paying a
$13.58 rate. The proposal would
reduce that by $1.13 to $12.45.
Meanwhile, in Cell 4 Group B (a
further subdivision) Coudersport
is currently paying $9.53. The rate
would increase there to $11.55 for
a proposed $2.02 increase.
The Pennsylvania Suite Grange
was the first advocacy group to
take notice of the proposal for
redistributing and began took the
lead in trying to protect its rural
membership of 31,000 in 66 of the
state’s 67 counties.
In a January news release, the
Grange warned of the proposal by
Bell Atlantic.
In that news release, Sham
baugh stated. ‘There are many
areas in the state where Pennsylva
nians believe they are living in an
urban area. However, as far as Bell
Atlantic is concerned, those areas
@OO §TDS£37
• 500 Gal. Pul
Sprayer
• 45 Ft. Fully
Hydraulic 01
Manual Su;
Box Availal
• Single or Tf
Axle
• Strong Dui
Channel Fi
Constructs
• Other Opti«
Available
Bl 1168 Enterprise Rd.
■ Eest Petersburg, PA 17520
IB» Call For Mors Information and FREE Catalog
ag'Chem 1-800-326-3009
MWMMWT CO. INC.
could be classified as rural. It
appears that the only areas that
would receive a rate reduction are
Philadelphia and Pittsburgh. If
that’s true, the impact of the rate
increase could affect a large num
ber of Pennsylvanians.”
On Thursday, Shambaugh testi
fied before the Senate Committee
in front of a crowded hearing room
in the state Capitol. The reason for
the hearing was to gather testi
mony on the progess of telecom
munications deregulations and to
gather a progress report on the
implementation of Chapter 30 of
the Public Utility Code.
“Specifically, the Grange would
like to target the Bell proposal to
‘rebalance’ their rates,” Sham
baugh said. “We consider this
rebalancing to be in direct viola
tion of the (PUC’s) 1994 Bell order
under Chapter 30.
“As you know, according to that
case. Bell is required to adhere to a
rate freeze,” Shambaugh said. “In
our opinion, a freeze means all
rates for all customers.
“Restructuring Bell’s local
charges means an increase for a
segment of their rural clientele
whose rates are not frozen.” she
said.
“It seems to us that a rate reba
lance creates two classes of cus
tomers, which Chapter 30 was
enacted to prevent.”
Shambaugh said that the Grange
understands the competitive nature
of the phone business. That is why
the industry was deregulated.
“We understand that (Bell
Atlantic) must stay competitive to
protect their market. We also
understand that they must have a
profit if they ate to stay in
business.
“Unfortunately, we part com
pany when it comes to who must
suffer as a result of this competi
tion. In this case, rural telephone
customers do not have the benefit
of competition and suffer from the
absence of other service camera,"
she said.
Shambaugh also noted that Bell
Atlantic and Nynex are reportedly
to merge with a projected $3 bil
lion annual profit for the new super
company.
“One might wonder why Bell is
even requesting a ‘rebalancing.’ I
would certainly not call a $3 bil
lion annual profit insignificant, or
that there is a threat of bankruptcy
without the proposed Bell rate
restructure.
“The question then remains,
should Bell be allowed to make up
every dollar of competitive reduc
tions by increasing rates to con
sumers who have no alternatives?
“That is precisely why the PUC
has jurisdiction over the rating pro
cess, to protect consumers from
overpricing,” she said.
She also said that some propos
als by other telephone companies
are pushing for a universal rate of
$25 per month with limited local
calling and that a reasonable sce
nario based on thatcould be that, in
the future, rural Pennsylvanians
could be further penalised for liv
ing away from the population
dense areas if a precedent such as
rebalancing for Bell is allowed
now.
"The Grange believes that Bell
should not be allowed to finance
their competitive ventures on the
backs of citizens who have virtual
BIG SAVINGS!
ON GRAIN BINS AND DRYERS
Plan Now For This Year's Cropt Call The Expertsl
•Welght-Tronlx Feed Mill
• Transport Augers
• Feed Bins
• Wet Tanks
• Grain Bins
• Bucket Elevators
• Stirring Systems
• Utility Augers
• Air Drying Systems
• Grain Dryers
• Parts & Motors
Serving Th» Mualrv For Onr 98
ly no choice,” she said.
She also said that other public
services don’t penalize in such a
way.
“Bell is obviously tyring to
increase (its) profit to the dctri
' mentof rural consumers,” she said,
„ adding that the Grangeroquests the
Senate Committee "... to do every
thing in its power to stop the Bell
proposal ... .
“rural consumers need your
assistance to ensure that they have
access to telephone service, which
in today’s world ic certainly essen
tial, at a reasonable rate.”
Shambaughwasoneof 11 sche
duled speakers, other than Sen.
Clarence Bell, chairman of that
committee and also chair of the
Senate Joint Legislative Budget
and Finance Committee and vice
‘A-Day’ Family Treat Begins Saturday
DOYLESTOWN (Bucks Co.)
Delaware Valley College will
host its 48th annual “A-Day”
(Agriculture Day) celebration this
Saturday and Sunday, April 27
and 28 (rain “or shine), here on
campus, on Route 202, just west
of the Rl 611 bypass. The hours
on both days are from 9 a.m. to 5
p.m.
Started in 1949 by a small
group of students to promote agri
culture, “A-Day” has become one
of the area’s largest events, which
this weekend will feature farm and
orchard tours, agricultural and
horticultural exhibitions, equine
and livestock demonstrations, sci
ence exhibits and educational dis
plays, pony rides, and a pelting
zoo for children.
A variety of food will be
, offered, as well as cralts. and,
* games for children of all ages, and
live entertainment by local musi-
EAIHHR
★ Full Lint Parts Dept ★ Sail, Servlet & Install
■I Rt. 272 South ■ 14 Herrville Rd.
m I Willow Street, PA 17584
■ I Ph: 717-464-3321 or
Wj Toll Free 800-732-0053
jjr. Store Hours: Mon.-Sat. 7:30 AM to 8:00 PM
iiri
!
chair of the Senate Appropriations
Committee, who presided over the
hearing.
Though testimony presented by
the others was not immediately
available, those scheduled to tes
tify included, Irwin Popowsld,
Esq., with the Consumer Advocate
of Pennsylvania; Chip Casteel,
with MCI Corp.; William Cologie,
president of the Pa. Cable and
Telecommunications Association;
Will Mitchell, for Bell Atlantic;
Vincent Maisano, for the Commu
nication Workers of America;
David Rolka, a PUC commission
er, James Ginty, Esq., for AT&T;
John Quain, PUC chairman; John
Hanger. PUC commissioner, and
David Fleet, with the Pennsylvani
a Telephone Association.
cisans. More than 40,000 people
traditionally attend the two-day
event, produced by students of
Delaware Valley College. The
college is celebrating the Centen
nial of its founding in 1896.
Delaware Valley College is a
private, coeducational four-year
institution with more than 1,300
men and women enrolled in 35
academic programs, ranging from
the agricultural, biological, and
physical sciences to business
ad m *" i « ti ntinn and the liberal arts,
Admission to “A-Day” is free.
If you park your car on-campus,
there is a $5 parking fee, which
also includes a souvenir “A-Day”
program book. The public is
invited.
For more information about
pelaware Valley College’s “A-
Day,” cnl Erina 'Martin at (213)
489-2230.
Product At An
Affordable Pricel
Marly OrCtr Discount! Now In Mtffret