Contact: Minnesota Public Utilities Commission

Mark Oberlander
Telephone: 651.201.2212

Fax: 651.297.7073

The Minnesota Public Utilities Commission, at its December 8, 2009 meeting, modified and adopted a plan governing Qwest’s local telephone operations in Minnesota. Under Minnesota law, a local telephone company may seek approval of an “alternative form of regulation”, or AFOR plan. Such plans are intended to promote local telephone competition, product innovation and affordable rates for local telephone service, as well as allow local telephone companies flexibility in adjusting prices in response to competitive conditions. Qwest began operating under an approved AFOR plan in January of 1999 and has had its plan revised once, in 2006. Qwest filed its most recent proposal in June, 2009 and it is intended to be effective from 2010 through 2013. The Commission’s decision covered a multitude of operational issues affecting Qwest’s local telephone service operations and comes at the culmination of an extensive fact‐finding and decision‐making process. The Commission’s actions included the following:

• Qwest is required to freeze rates for basic residential local telephone service for the first three years of the plan, but may increase the monthly rate for basic residential local service by $1 after that period in 2013.
• Qwest was not permitted to implement a state‐wide surcharge regarding the costs it incurs to relocate telephone lines as part of construction projects
• Qwest is allowed greater pricing flexibility for services included in packaged with additional calling features or bundled with long distance, internet or television services

Under Minnesota law, Qwest has the option of accepting or rejecting the modified plan adopted by the Commission. If Qwest accepts, the plan will go into effect January 1, 2010.

A final written order formally documenting the Commission’s decision will be issued in several weeks. That order will be available via the Commission’s e‐Dockets system using the case’s docket number (P‐421/AF‐09‐790). All other public documents associated with this case are also accessible there.