Engler Awaits Court Decision Holding Up $29 Million Annual Ameritech Rate Cut

Contact: Susan Shafer (517) 335-6397

October 31, 2002

Governor John Engler today said he is eagerly awaiting the decision by U.S. District Court on whether an annual rate cut of $29 million for Ameritech Michigan customers may go into effect.

In August, the state of Michigan announced it had reached a legal settlement with Ameritech Michigan that would implement the long-awaited End-User Common Line Charge (EUCL) rate cut. Attorney General Granholm challenged the settlement, halting the rate reduction, until the court renders its soon-expected decision.

"Michigan’s Ameritech customers deserve a rate cut, having waited over two years for some relief in phone rates," said Governor Engler. "By holding up the settlement, customers have lost over $4 million in rate relief already.

"Not only has the decision by the Attorney General to challenge the state’s legal settlement resulted in no rate cut for them, it has also placed in jeopardy some $29 million in revenues to local governments to develop much-needed broadband.

"Michigan’s Ameritech customers should watch this decision carefully."