It didn’t take long for an issue to arise that would test Public Regulation Commissioner Jerome Block’s loyalty to family versus the rest of his constituents. He’s not doing well in that regard.
Senate Bill 445 is testing him. It was introduced by Sen. Carlos Cisneros, D-Taos, Rio Arriba. It would allow Qwest and Windstream to elect to no longer be regulated by the PRC. To that end your local phone company could raise your phone bill a dollar per month ($12 per year) without going to the PRC and justifying the rate increase. Business lines would go up $2 a month ($24 per year) each line.
We’re not sure why Cisneros wants our telephone bills to rise a dollar a month in 2009, 2010, 2011 and 2012 but that’s what the bill does—in the short term.
In the long term, after 2012 the PRC shall have no jurisdiction over the rates set by retail telecommunications companies. They can make the rates whatever they want.
Telecommunication companies are regulated by the PRC because there is no competition so the companies don’t have to provide good service or charge a fair fee because they’re the only game in town. You want a phone, in Española you go to Windstream. Cybermesa has made some inroads into the market but they are in turn at the mercy of Windstream to use their lines.
So if you were the only phone company in town and the PRC said you could raise your rate $1 a month for three years and then you can do whatever you want, what would you do? You’ve been under the yolk of this regulating body since birth and now you’re free to charge what you want, and not provide the service you promise. That’s a no-brainer.
The bill assumes there is competition that will keep prices down, or at least fair. In an urban market that would work. But rural areas in New Mexico are mostly stuck with one phone company and little competition for Internet or cable.
Conversely, the bill’s passage would allow Windstream to cut rates and run minor competitors like Cybermesa out of business. And when the competition’s gone, do you think those rates will stay down?
Not likely.
What’s our protection? We’re represented by a senator, Richard Martinez, whom we can ask to not vote for this bill, should it make it to the floor. We also have a representative on the PRC, good old Jerome, who should be fighting for us in committees. But he’s not.
He’s only gotten to, “I’m leaning toward not supporting it,” after being questioned by the SUN.
Block’s shame is that he thinks it’s a good bill. Some of his inner turmoil must come from a need to back some of his family working for a phone company while simultaneously keeping those pesky voters happy. But he’s sure not thinking of his constituents if he’s supporting this bill. He’s not even thinking about all those people he fooled into voting for him. Their phone bills will go up too.
In his defense, other commissioners aren’t too riled up about this. They’re leaning toward a “neutral” stance. There’s strong leadership for you.
It’s unfortunate we must regulate utility companies but without it consumers will not be protected. That’s the purpose of regulation in the first place. That’s why the PRC exists. Leave the retail telephone companies alone and keep them under the watchful eye of the PRC. Hopefully some commissioners from outside our area will watch them for us.
Jerome Block isn’t.