Kentucky Bell South Price Regulation Plan

This audit was conducted in response to Order 94-121, in which the Commission stated its intention to perform a focused management and operations review in the fourth year of Bell South-Kentucky’s (BST-KY) Price Regulation Plan (PRP).  In the Case No. 94-121 (Order) dated July 1995, the Commission authorized BST to operate under a price regulation plan (PRP).  The PRP was structured to satisfy five broad objectives:

Cap BST's basic residential service rates and protect customers of BST's monopoly services from significant rate increases.

Maintain minimum BST service quality standards.

Provide BST with incentives to continue investing in new technologies and services to satisfy customer demands.

Allow BST to focus its efforts on enhancing productivity and efficiency of its operations.

Permit BST the flexibility to price competitive services.


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