LANSING, July 25.  The Michigan Public Service Commission today approved in part, and 
rejected in part, the proposed rate restructuring plan for basic local exchange service for both 
Verizon North Inc. and Verizon North Systems (collectively "Verizon").  Under the Michigan 
Telecommunications Act, the Legislature required that local telephone companies restructure 
their rates for basic local exchange, toll, and access services, so that the rates are not less than the 
total service long run incremental cost of providing each service.  Verizon filed a rate 
restructuring application on February 1, 2001, following the Commissions' decision on the 
application filed on October 19, 2000 to restructure its rates for basic local exchange service.  

The Commission approved Verizon's request to increase its residential basic local exchange rates 
by an average of $2.07 per month, with actual rate changes ranging from a decrease of $.82 to an 
increase of $4.37, depending on the rate group.  The approved basic local exchange rate with 
unlimited calling is $18.07 per month for Verizon North customers and $18.05 for Verizon North 
Systems customers.  This includes the elimination of a separate $2.00 charge for touch calling.  
Existing residential rotary dial customers will receive a $2.00 credit to the approved basic rate.  

Today's order rejected Verizon's request to merge its end-user common line charge (commonly 
known as the "EUCL") into its basic local exchange rate and further stated that if Verizon wishes 
to continue to collect the charge, it must do so by billing it as a separate line-item.  The addition 
of the $3.50 end user common line charge brings the approved total rate to $21.57 for Verizon 
North customers and $21.55 for Verizon North Systems customers.

The Commission is currently defending the elimination of the end user line charge, pursuant to 
Act 295 of 2000.  However, the charge has been enjoined by a federal court.  If Verizon 
continues to assess the charge and it is later found to be unlawful, the company will be required 
to make refunds with interest.

Rates charged to business customers are unaffected by today's order.

Verizon is headquartered in New York, New York and provides local telephone service to about 
786,000 Michigan customers.

The MPSC is an agency within the Department of Consumer and Industry Services.

Case No. U-12807
July 25, 2001	
(Verizon North and Verizon North Systems rate restructuring plans approved in part and rejected 
in part)