LANSING – As the Legislature is deciding how to address the expiring Michigan Telecommunications Act, the Public Service Commission asked it to add regulatory authority over voice over Internet protocol service.

In an order Thursday, the PSC said current law and regulations do not provide sufficient consumer protection for the relatively new service, which uses high-speed Internet connections to carry telephone calls.

“Michigan residents using Voice over Internet Protocol deserve consumer protections,” said PSC Chair Peter Lark. “Because the Michigan Telecommunications Act is silent on Voice over Internet Protocol service using the public switched telephone network, customers using this new technology do not have consumer protections that telecommunication customers have. As has already been demonstrated in Michigan and elsewhere, lack of 911 access using VOIP service is a serious concern. We are asking the Michigan legislature to amend the MTA and put safeguards in place for VOIP customers.”

The commission opened the case (No. U-14073) to collect comments on how it should address VOIP service.

Telephone interests used the fifth anniversary of the current law to continue the battle over changes in any coming rewrite.

The Telecommunications Association of Michigan, which represents largely incumbent local service providers, said the law needs significant overhaul to keep up with changing technology and markets. “If lawmakers do not update the MTA, then Michigan will lose pace with other states that have made providing a state-of-the-art telecommunications infrastructure a top priority,” said Scott Stevenson, Telecommunications Association of Michigan president. “It’s time to get the kinks out of Michigan’s telecommunications law.”

Meanwhile, the Michigan Alliance for Competitive Telecommunications held an event Thursday asking legislators not to make any changes to the act. The group argued the current act has increased competition in local service, bringing down rates and increasing service options.

MICHCON INCREASE: Michigan Consolidated Gas customers will see rate increases on their next bill. The commission approved (case Nos. U-13989, U-13899) a $25.4 million rate increase for the utility to cover inflation and increasing healthcare costs for MichCon employees.

The increase is on top of $35.3 million the commission allowed in an interim order in September 2004, but the commission noted that was the first increase for MichCon since October 1993.

EDISON FINE: Meanwhile, MichCon’s sister company, Detroit Edison, will pay the state $975,000 for taking too long to process customers for competitors. Rules require that requests to switch from Edison to a competitive power provider be completed within 45 days. The PSC found (case No. U-14025), based on Edison admissions, that as late as April 2004 the company was meeting that requirement only half the time.

“It is undisputed that Detroit Edison has engaged in anti-competitive behavior and thwarted customer choice and the intent of Public Act 141 by failing to complete enrollment activities for electric choice customers within 45 days,” Mr. Lark said. “As a result, Detroit Edison delayed or denied electric choice to thousands of customers seeking to switch to an alternative electric supplier. The fine the Commission is imposing today, while large, is still lenient, in light of what Michigan law allows for such offenses.”

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