PSC to hear complaint about Qwest’s profits

HELENA (AP)

The Montana Public Service Commission has agreed to investigate a complaint, filed by Commissioner Ken Toole before he was elected, that Qwest Communications is exceeding its allowed profit in Montana. The complaint was filed last October and the PSC this week set a schedule for the investigation, including an Oct. 31 hearing, but not before two commissioners questioned whether the complaint was politically motivated. “What we have is a utility behaving very arrogantly, and, by all indications, over-earning by massive amounts,” said Toole, D-Helena, who has excused himself from participating in or voting on the case. The complaint says Qwest, the dominant telephone company in Montana, has earned $85 million more than its authorized rate of return in the state the past five years. The complaint says Qwest, as a regulated utility, is authorized to make up to a 10.44 percent return on its investments in Montana, but has earned between 19 percent and 21.7 percent annually, dating back to 2001. Qwest spokeswoman Jennifer Barton in Denver said Wednesday that the company looks forward to responding to evidence filed in the case. “It’s hard to imagine what that (evidence) will be, since Qwest has not raised rates in Montana in 15 years,” she said. Qwest serves about 300,000 customers in Montana. Testimony and evidence in the case will be filed with the PSC starting June 29 and continuing throughout the summer and early fall. Toole’s name remains on the complaint, although two weeks ago he was removed as lead plaintiff and replaced with Russ Doty of Billings, a Democrat who lost a 2004 PSC election to Brad Molnar. Commissioner Molnar, Rlaurel, complained that Toole and Doty were using the case for personal political gain. Doty said Wednesday he has no current plans to run again and that his involvement in the case is not political. Commissioner Doug Mood, Rseeley Lake, said the complaint would have “more believability and integrity” if it didn’t “seem to have a political aspect.”