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For the third time in the past eight months, Central Telephone Company of Virginia (Centel) is reducing its rates. The latest reduction, which took effect Jan. 1, totals more than $1.7 million and applies to rates for local service, Wide Area Telephone Service (WATS), 800 service and charges paid Centel by long distance carriers for access to Centel’s local network.
The largest portion of the rate reduction is in local service charges. All customers will see a 1.3 percent reduction in basic local service rates.
In addition, customers paying zone mileage charges as part of their local service will see an even greater reduction in rates. Zone mileage charges are applied to one- and twoparty customers living outside the local service base rate area.
Centel is also reducing its rates for custom-calling feature packages. Greater savings are now available for customers who subscribe to two or more of the custom calling features in a package.
The latest rate reduction resulted from the positive impact the Tax Reform Act of 1986 had on Centel, according to Roseann Wells, the company’s local manager in Front Royal.
“We at Centel have seen our corporate taxes decrease since the Tax Reform Act of 1986 became law,” Ms. Wells said. “In turn, we have decreased the rates we charge our customers for service.”
She noted that by reducing rates, effective Jan. 1, Centel is complying with a directive issued in November by the State Corporate Commission. The SCC directed Virginia’s five largest local telephone companies, including Centel, to reduce rates to reflect any tax savings resulting from the Tax Reform Act of 1986.
The most recent rate reduction follows two rate decreases by Centel in 1987. On May 1, the company reduced its local access line rates and
93.2%