As the final step in the agreement that merged GTE and Bell Atlantic to form Verizon, the local phone company reduced rates by $7 million effective July 1, 2001.

The rate reductions were part of an agreement between UTC staff and Verizon. The following rate changes will be made:

• Uniform rates for residential local service - The residential rate is $13 per month for unlimited local service and $7.25 for measured local service. This resulted in rate decreases of up to $1 per month for some customers and rate increases of up to $.25 for other customers.

• No surcharges for local calling areas - Verizon eliminated a $1.90 per month surcharge that most business and residential customers pay for an "extended area service" local calling area. Customers continue to receive the benefits of a larger local calling area, but there is no extra charge.

• Lower rates for business local service - The business local service rate drops from $30 per month to $29.70.

• Simplified measured service usage charge - Under the simplified rate, all measured service calls are charged 1.5 cents per minute.

• Expanded access to basic measured service - Verizon expanded the offering of its optional lower priced "basic" service that had been available in most but not all Verizon service areas. With basic service, customers pay a lower flat monthly rate and are charged measured service rates for each local call.

• Reduced rates for optional local calling plans - The price for the South Spokane optional calling plan is reduced, and there is no longer be an additional charge for local calling between Pullman/Palouse and Garfield in Whitman County.

• Access charges - The access charges paid by long-distance companies were be reduced by $1 million per year.