The state’s Public Regulation Commission has said it will continue to hold Qwest to its investment agreement. The five-member PRC voted unanimously to hold Qwest to its pledge of investing $788m in the state’s telecommunications infrastructure by March 2006, a promise Qwest made in 2001 in exchange for the chance to increase its rates.
According to the PRC, if Qwest continues its current pace of investing, it will fall about $200m short of its investment target. If it does not comply with the agreement, the PRC concludes that the shortfall amount must be credited or refunded to New Mexico business and residential customers.
Qwest had lobbied the PRC to reduce the investment amount mandated by the agreement and to give it more time to comply, but it seems that the Commission has not been convinced by Qwest’s pleas of poverty, especially considering its $8bn bid for MCI.
Meanwhile, Qwest revealed that its CEO Richard Notebaert and six other executives have received a total of $5.2m in stock options. The options are a right to buy shares at an exercise price of $3.85 a share in four equal annual instalments starting next March. A Qwest spokesperson said the options reflect the board’s confidence in management’s performance.
