Indianapolis Recorder, Indianapolis, Marion County, 30 March 2001 — Page 2

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THE INDIANAPOLIS RECORDER

FRIDAY, MARCH 30,2001'

Ameritech has well-connected lobbying effort

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(AP)Ameritech is countering efforts to tighten state regulation of the telephone company by using a well-financed and well-connected lobbying force. The company reported more than $300,000 in lobby ingexpenses during last year's short legislative session. That is roughly the same amount other large companies such as Eli Lilly and Co. and Conseco Inc. spent. But what sets Ameritech apart from those companies and other utilities is its legion of lobbyists with impressive connections. Its rosterof seven registered lobbyists includes former House Speaker Michael Phillips, another former lawmaker. Nelson Becker, and Joseph Loftus, a former Indianapolis deputy mayor under Republican Stephen Goldsmith. Ameritech Indiana President George Fleetwood also worked for Gov. Frank O'Bannon years ago when O'Bannon was a slate senator. 'Certainly, the scale is one thing that sets them apart." said Michael Mullett. an attorney for the Citi-

zens Action Coalition of Indiana, a watchdog group that often opposes the company. “Ameritech is very aggressive.” The company also has a network of well-connected external affairs managers, such as Jon O' Bannon. the governor’s son, and former state Sen. Cleo Washington of South Bend. Those managers fdo not directly lobby legislators, but instead help rally support for Ameritech before state regulators by organizing support at the grass-roots level. All that lobbying power did not stop the Democrat-led Indiana House from approving measures to tighten regulation of Ameritech following the outcry last year over massive service problems. One measure would give the Indiana Utility Regulatory Commission the power to oversee mergers of utility companies and another would give the commission power to fine utilities up to $2.5 million a month. "We've been- getting our butts kicked," Fleetwood said. The Republican-controlled Sen-

ate has not yet acted on those bills. O’Bannon has supported both the fining and merger authority bills. Thad Nation, the governor’s press secretary, said that shows Ameritech’s influence is limited; even though the company employs people with ties to O’Bannon. "I don’t think it has made any; difference in the state’s treatment of Ameritech,” Nation said. • '* The state uti lity commission disapproved Ameritech’s Opportunity Indiana 2000 plan, which woufdallow the company to continue operating under relaxed regulation for another three years. In return,' Ameritech would upgrade its network, install high-speed Interrief connections forcustomers and face' up to $30 million in fines if it fails’ to provide good service. Consumer groups oppose the' pact, say ing i t doesn ’ t do enough td. protect customers. Fleetwood is counting on Hitf’ lobbying team to protect the' company's interests. “I’m just hoping these guys can get the job done,” he said.

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