FCC Chairman Dennis R. Patrick assured Congress...

FCC Chairman Dennis R. Patrick assured Congress that the agency will give American Telephone & Telegraph Co. more flexibility in setting rates only if consumers benefit. In testimony to the House Energy and Commerce telecommunications subcommittee, Patrick said that the evidence so far indicates the long-distance leader, if relieved of traditional rate-of-return regulation, would be encouraged to lower rates and become more efficient. The Federal Communications Commission has proposed removing its limit on AT&T;’s profits and substituting a rate cap--a ceiling for AT&T; prices that would rise and fall depending on the economic environment. AT&T; is the only long-distance company whose rates are regulated by the FCC, but its rates have set the pace for the industry.