Verizon May Have to Share Profit in State

Verizon Communications Inc., the largest U.S. local telephone company, may be required to share its profit with consumers in California, three years after regulators ended a similar program.

The California Public Utilities Commission said it will hold hearings in the fourth quarter to decide whether to reinstate the profit-sharing plan.

The commission ended a similar program in 1999, in exchange for a rate cut from New York-based Verizon, because it thought competition from smaller rivals would crimp the firm’s profit, a commission spokeswoman said.

Verizon will oppose reinstating the program, a spokesman said.

Verizon shares fell 40 cents to $29.47 on the NYSE.