The state of Illinois in the United States was among the first jurisdictions to rebalance rates as it attempted to avoid distortions between competitors as competitive pressures grew in Chicago and elsewhere in the state in telecommunications in the 1980s.
- The regulator took steps to align in-state access charges (interconnection tariffs) with interstate access charges to prevent arbitrage opportunities. In contrast, some other states had in-state rates at a level several times higher than the interstate rate.
- Monthly rental charges were gradually raised over time.
- In return for a higher monthly rental charge, consumers were offered more extensive local calling areas as calling distances previously considered long distance were reclassified as local calls, at reduced prices.
In 1985 the Illinois Commerce Commission approved a partial settlement agreement to rebalance rates that had been reached between Illinois Bell Telephone and some groups who had intervened in the regulatory examination of Illinois Bell's rates, including the Citizens Utility Board. This somewhat surprising agreement between consumer representatives and a regulated firm underscores the successful nature of Illinois' early rebalancing efforts.
The reference documents associated with "5.6 Rate Rebalancing" in the toolkit provide further details.