Local rates are going down today and then they will go back up in July.

Contel of Illinois, Inc. was granted a two-step increase of $2.45 million dollars by the Illinois Commerce Commision last Wednesday.

Rates in long distance service, however, will be decreased in Market Service Area 4, which includes all of DeKalb, said Gary Dostal, director of public affairs for Contel.

The first part of the local rate change, which takes effect today, will lower rates by 37 cents per month, said Terry Reid, assistant to public affairs at Contel. The local service charge will go down from $7.27 to $6.90, Reid said.

The second step will take effect on July 1, which will raise local rates 45 cents, he said.

“The overall increase is actually only eight cents,” Dostal said.

The new rates will not show up on customers’ bills until the Feb. 7 billing cycle, Dostal said.

Contel services 155,000 rural and urban markets in which each exchange has different service needs, depending on the community, Dostal said.

Because “increases and decreases are going to vary from place to place,” the first step of the rate change will increase revenues for Contel by 1.5 percent, he said.

The second step will go into effect July 1 and will increase Contel revenues a little over one percent, Dostal said.

The company intially requested an $8.3 million dollar increase which was adjusted to $7.3 million dollars “to cover increased operating expenses and recoup lost revenue,” he said.

The last rate increase for Contel was in 1985.

The ICC denied a plan for Contel’s expansion of local measured service to 88 additional areas in Illinois.

“We did not get the amount we requested in this rate case,” said Bill Kreutz, finance director of Contel.

“We are pleased that the ICC will allow us to recoup a portion of the lost revenues we need to maintain excellent service to ur customers,” he said.