john@zygot.ati.com (John Higdon) (12/20/89)
Information taken from an AP stroy in the San Jose Mercury:
Pac*Bell was ordered by the PUC to cut its rates 6% yesterday. The
company had sought only a $239 million cut, saying it had higher labor
costs after settling a strike. The PUC's Division of Ratepayer
Advocates had called for a $504 million cut, saying Pacific Bell had
made accounting changes that distorted its 1989 revenues.
Sometime next year, the commission is also scheduled to order Pacific
Bell and GTE to eliminate their current $1.20 monthly charge for
touch-tone phone service and to expand toll-free local calling areas
from eight to twelve miles.
This is the first ruling by the PUC under the give-away program
granted by the commissioners earlier this year. You remember--this is
the best of both worlds system: Pac*Bell is allowed to compete against
its own network customers, such as alarm companies, information
providers and the like. To provide plenty of capital for their vulture
pricing and undercutting, they are guaranteed an 11.5 percent rate of
return PLUS an inflation factor from their captive regulated market.
Nice work if you can get it.
John Higdon | P. O. Box 7648 | +1 408 723 1395
john@zygot.ati.com | San Jose, CA 95150 | M o o !