1983-07-20 Public Hearings and Regular Meeting

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HOW BELL RNUEST WOULD AFFECT TEXAS CUSTOMERS DallasTimes Herald City Residential Residential BU*ws -Business rate request rate request •Waxahachie $7.85 27.45 18.40 34.05 McKinney $8.05 27.65 18.85 34.30 Denison $8.50 28.10 19.90 34.90 WHO $8.28.2.55 35.25Bell seeks Austin $9.05 05 28.65 65 21.25 35.60 60 Fort Worth -Tarrant Co. $9.55 29.15 22.35 36.20 Dallas and suburbs $10.10 29.70 24.50 36.90 Houston and suburbs $10.75 30.35 27.50 37.75 more from NOTE: The charges do not include monthly charges for phone rental or for special calling services. The Bell request also does not include a $4 charge that will be added to customer bills after Jan. 1 due to a Federal Communications Commission order. 41: The order is mandatory. The PUC cannot change it. rate hike plug into Bell's network. The hallos Morning hews The rate proposal reflects changes that are about to revolu- not local ratepayers - should have $92. million sought tionize customers' relations to the to pay the subsidy to Bell. phone system. After Jan. 1, Bell will from 1982 request provide long-distance service only The league has retained the con- within 15 intrastate LATAs -local suiting firm of Hess &Lim, Inc., of Greenbelt, Md., to help oppose the Associated Press access and transport areas. Calls outside those LATAs would be car- Bell case. Tom Weiss of Hess and Lim AUSTM - Southwestern Bell Lim said the access charge "smacks tied by AT&T or along -distance Telephone Co., which has a $1.7 competitor. of discrimination right off the bat" billion rate increase pending, was For instance, Bell would handle because it effectively charges cus- scheduled to go to court today to a call from Dallas to Fort Worth. be- tomers for long-distance service try to squeeze an additional $92 cause both cities are within the even if they never call long-dis- million into its rate request of last same LATA, but another company tance. year. would have to provide service from Butler and Weiss echoedThe telephone company in 1982 Dallas to Houston. Erwin's concern that the Bell pro- asked for $471.5 million in in - Also, Bell no longer will install posal threatens "universal service" creases, but was granted $243.9 - a Depression -era concept that or repair phone instruments. So,' p p .million by the Public Utility Com- 8 wasappealed phone rates should be low enough mission. That ruling before 1�984, customers will have to �ecide whether to buy a phone or: to be affordable for all Americans. by Southwestern Bell. to rent one from AT&T. Customers Roth, ackcould approach that local The lawsuit, to be heard today also will have to choose a company phone rates could approach , sa a by state District Judge Harley month in the next five years, said to provide long-distance service Clark of Austin, contends the Bell is committed to universal serv- outside their LATA and their state. ice. commission mishandled several as - The most controversial element "I think the question is, is a $30- 1ects of the case. of Bell's proposal is likely to be they a•month rate - or something in Company spokesman Jim Good - idea of "access charges" to increase that range - the end of universal win said the PUC forced South - local rates and replace lost long-dis- service? I don't think that it is," he western Bell .to make higher re- tance revenues. said. funds than necessary to customers The FCC has ordered that after who paid bonded rates for two Jan. 1, Bell customers will pay an months while the case was average $4 a month in "access pending. charges" to make up for Bell's loss Refunds totaling $29.4 million of lon&istance revenues. By were made in June, according to separating from AT&T, Bell will Goodwin, although the company lose its former share of all inter- felt that refunds of $8 million state long-distance revenues and were justified. three -fourths of intrastate reve- Clark also will rule on a South- nues. western Bell complaint that the Bell and the PUC have no choice PUC improperly disallowed a rate about the FCC's order. But Bell has hike of $61.5 million to cover pay - proposed a similar access charge ments made by the company to that also averages $4 monthly. loth American Telephone and Tele- graph for research and other access charges would increase by projects. about $1 annually for the next five "We feel those services are years for ratepayers. Meanwhile, beneficial to Texas telephone cus- the access charges would be phased tomers," said Goodwin. kut over that period for AT&T and Clark also must decided on com- her long-distance providers. pany claims that the commission Austin lawyer Don Butler, who set a lower rate of return than received the Texas Municipal was justified. Southwestern Bell League's go-ahead Friday to oppose sought a 13.09 percent return, but the Bell case, said he will argue was granted only 12.29 percent. that the long-distance companies - Goodwin said the actual return is now under 10 percent.