The PUC dismissed a Pacific Bell request.

The telephone company had asked for authority to create a separate, wholly owned subsidiary, Pacific Bell Directory, to take over publication of telephone directories from Pacific Bell’s Yellow Pages division. In rejecting the request, the Public Utility Commission said Yellow Pages revenue provides a “significant” subsidy to local phone rates, and it wants to be sure that the structural change will not adversely affect that subsidy. A Pacific spokesman said the company will submit a new application in an effort to resolve PUC concerns.