Pacific Bell’s rate restructuring plan was shelved.

The telephone company had proposed major changes in the ways that its rates are regulated by the California Public Utilities Commission. In what was described as a procedural rebuff of Pacific Bell’s proposal, the PUC told the company that it had raised the subject in an improper forum. Donald Vial, head of the PUC, said the proposal should be dealt with in a formal commission investigation. Pacific Bell wanted residential rates increased and then frozen until 1989, among other things.