Pacific Telesis Profit Up 7% in Quarter

San Francisco-based Pacific Telesis Group, which serves California and Nevada, said Thursday that its first-quarter profit rose 7% from a year earlier on a slight increase in revenue.

Pacific Telesis said the results do not reflect a recent ruling by the California Public Utilities Commission to reduce the rates of Pacific Bell, a Pacific Telesis unit, in 1987 to account for lower inflation and interest rates.

Pacific Bell is requesting a stay of the ruling pending a rehearing before the commission. If the stay is denied, Pacific Bell plans to appeal the case to the California Supreme Court.

If the stay is not granted or Pacific Bell loses the appeal, Pacific Telesis said first-quarter profit would be cut by about $27 million, or 3% below the year-earlier earnings.