OTHER NEWS - March 8, 1994

PUC Judge Proposes Phone Rate Changes: The state Public Utilities Commission official proposed changes in the formula used to determine Pacific Bell’s phone rates through 1996. The shifts are expected to save ratepayers money. Pacific Bell said one key change would mean cumulative rate reductions of $400 million in 1994, $800 million in 1995 and $1.2 billion in 1996. Under the old formula, the reductions would have been $300 million in 1994, $600 million in 1995 and $900 million in 1996. A PacBell vice president said any revenue reduction could impair the company’s ability to develop new products and services and invest in the state’s telecommunications infrastructure.