PUC to Maintain Rates for Local Toll Calls

The California Public Utilities Commission has denied a request from the state’s local telephone companies to reconsider rates for local toll calls. As part of a rate-rebalancing plan that went into effect Jan. 1, 1995, the PUC cut prices for local toll calls--between Pasadena and Long Beach, for example--by 40% but allowed Pacific Bell and GTE to raise their basic monthly rates by about $3. The change--which was made to bring toll prices in line with costs and open the market to competition--was expected to be revenue-neutral. But the companies say it has resulted in a $200-million annual loss for Pac Bell and an $80-million yearly loss for GTE. The companies asked for a hearing on the matter in late 1995, and the commission turned them down on the grounds that their revenues are already healthy. The phone companies say they will consider an appeal. PUC officials could not be reached for comment.