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ARIZONA CORPORATION COMMISSION
TO: EDITORS, NEWS DIRECTORS
FOR: IMMEDIATE RELEASE
COMMISSION TO DETERMINE IF U S WEST OWES CUSTOMERS $6.7 MILLION
The Arizona Corporation Commission approved a request for a show cause hearing that will determine whether U S West must return $6.7 million dollars to customers, and roll back rates for some services. The hearing is tentatively scheduled for November 15, 1996. Commission Chairman Renz Jennings said "If U S West has been putting a thumb on the scale and overcharging customers, we want to find out about it, and do something about it, without delay." The hearing follows a Court of Appeals order to the Commission to increase U S West revenue by $17.6 million dollars related to Yellow Pages income. The Commission complied with the court order, and on September 16, 1996, U S West filed new rates for unlisted, unpublished, directory assistance, and inside wiring services. As examples: U S West was authorized to increase inside wiring charges to raise $1.5 million in new revenue. The Commission staff believes U S West applied rates that increase company revenue for inside wiring service by $6.3 million, over four times what the Commission authorized. U S West was authorized to increase directory assistance revenues by $5.8 million. The show cause hearing will determine if the company filed rates that result in customer overcharges of $1.76 million, 30% more than the company is entitled to receive for directory assistance. Commissioners will be asked to roll back rates and order a refund to customers who may have been overcharged. | |