ARIZONA CORPORATION COMMISSION
1200 W. WASHINGTON PHOENIX, AZ. 85007

TO: EDITORS, NEWS DIRECTORS
DATE: October 23, 1996

FOR: IMMEDIATE RELEASE
CONTACT: Jon Poston, (602) 542-0843

U S WEST OVEREARNING BY $6.7 MILLION,
ORDER TO SHOW CAUSE SOUGHT

The Arizona Corporation Commission staff today filed a request for an order to show cause, saying that U S West has filed tariffs that would produce $6.7 million dollars more in yearly revenue than the company is entitled to receive. If approved by Commissioners, the order to show cause would lead to a formal hearing on the issue.

The dispute stems from 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 The Commission complied with the court order, and on September 16, 1996, U S West filed new tariffs for unlisted, unpublished, directory assistance, and inside wiring services.

As an example, U S West was authorized to increase inside wiring tariffs to raise $1.5 million in new revenue, but instead applied tariffs that increase revenue 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, but instead filed tariffs that will result in overcharges of $1.76 million.

Utilities Division Directory Gary Yaquinto said the staff will seek a rate rollback so that "customers are not taken advantage of by U S West."