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

COURT UPHOLDS ACC TELEPHONE COMPETITION RULES

Maricopa County Superior Court Judge Steven D. Sheldon has rejected U S West's claims, and ruled that the Arizona Corporation Commission acted properly in adopting rules that allow other companies to compete with U S West for local and in state long distance customers. The telephone competition rules were adopted on June 23, 1995.

Judge Sheldon said U S West has not established that it is being deprived of property by the Commission decision to open the local telephone market to competitors. The judge said the company has failed to exercise its most basic remedy, which is to file a rate case. U S West filed a claim for $320 million on December 20, 1995, saying that opening the market to competitors constituted a "taking of U S West property without due process of law".

The judge ruled that there is no requirement for the Attorney General to certify Commission rules. He said the powers of the commission to set rules are "broad and exclusive".

Editors: The Commission granted authority to AT&T and MCI to provide short haul long distance service inside Arizona on December 20, 1995.

The same authority was granted to Sprint on March 26, 1996. In addition, there are eight companies that are certified by the Commission to provide competitive local exchange carrier servi ce, and ten companies that have applications pending.