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Home My WebLink About35-Finance . c o 8 .:) r'('~". ' L ~ ~A1aT 3 "n'l ~1 'or.; iC' -..' ,,,U Co... NOTICE OF AT&T COMMUNICATIONS' APPLICATION FOR RATE INCREASE On November 18, 1985, AT&T Communications of California, Inc.. (AT&T Communications) filed an Application (NO. 85-11-029) with the California PUblic Utilities Commission (CPUC) to reprice selected serviees for calls within California. The total annual effect of the proposed changes in rates is estimated to be $123.6 million. or about 7\ above the revenue level expected under current rates. The Application shows that AT&T Communications. unlike traditional utilities. is an expense-driven business. The CPUC itself establishes the greatest proportion of AT&T Communications' expenses -- aecess and billing charges -- which in 1985 represent approximately 80\ of AT&T Communications' total operatinq costs. In this proceeding, AT&T Communications will seek recoqnition in its rates for other expenses incurred in providinq service to California customers. AT&T Communications must. for example. be authorized prices adequate to recover the costs of such necessary functions as Marketing. Advertising. Research and Development. and PUblic Relations. Moreover. there is a need for faster and more adequate capital recovery of the company's assets used in providinq intrastate long distance service in a highly technical and competitive market. Finally, because AT&T communications is similar to other firms in highly competitive environments. it faces a more significant business risk than that of traditional utilities. Accordingly, the Application requests a sliqht increase in AT&T Communications' authorized rate of return from 12.7\ to 13.6\. In this Application. AT&T Communications is also requestinq streamlined regulatory procedures to enable the Company to respond effectively to customer needs in the competitive lonq distance market. A copy of the Application and related exhibits will be furnished upon written request. For additional details. please see the attached copy of the notification AT&T Communications is mailinq to all California customers. c3j~ . c o o :) AT&T COMMUNICATIONS NOTICE OF APPLICATION FOR RATE INCREASE AT&T coaaunications has filed an application with the California Public Utilities Commission (CPUC) to raise its prices '123.6 million. or about 7'. for cal16 within California. This application for rate increase is necessary to brinq the prices for AT&T Coaaunications' services more in line with their actual costs. By far the most siqnificant of these costs are the hiqh fees which AT&T Communications must pay to local telephone companies for access to the local network. In this application. AT&T Communications also has requested streamlined requlation which would result in pricinq flexibility for existinq services and timely introduction of new services. These chanqes in requlatory procedures are necessary for AT&T coaaunications to respond effectively to customer needs in the competitive lonq distance market. The impact of the proposed price chanqes will vary for each customer dependinq on individual callinq patterns and the types of services utilized. A summary of the requested chanqes follows: AT&T LONG DISTANCE SERVICES AT&T LONG DISTANCE . Reduce the price of calls for distances over ISO miles. For example, a 5 minute direct-dialed day-rated call between San Francisco and Los Anqeles would be reduced from '1.93 to '1.88. or about 2.6'. . Increase the price of calls for distances up to 100 miles. For example. a 5 minute direct-dialed day-rated call between Los Anqeles and Palm sprinqs would be increased from '1.55 to '1.60. or about 3.2'. . Chanqe the current discount for calls made durinq niqht and weekend periOdS from 50\ to 40'. . Chanqe the current discount for calls made durinq the eveninq periOd from 25' to 20\. . Chanqe the initial period for a pre-paid AT&T coin call from a pay phone from one minute to three minutes and eliminate the coin service charqes. For a 3 minute coin call. the minimum charqe will increase from 67 cents to 90 cents. The maximum charqe will be reduced from '1.75 to '1.55. " c o o :> REACH OUTsm CALIFORNIA . Make available to all California 'customers this Optional Callinq Plan for AT&T Lonq Distance calls within the state durinq the niqht and weekend periods-. . Increase the price for the first hour of niqht and weekend callinq from $10 to $12.50 and increase the price of each additional hour of niqht and weekend callinq from $8 to $11. -This plan was restricted by the CPUC to a limited nUBber of customers who ordered service prior to September 26. 1984. DIRECTORY ASSISTANCE · Increase the price of Directory Assistance calls between California service areas from 35 cents to 60 cents per call. VERIFICATION AND INTERRUPT SERVICE · Increase the charqe for Verification Service (busy line or out of order verification) from SO cents to $1.00. · Increase the charqe for Verification & Interrupt Service from $1.00 to $1.50. AT&T 800 SERVICE .-- · Increase the Full State hourly usaqe price for calls between service areas within California from $21.50 to $22.00. · Increase the Half State hourly usaqe price for calls between service areas within California from $15.20 to $16.50. · Discontinue off peak discounts presently available durinq the niqht period. AT&T WATS SERVICE · Increase the Half State hourly usaqe price for calls between services areas within California as follows: Hourlv UsaC/e Present ProDosed 0 -IS hours $13. SO $14.50 15.1-40 hours $11.50 $13.50 40.1-80 hours $10.50 $12.50 Over 80 hours $ 9.00 $11. SO - 2 - - -- - ~ c o o ~ AT&T BUSINESS PRIVATE LINE SERVICE The following proposed increases in the prices for Private Line services provided to business customers are required to offset the access charges AT&T Co..unications must pay to the local telephone companie.. . Increases in local channel. channel terminal and interoffice channel recurring charges for Series 1000. 2000. and 3000 will result in price increases for two point circuits ranging from 6~ to 22~. . Increases in local distribution channel and interoffice channel recurring charges for Accunete Tl.5 service will result in price increases for two point circuits ranging from 12~ to 24~. . Increases in the non-recurring charges for Series 2000 and 3000 will result in price increases of 543~. . Increases in the non-recurring charges for Dataphon.. Digital and Accunete Tl.5 services will result in price increases up to 42~. AT&T Communications also proposes to limit Series 1000 services to existing customers and existing locations. Service to new customers and new locations will be provided by Series 3000 service. ESTIMATED REVENUE IMPACT: Approval of this request will result in increased intrastate revenues to AT&T Communications as noted below: Estimated Estimated Amount of Increase Averaqe Percent (Millions) Chanqe in Revenue service AT&T Lonq Distance includinq Coin Services Reach Outsm California Directory Assistance Service Verification & Interrupt Service AT&T MATS Service AT&T 800 Service AT&T Business Private Line Service $ 63.9 .2 10.6 .05 8.3 26.2 14.4 5.2~ 25.0~ 71.4~ 66.7~ 3.5~ 13.9~ 14.0~ Total Revenues $123.65 7.0~ - 3 - - -- - - - - c o o :J CPUC REVIEW OF APPLICATION The CPUC staff will review AT&T Communications' application and aay propose changes in the prices requested. The CPUC staff consists of engineers. accountants. economists and attorneys who will independently evaluate this proposal and present their analyses and recomaendations to the CPUC at pUblic hearings. Other interested parties may also make recommendations. Although a variety of proposals may be submitted. the final determination will be made by the CPUC after public hearings have been completed. The CPUC may grant prices different from those requested. and the price changes authorized may be in different classes of service and/or higher or lower than those listed. A copy of the application and the related exhibits aay be examined at the offices of the California Public Utilities Commission. State Building. 350 McAllister Street. San Francisco. CA 94102 or State Building. 107 South Broadway. Los Angeles. CA 90012; at AT&T Communications Headquarters at 795 Folsom Street. San Francisco. CA 94107 or the following AT&T communications Offices: 23461 S. pointe Drive. Laguna Hills. CA 92653 or 611 W. 6th Street. Los Angeles. CA 90017. Any comments or inquiries. including requests to receive notices of dates. time and places of any hearings on this application. may be directed to the California PUblic Utilities Commission office at 350 McAllister Street. San Francisco. CA 94102. If you would like to participate in these proceedings and need advice on how to do so. write the PUblic Advisor. California PUblic Utilities commission. 350 McAllister Street. San Francisco. CA 94102. For information about this notice or other AT&T Coaaunications' services. please call: Residence Customers: 800-222-0300 8:00 AM - 7:00 PM. M-F 9:00 AM - 5:00 PM. M-F Business Customers: 800-222-0400 - 4 -