US WEST officials say a temporary telephone-rate decrease sought by two state agencies is premature and an abandonment of established principles.
In a memorandum filed following hearings on the proposed interim rate decrease, US WEST attorneys said the Public Safety Commission should use the same standards of fairness used to deny the company interim rate increases in past years."An award of interim relief in this case will constitute an abandonment of . . . well-established principles," the company said. "They should not be abandoned simply because the relief sought will benefit customers rather than the utility in this case.
"There are no extraordinary circumstances (that) compel rate adjustments before full hearings are held."
The Division of Public Utilities and the Committee of Consumer Services said rates should be reduced because the utility is earning more than its authorized profit level. The division wants an $8.6 million interim annual decrease and the committee is seeking a $16.9 million decrease.
Over the past three years, the PSC has ordered three consecutive rate decreases because US WEST has exceeded its authorized profit levels.
The commission granted $9 million in decreases in 1987, $16 million in 1988 and $31 million in 1989.
During hearings late last week, US WEST witnesses argued that while the company is over-earning its profits, the amount ranges between $1.5 million and $5 million, not the amounts cited by the division and committee.
The company suggests that since it cannot traditionally get interim rate increases unless it faces financial hardship, the same standard should apply to outsider requests for interim decreases.