Media advisory [Aug. 6, 1997]

From: Craig Kidd To: Susan Tuggle
GA
P~OO
.PI
Mtt
19q7/g-

Dale: 816/g7 Time: 15:06:13
MEDIA ADVISORY GEORGIA PUBLIC SERVICE COMMISSION

Page 1 ol1

FOR llVIMEDIATE RELEASE August 6, 1997

CONTACT: Shawn Davis Public Information Offiuer (404) 656-6558 or 1-800-282-5813

COURT CLEARS WAY FOR PSC TO DIRECT $24 MILLION TO ALLTEL CUSTOMERS
ATLANTA -- After a year long court battle, Alltel telephone customers will see their long distance access rates reduced by $24 million. With clearance from the Georgia Court of Appeals in July, the Georgia Public Service Commission (PSC) Tuesday ordered enforcement of its July 12, 1996 decision reducing Alltel's rates by $24 Million.
"We're pleased Alltel customers will finally benefit from a decision we made over a year ago," said Commissioner Dave Baker.
The PSC found that without a reduction in the utility's rates, Alltel would be overcharging its customers, both end users and long distance carriers, by $24 million annually. Long distance companies pay access charges to local phone companies for accessing customers on their networK. The PSC ordered long distance companies to pass the access charge reductions through to Alltel customers.
Alltel appealed the PSC decision arguing the PSC lacked authority to examine their earnings once the company had filed for alternative regulation. Enacted by the General Assembly in 1995, alternative regulation prepares utilities for competition by giving them more flexibility to develop and price products and services while freezing rates for five years. Alltel had claimed the PSC action would "terminate" a $400 million modernization program aimed at improving the telecommunications infrastructure in rural Georgia. However, PSC Attorneys
successfully argued that the $24 million in overearnings was above and beyond allowing the
company to recover investments in the modernization program and should be returned to the ratepayer.
Barring further legal action by Alltel, customers should see a savings in their bills starting in the next few months. Alltel Telephone Company is now Georgia's second largest local telephone provider with 400,000 customers, most of whom live in rural Georgia.
###

RECEIVED AUG 07 1997
OOCUMENTS '\ LIBRARIES