Despite Record Revenues, Us West Seeks Rate Hike

A day after the company reported record revenue growth, lawyers for US West Communications told a judge that the telephone company has a critical need to earn more money in Washington state.

King County Superior Court Judge Robert Lasnik heard arguments Friday on US West’s request to increase its basic residential telephone rates by $1.98 a month. The company took its case to court after the Washington Utilities and Transportation Commission rejected its original request to double the current $10.95-per-month residential service rate.

Lasnik said he would give his decision Monday afternoon.

The Englewood, Colo.-based company, which serves 2.2 million residential and business customers in Washington, says it needs the additional revenue to survive in an increasingly competitive industry.

But opponents say that boosting the phone rates could force thousands of low-income households to drop telephone service.

US West Communications Group, a subsidiary of US West Inc., serves more than 25 million customers in 14 Western and Midwestern states.

On Thursday, the subsidiary of US West Inc., reported a 4.7 percent increase in first-quarter earnings. Net income rose to $289 million or 61 cents per share in the quarter ended March 31, up from $276 million or 59 cents per share for the same period in 1995.

Revenues grew by a record 6.3 percent to $2.5 billion.