Cuts Ordered For U S West Left Intact

State utility regulators acted properly in ordering U S West to cut its revenues by $91.5 million, a judge ruled Monday.

King County Superior Court Judge Robert Lasnik rejected the phone company’s contention that the Utilities and Transportation Commission acted arbitrarily or beyond the scope of its evidence in issuing the order last spring.

“Absolutely this hurts,” said U S West spokesman Harry Grandstrom. “We went in asking for a $300 million revenue increase, and they told us to cut revenue by $92 million. We need the revenue for the care and feeding and building of our network. This network is the backbone of the economy in the state of Washington.”

Grandstrom said the company had not yet decided if it would appeal the ruling.

“We don’t know yet what we’ll do,” he said.

U S West failed to convince Lasnik that regulators had incorrectly figured U S West’s expenses and income when they ordered the telephone company to cut its revenues by $91.5 million after rejecting the company’s request to more than double average residential rates. The commission instead found the company made too much money for the service it provides, and ordered the rate cut.

U S West lawyers argued the state incorrectly calculated the company’s operating expenses, unfairly included revenue from the Yellow Page subsidiary in its profits, miscalculated how fast the company’s equipment depreciates and disregarded its cost studies.

State lawyers countered that the ruling not only was legal, but necessary to protect consumers against high telephone rates and declining service.