Local Us West Rates Raised $2 A Month Panel Oks Hike For Phone Company But Calls For Better Customer Service

Washington regulators on Friday granted most of a rate increase sought by US West, with the condition that the state’s largest telephone company provide better service and invest more money in its network.

The company’s 1.6 million residential customers will pay an additional $2 a month for basic local service under an order released by the three-member Washington Utilities and Transportation Commission. That will boost the basic monthly rate from $10.50 to $12.50.

The company had sought a $3 increase in residential rates.

Most of the phone company’s 500,000 business customers will experience a decrease in basic rates. Current business rates ranging between $18 and $40 a month will be set at $26.60 a month under the new plan, which begins Feb. 1.

The commission’s decision will boost US West’s revenues by $58.8 million a year. The company, with in-state revenues of $1 billion, had asked for rate increases totaling $70.3 million.

The commission said most of the difference involved the phone company’s request for $10.5 million in salary bonuses for management. Those were denied because of the poor service record.

Although the commission order fell short of the company’s request, and what the commission’s staff had suggested, US West spokeswoman Dana Smith said the outcome allows for continued improvement in the sometimes confrontational relationship between regulator and regulated.

Smith said the additional revenues also will enable the company to invest more in its network. But, she added, “We would like to be able to do more.”

The commission granted the rate increase despite its “grave concern” about US West’s customer service quality.

Complaints about service quality jumped from 136 in 1996 to 472 last year, according to the commission. Complaints about delayed phone installations dropped from 1,219 in 1996 to 824 in 1997, although that’s still significantly higher than the 99 complaints recorded in 1991.

“We recognize the improvement since the company’s prior rate order - but when an improvement by one-third leaves the company some seven to nine times worse than its performance in 1991, we cannot characterize the improvement as substantial or significant,” the UTC said in its order.

The commission attributed the increase in service quality complaints to a lack of investment by US West in its telephone network. The UTC chastised the phone company for promising to invest $30 million in the network if the commission made the “right” decision.

“During the early 1990s, the company earned and kept millions more than its authorized return, yet during that period was reducing its investment in the state,” the UTC said. “Some of the company’s present service problems appear to stem from its failure to invest sufficient capital or human resources.”

Under the UTC’s order, US West is required to provide cellular phones to customers whose phone installation is delayed more than five days. The company also is ordered to give customers a $50 credit if it fails to meet a service appointment.

The commission also allowed US West to increase charges for directory-assistance calls. Residential customers will receive one free directory assistance call a month and pay 60 cents for each additional call. The cost for businesses will be 60 cents for each call.

Friday’s order will not be the last word on changes customers will see in their bills Feb. 1.

Still to be determined is the distribution of $209 million in credits and rebates stemming from a state Supreme Court ruling in a 1996 rate case.

Smith said US West is recommending $65.7 million be credited against charges for intra-state long-distance calls.

The same amount would be credited against access charges interstate long-distance carriers pay, with the stipulation they pass those back to their Washington customers.

Businesses would receive the remaining $80.7 million in refunds and credits.

“What customers will actually see on their bills will be determined over the next couple of weeks,” she said.

, DataTimes MEMO: This sidebar appeared with the story: HIGHER BILLS US West’s residential customers will pay an additional $2 a month for basic local service under an order released by the three-member Washington Utilities and Transportation Commission. That will boost the basic monthly rate from $10.50 to $12.50.