Century Telephone Enterprises, Inc. reports regulatory decision by Louisiana Public Service Commission.

MONROE, La.--(BUSINESS WIRE)--June 7, 1995--Century Telephone Enterprises, Inc. (NYSE Symbol:CTL) today announced that the Louisiana Public Service Commission ("LPSC") has culminated its two-year investigation into the earnings of independent telephone companies in Louisiana by adopting a new regulatory plan for such companies, effective July 1, 1995.

Although the LPSC intends to further develop much of the plan over the coming months, the plan provides that independent telephone companies in Louisiana will be regulated on an incentive-type rate of return basis.

Under this plan, Century will be required to reduce its intrastate switched access rates over a two-year period beginning July 1, 1995 to match the rates currently in effect for South Central Bell ("Bell"). Century anticipates that this directive will reduce its access revenues by approximately $500,000 in 1995 and up to $4.2 million annually upon completion of the two year phase-in. Century's 1994 revenues from telephone operations totaled $389,438,000.

Glen F. Post, III, President and Chief Executive Officer said, "We are pleased to move toward incentive regulation in Louisiana. Although the plan will require certain reductions in revenues, these are not expected to be material to Century's consolidated operations and the reduced access rates will make by-pass of Century's local exchange networks in Louisiana by long distance carriers less likely."

The plan also establishes a target rate of return of between 10.75% to 12.75%, after giving effect to the access rate reductions described above. The plan contemplates that the LPSC will resolve over the coming months various issues impacting the rate of return process, including determinations of appropriate accounting methodologies, depreciation rates and methods of calculating rate of return. It is currently anticipated that the LPSC will resolve these issues prior to 1996.

Beginning July 1, 1996, companies earning in excess of 12.75% will be required to lower their prospective rate of return to 12.25%, either by further reducing access rates (subject to certain limits) or taking such other actions as may be directed by the LPSC. The impact of this directive on Century cannot be readily determined until the LPSC provides additional guidance on the operation and methodology of the plan, including guidance on the manner in which the LPSC intends to implement the incentive component of the plan. Century anticipates that certain of its Louisiana telephone subsidiaries may take action as a result of this plan to reduce their earnings levels but does not anticipate that these actions will have a material impact on its consolidated financial results.

The LPSC has reserved the right to terminate or modify the plan as it deems appropriate. The plan does not have an established termination date, but the LPSC has indicated that it may review the operation of the plan beginning in late 1997.

Century, headquartered in Monroe, Louisiana, is a diversified telecommunications company and is the 16th largest U.S. local exchange telephone company based on access lines and the 17th largest U.S. cellular telephone company based on owned population equivalents.

CONTACT: Century Telephone Enterprises, Inc., Monroe

Annmarie Sartor, 318/388-9671