Printer Friendly

GTE CUSTOMERS START NEW YEAR WITH $1.30 AVERAGE MONTHLY SAVINGS; COMPANY REDUCES '94 REVENUE BY $100.5 MILLION THROUGH PRICE-CAP FILING

 THOUSAND OAKS, Calif., Dec. 29 /PRNewswire/ -- GTE California customers get another reason to celebrate the New Year, as the company Jan. 1, begins reducing its 1994 revenue by $100.5 million, a $1.30 monthly savings for the average residential customer.
 The savings will show up on customers' bills as a surcredit of 5.66 percent on local services and a surcredit of 5.35 percent on toll services. Long-distance companies also will get a 5.35 percent surcredit on charges they pay GTE California for access to its customers.
 "We're pleased that the California PUC has approved our Oct. 1 price-cap filing asking for significant revenue reductions for 1994," said Tim McCallion, West Area vice president -- regulatory and governmental affairs.
 "The annual price-cap filing is an integral part of the PUC's new regulatory framework for reducing our rates in an increasingly more competitive environment," he said. "We're also pleased with the tremendous savings we've been able to pass along to our customers the last three years through revenue sharing."
 McCallion said that through revenue sharing, GTE California refunds half of its annual earnings above 13 percent to customers. GTE has returned $7.6 million to customers for 1990, $29.7 million for 1991 and $32.5 million for 1992. "And, we anticipate sharing company earnings with our customers for 1993, some time in 1994," he said.
 Under the price cap mechanism, the PUC annually adjusts GTE's rates and revenues based on the national domestic rate of inflation, a target productivity factor set by the PUC, as well as in consideration of other factors, such as regulatory and accounting changes.
 The 1994 price-cap adjustment was calculated by taking GTE California's target productivity factor of 5 percent, the gross domestic product price index (GDPPI) national inflation rate of 3.1 percent and subtracting the productivity index, for a 1.9 percent reduction of GTE's revenues. GTE serves about 3.1 million Californians.
 -0- 12/29/93
 /CONTACT: Larry Cox of the GTE California 24-Hour News Bureau, 800-227-5556, or 805-373-1653 (out of California)/


CO: GTE California ST: California IN: UTI SU:

NY-JB -- LA010 -- 7794 12/29/93 12:37 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 29, 1993
Words:358
Previous Article:BIO PRESIDENT SEES PRICE CONTROL PROPOSALS HOLDING BACK BIOTECHNOLOGY INDUSTRY GROWTH IN 1994
Next Article:NISSAN MOTOR CORP. U.S.A. ANNOUNCES PRICE INCREASE
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters