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ROCHESTER TEL DETAILS OPPOSITION TO NEW YORK STATE PUBLIC SERVICE COMMISSION ROYALTY DECISION

 ROCHESTER, N.Y., July 8 /PRNewswire/ -- Rochester Telephone Corporation (NYSE: RTC) today expressed its opposition to the New York State Public Service Commission's decision of July 6, 1993, to impose a royalty based on the company's investment in unregulated subsidiaries. The company said that it will appeal the decision and pursue all available avenues for judicial relief.
 The commission's decision was issued by a vote of 3 to 2.
 The imposition of the royalty could cost Rochester Tel in the range of $2 million in annual revenues, according to a preliminary calculation based on an initial interpretation of the decision.
 "This is an unreasonable and, we believe, unconstitutional penalty," stated Louis L. Massaro, Rochester Tel's corporate vice president of finance. "Rochester Tel would become the only telephone company in the state that the commission has ordered to pay a royalty on its unregulated operations. The decision is bad public policy and bad regulatory policy, and we will fight it aggressively in the courts." The case has been pending since 1985.
 Massaro said that there is no basis in the record to support the commission's assertion that Rochester Tel's diversification efforts have increased risk to Rochester's ratepayers.
 "Rather, Rochester's diversification efforts have served to make the company stronger," he said. "Our diversification strategy has allowed for corporate overhead expenses to be shared on a larger base, potentially reducing costs that customers pay in the form of telephone rates. In fact, telephone rates in Rochester are lower than rates for all comparable communities in New York State."
 Rochester Tel has been ordered to submit, within 30 days, a method for calculating the amounts due together with proposed journal entries, and a plan for returning to ratepayers such amounts.
 Rochester Tel's consolidation operations serve more than one million customers through 50 telecommunications companies in 23 states. The companies principal lines of business include telephone operations, long distance, business systems and wireless operations. The Rochester operating company serves six counties in Rochester, N.Y., and surrounding areas, with approximately 360,000 customers and 480,000 access lines in service.
 -0- 7/8/93
 /CONTACT: Linda J. Crociata of Rochester Tel, 716-777-7693 or 716-777-1090/
 (RTC)


CO: Rochester Telephone ST: New York IN: TLS SU:

AR -- CL017 -- 9648 07/08/93 16:10 EDT
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Date:Jul 8, 1993
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