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Idaho Project Sale of Local Exchanges

Fortnightly Magazine - January 1 1996

Diverging from the position taken by regulators in other states in the region, the Idaho Public Utilities Commission (PUC) has rejected proposals by U S WEST Communications, Inc., a

telephone local exchange carrier, to sell certain local

exchanges to independent telephone companies. It approved, however, a proposal to sell one of U S WEST's exchanges to a telephone cooperative association. Re U S WEST Communications Inc., Case Nos. PRJ-T-94-1; USW-S-94-4, Order No. 26198, Oct. 18, 1995 (Idaho P.U.C.). In rejecting the bulk of the sales, the PUC noted that the proposals lacked the commitment to infrastructure improvements made by U S WEST in other states. It also found the proposed purchase price of double the book value to be excessive and unreasonable. In addition, the PUC explained that U S WEST's plan for Idaho called for rate increases for local service as a result of the transfers.

Re U S WEST Communications, Inc. Case Nos. ALB-T-94-1; USW-S-94-4, Order No. 26199; Case Nos. MID-T-94-1; USW-S-94-4, Order No. 26200; Case Nos. CAM-T-94-1; USW-S-94-4, Order No. 26202; Case Nos. ROK-T-94-1; USW-S-94-4, Order No. 26204; Case Nos. FRE-T-94-1; USW-S-94-4, Order No.26205; Oct. 18, 1995 (Idaho P.U.C.).

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