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Allirw^t il Law <br />ROBtlT A. AL50P <br />Ronald H. Batty <br />STEPHEN J. Bl It i <br />John a D ean <br />Ma BV G. DOBiCN» <br />STETANIB N. Ga LEY <br />CoRiiNE A. Heine <br />James s. Holmes <br />D avtd J. Kennedy <br />John R. Laeson <br />WILUNGTON H. La W <br />CHARLES L. IXmERE <br />Holmes & Graven <br />CHARTERED <br />470 PUbburj CtoCtr. Miimcapalif. MinnatoU 55402 <br />(412) 337-9300 <br />Faalmilc (612) 337-9310 <br />John M. leFevre. jr <br />ROBERT J. UNDALL <br />Laira K. MOLIXT <br />Barbara L Portwood <br />Ja %ces m. strommen <br />James J. Thomson , jr. <br />La BBY M. WERTHnM <br />Bonnie L wilrins <br />Gaby P. winter <br />WRITER’S DIRECT DUL <br />337-9233 <br />MEMORANDUM <br />David L. okaven <br />oFror»isn. <br />RouiT c. C aiuon <br />Rdkit L. OAvn»«)>« <br />TO; <br />FROM: <br />RE: <br />DATE: <br />SRA Board, Alternates, and City Managers <br />Jim Strommen, Holmes & Graven /i/y <br />J <br />Final US West Uniform Telephone Rates - Savings <br />Calculation <br />September 2, 1992 <br />Introduction <br />This is a "final" written report regarding the SRA's long and <br />ultimately successful battle to eliminate the tiered rates for US <br />West telephone service in the metro area. Information in this memo <br />is definitive in that it is derived from finally agreed upon US <br />West uniform rates scheduled to become effective November 1. <br />The collective revenue shift and savings to outer tier residents <br />and businesses resulting from the new uniform rates is significant. <br />Uniform rates are guaranteed as a rate design for at least three <br />years. Coupled with an SRA spearheaded reduction in tier ratios in <br />1984, the net result of SRA efforts on this issue by 1995 will be <br />millions of dollars of rate savings to tier II, III, and IV <br />customers. <br />The final 3RA accomplishment was completed in the context of US <br />West's uniform rate filing of July 2, 1992. With the able assis­ <br />tance of our expert, Basil Copeland of CRC, the SRA engineered a <br />Commission-approved settlement with US West on a revised schedule <br />of rates, saving tier I, II, III, and IV residential customers an <br />additional annual $541,201 (explained below). Total annual savings <br />to tier II, III, and IV residents and businesses beginning Novem­ <br />ber 1 will be approximately $3,270,100 ($2,005,269, residential; <br />$1,264,831, business). Since US West has no data on customers per <br />municipality, it is impossible to measure the savings per SRA <br />member. <br />f <br />Recent Events <br />As you know, on December 20, 1991 the Commission issued an order <br />finding the tiered rates without basis in cost or policy. The <br />Commission ordered uniform rates to be implemented on a revenue- <br />neutral basis to US West, meaning that tier I rates would rise <br />modestly, tier II rates would stay the same or decrease slightly.