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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
November 25, 1996
U S WEST COMMUNICATIONS, INC.
(Exact Name of Registrant as Specified in its Charter)
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COLORADO 1-3040 84-0273800
(State or Other (Commission (I.R.S. Employer
Jurisdiction of Incorporation) File Number) Identification Number)
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7800 EAST ORCHARD ROAD
ENGLEWOOD, COLORADO 80111
(Address of principal executive offices) (zip code)
(303) 793-6500
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On November 25, 1996, U S WEST Communications, Inc. issued a press
release entitled "U S WEST Communications Receives King County Superior Court
Decision in Washington State Rate Order Appeal." In addition, on November 26,
1997, U S WEST Communications, Inc. issued a press release entitled "U S WEST
Communications To Continue Appeal of Washington State Rate Order.". The
releases are attached hereto as Exhibits.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99A. Press Release, dated November 25, 1996.
99B. Press Release, dated November 26, 1996.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
U S WEST Communications, Inc.
By:/s/ Stephen E. Brilz
Stephen E. Brilz
Assistant Secretary
Dated: November 27, 1996
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EXHIBIT 99A
U S WEST Communications, Inc.
7800 East Orchard Road
Englewood, Colorado 80111
[U S WEST Communications Group logo and registered mark]
News Flash
November 25, 1996
U S WEST COMMUNICATIONS RECEIVES KING COUNTY SUPERIOR COURT DECISION IN
WASHINGTON STATE RATE ORDER APPEAL
ENGLEWOOD, Colo. -- The King County Superior Court in Washington State today
ruled on U S WEST Communications' appeal of the April 11, 1996 rate order from
the Washington State Utilities and Transportation Commission (WUTC) to
decrease rates in net by $91.5 million. In its first rate increase request in
13 years, U S WEST had sought to raise rates for basic residential service.
Instead, the commission ordered a revenue reduction -- primarily in
highly-competitive services such as access, toll, and business local exchange
service -- and ordered U S WEST Communications to set a flat fee of $10.50 a
month for basic local service -- one of the lowest rates in the nation.
Althought the Company has not yet received the Court's written decision, it
was informed by the Court this afternoon that it upheld the WUTC's rate order.
U S WEST Communications is disappointed by the announced outcome in this rate
case. The Company will continue to exercise its legal and procedural options
as appropriate, and will announce its future actions relative to this matter
once it has received and reviewed the decision in full.
U S WEST Communications Group provides telecommunications and high-speed data
services to more than 25 million customers in 14 western and midwestern
states. The company is one of two major groups that make up U S WEST. U S
WEST is in the connections business, helping customers share information,
entertainment and communications services in local markets worldwide.
More information: Bruce M. Mann (303-793-6368) or Becky Winning
(303-793-6367)
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EXHIBIT 99B
U S WEST Communications Group
Investor Relations
7800 East Orchard Road, Suite 290
Englewood, Colorado 80111
303-793-6365
NEWS FLASH
November 26, 1996
U S WEST COMMUNICATIONS TO CONTINUE APPEAL
OF WASHINGTON STATE RATE ORDER
ENGLEWOOD, Colo. -- U S WEST Communications Group (NYSE:USW) announced today
that it will continue its appeal of the Washington State Utilities and
Transportation Commission's April 1995 rate case decision.
In February, 1995, U S WEST Communications filed a rate case with the
Washington State Utilities and Transportation Commission (WUTC). In its first
rate increase request in 13 years, U S WEST had sought to raise rates for
basic residential service. In April of 1996, the WUTC denied the revenue
increase and instead ordered a $91.5 million revenue reduction -- primarily in
highly-competitive services such as access, toll, and business local exchange
service. The WUTC also ordered U S WEST Communications to set a flat fee of
$10.50 a month for basic local service - the second-lowest residential phone
rate in the nation.
U S WEST Communications immediately filed an appeal in the King County
Superior Court and requested a stay of the order. Major issues of the appeal
included:
* Depreciation expense
* Imputation of yellow pages revenues
* Service quality
* Unbundling of Centrex services
* Operating expenses
* Cost studies
In April, a stay was granted pending the outcome of the King County Superior
Court's ruling on the appeal.
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On November 25, Judge Lasnik ruled on the appeal. In his summary decision, he
upheld the WUTC on all points on the basis of the standard of review
established in the State Administrative Procedure Act.
"It's not unusual for a lower court in the state of Washington to defer to the
state appellate courts, and in this case, the judge's summary ruling was very
brief and did not include a substantive discussion on the merits of the
appeal," said Sol Trujillo, chief executive officer and president of U S WEST
Communications Group. "We plan to file a notice of appeal and a motion for
stay with the Washington State Supreme Court as soon as possible.
"We'll also continue to work with the Commission to resolve related issues.
We believe our arguments have merit, and we will pursue all regulatory, legal
and legislative options to protect our shareowners' investment in U S WEST
Communications," he added.
The Company plans to ask for expedited treatment from the Court; however, the
timing of related rulings is at the Court's discretion. The Company will make
a decision on whether to begin accruing for the $91.5 million revenue
reduction when it receives a ruling from the appellate court, which it expects
in the coming weeks.
U S WEST Communications Group provides telecommunications and high-speed data
services to more than 25 million customers in 14 western and midwestern
states. The Company is one of two groups that make up U S WEST. U S WEST is
in the connections business, helping customers share information,
entertainment and communications in local markets worldwide.
For more information, contact: Bruce Mann (303) 793-6368 or Becky Winning
(303) 793-6367.
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