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: January 5, 1994
BELLSOUTH CORPORATION
(Exact name of registrant as specified in its charter)
Georgia 1-8607 58-1533433
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
1155 Peachtree Street, N. E., Atlanta, Georgia 30367-6000
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (404) 249-2000
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Item 5. Other Events
BellSouth Telecommunications, Inc. ("BellSouth Telecommunications"), a
wholly-owned subsidiary of BellSouth Corporation ("BellSouth"), and Florida's
Office of Public Counsel announced today that they have reached a settlement
related to the pending rate proceeding filed by BellSouth Telecommunications in
July, 1992 and other consolidated matters. The settlement must be approved by
the Florida Public Service Commission before it becomes effective. Approval by
the Florida Commission could come as early as this month. If approved, rate
reductions are scheduled to go into effect beginning in 1994 and continuing
through 1996.
The proposed settlement would total approximately $300 million and would include
the following rate reductions:
Date Annualized Impact
February 1994 $55 million
July 1994 $60 million
October 1995 $80 million
October 1996 $84 million
Under the terms of the proposed settlement, BellSouth Telecommunications'
customers in Florida would no longer incur TouchTone charges, as that feature
would be incorporated into basic service. The remaining tariffs to be reduced
would be decided in the future. The agreement also includes proposed reductions
in service connection charges, and establishes a Service Guarantee plan,
beginning in late 1994, that would provide rebates to customers, if it is
determined that installation or maintenance services were unsatisfactory.
Furthermore, BellSouth Telecommunications would agree to cap basic residential,
business, PBX trunk, and Directory Assistance charges at their current levels
through 1997, and would agree not to propose any local measured service request
on a statewide basis through the same time period.
The agreement establishes a 1994 rate of return sharing level of 12% with a cap
of 14% increasing in 1995 to a 12.5% sharing level with a cap of
14.5%. Rates of return beyond 1995 would be based upon changes in utility bond
yields and would change no more than 75 basis points from 1995 levels.
The proposed settlement would end all outstanding rate case and related issues
and would extend incentive regulation through at least 1996. If approved by the
Florida Commission, the agreement would go into effect 30 days later. Under the
terms of the agreement, BellSouth Telecommunications would also book in fourth
quarter 1993 a one-time, non-cash charge of $79 million in conjunction with the
amortization of deferred expenses related to Hurricane Andrew. As a result,
BellSouth's net income for 1993 could be reduced by approximately $50 million
($.10 per share).
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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 thereunto duly authorized.
BELLSOUTH CORPORATION
By: /s/Ronald M. Dykes
Ronald M. Dykes
Vice President and Comptroller
January 5, 1994
