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US West, PUC come to terms Phone credits would settle suit The Associated Press SALEM -- An agreement between US West and the Oregon Public Utility Commission, pending court approval, would settle a $220 million rate dispute and give an average credit of more than $100 to residential phone customers. The settlement plan recommended by the PUC staff also would reduce rates by $63 million a year, Phil Nyegaard, the commission's telecommunications administrator, said Wednesday. In May 1997, the commission ordered U S West to reduce rates after finding the Denver-based telecommunications giant had overcharged Oregon customers since the spring of 1996. U S West sued, and Judge Albin Norblad of Marion County Circuit Court ruled in favor of the company. The PUC appealed, and the Oregon Court of Appeals has had the case under review since January 1998. The PUC and U S West now will ask the Court of Appeals to grant motions allowing them to work out the details of the settlement and hold public hearings. "If those motions aren't granted, there will be no settlement," Nyegaard said, adding it could be months before the court makes a decision, followed by months of hearings. The settlement works out to about $58 million per year, much less than the $100 million the PUC ordered U S West to repay in May 1997. The total payment is slightly more than half the $400 million the commission originally maintained was due customers. Consumer advocates said the settlement is too small and they likely will appeal it. "I think it's a political deal to get rid of the rate case," said Bob Jenks, executive director of the Citizens Utility Board. ``It's doubtful that it's justified. I think $75 million or $80 million per year is reasonable." The company and the state are pushing for a settlement because a new state telecommunication industry deregulation law requires the PUC to set caps on rates. The sooner those rates can be set, the easier it will be for telephone competition to begin in Oregon, Nyegaard said. U S West spokesman Jim Haynes said a fast settlement will help the company decide on how to invest in its Oregon operation. "We don't like uncertainty," he said. "This will give us a better idea of our financial standing." If payments are made by next August, the average residential customer can expect a $125 credit, and businesses will receive a credit of either $299 or $337. Customers will see a line on their bills noted as "one-time refund per PUC order." Today's Business Index Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA