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Show Continental requests Utah rate increase "Local telephone revenues have not kept up with the rapidly increasing cost which Continental Telephone Company of the West must face in its routine Utah operations," according to Grant Callister, Utah State Customer Service Manager. As a result, the phone company has been forced to seek a rate increase from the Public Service Commission of Utah. On October 12, 1978, Continental Telephone filed with the Public Service Commission requesting an increase in revenue. The increase if granted would generate $523,106 in new revenue annually which would enable the company to earn a 9.94 percent return on its investment in existing telephone plant equipment and to strengthen its position in financing expansion projects and modernizing services. "The quandry the company faces is that while plant investments are increasing, returns on the investment invest-ment are decreasing," Callister explained. "Many significant service and equipment improvements have been taking place while inflation's effect on cost of labor and materials and the cost of borrowing money has risen dramatically," he added. "Continental Telephone Company Compa-ny recognizes the strain inflation has placed on the pocketbooks of all Americans," Callister said. But we also recognize that to continue to provide good telephone service to the public we must maintain the economic health of our company." One problem inherent with any rate request, Callister said, is the fact that federal and state taxes drain away as much as fifty percent of the added revenue. Public Hearing dates will be set by the Public Service Commission in the future at which time Continental customers and the public generally may appear to present statements and give testimony before the Public Service Commission. Callister said the proposed rate increase will apply to Continental's three service districts in Utah with headquarters in Tremonton, Delta and Moab. |