Report No. DC 95-92ACTION IN DOCKET CASE               June  30, 1995
     
                   FCC DENIES THE JOINT PETITION FOR STAY OF 
              FIRST REPORT AND ORDER, PRICE CAP PERFORMANCE REVIEW
                          FOR LOCAL EXCHANGE CARRIERS 
                              (CC Docket No. 94-1)
     
              The FCC denied the joint petition for stay of the First Report and Order in the
     Price Cap Performance Review for Local Exchange Carriers proceeding filed by Bell
     Atlantic and Southwestern Bell Telephone Company.
     
              On May 9, 1995, Bell Atlantic and Southwestern Bell Telephone Company
     jointly petitioned the Commission to stay partially the First Report and Order,
     pending disposition of their petition for judicial review of that order.  The petitioners
     seek a stay of the portions of the First Report and Order that require them to reduce
     their PCIs by .7 percent for each year they elected the lower X-Factor of 3.3 percent
     and by the amount of any exogenous cost increases made pursuant to OPEBs
     accounting rule changes.  
     
              The Commission denied the petitioners' motion for stay because they have not
     shown that they are entitled to the requested relief under the Commission's well-
     established standards.  Petitioners are required to demonstrate that: (1) they are likely
     to succeed on the merits on appeal; (2) they would suffer irreparable injury absent a
     stay; (3) a stay would not substantially harm other interested parties; and (4) a stay
     would serve the public interest.  Petitioners must meet each of these tests in order for
     the Commission to grant a stay.
     
              The petitioners claimed that if they succeed in their judicial appeal, and the
     Commission were to permit LECs to increase their PCIs to recoup losses incurred as
     a result of the invalidated decision, increased competition would prevent them from
     raising their prices and recouping their lost revenue.  The Commission concluded that
     because the petitioners made no showing that this is certain to occur, their claim of
     irreparable harm is speculative and will not support a finding of irreparable harm.
     
              
     
                                     (over)
     
     
     
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              Action by the Commission June  29, 1995 by Order (FCC 95-273).  Chairman
     Hundt, Commissioners Quello, Barrett, Ness and Chong.
     
                                    - FCC -
     
     News Media contact: Susan Lewis Sallett at (202) 418-1500.
     Common Carrier Bureau contacts: Richard Lerner at (202) 418-1495 and Geri Matise
     at (202) 418-1547.