NEWSReport No. GN 96-3        GENERAL ACTION               February 6, 1996

      COMMISSION PARTIALLY AFFIRMS DECISION TO RELEASE INFORMATION
                         CONCERNING PACIFIC BELL

     The Commission has affirmed the Common Carrier Bureau's decision in response to a
Freedom of Information Act (FOIA) request to release information concerning Pacific Bell
(Pacific), but has agreed with Pacific that further redactions of some of the material are
warranted.   It also agreed that a portion of a letter summarizing audit findings should not be
released.

     In 1992, the Common Carrier Bureau granted in part a FOIA request made by E.T.
Kennedy for "all evidence, audit results and any information concerning Pacific Bell
inappropriately using monopoly ratepayer funds to use in competitive businesses." Pacific
filed an Application for Review of that decision, complaining that the Bureau's ruling would
make available to the public information that is exempt from disclosure under FOIA. Pacific
also objected to the proposed release of certain segments of various internal audit reports
and/or memoranda, urging that further redactions are necessary to avoid disclosure of
confidential material exempt under FOIA.

     With one exception, the Commission rejected Pacific's claims regarding the proposed
release of certain Commission letters that summarized audit findings.  The Commission found
that a portion of one letter should not be released because disclosure of that information could
cause Pacific substantial competitive harm. 

     The Commission also agreed with Pacific that further redactions of internal audit
reports and/or memoranda are warranted, stating that some of the material should be withheld
to preserve confidentiality and other material is not within the scope of Kennedy's FOIA
request.

     Action by the Commission February 2, 1996, by Memorandum Opinion and Order
(FCC 96-43). Chairman Hundt, Commissioners Quello, Barrett, Ness, and Chong.

                                  - FCC -

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