PUBLIC NOTICE
                                                                              
   Federal Communications Commission
   1919 M St., N.W.
   Washington, D.C. 20554

                                                                              
 $//Public Notice, US West, Farmers Mut. Tel. Co. , and Project Mut.
 Tel. Coop., Study Area and Price Cap Waivers, AAD 96-6; DA 96-472//$
 $/Part 36 Appendix-Glossary, Sections 61.41(c)(2), 69.3(e)/$
"Record Only"
              FARMERS MUTUAL TELEPHONE COMPANY, PROJECT MUTUAL TELEPHONE  
        COOPERATIVE ASSOCIATION, INC., AND US WEST COMMUNICATIONS, INC. 
      FILED A PETITION FOR WAIVER OF SECTIONS 61.41(C)(2), 69.3(E)(11) AND
         THE DEFINITION OF "STUDY AREA" CONTAINED IN APPENDIX-GLOSSARY
                      OF PART 36 OF THE COMMISSION'S RULES
                                    AAD 96-6

DA 96-472
Release Date:  March 29, 1996

Comment Date:  April 29, 1996
     Reply Date:  May 14, 1996

On January 16, 1996, Farmers Mutual Telephone Company ("Farmers Mutual"),
Project Mutual Telephone Cooperative Association, Inc. ("Project Mutual"), and US WEST
Communications ("U S WEST"), filed a joint petition for waiver of the definition of "Study
Area" as set forth in the Appendix-Glossary of Part 36 of the Commission's rules.  That
definition constitutes a rule freezing all study area boundaries.  The requested study area waivers
would allow U S WEST to alter the boundaries of its existing Idaho study area when transferring
one telephone exchange to Farmers Mutual and one telephone exchange to Project Mutual
(collectively having 655 access lines).  Farmers Mutual and Project Mutual propose to add the
acquired exchanges to their existing Idaho study areas.  In letters dated March 11, 1996 and
March 15, 1996, the Idaho Public Utilities Commission states that it has no objection to the
requested study area waivers.  

In addition, Project Mutual seek waiver of the Commission's price cap rule contained
in Section 61.41(c)(2).  That rule requires non-price cap companies--and the telephone companies
with which they are affiliated--to become subject to price cap regulation after acquiring a price
cap company or any part thereof.  The requested waivers would permit Project Mutual to
continue operating under rate-of-return regulation after acquiring the exchange which currently
is under price cap regulation.  Finally, Farmers Mutual and Project Mutual requests waiver of
Section 69.3(e)(11) of the rules, if necessary, so that the regulatory, tariff and pooling changes
related to the proposed exchange acquisitions may occur immediately upon the closing of the
transactions.


Interested parties may file comments on the petition on or before April 29, 1996, and
reply comments on or before May 14, 1996, with the Secretary, Federal Communications
Commission, 1919 M Street, N.W., Room 222, Washington, D.C. 20554. Comments and reply
comments should reference AAD 96-6.  Four (4) copies should also be sent to Adrian Wright,
Cost Analysis Branch, Common Carrier Bureau, Room 812, 2000 L Street, N.W., Washington,
D.C. 20554, and one (1) copy should be sent to the Commission's contractor for public service
record duplication: International Transcription Service (ITS), 2100 M Street, N.W., Suite 140,
Washington, D.C. 20037.  Copies of the petition may be obtained from the Accounting and
Audits Division's public reference room, Room 812, 2000 L Street, N.W., Washington, D.C. 
Copies are also available from ITS at (202) 857-3800.

We will treat this proceeding as non-restricted for purposes of the Commission's ex
parte rules.  See generally, 47 C.F.R.  1.1200-1.1206.  However, if the waiver petition is
opposed this proceeding becomes restricted under the Commission's ex parte rules.  See
generally, 47 C.F.R.  1.1208-1.1216.  For further information contact Adrian Wright at (202)
418-0830.
                                     
                     FEDERAL COMMUNICATIONS COMMISSION