CCC   PPPPP   U    U    CCC       N    N  EEEEE  W  W  W   SSS
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             California Public Utilities Commission
505 Van Ness Avenue, Room 5301            San Francisco, CA 94102

CONTACT: Armando Rendon          April 12, 1996       CPUC-035
         415-703-1366                                (I93-02-028)

        CPUC PUTS $35 MILLION INTO TECH FUND FOR SCHOOLS;
          REPAYS $7.5 MILLION TO PACIFIC BELL CUSTOMERS

     The California Public Utilities Commission (CPUC) today
ordered Pacific Bell (Pacific) to put $35 million into a
technology fund for schools and to refund about $7.5 million to
its customers.  The money comes from the spin-off two years ago
of Pacific Telesis Group (Telesis) wireless operations.
     The $35 million will be deposited into the Education
Technology Trust Fund, a trust set up by the state legislature to
help underwrite schoolroom curricula and facilities for access to
developing technology and to enhance student learning.
     The Commission asked Pacific to suggest how it would make
the refund to customers in a filing due within the month.  In
addition to this refund, Pacific customers received $7.9 million,
the principal amount, in 1995 and $4 million in interest is being
repaid this year.
     In November 1993, the Commission allowed the Pacific Telesis
Group (Telesis) to form a new corporate entity by spinning off
its wireless units.  The spin-off company, now known as AirTouch,
included PacTel Cellular, PacTel Paging, and Pacific Telesis
International.  Telesis ended up comprising Pacific Bell, Nevada
Bell and other subsidiaries.
     The Commission directed Telesis to make a refund to Pacific
Bell in an amount AT&T paid as reimbursement for the financing
put up for basic research and development from 1974-83 by Pacific
Telephone and Telegraph (PTT), Pacific Bell's predecessor.

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