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             California Public Utilities Commission
505 Van Ness Avenue, Room 5301            San Francisco, CA 94102
CONTACT: Armando Rendon           November 8, 1995       CPUC-103
         415-703-1366                                (A93-12-005)

           CPUC LOWERS CITIZENS PHONE RATES, INCLUDING
               REDUCTION FOR POOR SERVICE QUALITY

     The California Public Utilities Commission (CPUC) today
reduced Citizens Telecommunications Company of California's
(Citizens) 1996 rates by $5.7 million or 8 percent.  This rate
reduction permanently lowers Citizens' rates.
     An interim rate decrease ordered last January will be
adjusted in early 1996 to bring revenues up to the final,
permanent level adopted today.  This adjustment may result in a
temporary increase in rates.  The exact amount will be figured
out after Citizens reports to the CPUC revenues collected this
year under the interim rates.
     A CPUC survey of Citizens customers found a high incidence
of service complaints and great customer dissatisfaction with the
handling of billing problems.  The company was disallowed
$330,000 for submitting incomplete and inaccurate reports, in
fact, reports which concealed service quality problems.  This
amount will be assessed by reducing the utility's rate of return,
that is, shareholder profits.
     Citizens must also comply with a Service Quality Assurance
Program, which not only requires service improvements in dial
service, answering business office and trouble reports, but
carries additional penalties for not reporting service problems.
     Citizens must also make the following improvements:
     --Correct quality reports for 1991-1993 to reflect answering
       time performance of directory assistance operators;
     --File monthly service performance reports on an overall
       company basis;
     --Improve service by 30 percent in five areas: static or
       noise on the line, busy signal or recording before a
                             -more-
       customer finishes dialing a number, required redials
       because calls don't go through the first time, telephone
       installation and repair service, and billing resolution;
     --Reduce overall service outages by 40 percent and service
       outages due to equipment failure by 50 percent.
     As an incentive to encourage customers to switch to measured
rate service, today's order provides a 180-day grace period for
flat rate  customers to try measured rate service and, if not
satisfied, switch back.
     Citizens serves about 85,000 customers in nine northern
counties, organized around five districts, Elk Grove, Susanville,
Ferndale, Alturas, and Burney.
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