I.87-11-033 et al. COM/cacd                                                                                       Page E-5

California Oregon Telephone Company

Adopted Rates and Charges




                                                      Incremental Revenue Needed from Servic $547,736
                                                      Incremental Revenue Earned From Servic  $18,114
                                                      % Increase to Service Connection Charg    98.19%
                                                      Factor Increase:                         1.9819


                                EST.'91     PRESENT      PRESENT     ADOPTED     ADOPTED      CHARGE     ANNUAL    PERCENT
SERVICE CHARGES                  UNITS       CHARGE       TOTAL       CHARGE      TOTAL        DIFF       DIFF       DIFF


SERVICE INST./MOVE & CHANGE           669      $12.50        $8,363    $24.75       $16,558    $12.25      $8,195     98.00%
CENTRAL OFFICE WORK                   661       12.50         8,263    $24.75        16,360     12.25       8,097     98.00%
RECONNECTIONS                          26       20.00           520    $39.65         1,031     19.65         511     98.25%
PREMISE VISIT                          51       20.00         1,020    $39.65         2,022     19.65       1,002     98.25%
RECORD CHANGE                          42        7.50           315    $14.85           624      7.35         309     98.00%

                Total               1,449                   $18,480                 $36,594               $18,114


        Incremental Revenue Requirement to be recovered from CHCF:                                       $529,622



I.87-11-033 et al. COM/cacd                                                                                       Page E-4

California Oregon Telephone Company

Adopted Rates and Charges



                                                      Incremental Revenue Requ     $708,384
                                                      Incremental Revenue Earn     $160,648
                                                      % Increase to Basic Rate        30.27%
                                                      Factor Increase:              1.30270
                                                      % Increase to Basic Rate       100.00%

                                EST.'91     PRESENT      PRESENT     ADOPTED     ADOPTED       RATE      ANNUAL    PERCENT
LOCAL EXCHANGE                 AVG. UNITS    MO RATE     YR TOTAL    MO RATE     YR TOTAL      DIFF       DIFF       DIFF

                                  (a)         (b)          (c)         (d)         (e)         (f)        (g)        (h)
    RESIDENCE
        1-PARTY--flat D&M             519      $12.95       $80,653    $16.85      $104,942     $3.90     $24,289     30.12%
        1-PARTY--flat N&T             827        6.05        60,040     12.10       120,080      6.05      60,040    100.00%
        2-PARTY--flat D&M             194       11.95        27,820     15.55        36,200      3.60       8,381     30.13%
        2-PARTY--flat N&T             134        4.85         7,799      9.70        15,598      4.85       7,799    100.00%
        2-PARTY--flat (GF)              5        4.50           270      9.00           540      4.50         270    100.00%

               Subtotal             1,679                  $176,581                $277,360              $100,779

    BUSINESS
        1-PARTY--flat D&M             132       19.75        31,284     25.75        40,788     $6.00      $9,504     30.38%
        1-PARTY--flat N&T             230       11.30        31,188     22.60        62,376    $11.30     $31,188    100.00%
        2-PARTY--flat D&M              18       17.25         3,726     22.45         4,849      5.20       1,123     30.14%
        2-PARTY--flat N&T               8        8.35           802     16.70         1,603      8.35         802    100.00%
        KEY LINE--flat D&M              0       19.75             0     25.75             0      6.00           0     30.38%
        KEY LINE--flat N&T             83       16.70        16,633     33.40        33,266     16.70      16,633    100.00%
        PBX TRUNK--flat D&M             3       29.65         1,067     38.65         1,391      9.00         324     30.35%
        PBX TRUNK--flat N&T             0       16.70             0     33.40             0     16.70           0    100.00%
        SEMI-PUB COIN (PSS)             4       20.25           972     26.40         1,267      6.15         295     30.37%

               Subtotal               478                    85,672                 145,541                59,869

           Total Bus + Res          2,157                  $262,253                $422,902              $160,648



              Incremental Rev. Req. To Be Recovered From Service Connection Charges:                     $547,736