I.87-11-033 et al. COM/cacd                                                                                     Page E-23


Kerman Telephone Company

Adopted Rates and Charges


                                                                 Incremental      $75,412
                                                                 Incremental      $51,258
                                                                 % Increase         86.62%
                                                                 Factor Incr      1.86620



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


SERVICE ORDER/MOVE & CHANGE      2,037      $10.00       $20,370     $18.75       $38,194     $8.75     $17,824     87.50%
CENTRAL OFFICE WORK              1,446       15.00        21,690      28.00        40,488     13.00      18,798     86.67%
PREMISE VISIT CHARGE               205       35.00         7,175      65.25        13,376     30.25       6,201     86.43%
RECONECTIONS                       489       20.00         9,780      37.25        18,215     17.25       8,435     86.25%

                TOTAL            4,177                   $59,015                 $110,273               $51,258


                             Incremental Revenue Requirement to be recovered from CHCF:                 $24,154











I.87-11-033 et al. COM/cacd                                                                                     Page E-22

Kerman Telephone Company

Adopted Rates and Charges



                                                                 Incremental     $360,958
                                                                 Incremental     $285,546
                                                                 % Increase         13.99%
                                                                 Factor Incr       1.1399



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

                                (a)        (b)          (c)          (d)         (e)         (f)        (g)        (h)
    RESIDENCE
         1-PARTY--flat           3,506      $14.80      $622,666      19.40      $816,197     $4.60    $193,531     31.08%
         2-PARTY--flat             204       14.75        36,108      19.35        47,369      4.60      11,261     31.19%

    BUSINESS
         1-PARTY--flat             770       26.50       244,860      34.80       321,552      8.30      76,692     31.32%
         2-PARTY--flat               5       25.35         1,521      33.25         1,995      7.90         474     31.16%

FEX----INCREMENT

    RESIDENCE
         1-PARTY--measured          49       14.00         8,232      15.95         9,379      1.95       1,147     13.93%
                --flat              55       14.00         9,240      15.95        10,527      1.95       1,287     13.93%

    BUSINESS
         1-PARTY--measured          37       18.50         8,214      21.10         9,368         3       1,154     14.05%

            TOTAL BUS.+RES.      4,626                   930,841                1,216,387               285,546


                             Incremental Rev. Req. Needed From Service Connection Charges:              $75,412


         The rate increases are made net of the EAS increment (see Chapter 11, section B.7).





         The percent increase is calculation net of the EAS increment.  After the rate is increased to 150 percent of
         Pacific Bell's basic exchange rate, the EAS increment is added in.  See section B.7 of chapter XI.