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The Virginia Telephone & Telegraph Company and Southern Telephone Company, its subsidiary, presented applications to the State Corporation Commission on July 15, 1971, requesting an adjustment in telephone rates throughout its Virginia properties.
The telephone Company, which serves more than 118.50C residential and Commercial stations in Virginia, said the in crease would produce ap proximately $3.6 million in additional annual revenue. The Company’s last application for a general rate increase was in 1954. Vice President and Division Manager, D. H. Reid stated, “The cost of equipment, labor and supplies has continued to increase to where it becomes necessary to seek relief in order to continue to provide adequate service to our subscribers. Our rate of return has declined to a point it is inadequate to sustain proper conduct of business.” The applications propose a variety of new rate adjustments and service connection charges to the Company’s subscribers in all of its 40 exchanges thereby reducing the added charge beyond base rate boundaries to many of its subscribers, to phase out 8party lines and upgrade all rural
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