Regulators asked to reconsider ruling

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Wednesday, Aug. 18, 1999 | 9:57 a.m.

SBC Communications Inc. asked Nevada state regulators Tuesday to reconsider a July ruling that the Public Utilities Commission of Nevada has jurisdiction over SBC's pending acquisition of Ameritech Corp.

San Antonio-based SBC, owner of Nevada Bell, argued that such a ruling would expand the power of the PUC far beyond what Nevada legislators intended, and would be inconsistent with earlier rulings.

"While it surely was not what the PUC intended, the fact remains that unless it is changed, this ruling could discourage investment in Nevada by public utilities or companies that own them, harming the overall business climate in the state," said James Ellis, SBC's senior executive vice president and general counsel.

In a 2-1 vote last month, the PUC ruled that SBC would have to show cause as to why the regulatory agency should not have authority over the deal. The commission argued it should oversee the acquisition because it would have an impact on Nevada.

SBC says it wants to expand into a number of new cities, including Las Vegas, after the deal closes. SBC is the dominant local telephone company over a wide swath of the Midwest.