US WEST Communication customers will soon notice a reduction in their local telephone rates - the third such rate reduction in the last 13 months, according to W. Mack Lawrence, Utah vice president and chief executive officer.

The rate reduction, which takes effect Sunday, is the result of a Public Service Commission approval of a $10 million rate reduction. Since December 1987, US WEST has reduced its rates by $35 million, Lawrence said. The overall reduction equates to more than a 12 percent drop in residential rates and 10 percent for business customers.The latest reduction is 4 percent in monthly local telephone rates for residential and business customers. In Salt Lake City, for example, residential customers will see a monthly decrease of 68 cents while business rates will fall $1.60.

Residential rates in Logan will go down 56 cents per month and business rates will drop by $1.34. In Cedar City, residential customers will save 48 cents per month, while businesses will save $1.15.

Lawrence attributes the rate reductions to operating efficiencies through restructuring, centralization and new technology.