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MCI TELECOMMUNICATIONS v. PSC

Nos. 890251, 890252.

840 P.2d 765 (1992)

MCI TELECOMMUNICATIONS CORP., Petitioner, v. PUBLIC SERVICE COMMISSION OF UTAH, Brian T. Stewart, Chairman, James M. Byrne, Commissioner, Respondents. TEL-AMERICA OF SALT LAKE CITY, INC., Petitioner, v. PUBLIC SERVICE COMMISSION OF UTAH, Brent H. Cameron, Commissioner, James M. Byrne, Commissioner, Brian T. Stewart, Chairman, Respondents.

Supreme Court of Utah.

Rehearing Denied June 8, 1992.

Attorney(s) appearing for the Case

Gregory B. Monson, C. Scott Brown, Salt Lake City, for Mountain States Telephone.

Ted D. Smith, Salt Lake City, for U.S. West Communications.

David L. Stott, Laurie L. Noda, Salt Lake City, for Public Service Com'n.

Randy L. Dryer, Jim Butler, Salt Lake City, for MCI Telecommunications.

Thomas M. Zarr, Stanley K. Stoll, Daniel D. Hill, Salt Lake City, for Tel-America.

Michael L. Ginsberg, Salt Lake City, for Division of Public Utilities.

STEWART, Justice:

In 1985, the Public Service Commission (Commission) granted Mountain States Telephone and Telegraph Co., now U.S. West Corp. (U.S. West),1 a $22 million general rate increase and established 14.2% as its authorized rate of return on equity. In granting the increase, the Commission assumed that U.S. West would pay a federal corporate income tax of 46%, the then-existing rate.

On October 22, 1986, Congress enacted...

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