NATIONAL RURAL TELECOM ASS'N v. F.C.C.

Nos. 91-1300, 91-1303, 91-1304 and 91-1326.

988 F.2d 174 (1993)

NATIONAL RURAL TELECOM ASSOCIATION, Petitioner, v. FEDERAL COMMUNICATIONS COMMISSION and United States of America, Respondents, American Telephone and Telegraph Company, US West Communications, Inc., GTE Telephone Operating Companies, Ameritech Operating Companies, Southwestern Bell Telephone Company, Maryland People's Counsel, NYNEX, Pacific Bell and Nevada Bell, BellSouth Corporation, South Central Bell and Southern Bell Telephone and Telegraph Company, ALLTEL Service Corporation, Telephone Utilities Exchange Carrier Association, United States Telephone Association, MCI Telecommunications Corporation, National Association of Regulatory Utility Commissioners, Metropolitan Fiber Systems, Inc., Ad Hoc Telecommunications Users Committee, National Cable Television Association, Inc., International Communications Association, Tele-Communications Association, Telephone and Data Systems, Inc., Public Service Commission of the District of Columbia, United Telecommunications, Inc., Intervenors. The ORGANIZATION FOR the PROTECTION AND ADVANCEMENT OF SMALL TELEPHONE COMPANIES, Petitioner, v. FEDERAL COMMUNICATIONS COMMISSION and United States of America, Respondents, American Telephone and Telegraph Company, US West Communications, Inc., GTE Telephone Operating Companies, Ameritech Operating Companies, Southwestern Bell Telephone Company, Maryland People's Counsel, NYNEX, Pacific Bell and Nevada Bell, BellSouth Corporation, South Central Bell and Southern Bell Telephone and Telegraph Company, ALLTEL Service Corporation, Telephone Utilities Exchange Carrier Association, United States Telephone Association, MCI Telecommunications Corporation, National Association of Regulatory Utility Commissioners, Metropolitan Fiber Systems, Inc., Ad Hoc Telecommunications Users Committee, National Cable Television Association, Inc., International Communications Association, Tele-Communications Association, Telephone and Data Systems, Inc., Public Service Commission of the District of Columbia, United Telecommunications, Inc., National Association of State Utility Consumer Advocates, Intervenors. NATIONAL TELEPHONE COOPERATIVE ASSOCIATION, Petitioner, v. FEDERAL COMMUNICATIONS COMMISSION and United States of America, Respondents, American Telephone and Telegraph Company, US West Communications, Inc., GTE Telephone Operating Companies, Ameritech Operating Companies, Southwestern Bell Telephone Company, Maryland People's Counsel, NYNEX, Pacific Bell and Nevada Bell, BellSouth Corporation, South Central Bell and Southern Bell Telephone and Telegraph Company, ALLTEL Service Corporation, Telephone Utilities Exchange Carrier Association, United States Telephone Association, MCI Telecommunications Corporation, Metropolitan Fiber Systems, Inc., Ad Hoc Telecommunications Users Committee, National Cable Television Association, Inc., International Communications Association, Tele-Communications Association, Telephone and Data Systems, Inc., Public Service Commission of the District of Columbia, United Telecommunications, Inc., Intervenors. MCI TELECOMMUNICATIONS CORPORATION, Petitioner, v. FEDERAL COMMUNICATIONS COMMISSION and United States of America, Respondents, American Telephone and Telegraph Company, US West Communications, Inc., GTE Telephone Operating Companies, Ameritech Operating Companies, Southwestern Bell Telephone Company, Maryland People's Counsel, NYNEX, Pacific Bell and Nevada Bell, BellSouth Corporation, South Central Bell and Southern Bell Telephone and Telegraph Company, ALLTEL Service Corporation, Telephone Utilities Exchange Carrier Association, United States Telephone Association, Ad Hoc Telecommunications Users Committee, Bell Atlantic, Tele-Communications Association, Public Service Commission of the District of Columbia, Central Telephone Company, Pennsylvania Public Utilities Commission, Intervenors.

United States Court of Appeals, District of Columbia Circuit.

Decided March 26, 1993.


Attorney(s) appearing for the Case

Frank W. Krogh, with whom Donald J. Elardo and Loretta J. Garcia were on the brief, for petitioner in case No. 91-1326.

Margot S. Humphrey, with whom David Casson, L. Marie Guillory and Lisa M. Zaina were on the joint brief, for petitioners in Nos. 91-1300, 91-1303 and 91-1304.

Laurence N. Bourne, Counsel, Federal Communications Commission (FCC), with whom Renee Licht, Acting Gen. Counsel, David M. Armstrong, Associate Gen. Counsel, John E. Ingle, Deputy Associate Gen. Counsel, FCC, and Robert B. Nicholson and Robert J. Wiggers, Attys., Dept. of Justice, were on the brief for respondents.

Alfred W. Whittaker, with whom John G. Mullan, Floyd S. Keene, John Thorne, Michael D. Lowe, Richard C. Hartgrove, Thomas A. Pajda, Gail L. Polivy, Ward W. Wueste, Jr., Richard McKenna, William B. Barfield, M. Robert Sutherland, Saul Fisher, Mary McDermott, Robert B. McKenna, James P. Tuthill, Margaret deB. Brown and Jeffrey B. Thomas were on the joint brief, for intervenors Bell Operating Companies and GTE intervenors.

John Glynn, Robert L. Duston, and Gary L. Lieber were on the brief, for intervenors Consumer and Ratepayer.

Margot S. Humphrey and Calvin Simshaw were on the joint statement in lieu of brief, for intervenors Telephone Utilities Exchange Carrier Ass'n and Telephone and Data Systems, Inc.

Carolyn C. Hill was on statement in lieu of brief, for intervenor ALLTEL Service Corp.

Alfred W. Wittaker, Floyd S. Keene, and Michael S. Pabian entered appearances, for intervenors Illinois Bell Telephone Co., Indiana Bell Telephone Co., Inc., Michigan Bell Telephone Co., The Ohio Bell Telephone Co., Wisconsin Bell, Inc. (Ameritech).

Richard C. Hartgrove and Thomas A. Pajda entered appearances, for intervenor Southwestern Bell Telephone Co.

Paul Rodgers, Charles D. Gray and James B. Ramsey, entered appearances, for intervenor Nat. Ass'n of Regulatory Utility Com'rs.

Gail L. Polivy and Richard McKenna entered appearances, for intervenor GTE Service Corp. and GTE Telephone Operating Companies.

Andrew L. Lipman entered an appearance, for intervenor Metropolitan Fiber Systems, Inc.

Marc E. Manly and Francine J. Berry entered appearances, for intervenor American Tel. and Tel. Co.

Martin T. McCue entered an appearance, for intervenor U.S. Telephone Ass'n.

Charles C. Hunter, and James S. Blaszak entered appearances, for intervenor Ad Hoc Telecommunications User Committee.

Jeffrey B. Thomas, James P. Tuthill, Margaret deB. Brown and Stanley J. Moore entered appearances, for intervenors Pacific Bell and Nevada Bell.

Brian R. Moir entered an appearance, for intervenor International Communications Ass'n.

Brenda L. Fox and David L. Nicoll entered appearances, for intervenor Nat. Cable Television Ass'n, Inc.

Frank W. Krogh, Donald J. Elardo and Loretta J. Garcia entered appearances, for intervenor MCI Telecommunications Corp.

Robert B. McKenna entered an appearance, for intervenor US West Communications, Inc.

William B. Barfield, R. Frost Branon, Jr., and M. Robert Sutherland entered appearances, for intervenors BellSouth Corporation, South Central Bell Telephone Co., et al.

Gary L. Lieber, J. Thomas Esslinger, Denise Bonn, Robert L. Dunston and John M. Glynn entered appearances, for intervenor Maryland People's Counsel.

R. Michael Senkowski entered an appearance, for intervenor Tele-Communications Ass'n.

Peter G. Wolfe entered an appearance, for intervenor Public Service Com'n of District of Columbia.

H. Richard Juhnke entered an appearance, for intervenor United Telecommunications, Inc.

Donald W. Boecke, Mary McDermott and Saul Fisher entered appearances, for intervenors New York Telephone Co. and New England Telephone, et al. (NYNEX).

Before: MIKVA, Chief Judge, WILLIAMS and SENTELLE, Circuit Judges.


Opinion for the Court filed by Circuit Judge STEPHEN F. WILLIAMS.

STEPHEN F. WILLIAMS, Circuit Judge:

At issue in this appeal are two Federal Communications Commission orders implementing "price cap" rate regulation for the interstate services of local telephone exchange companies ("LECs"). Policy and Rules Concerning Rates for Dominant Carriers, Second Report and Order, 5 FCC Red 6786 (1990) ("LEC Price Cap Order"), on reconsideration,

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