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SOUTHWESTERN BELL v. PUBLIC UTIL. COM'N

No. 3-92-609-CV.

863 S.W.2d 754 (1993)

SOUTHWESTERN BELL TELEPHONE COMPANY, Appellant, v. PUBLIC UTILITY COMMISSION, AT & T Communications of the Southwest, Inc., and MCI Telecommunications Corp., Appellees.

Court of Appeals of Texas, Austin.

Rehearing Overruled October 20, 1993.

Attorney(s) appearing for the Case

Robert J. Hearon, Jr., Graves, Dougherty, Hearon & Moody, Austin, for appellant.

Dan Morales, Atty. Gen. of Tex., Susan D. Bergen, Asst. Atty. Gen., Austin, for Public Utility Com'n of Tex.

Thomas K. Anson, Anson, Maloney & Hill, L.L.P., Austin, for AT & T Communications.

Scott R. Kidd, James W. Checkley, Jr., Brown McCarroll & Oaks Hartline, Neal R. Larsen, Austin, for MCI Telecommunications Corp.

Before POWERS, KIDD and B.A. SMITH, JJ.

KIDD, Justice.

The Texas Legislature passed a tax bill that increased the franchise taxes for Southwestern Bell Telephone Company ("Southwestern Bell"). In order to recoup the resulting tax expense and pursuant to a legislative statute, Southwestern Bell petitioned the Public Utility Commission (the "Commission") to approve the imposition of a franchise tax pass-through to its customer-ratepayers. Based on the interpretation of an earlier agreement by Southwestern...

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