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CITIES OF AUSTIN v. SOUTHWESTERN BELL

No. 01-0086.

92 S.W.3d 434 (2002)

CITIES OF AUSTIN, DALLAS, FT. WORTH, AND HEREFORD, Petitioners, v. SOUTHWESTERN BELL TELEPHONE COMPANY, Respondent.

Supreme Court of Texas.

Decided June 6, 2002.

Attorney(s) appearing for the Case

Ricardo Guzman, James G. Boyle, Law Office of Jim Boyle, Roger B. Borgelt, Assistant Attorney General, Sara Joy Ferris, Office of Public Utility Counsel, Amanda Atkinson, Office of the Attorney General, Austin, for Petitioners.

Robert J. Hearon, Jr., Michael Diehl, Ron H. Moss, Graves Dougherty Hearon & Moody, Jose Varela, Jr., Southwestern Bell Telephone Company, Ann Effinger, Austin, James D. Ellis, SBC Communications, Inc., San Antonio, for Respondent.

Justice ENOCH delivered the opinion of the Court.

In 1995, the Texas Legislature amended the Public Utility Regulatory Act (PURA) to introduce incentive regulation as an alternative to the traditional rate-of-return scheme for setting telephone rates.1 Under incentive regulation, a telephone company must cap its rates for basic network services, set according to previously-established rate groups.2 The rate...

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