U S West Communications Inc. V. Arizona Corporation Commission

U S West Communications, Inc. ("US West") appeals from Decision No. 58927 of the Arizona Corporation Commission ("the Commission") establishing the telephone rates that U.S. West may charge its Arizona customers. U.S. West argues that the Commission unreasonably and unlawfully (1) imputed to U.S. West an excessive amount of operating income for directory revenues that a related company earned, (2) disallowed a portion of U.S. West's lease expenses, and (3) disallowed a transition cost adjustment to cover U.S. West's change from cash to accrual accounting for non-pension retirement benefits. We find error on the first ground and none on the latter grounds.