Mountain States Telephone & Telegraph Co. v. New Mexico State Corp.

OPINION

STOWERS, Justice.

This case is before us upon removal from the New Mexico State Corporation Commission (Commission), following the Commission’s order denying in part a rate increase applied for by Mountain States Telephone and Telegraph Company (Mountain Bell). Mountain Bell contends that the Commission erred, first, in ordering it to make certain accounting entries relating to the tax treatment of consumer premises equipment (CPE) and, second, in ordering it henceforth to account for state income taxes on a flow-through, rather than a normalization, basis. We reverse the Commission’s…