General Telephone Co. of the Southwest v. Public Utility Commission of Texas

PHILLIPS, Chief Justice.

This is an appeal in a rate case by General Telephone of the Southwest from a judgment rendered in favor of the Public Utility Commission of Texas by the trial court.

There are two principal questions for decision. The first is whether appellant General Telephone of the Southwest, a wholly-owned subsidiary of the parent holding company GTE, must bear an imputed share of the debt portion of GTE’s capital structure thereby reducing the rate of return allowed on the adjusted value of appellant’s invested capital below what it alleges is a fair and reasonable level. This is…