GTE South Inc. v. AT&T Communications of Virginia, Inc.

In this appeal of right, GTE South Inc. (GTE) assigns a number of errors to the decision of the Virginia State Corporation Commission reducing GTE’s gross operating income by approximately $27,000,000.

I

In 1993, the General Assembly enacted Code § 56-235.5 allowing the Commission to adopt ratemaking methods to replace the traditional rate based, rate of return analysis specified in § 56-235.2. The alternative forms of ratemaking had to protect the affordability and continued availability of quality local exchange service, not prejudice or disadvantage any class of telephone customers or…