Bell Atlantic Telephone Companies v. Federal Communications Commission and United States of America, Rochester Telephone Corporation, Intervenors

Opinion for the court filed by Circuit Judge RANDOLPH.

RANDOLPH, Circuit Judge:

Petitioners, a group of local telephone exchange carriers, seek review of two orders of the Federal Communications Commission. These orders-the Performance Review Order 1 and the Add-Back Order 2 -made several changes to the Commission’s scheme for regulating prices charged by local telephone companies for interstate access services. We deny the petitions for review because the orders are neither arbitrary nor capricious and have no impermissible retroactive effects.

I

A. Background

In 1990, the Commission implemented…