US West, Inc. v. Nelson

FACTUAL AND PROCEDURAL BACKGROUND

In 1982, the mammoth telecommunications corporation known as American Telephone and Telegraph Company was splintered in an antitrust consent decree. See United States v. American Tel. and Tel Co., 552 F.Supp. 131 (D.D.C.1982), aff’d mem., 460 U.S. 1001 , 103 S.Ct. 1240 , 75 L.Ed.2d 472 (1983). Appellant US West, Inc. was one of several Regional Bell Operating Companies formed pursuant to that decree. US West, Inc. is a holding company for many subsidiaries, including appellants US West Dex, Inc. (“West Dex”) and US West Communications Group, Inc. (“West Communications”). West Dex publishes and distributes telephone directories free to Washington residents, although it solicits advertisements from and sells those directories to a small number of people outside the state. West Communications provides local exchange telecommunications services in fourteen western and midwestern states, including Washington.

*721 The Washington Utilities and Transportation Commission (the “Commission”) regulates the rates of public utilities, including appellants’ telecommunications services. Because public utilities are monopolies, the Commission must calibrate…