Verizon Communications lost an appeal last week before the state Supreme Court. But it certainly wasn't for lack of trying, and it probably won't mean anything in the end, anyway.
In October 2002, the Florida Public Service Commission voted to cut the wholesale rates that Verizon can charge competing phone companies to access its network. Verizon appealed the decision to the Supreme Court, arguing the commission had based its decision on erroneous cost assumptions. This despite the fact that Verizon later cited the PSC action as a model to follow during a similar case before California utility regulators, who ultimately approved even deeper cuts in the company's wholesale rates.
In its appeal, Verizon quoted supportive comments made during a PSC hearing by PSC commissioner Rudy Bradley. Bradley's remarks later drew suspicions of improper conduct when it was revealed that they matched word-for-word portions of a memo Verizon itself had written. Because of his actions in the case, Bradley is now the target of a state ethics inquiry.
Although the Supreme Court upheld the PSC's decision, it proved to be a pyrrhic victory for the commission. This year, a federal court overturned the Federal Communications Commission rules upon which the PSC's wholesale rate cut had been based.
