PSC rules for Qwest in dispute over taxes

Published: Friday, May 13 2005 12:00 a.m. MDT

The Utah Public Service Commission has apparently ended a dispute between 27 counties and Qwest Communications International Inc.

The commission on Thursday granted a Qwest motion for summary judgment in the years-long feud about property-tax appeals.

The counties have contended that Qwest was wrong to receive $16.9 million in property-tax reimbursements for the years 1988 to 1996 because that money was built into the utility's rate structure and therefore paid by Qwest customers.

Qwest, meanwhile, said it acted properly. The company said it sought the summary judgment because an evidentiary hearing was not needed as the counties had failed to prove it was warranted.

The two sides argued the matter most recently April 29 in a commission hearing conducted by hearing officer Sandy Mooy.

Thursday's order was short and without a citation of reasons for ruling for Qwest. The commission said that explanation will come later.

"The parties had asked that the commission, if it were to rule one way or the other on the motion for summary judgment, to issue an order so they wouldn't go through the expense of preparing for hearings that were scheduled later on, and that's what the commission did," Mooy said Thursday.

The hearing was scheduled for Aug. 9-10.

Both sides said Thursday they await the written order explaining the commission's decision.

"We are pleased with the action the commission has taken because it certainly is consistent with our advocacy," said Vince Hancock, a Qwest spokesman in Utah. "We're glad to have some certainty around the issue, particularly after such a protracted proceeding. However, we still must wait to see the commission's final order."

The counties could appeal.

"The commission hasn't articulated the reasons for its decision yet, and because of that, we don't have a finding of legal determination or reasoning," said Thomas Peters, an attorney for the counties. "At that point, once it's issued, the text of the order, then we will be able to assess how we would proceed forward."

Peters did say the counties were disappointed in Thursday's order.

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