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Facts

  • The case involves tw telecom of new mexico, llc (tw telecom) appealing a final order issued by the New Mexico Public Regulation Commission (PRC) related to the development of an Alternative Form of Regulation Plan for Qwest Corporation (AFOR III). The appeal challenges the PRC's conclusions adopted from a previous order without justification, the deregulation of Qwest's rates in violation of statutory and constitutional provisions, and the deprivation of tw telecom's due process rights. The appeal stems from a series of cases addressing the regulation of Qwest’s pricing and service quality, with tw telecom not participating in a key case due to a business decision, only to find conclusions from that case affecting the final order in question (paras 2-7).

Procedural History

  • AFOR II, No. 05-00466-UT, November 28, 2006: Issued final order on pricing and quality of service for Qwest Corporation, effective January 1, 2007, through December 31, 2009.
  • Competitive Response Case, No. 08-00326-UT and No. 08-00197-UT, August 25, 2009: Issued final order addressing objections to Qwest Corporation’s promotional and tariff programs.
  • AFOR III Final Order, No. 09-00094-UT: PRC issued the final order now appealed by tw telecom, incorporating findings from the Competitive Response Case Final Order (paras 3-9).

Parties' Submissions

  • Appellant (tw telecom): Argued that the PRC adopted conclusions from a previous order without justification in the AFOR III record, deregulated Qwest's rates in violation of the New Mexico Telecommunications Act and the separation of powers doctrine, and deprived tw telecom of due process (para 14).
  • Appellee (PRC): Defended the final order, suggesting that it was based on substantial evidence and within the PRC's authority, and that tw telecom had adequate notice and opportunity to be heard (N/A).
  • Intervenors (Qwest Corporation and Office of the Attorney General): Their specific arguments are not detailed in the decision to analyze.

Legal Issues

  • Whether the PRC adopted conclusions from a previous final order without justification in the AFOR III record.
  • Whether the PRC's deregulation of Qwest's rates violated the New Mexico Telecommunications Act and the separation of powers doctrine.
  • Whether the PRC deprived tw telecom of proper due process (para 14).

Disposition

  • The Supreme Court of New Mexico annulled and vacated the AFOR III Final Order and remanded the case to the PRC for further proceedings to afford the parties an opportunity to present evidence (para 22).

Reasons

  • The Supreme Court, per Justice Petra Jimenez Maes, found that the PRC violated tw telecom's due process rights by adopting conclusions from a previous proceeding without giving parties an opportunity to be heard on these matters. The Court noted that due process requires reasonable notice and the opportunity to be heard, which was compromised by the timing and incorporation of findings from the Competitive Response Case into the AFOR III Final Order. The Court did not address tw telecom's second claim regarding the deregulation of Qwest's rates due to the decision to remand based on the due process violation (paras 16-21).
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