Opinion ID: 1059654
Heading Depth: 2
Heading Rank: 3

Heading: Separations Studies

Text: The Commission rejected GTE's separations factor for allocating the local dial switching equipment costs between interstate and intrastate use because it found that the separations procedures did not comply with separations procedures promulgated by the Federal Communications Commission (FCC). GTE's separations factor was based on an 9 actual use measurement of seven days per office rather than overall traffic volumes throughout the period. In the absence of a current valid separations study, the Commission utilized 1988 and 1990 separations studies which were the last properly calculated separations factors. 2 GTE contends that its separations factor complied with the FCC separations procedures and that the Commission erred in rejecting it. However, the record shows that the FCC has not approved GTE's separations procedure. GTE's witness testified that he was unaware of any state proceeding that had either approved the procedure or determined that it was in violation of the FCC procedure. Furthermore, GTE's separations factor is based on a limited period rather than traffic volume over the course of a year, ignoring traffic occurring at any other time. The Commission's staff testified that this procedure undermines the accuracy of a separations factor for overall traffic volumes. The Commission's decision to reject GTE's separations factor is supported by the record and was not an abuse of discretion. Hopewell Cogeneration, 249 Va. at 115, 453 S.E.2d at 281-82.