US LEC of Tennessee, Inc. v. Tennessee Regulatory Authority

This appeal involves a dispute between two telecommunications services providers in the Chattanooga market. A privately owned provider filed a complaint with the Tennessee Regulatory Authority asserting that a competing provider owned by a municipal electric utility was receiving an illegal cross-subsidy because the electric utility was permitting the provider to use its name without compensation. One of the Authority’s hearing officers conducted a hearing and then filed an initial order concluding that the provider owned by the electric utility was not receiving a crosssubsidy in violation of Tenn. Code Ann. § 7-52-402 (2005). After the initial order became final, the private provider filed a Tenn. R. App. P. 12 petition for review with this court. We have concluded that the provider’s uncompensated use of the electric utility’s name is not a cross-subsidy prohibited by Tenn. Code Ann. § 7-52-402.