On behalf of Smith Bagley, Inc., LNGS filed an Answer Brief at the Supreme Court of New Mexico in response to an appeal filed by the New Mexico Exchange Carrier Group (NMECG) cutting annual state universal service support by $9.6 million. Smith Bagley demonstrated that the applicable state statute established a universal service support mechanism for NMECG members that provides revenue neutral subsidies in exchange for per-minute reductions in intrastate access support rates, but not for lost business. Intrastate access minutes fell by 40% over the past eight years, however $24 million in annual subsidies to NMECG member companies has remained steady. Smith Bagley also demonstrated that the Public Regulation Commission reformed the state’s universal service mechanism in a careful and appropriate manner, fully consistent with its delegation of authority under the statute. The case is expected to be decided in early 2016.
LNGS Contacts: David Lafuria