TollRestrictionCharges.doc

STIPULATION TO CORRECT
TOLL RESTRICTION CHARGES

Qwest Corporation and the Staff of the Public Utilities Commission pursuant to Rule 272 of the Commission’s Rules of Procedure, IDAPA 31.01.01.272, present the following settlement and stipulation for the Commission’s consideration.
1. This Stipulation sets forth Staff’s and Qwest’s proposal to resolve the improper collection of toll restriction charges by U S WEST/Qwest Corporation from October 27, 1998 through February 12, 2001. The Commission issued Order No. 27785 on October 27, 1998 in Case No. USW-S-96-5 that, among other things, limited Qwest’s ability to charge customers for toll restriction service. Specifically, the Order and Stipulation approved by it provide that “residential customers requesting toll restriction service [when] they initiate local service for the first time would not be charged the $13.50 non-recurring fee on a single residential line.” The Order also limited recurring charges for some customers: “Customers eligible for Idaho Telephone Service Assistance Program (ITSAP) shall receive toll restriction without recurring or non-recurring charges.” The Order also resolved pending litigation regarding the regulatory status of toll restriction service. Order No. 27785 includes a sunset provision, and its terms are set to expire three years from its issuance date.
2. In December last year, Staff learned after investigating a customer complaint that Qwest improperly charged certain toll restriction fees after Order No. 27785 was issued. After bringing this matter to Qwest’s attention, Qwest investigated its records and has provided information to Staff regarding toll restriction charges since October 1998. According to the information Qwest provided, approximately 90,000 customers ordered toll restriction service since October 1998 and were charged the set-up fee of $13.50, which totals approximately $1.2 million. Qwest is not able to distinguish between customers who were properly charged the fee (customers who ordered toll restriction sometime after initiating service), and those who were improperly charged (customers who ordered toll restriction when initiating service). Approximately 38,000 customers currently receive toll restriction service. Qwest represents that as of February 12, 2001, it corrected its service procedures to prevent imposition of improper toll restriction charges by requiring its customer service representatives to affirmatively add the charge only when appropriate.
3. To correct the charges inappropriately imposed by Qwest, Qwest has refunded the $13.50 toll restriction fee to all current toll restriction customers that were charged the fee. Those credits appeared on customers’ accounts in their June, July or August 2001 billing statements. Because Qwest cannot determine whether the toll restriction was added to the line when the service was initiated or subsequent thereto, all current toll restricted customers who paid the fee will receive a credit, resulting in refunds to more customers than may actually be warranted. In addition, Qwest has provided refunds to those individuals who currently are Qwest customers and who paid the set-up fee after October 27, 1998, but who do not currently receive toll restriction service. The total number of customers receiving the refund is 42,396, and the total amount refunded is $572,346.
4. Finally in regard to the set-up fee, there is a group comprised of customers that paid the fee but now cannot be identified, because they simply are no longer customers of Qwest and/or the lines that were charged the fee have been disconnected or reassigned. Qwest has identified that number of lines as 47,677. Qwest will deposit to an account identified by the Commission the amount of $643,639 it is not able to refund directly to customers. In that way, Qwest will not retain any part of the toll restriction set-up fees it improperly collected after October 1998.
4. In addition to the set-up fee problem, Qwest identified 32 customer lines belonging to ITSAP customers who were incorrectly billed a 25¢ monthly toll restriction charge. Qwest refunded the recurring charges to ITSAP customers, which appeared in customers’ May or June billing statements. (FCC Order No. 97-157 now requires that customers eligible for Lifeline support receive toll restriction service at no charge.)
5. Finally, Qwest and Staff Stipulate that the Commission should issue an Order to extend the terms of Order No. 27785 through calendar year 2002.

Respectfully submitted this 14th day of September 2001.

For: IPUC Staff

Weldon B. Stutzman
Deputy Attorney General

For: QWEST CORPORATION

Elizabeth Criner
Acting State Vice President

bls/M:toll_stipulation_ws
STIPULATION 3