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DATE: |
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TO: |
Director, Division of the Commission Clerk &
Administrative Services (Bayó) |
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FROM: |
Division of Competitive Markets & Enforcement (M. Watts) Office of the General Counsel (Tan) Division of Economic Regulation (Springer) |
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RE: |
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AGENDA: |
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COMMISSIONERS
ASSIGNED: |
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PREHEARING
OFFICER: |
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SPECIAL
INSTRUCTIONS: |
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S:\ |
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Bell Atlantic Communications, Inc. d/b/a Verizon Long Distance (VLD) is registered as an intrastate interexchange company (IXC) with the Florida Public Service Commission.
As part of
the Commission’s service quality evaluation program, staff evaluated access
lines presubscribed to VLD during a comprehensive telephone service evaluation
conducted in the
Staff analyzed VLD’s billing records for the test calls and compared them to staff’s records to determine timing and billing accuracy. Staff found that calls made using VLD’s Type 2 Travel Card were charged at the rate of $0.75 cents per minute. VLD’s tariff, Section 5.4.1.A, defines the per minute charge for that card at $0.50 per minute.
On
The Commission
has jurisdiction over this matter pursuant to Sections 364.02, 364.04, and
364.285, Florida Statutes. Accordingly,
staff believes the following recommendations are appropriate.
Issue 1:
Should the Commission accept Bell Atlantic
Communications, Inc. d/b/a Verizon Long Distance’s proposal to issue a refund
of $89,559.50, plus interest, to the affected customers beginning with the
first billing cycle in October 2006, for overcharging subscribers for calling
card calls made from September 2004 through August 2006; require the company to
remit monies that cannot be refunded to the Commission for deposit in the State
of Florida General Revenue Fund by
Recommendation:
Yes, the Commission should accept VLD’s refund proposal. (M. Watts/Springer/Tan)
Staff Analysis:
Rule 25-24.485(1)(g),
Florida Administrative Code, states in part that companies shall charge only
the rates contained in their tariff.
VLD’s tariff rate for its Travel Card 2 product is $0.50 cents per
minute. Some customers were charged
$0.75 cents per minute, which is a higher rate than defined by the tariff. On
For those customers still on its system, VLD proposes to issue
credits on the customers’ bills. For
customers entitled to a refund but no longer in its system, VLD proposes to
mail a refund check to the last known billing address, except that no refund
for less than $1.00 will be made to these customers. Any monies that are unrefundable shall be
remitted to the Commission for deposit in the General Revenue Fund by
VLD also proposed to calculate interest based on the highest 30 day commercial paper rate (5.36%) for the period January 2004 to August 2006. VLD will apply that rate for each month of the over billing period, and for each month between the over billing and the period that the refunds are issued. Where the interest amount is less than one cent, VLD will round up to the nearest cent. As a result, VLD will pay more in interest to its customers than is required by Rule 25-4.114, Florida Administrative Code, Refunds. VLD has elected to use this interest rate because programming its systems to calculate the refund is more efficient with one rate versus multiple interest rates. VLD will report the actual amount of interest paid in its final refund report.
Accordingly,
staff recommends that the Commission accept Bell Atlantic Communications, Inc.
d/b/a Verizon Long Distance’s proposal to issue a refund of $89,559.50, plus
interest, to the affected customers beginning with the first billing cycle in
October 2006, for overcharging subscribers for calling card calls made from
September 2004 through August 2006; require the company to remit monies that
cannot be refunded to the Commission for deposit in the State of Florida
General Revenue Fund by
Issue 2:
Should this docket be closed?
Recommendation:
The Order issued from this recommendation will be a
proposed agency action. Thus, the Order
will become final and effective upon issuance of the Consummating Order if no
person whose substantial interests are affected timely files a protest within
21 days of issuance of this Order. The
company should submit its final report, identified by docket number, and a
check for the unrefunded amount (if any), made payable to the Florida Public
Service Commission, by
Staff Analysis:
The Order issued from this recommendation will be a
proposed agency action. Thus, the Order
will become final and effective upon issuance of the Consummating Order if no
person whose substantial interests are affected timely files a protest within
21 days of issuance of this Order. The
company should submit its final report, identified by docket number, and a
check for the unrefunded amount (if any), made payable to the Florida Public
Service Commission, by