Press Release

N.J. Ratepayer Advocate Opposes Telephone Carriers’ Refund Petition To FCC
Efforts Aimed At Stopping Imposition of Higher Fees for Ratepayers

Newark, N.J.-- Ratepayer Advocate Seema M. Singh filed comments with the Federal Communications Commission (FCC) asking to deny the request from Regional Bell Operating Companies (RBOCs) and other carriers to treat their refund obligations to independent payphone service providers (IPSPs) as an “extraordinary event.” If the petition is granted, ratepayers would be responsible for the reimbursement of the refund.

In 2002, the FCC found that RBOCs and certain other carriers improperly assessed End User Common Line (EUCL) charges on IPSPs. The RBOCs and carriers have negotiated settlements to pay between $35 and $45 million in refunds to the affected IPSPs relating to improperly assessed EUCL charges.

“The refund obligations of the Regional Bell Operating Companies and other carriers should not be passed on to ratepayers,” said Singh. “It is unfair to require consumers to pay for the refunds when the telephone carriers improperly assessed these charges in the first instance.”

The Ratepayer Advocate (RPA) is one of only three organizations opposing this petition which, if granted, would have ratepayers reimbursing the millions in EUCL refund payments that the RPA contends are the sole responsibility of the Regional Bell Operating Companies and other carriers.

The Division of the Ratepayer Advocate is an independent state agency that represents the interests of utility consumers and serves as an active participant in every case whenever New Jersey utilities seek changes in their rates or services. The Ratepayer Advocate also gives consumers a voice in setting long-range energy, water, and telecommunications policy that will affect the delivery of utility services well into the future.

Additional information on this and other matters can be found at the Division of Ratepayer Advocate’s website at http://www.rpa.state.nj.us

BACK | HOME