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 Federal  Communications  Commission  DA  02-  257 
 Before  the  Federal  Communications  Commission 
 Washington,  D.  C.  20554 


 In  the  Matter  of 
 2001  Annual  Access  Tariff  Filings 
 )  ) 
 )  ) 
 ) 
 CC  Docket  No.  01-  206 


 ORDER 
 Adopted:  February  1,  2002  Released:  February  4,  2002 
 By  the  Chief,  Competitive  Pricing  Division: 
 I.  INTRODUCTION 
 1.  By  this  order,  we  approve  the  refund  plan  submitted  by  ALLTEL  Telephone  Systems, 
 Inc.  (ALLTEL)  for  issuing  refunds  to  its  inter-  exchange  carrier  (IXC)  local  switching  customers  during 
 the  period  of  July  3,  2001  through  ALLTEL’s  December  2001  billing  cycle. 


 II.  BACKGROUND 
 2.  In  the  2001  Annual  Access  Tariff  Order,  the  Commission  found  that  the  dial  equipment 
 minute  (DEM)  allocation  factors  proposed  by  ALLTEL  were  not  reasonable,  and  therefore  ALLTEL’s 
 local  switching  rates  calculated  based  on  those  factors  were  unreasonable  in  violation  of  section  201(  b)  of 
 the  Communications  Act  of  1934,  as  amended.  1  The  Commission  directed  ALLTEL  to  recalculate  its 
 interstate  local  switching  rates  based  on  revised  DEM  allocation  factors,  and  to  issue  refunds  plus  interest 
 for  the  period  from  July  3,  2001  through  the  effective  date  of  its  revised  local  switching  rates.  2  The 
 Commission  also  ordered  ALLTEL  to  submit  to  the  Common  Carrier  Bureau  for  review  and  approval  a 
 plan  for  issuing  refunds.  3  On  January  29,  2002,  ALLTEL  submitted  its  plan  for  issuing  refunds.  4 


 III.  DISCUSSION 
 3.  We  find  that  ALLTEL’s  refund  plan,  with  the  exception  of  its  application  of  interest,  is 
 reasonable.  In  its  refund  plan,  ALLTEL  applied  an  interest  rate  of  6  percent  to  the  refund  amount  from 
 July  3,  2001  to  January  29,  2002.  5  Although  ALLTEL  correctly  used  the  Internal  Revenue  Service’s 


 1  See  2001  Annual  Access  Tariff  Filings,  CC  Docket  No.  01-  206,  Memorandum  Opinion  and  Order,  FCC  01-  352, 
 para.  16  (Dec.  3,  2001)  (2001  Annual  Access  Tariff  Order). 
 2  Id.  at  paras.  19,  21-  22. 


 3  Id.  at  para.  23. 
 4  See  Refund  Plan  of  ALLTEL  Telephone  Systems,  Inc.  (ALLTEL),  CC  Docket  No.  01-  206  (filed  Jan.  29,  2002) 
 (ALLTEL  Refund  Plan). 
 5  See  ALLTEL  Refund  Plan  at  2. 
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 Federal  Communications  Commission  DA  02-  257 
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 (IRS)  corporate  overpayment  rate  of  6  percent,  6  ALLTEL  applied  that  rate  only  through  the  date  of  filing 
 its  refund  plan,  January  29,  2002.  While  refunds  are  due  only  for  the  period  of  overcharges,  interest 
 accrues  until  the  date  the  refunds  are  issued.  7  Therefore  ALLTEL  cannot  limit  the  accrual  of  interest  on 
 the  refunds  to  the  date  on  which  it  filed  its  refund  plan,  but  must  calculate  interest  until  the  refunds  are 
 issued. 


 4.  We  approve  ALLTEL’s  proposal  to  refund  the  overcharges  paid  by  its  IXC  local 
 switching  customers  between  July  3,  2001  and  December  15,  2001  in  the  form  of  credits  to  be  applied  to 
 current  and  future  bills.  8  As  discussed  above,  ALLTEL  must  calculate  interest  on  the  overcharges  until 
 the  date  the  refunds  are  issued. 


 IV.  ORDERING  CLAUSES 
 5.  Accordingly,  IT  IS  ORDERED,  pursuant  to  section  204(  a)  of  the  Communications  Act  of 
 1934,  as  amended,  47  U.  S.  C.  §  204(  a),  and  through  the  authority  delegated  pursuant  to  sections  0.91  and 
 0.291  of  the  Commission’s  rules,  47  C.  F.  R.  §§  0.  91  and  0.291,  that  the  rate  refund  plan  filed  by  ALLTEL 
 Telephone  Systems,  Inc.,  subject  to  the  application  of  interest  as  delineated  at  paragraph  3  of  this  order, 
 IS  APPROVED. 


 FEDERAL  COMMUNICATIONS  COMMISSION 


 Tamara  L.  Preiss 
 Chief 
 Competitive  Pricing  Division 


 6  See  Long-  Term  Telephone  Number  Portability  Tariff  Filings  of  Ameritech  Operating  Companies,  Pacific  Bell, 
 Southwestern  Bell  Telephone  Companies,  and  U  S  West  Communications,  Inc.,  CC  Docket  No.  99-  35, 
 Memorandum  Opinion  and  Order,  14  FCC  Rcd  17339,  17341-  42,  paras.  5-  6  (Common  Carrier  Bureau  1999) 
 (Refund  Interest  Clarification  Order)  (finding  that  carriers  could  use  the  IRS’  overpayment  interest  rate,  rather  than 
 the  underpayment  interest  rate,  for  local  number  portability  refunds  to  customers). 


 7  See  Refund  Interest  Clarification  Order,  14  FCC  Rcd  at  17342,  para.  5  n.  16. 


 8  ALLTEL  proposes  to  issue  an  “Other  Charges  and  Credit”  (OC&  C)  to  the  IXCs  on  their  access  bill  in  the 
 February  and/  or  March  billing  cycles.  See  ALLTEL  Refund  Plan  at  2. 
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