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Qwest ordered to set aside $30 million for potential refunds
By Andy Vuong
March 11, 2011
A district judge
Thursday ordered Qwest to set aside $30 million to cover
potential refunds for up to 1 million
The total refunds
could exceed $100 million by the time Qwest's appeals are
exhausted and the case is remanded to regulators for official
calculations, according to the Colorado Office of Consumer
Counsel. That process could take up to three years, the consumer
office said, meaning potential refunds of about $100 each could
be issued in late 2013.
In January, Denver
District Judge Herbert Stern overturned a 2009 decision by the
Colorado Public Utilities Commission that authorized Qwest to
raise monthly rates on basic residential phone service.
The
Qwest has filed a
notice of intent to appeal Stern's January ruling to the state
Supreme Court and has argued that bond should be waived because
a refund amount has not been calculated.
In mandating $30
million bond — the current potential refund amount through
February based on estimates by the consumer office — Stern said
the company's pending merger with CenturyLink "presents
uncertainty as to the expediency of processing refunds to Qwest
customers should Qwest's appeal be unsuccessful."
"Qwest shall
obtain a bond in the amount of $30 million or place said amount
in an interest-bearing escrow account," Stern wrote in
Thursday's order.
A Qwest financial
analyst estimated that any potential refund would be less than
$10 million, according to court documents. Stern said the
company provided "no data or information" as to how that figure
was reached.
Stern notes that
the consumer office's $30 million estimate is "fair and
accurately reflects the data already in the record."
A Qwest
spokeswoman said the company doesn't comment on pending
litigation.
Andy Vuong: 303-954-1209,
avuong@denverpost.com or
twitter.com/andyvuong
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