GCI wins $2.7 million from ACS

Posted: Sunday, January 28, 2001

ANCHORAGE (AP) -- The cable TV and phone company GCI has won an order from the Federal Communications Commission that rival ACS owes GCI $2.7 million plus interest for charges by its subsidiary ATU, formerly the Anchorage Telephone Utility.

''We find that ATU unlawfully earned more than its allowable rate of return for the period from January 1, 1997 through December 31, 1998,'' the commission wrote, by charging GCI too much for carrying its customers' Internet traffic.

The issue involved whether the costs should be assigned to interstate or intrastate carriers, said Dana Tindall, GCI's senior vice president of legal and regulatory affairs.

The overcharges began while ATU was still owned by the Anchorage municipality, but continued after ACS bought the company in 1999, according to GCI. GCI is reviewing 1999 and 2000 charges to see if further payments are due, the company said.

Adding interest to the $2.7 million brings the total due GCI for 1997 and 1998 to $3.2 million, GCI said.

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