7. Assignment of Proceeding

Michael R. Peevey is the assigned Commissioner and Jean Vieth is the assigned ALJ in this proceeding.

1. AT&T should be reimbursed from Fund B for $175,171.91, the amount of UCAN's second intervenor compensation award, which AT&T paid directly to UCAN prior to the issuance of D.08-02-015, which authorized payment of that award from Fund B.

2. The balance remaining, if any, once all additional monies due to the claims administrator have been paid from the $600,000 deposited by AT&T for this purpose should be returned to AT&T and the calculation of the balance remaining should exclude the $61,783.09 paid for telephone support from Fund A interest, per D.08-02-015. AT&T acted responsibly in its review of Rust's invoices, which led to issuance of a sizeable credit against the invoices tendered prior to the issuance of D.08-02-015.

3. The Motion of the Utility Consumers' Action Network Regarding Distribution of Remaining Funds, filed July 3, 2008, as amended on August 29, 2008 and February 20, 2009, and as further qualified by the June 12, 2009 joint exhibit, is unopposed. AT&T's June 19, 2009 brief supports the requested distribution.

4. Pursuant to the settlement approved by D.07-03-048, Fund A was created with a deposit of approximately $18,467,220.38, which represented the total reimbursement for ETF and related equipment charge payments, and interest, due to Group A customers, consisting of persons and entities who were known to have paid an ETF or equipment charge, or both, to Cingular or an independent Cingular dealer or retailer.

5. Pursuant to the settlement approved by D.07-03-048, Fund B was created with deposits of $1,168,830.50, representing the interest accrued on the $12.14 million penalty while it was escrowed with the Commission. The purpose of Fund B was to provide restitution to Group B customers, consisting of persons and entities who may have paid an ETF or a supplemental equipment charge to an independent Cingular dealer or retailer. Because, due to lack of records, it was unknown whether Group B customers had made such payments, and if so, what the amount of those payments had been, Group B customers were required to submit a claim form for restitution.

6. The residue of Funds A and B does not constitute monies that, but for current addresses, could be submitted to persons or entities known to be entitled to restitution.

7. Rust has identified $3,441,048.06 in issued but uncashed checks that is subject to escheat. Most of that sum ($3,148,047.50) has escheated to the State of California. No party disputes that these monies must escheat.

8. The ultimate residue from Funds A and B is estimated to be approximately $1.9 million, as of May 31, 2009 (approximately $1.2 million from Fund A and $704,100.42 from Fund B).

9. Though the evidence received in this docket included written marketing solicitations in languages other than English, we cannot readily quantify the percentage of the approximately 200,000 Groups A and B customers who had no- or limited-English proficiency.

10. The TCPF's purpose is to provide grants to grassroots, community-based-organizations for consumer education, assistance with telecommunications-related complaints, and related activities.

11. Given Cingular's statewide service territory, the residue of Funds A and B distributed to the TCPF should be made available to grantees throughout the State.

12. As long as the Fund A and Fund B residue remains in the TCPF, the TCPF should issue an annual report to the Commission (instead of Verizon, as was its earlier practice) describing its grant activities with specificity.

13. Apart from the distribution to the TCPF, no other equitable use of the residue of Funds A and B has been proposed.

1. Since there is no indication that AT&T acted in bad faith, AT&T's failure to file a petition to modify D.08-02-015, as required by Rule 16.4, should be excused under the authority of Rule 1.2, in order to prevent further expense to the parties and further delay.

2. Neither the settlement approved by D.07-03-048, nor D.08-02-015, which approved the funding for live telephone support, requires AT&T to absorb the costs of telephone support in the $600,000 it advanced towards notice and claims administration.

3. Pursuant to the settlement approved by D.07-03-048, no funds remaining in Funds A and/or B shall be returned to Cingular other than the unspent portion, if any, of the $600,000 deposited for notice and claims administration.

4. All checks drawn on monies in Fund A and Fund B, if uncashed, are subject to escheat under Code of Civil Procedure § 1519.5, or the law of other states or territories.

5. All monies remaining in Fund A and Fund B, which were not converted to checks to provide restitution to customers, are not subject to escheat under Code of Civil Procedure § 1519.5, given the facts established.

6. UCAN's motion, filed July 3, 2008, as amended on August 29, 2008 and February 20, 2009, and as further qualified by the June 12, 2009 joint exhibit and AT&T's June 19, 2009 brief, should be granted to the extent set forth in the ordering paragraphs.

7. Distribution of the residue of Fund A and Fund B to the TCPF should be conditioned upon the TCPF: (a) continuing to make grants in accordance with its funding guidelines; (b) making grants available to grantees throughout the State; and (c) issuing an annual report to the Commission detailing its grant activities with specificity.

ORDER

IT IS ORDERED that:

1. Ordering Paragraph 1 of Decision (D.) 08-02-015 is modified to read:

Rust Consulting, Inc. (Rust) shall disburse from the residue of Fund B, described herein, to AT&T Mobility LLC aka Cingular Wireless (AT&T Mobility or AT&T) the sum of $175,171.91, in full reimbursement to AT&T of its direct payment to the Utility Consumers' Action Network (UCAN) of the intervenor compensation award to UCAN ordered by Decision (D.) 07-09-015.

2. Once all additional monies due to the claims administrator have been paid from the $600,000 deposited by AT&T Mobility LLC (AT&T) for this purpose, the balance remaining, if any, shall be returned to AT&T. The calculation of the balance remaining shall exclude the $61,783.09 paid for telephone support from Fund A interest, per D.08-02-015.

3. The Motion of the Utility Consumers' Action Network Regarding Distribution of Remaining Funds, filed July 3, 2008, as amended on August 29, 2008 and February 20, 2009, and as further qualified by the joint exhibit of AT&T and Utility Consumers' Action Network, filed June 12, 2009 and by AT&T's brief, filed June 19, 2009, is granted to the extent set forth in these Ordering Paragraphs and is otherwise denied. After reimbursement to AT&T as provided in Ordering Paragraphs 1 and 2, all monies remaining in Reparations Fund A and Reparations Fund B, which were not converted to checks to provide restitution to customers, and which, therefore, are not subject to escheat under Code of Civil Procedure § 1519.5 or other applicable law, shall be distributed to the Telecommunications Consumer Protection Fund (TCPF) for use in awarding grants consistent with the TCPF's funding guidelines. Such grants shall continue to be made in accordance with the TCPF's funding guidelines, shall be made available to grantees throughout the State, and, as long as the funds remain in the TCPF, the TCPF shall issue an annual report to the Commission detailing its grant activities with specificity.

4. Investigation 02-06-003 is closed.

This order is effective today.

Dated October 15, 2009, at San Francisco, California.

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