ALJ/SRT/hkr Mailed 4/17/2006

Decision 06-04-035 April 13, 2006

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Investigation on the Commission's own motion into the operations and practices of MCI, WorldCom, or MCI WorldCom, (U-5011-C, U-5378-C, U-5253-C, U-5278-C), to determine whether it has violated the laws, rules and regulations governing the way in which consumers are billed for products or services, by billing its former customers for a monthly service charge without authorization.

Investigation 05-04-018 (Filed April 21, 2005)

DECISION APPROVING SETTLEMENT

I. Summary

This decision approves a settlement of the Commission's investigation into slamming and cramming activities of MCI, WorldCom, and MCI WorldCom (collectively, MCI). Both parties to the proceeding have agreed to the settlement. We find that the settlement is (1) reasonable in light of the whole record, (2) consistent with the law, and (3) in the public interest, in accordance with Commission Rule 51.1(e). Thus, we approve the settlement and dismiss this Order Instituting Investigation (OII) with prejudice.

Under the parties' Settlement Agreement, attached hereto as Appendix A, MCI will pay $2.3 million, in addition to credits it has already paid to affected customers. (MCI estimates its past credits to be in excess of $1 million.) The $2.3 million will be allocated in three parts:

(1) $1 million in credits for period October 1, 2005 through May 31, 2007. MCI will pay up to $1 million of the $2.3 million settlement figure in refunds or credits to customers affected by the conduct alleged in the OII. This $1 million will cover payments issued and to be issued for the period October 1, 2005 through May 31, 2007.

(2) $1.3 million payment to state General Fund within 30 days of this decision. MCI will also make a payment of $1.3 million to the state General Fund within 30 days after the Commission's approval of the Settlement Agreement.

(3) Potential further payment to state General Fund. If the payments in (1) above are less than $1 million, as evidenced by an accounting MCI will make no later than September 30, 2007 of how the settlement proceeds were distributed, it will pay the balance to the state General Fund.