The agreement calls for an additional penalty of $39,900 to be suspended and waived after six months if Verizon complies with the terms of the settlement.

Verizon agreed to a comprehensive plan to address billing and compliance concerns under terms and conditions in the settlement, including:

· Establishing a process to investigate consumer complaints and inquiries regarding incorrect billing of city utility taxes as well as investigating neighboring customers, and issuing appropriate credits in a timely manner.
· Giving out “refresher” written communications to all call center representatives that describe proper handling of WTAP applications.
· Instituting a process where complaint, Lifeline and call center teams collaborate to analyze WTAP-related customer complaints.

The settlement agreement between the company and UTC staff members was filed last month and the original complaint in March. UTC staff has conducted three investigations of Verizon’s business practices since 2005. In the initial investigation, staff found an increasing number of complaints from WTAP-eligible Verizon customers, many of whom alleged the company provided incorrect information about the program and failed to charge the discounted rates for the phone service. The most recent investigation was conducted in December 2008. Staff found that more than one-third of Verizon customer complaints were from WTAP participants.

The UTC is the state agency in charge of regulating the rates and services of telephone companies operating in Washington.

Verizon, formerly known as GTE, is the second-largest local telephone provider in Washington, serving 518,341 phone lines in cities such as Redmond, Kirkland, Everett, Bothell, Woodinville, Wenatchee, Kennewick, Pullman, Chelan, Richland, Naches, Westport, Lynden, Anacortes, Mount Vernon, Newport, Oakesdale, Republic and Camas-Washougal.