AT&T, Verizon said to owe state

Thursday, Aug. 24, 2000 | 11:48 a.m.

CARSON CITY -- Two cellular telephone companies have refused to pay about $800,000 in assessments to the state Public Utilities Commission, a legislative audit revealed Wednesday.

The audit charged the PUC with failure to aggressively pursue collection of the assessments, which accrued over two years.

Auditors identified the companies as AT&T Wireless and Alltel (now called Verizon). Deputy Legislative Auditor Richard Neil said AT&T paid for one year but then demanded a refund and has not paid its assessment since.

The companies began disputing the assessment that became due in July 1998. And the auditors said that while the PUC has sent demand letters, it has not followed up with legal action. PUC Chairman Don Soderberg said it has requested payment and it will bring suit if the payments are not made.

The utilities commission, for its support, levies a tax on utilities based on gross operating revenue. Neil said 23 of the 25 companies in the state have paid.

These two major companies, he said, contend they do not have to pay because of a 1993 federal law that preempted state regulation of cellular phone companies, including the establishment of rates. One of the companies argued the assessment is too high for the level of regulation provided by the state.