GTE May Have to Refund $42 Million : Telephone: The PUC weighs order against alleged overcharges for ‘premises visits’ over last three years.

The staff of the Public Utilities Commission will recommend today that GTE distribute refunds totaling up to $42 million for allegedly overcharging customers for phone installation.

The proposed action would cover thousands of people who paid a so-called “premises visit” fee when they ordered new phone service during the last three years.

Many of those people are in the Los Angeles area, where GTE has a big chunk of the local-calling market. About 80% of those allegedly overcharged are small-business owners.

The recommendation is contained in a lengthy report prepared by the Division of Ratepayer Advocates, which began investigating complaints about the charges from GTE customers nearly two years ago. The Times obtained portions of the document.

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Besides refunds, the division is also recommending that the commission impose unspecified fines on GTE. “This is one of the worst abuses I’ve seen,” said a person with knowledge of the investigation.

It is believed that the commission will take some action that is in line with the division’s recommendations. The commission has previously indicated it would take strong action against GTE if the staff found “systematic violations.”

“We will not hesitate to exact fines and penalties,” the commission said in an October, 1993, order authorizing the investigation. “We will be sure to order immediate restitution to any customers overcharged.”

GTE spokesman Larry Cox said the company hasn’t seen the report and could not comment. In the past, GTE has said the PUC investigators are confused about its fees. The company has denied overcharging customers.

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The division contends that GTE has improperly imposed a “premises visit” fee on customers ordering new phone service. The division said GTE imposed the fee in addition to other charges when it installed phone jacks and new inside wiring. In other instances, GTE charged customers for a “premises visit” when a technician worked on GTE-owned outside wiring.

Division investigators have said they considered the “premises visit” fee a form of double-charging because the services are covered by other fees. The other major Southland phone company, Pacific Bell, does not have a similar fee.

Before last January, GTE charged all customers $40.25 for a “premises visit.” After that, it charged residential customers $42.10 and business customers $86.64.

In its report, the division accused GTE of being uncooperative with investigators. The report says that while the company made employees available for interviews, it was reluctant to share data.

“As the investigation was drawing to a close . . . staff indicated its concerns with GTE about the level of cooperation received in the investigation,” the report said. A subsequent meeting with GTE to “preview the report and discuss any remedies” failed to resolve the situation, the report said.