AT&T refunds $1.5 million in Illinois settlement

Officials say AT&T Illinois has refunded $1.5 million to Illinois telephone customers and agreed to forego $5.5 million in future rate increases.

The settlement comes after state Attorney General Lisa Madigan's office found the company overcharged customers in 2007 by not reducing rates as mandated by the Illinois Commerce Commission.

AT&T refunded the overcharges plus interest, totaling more than $1.5 million. The company also will freeze per-call local rates until July 2010 and maintain low-priced packages through November 2011.

AT&T would have received an additional $5.5 million from rate increases.

Company spokesman Andrew Ross says technical errors caused the overcharges and the company has worked with the attorney general's office to refund customers.