HELENA, Mont. (AP) Qwest Communications is offering a $16 million reduction in customers' bills to settle a complaint that it was overcharging Montana consumers.

The settlement stems from a complaint current Public Service Commissioner Ken Toole filed in 2006 when he was running for office. It must still be approved by the commission.

Toole's complaint charged that Qwest was making a larger return on its Montana investment than allowed for a regulated utility. He estimates the $16 million reduction in rates means the company will make about nine percent return, instead of an estimated 21 percent.

Basic residential rates would drop about $2 per month under the proposal, while business basic rates would be reduced by nearly $4 per month. Other charges would be reduced, so a customer could see a reduction over more than $12, depending on the type of service used.

Qwest spokeswoman Johnna Hoff says the company is pleased with the proposal, which will give the company a little more freedom from regulation.

By AP Writer Matt Gouras (Copyright 2008 by The Associated Press. All Rights Reserved.) APNP 04-29-08 1822CDT | save this article / add to your favorites list