California’s PUC will let AT&T; keep $34 million.

In June, the Public Utilities Commission reduced the fees that the long-distance carrier pays local phone companies for completing calls on condition that it pass the savings on to customers in lower rates. However, acknowledging an error stemming from the breakup of the old Bell System, the PUC decided that AT&T; Communications can retain $34 million of the reduced access charges, a savings estimated at $120 million a year. AT&T;’s intrastate rates will still drop July 16 but by $34 million less than anticipated, AT&T; said.