Narrative:

During climb out from iln and after intermediate leveloff at FL240, ATC reported altitude as high, FL243. First officer's altimeter indicated FL242, altimeter 29.92 set. Captain's indicated FL240, altimeter set at 29.92, #2 transponder was in use. Swapped to #1 transponder and controller reported reading was still 300 ft high. We checked altitude several times during climb to FL310. Next controller verified level FL310. At end of flight, wrote up #1 and #2 transponder encoder for maintenance check. Form submitted because possible traffic conflict.

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Original NASA ASRS Text

Title: CARGO ACFT IN A NIGHT OP ADVISED THAT ALT ENCODER SHOWED HIM TO BE 300 FT HIGH AT FL240.

Narrative: DURING CLBOUT FROM ILN AND AFTER INTERMEDIATE LEVELOFF AT FL240, ATC RPTED ALT AS HIGH, FL243. FO'S ALTIMETER INDICATED FL242, ALTIMETER 29.92 SET. CAPT'S INDICATED FL240, ALTIMETER SET AT 29.92, #2 XPONDER WAS IN USE. SWAPPED TO #1 XPONDER AND CTLR RPTED READING WAS STILL 300 FT HIGH. WE CHKED ALT SEVERAL TIMES DURING CLB TO FL310. NEXT CTLR VERIFIED LEVEL FL310. AT END OF FLT, WROTE UP #1 AND #2 XPONDER ENCODER FOR MAINT CHK. FORM SUBMITTED BECAUSE POSSIBLE TFC CONFLICT.

Data retrieved from NASA's ASRS site as of July 2007 and automatically converted to unabbreviated mixed upper/lowercase text. This report is for informational purposes with no guarantee of accuracy. See NASA's ASRS site for official report.