Narrative:

As we were descending into ZZZ; we were asked to descend and maintain 7000 ft. We descended until our altimeters read 7000 ft. My altimeter read 6900 ft and ATC called our flight and asked us to climb immediately to 7000 ft. I climbed 100 ft and we heard again from center; verify you're climbing to 7000 ft. Once again we replied we were because we were almost there. I heard the other traffic being told to descend to 5000 ft and center told him we were at 6700 ft. This was confusing to me because I read my altimeter and the captain's altimeter at 7000 ft. I looked in the kollsman window and saw that my altimeter was still set at 29.92 not the local altimeter setting of 29.42 so I adjusted the altimeter and made the correction. Once we realized that we had neglected to change the altimeter setting we immediately changed the setting and made the best rate of climb to the assigned altitude. I feel the cause of this mishap was due to improper use of checklists. As we descended through 180 neither the captain or I called for the 180 descent checklist which states set local altimeter left and right. I feel if center would have let us know what our altitude was instead of just telling us to climb we would have discovered that our altimeter setting was wrong long before and it would have helped us return to our assigned altitude a lot sooner.

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Original NASA ASRS Text

Title: A BE1900 CREW FAILED TO RESET THEIR ALTIMETERS DSNDING THROUGH FL180 AND LEVELED OFF 300 FT LOW TRIGGERING AN ATC ALERT.

Narrative: AS WE WERE DSNDING INTO ZZZ; WE WERE ASKED TO DSND AND MAINTAIN 7000 FT. WE DSNDED UNTIL OUR ALTIMETERS READ 7000 FT. MY ALTIMETER READ 6900 FT AND ATC CALLED OUR FLT AND ASKED US TO CLB IMMEDIATELY TO 7000 FT. I CLBED 100 FT AND WE HEARD AGAIN FROM CTR; VERIFY YOU'RE CLBING TO 7000 FT. ONCE AGAIN WE REPLIED WE WERE BECAUSE WE WERE ALMOST THERE. I HEARD THE OTHER TFC BEING TOLD TO DSND TO 5000 FT AND CTR TOLD HIM WE WERE AT 6700 FT. THIS WAS CONFUSING TO ME BECAUSE I READ MY ALTIMETER AND THE CAPT'S ALTIMETER AT 7000 FT. I LOOKED IN THE KOLLSMAN WINDOW AND SAW THAT MY ALTIMETER WAS STILL SET AT 29.92 NOT THE LCL ALTIMETER SETTING OF 29.42 SO I ADJUSTED THE ALTIMETER AND MADE THE CORRECTION. ONCE WE REALIZED THAT WE HAD NEGLECTED TO CHANGE THE ALTIMETER SETTING WE IMMEDIATELY CHANGED THE SETTING AND MADE THE BEST RATE OF CLB TO THE ASSIGNED ALT. I FEEL THE CAUSE OF THIS MISHAP WAS DUE TO IMPROPER USE OF CHKLISTS. AS WE DSNDED THROUGH 180 NEITHER THE CAPT OR I CALLED FOR THE 180 DSCNT CHKLIST WHICH STATES SET LCL ALTIMETER L AND R. I FEEL IF CTR WOULD HAVE LET US KNOW WHAT OUR ALT WAS INSTEAD OF JUST TELLING US TO CLB WE WOULD HAVE DISCOVERED THAT OUR ALTIMETER SETTING WAS WRONG LONG BEFORE AND IT WOULD HAVE HELPED US RETURN TO OUR ASSIGNED ALT A LOT SOONER.

Data retrieved from NASA's ASRS site as of May 2009 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.