BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

      
In the Matter of the Petition of

PARACOM, INC.,

for Waiver of WAC 480-120-058

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	)	DOCKET NO. UT-971186
		
		SECOND SUPPLEMENTAL ORDER GRANTING PARTIAL WAIVER OF BOND REQUIREMENT
		      


BACKGROUND

  On August 13, 1997, in Docket No. UT-971186, the Commission approved the 
application of  Paracom, Inc., (Paracom), for registration as a 
telecommunications company pursuant to RCW 80.36.350.  On May 27, 1998, the 
Commission issued a first  supplemental order amending Paracom’s registration 
to include resold long-distance and debit-card services to the public. 


DISCUSSION
      
  Under the provisions of WAC 480-120-058, Paracom is required to maintain a 
performance bond sufficient to cover all customer prepayments for its 
debit-card service unless it can demonstrate to the Commission’s satisfaction 
that it meets standards for waiver of the bond requirement.  On September 15, 
1999, pursuant to WAC 480-120-058, Paracom petitioned the Commission for waiver 
of the bond requirement. 

  Paracom affirms that it assures the protection of customer prepayments in 
that all cards sold in Washington use the long-distance network of Cable & 
Wireless Global Card Services, Inc., a division of Cable & Wireless, Inc., 
(Cable & Wireless). Once Paracom pays for the long-distance service, the 
obligation for delivering the underlying service shifts to Cable & Wireless.  

  Paracom pays Cable & Wireless for any long-distance service over $5,000 prior 
to the sale and activation of the debit cards.  Therefore, Paracom is obligated 
to Cable & Wireless for a maximum of $5,000 of unpaid long-distance service.  
Based upon Cable & Wireless’ corporate debt rating of A- from Standard & Poor’
s, this order will grant a waiver of the requirement to maintain a performance 
bond for all long-distance service Paracom pays for prior to the sale and 
activation of the debit cards.  Paracom shall be required to maintain a 
performance bond equal to its outstanding obligation to Cable & Wireless.
   
  Paracom has provided DOCKET NO.  UT-971186 PAGE 1

adequate levels of service and has complied with the Commission’s rules and 
regulations since September 25, 1997, the effective date of their tariff.  The 
Commission therefore finds it appropriate to grant the petition.

FINDINGS OF FACT
  
  1. Paracom is a registered telecommunications company subject to the 
jurisdiction of the Commission under the provisions of Title 80 RCW.

  2. Paracom has requested a waiver of the requirement to maintain a 
performance bond sufficient to cover all customer prepayments in accordance 
with WAC 480-120-058.     

  3. The request of Paracom for a bond waiver is not inconsistent with the 
public interest.

CONCLUSIONS OF LAW

  1. The Washington Utilities and Transportation Commission has jurisdiction 
over the subject matter and Paracom.

  2. The request by Paracom for waiver of the requirement to maintain a 
performance bond sufficient to cover all customer prepayments is not 
inconsistent with the public interest and should therefore be granted.


   ORDER

  THE COMMISSION ORDERS:

  1. Paracom, Inc., is granted a waiver of the requirement to maintain a 
performance bond sufficient to cover all customer prepayments effective on the 
date of this Order and subject to the following conditions:

  2. Paracom, Inc., shall maintain a bond equal to its outstanding obligation 
to Cable & Wireless, Inc., for long-distance service.

  3. Order paragraph 10 of the Commission’s First Supplemental Order, dated May 
27, 1998, is amended to read as follows:

10. Within 15 days after June 30, 2000, Paracom, Inc., will be required to 
submit to the Commission a report for the twelve months ending    June 30, 
2000.  The report shall contain the following information specific to its state 
of Washington operations: (a) total outstanding balance of prepayments at the 
beginning of the reporting period; (b) dollar amount of prepaid services sold 
during the reporting period; (c) depleted usage of prepaid services balance 
during the reporting period; and (d) total outstanding prepaid services balance 
at the end of the reporting period. The company shall continue to file 
statements within 15 days after each 12-month period thereafter until 
Commission staff informs applicant such reports are no longer required.

  4. Prior to the use of other carriers’ long-distance service for its 
debit-card customers, Paracom, Inc., shall petition the Commission for approval 
to continue the waiver of the requirement to maintain a performance bond 
sufficient to cover all customer prepayments.
  
  5. The Commission retains jurisdiction over the subject matter and Paracom, 
Inc., to effectuate the terms of this Order.
    
  DATED at Olympia, Washington, and effective this         day of January, 2000.

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



      CAROLE J. WASHBURN, Secretary