BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Application and Petition of Telephone Restoration Network, Inc., d/b/a Telnet For Registration as a Telecommunications Company and Classification as a Competitive Telecommunications Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ) ) ) ) ) ) ) ) ) ) DOCKET UT-981228 ORDER AUTHORIZING REGISTRATION AND GRANTING PETITION FOR COMPETITIVE CLASSIFICATION AND APPROVING PRICE LIST By petition filed September 23, 1998, in Docket UT-981228, Telephone Restoration Network, Inc., d/b/a Telnet (Telnet) seeks registration as a telecommunications company, classification as a competitive telecommunications company, and approval of its proposed price list pursuant to RCW 80.36.350 and 80.36.320. Telnet proposes to offer switched intraexchange and interexchange services. In support of its petition, Telnet alleges inter alia that its services compete with other access and local exchange carriers’ telecommunication services. Telnet states that customers have readily available equivalent alternatives and that there are no captive customers of the company’s services. Telnet is an Oregon corporation, headquartered in Portland, Oregon and is wholly owned by Michael and Diana Atkinson. Rates, terms, and conditions set forth in the proposed price list are structured similarly to rates filed by other local exchange carriers for calls placed in the relevant market. Telnet has provided information showing that it meets the requirements of RCW 80.36.350. Applicant does not propose to collect advance payments or deposits from customers. In conjunction with classification, the company is seeking waiver of: RCW 80.04.300 Budgets to be filed by companies--Supplementary budgets RCW 80.04.310 Commission’s control over expenditures RCW 80.04.320 Budget rules RCW 80.04.330 Effect of unauthorized expenditure--Emergencies RCW 80.04.360 Earnings in excess of reasonable rate--Consideration in fixing rates RCW 80.04.460 Investigation of accidents RCW 80.04.520 Lease of utility facilities RCW 80.36.100 Tariff schedules to be filed and open to public RCW 80.36.110 Tariff changes--Statutory notice--Exception Chapter 80.08 RCW Securities (except RCW 80.08.140) Chapter 80.12 RCW Transfers of Property Chapter 80.16 RCW Affiliated interests Chapter 480-80 WAC Tariffs Chapter 480-140 WAC Budgets Chapter 480-143 WAC Transfers of Property Chapter 480-146 WAC Securities and affiliated interests WAC 480-120-026 Tariffs WAC 480-120-031 Accounting WAC 480-120-032 Accounting-Political information and political education activities WAC 480-120-036 Finance--Securities, affiliated interest, transfer of property WAC 480-120-046 Services offered WAC 480-120-131 Reports of accidents Rules invoked include WAC 480-120-022, WAC 480-120-023, WAC 480-120-024, and WAC 480-120-025. Statutes invoked include RCW 80.36.320, and RCW 80.36.350. The ultimate issues are whether Telnet should be registered as a telecom-munications company, classified as a competitive telecommunications company, its proposed price list should be approved, and the extent to which it should be relieved of regulatory requirements to which it would otherwise be subject. FINDINGS OF FACT DOCKET UT-981228 PAGE 1 1. Telephone Restoration Network, Inc., d/b/a Telnet filed an applica-tion for registration as a telecommunications company and a petition for classification as a competitive telecommunications company pursuant to the provisions of RCW 80.36.350 and 80.36.320, to provide switched intraexchange and interexchange services. 2. As to form, the application and petition meet the requirements of RCW 80.36.350 and 80.36.320, and the Commission’s rules and regulations. 3. The registration of Telephone Restoration Network, Inc., d/b/a Telnet as a telecommunications company is not inconsistent with the public interest. 4. In this proceeding, the Commission in no way endorses the financial viability of applicant nor the investment quality of any securities it may issue. 5. Alternative providers of service to that of Telephone Restoration Network, Inc., d/b/a Telnet include, but are not limited to, AT&T Communications, Inc., U S WEST Communications, Inc., MCI Communications Corporation, and Sprint Communications Company. All services are fully available from alternative providers in the relevant market. 6. The relevant market is the state of Washington. 7. Telephone Restoration Network, Inc., d/b/a Telnet has no captive customer base. 8. The services offered are subject to effective competition. 9. Telephone Restoration Network, Inc., d/b/a Telnet should be permitted to provide services under its proposed price list. 10. Telephone Restoration Network, Inc., d/b/a Telnet requested waivers of certain laws and rules relating to telecommunications services. The laws and rules for which waivers should be granted are listed on Appendix A, incorporated by this reference and made a part of this Order. CONCLUSIONS OF LAW 1. The Washington Utilities and Transportation Commission has jurisdiction over the subject matter of this classification proceeding and the parties. 2. Telephone Restoration Network, Inc., d/b/a Telnet should be registered as a telecommunications company pursuant to RCW 80.36.350 and classi- fied as a competitive telecommunications company pursuant to RCW 80.36.320(1). 3. Telephone Restoration Network, Inc., d/b/a Telnet should be permitted to provide services under price lists pursuant to RCW 80.36.320 (2). These services will not include alternate operator services as defined in WAC 480-120-141. 4. Telephone Restoration Network, Inc., d/b/a Telnet should be granted waiver of the laws and rules listed in Appendix A; waiver of laws and rules requested that are not included in Appendix A should be denied. O R D E R THE COMMISSION ORDERS: 1. After the effective date of this Order and subject to any conditions imposed, the application of Telephone Restoration Network, Inc., d/b/a Telnet requesting an Order authorizing registration as a telecommunications company to provide service to the public in this state is approved. 2. The petition of Telephone Restoration Network, Inc., d/b/a Telnet for classification as a competitive telecommunications company is approved; waiver of the laws and rules listed in the attached Appendix A is granted. 3. The proposed price list of Telephone Restoration Network, Inc., d/b/a Telnet for rates and services, is approved. 4. Registration of Telephone Restoration Network, Inc., d/b/a Telnet as a telecommunications company shall not be construed as an endorsement of financial viability nor of the investment quality of any securities it may issue. 5. As a telecommunications company providing service to the public in this state, Telephone Restoration Network, Inc., d/b/a Telnet is subject to the jurisdiction of this Commission under the provisions of Title 80 RCW and all rules and regulations adopted by the Commission. 6. Telephone Restoration Network, Inc., d/b/a Telnet shall not collect advance payments or deposits without first showing that it has a satisfactory arrange- ment to protect customer monies as stated in WAC 480-121-040. 7. Telephone Restoration Network, Inc., d/b/a Telnet is authorized to offer rates and services pursuant to price list in the format prescribed by the Commis- sion; the price list approved in this proceeding, and subsequent changes to that price list, become effective only after ten days notice to the Commission and to customers. In the event of a price list reduction or of a change in terms and conditions which do not have rate impact, personal notice to customers will not be required. To comply with the statutory notice requirement, Telephone Restoration Network, Inc., d/b/a Telnet will have the option to publish notice of price reductions or changes in terms and conditions of service which do not have rate impact by a display advertisement in such newspa- per(s) as are geographically situated to be circulated over the company's service area. 8. The services offered by Telephone Restoration Network, Inc., d/b/a Telnet are not to include alternate operator services as defined in WAC 480-120-141. 9. The Commission retains jurisdiction over the subject matter and the parties to effectuate the terms of this Order. DATED at Olympia, Washington, and effective this 14th day of October, 1998. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION CAROLE J. WASHBURN, Secretary DOCKET UT- 981228 APPENDIX A RCW 80.04.300 Budgets to be filed by companies--Supplementary budgets RCW 80.04.310 Commission’s control over expenditures RCW 80.04.320 Budget rules RCW 80.04.330 Effect of unauthorized expenditure--Emergencies RCW 80.04.360 Earnings in excess of reasonable rate--Consideration in fixing rates RCW 80.04.460 Investigation of accidents RCW 80.04.520 Lease of utility facilities RCW 80.36.100 Tariff schedules to be filed and open to public RCW 80.36.110 Tariff changes--Statutory notice--Exception Chapter 80.08 RCW Securities (except RCW 80.08.140, State not obligated) Chapter 80.12 RCW Transfers of Property Chapter 80.16 RCW Affiliated interests Chapter 480-80 WAC Tariffs Chapter 480-140 WAC Budgets Chapter 480-143 WAC Transfers of Property Chapter 480-146 WAC Securities and affiliated interests WAC 480-120-026 Tariffs WAC 480-120-031 Accounting WAC 480-120-032 Accounting-Political information and political education activities WAC 480-120-036 Finance--Securities, affiliated interest, transfer of property WAC 480-120-046 Services offered WAC 480-120-131 Reports of accidents