DOCKET UT-971169 Page 1 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Application ) DOCKET UT-971169 of THE WILLIAMS GROUP, INC., ) d/b/a TELPRO 2000 for an ) Order Authorizing ) ORDER AUTHORIZING the Registration of Applicant ) REGISTRATION as a Telecommunications Company ) . . . . . . . . . . . . . . . . . .) On July 21, 1997, The Williams Group, Inc., d/b/a TelPro 2000, filed an application for registration as a telecommunications company pursuant to RCW 80.36.350. Applicant proposes to offer resold direct dialed long distance and debit card services to the public. The Williams Group, Inc., d/b/a TelPro 2000, is a Washington corporation, headquartered in Lacey, Washington. The corporation is wholly owned by Patrick Williams and Michael Williams and has no subsidiaries. The Williams Group, Inc., d/b/a TelPro 2000, has provided information showing that it possesses adequate financial resources, and technical competence to provide the proposed services. The nature of the debit card service implies The Williams Group, Inc., d/b/a TelPro 2000, proposes to collect advance payments from customers. Pursuant to statutes and rules governing registration applications and advance payment proposals, The Williams Group, Inc., d/b/a TelPro 2000, has proposed a satisfactory bond arrangement for protection of those advance payments. Initially, the bond will be for $1,000 and will increase as customer base increases proportionally. If The Williams Group, Inc., d/b/a TelPro 2000, ceases operations, The Williams Group, Inc., d/b/a TelPro 2000, will provide the insurer and the Commission lists of outstanding account numbers and balances within 48 hours. The Williams Group, Inc., d/b/a TelPro 2000, will limit the denomination size of debit cards to not more than $50 to residential customers and $200 to business customers. The Williams Group, Inc., d/b/a TelPro 2000, will give the Commission quarterly reports listing outstanding debit calling card account balances and current company financial information. The Williams Group, Inc., d/b/a TelPro 2000, will adjust the amount of the bond based on this data. After one year's administration of the bond agreement, the reporting requirement may be modified to a semi-annual level if the company has maintained adequate levels in the bond agreement during the previous 12-month period. The Williams Group, Inc., d/b/a TelPro 2000, will state an unconditional money-back guarantee on the debit calling card or on supplemental material that will be provided at the time the debit calling card is purchased with a statement warning customers to safeguard their cards. If The Williams Group, Inc., d/b/a TelPro 2000, goes out of business, it will provide refund information on the company's 800 phone number for its customers. The Williams Group, Inc., d/b/a TelPro 2000, will provide a free call detail report to customers upon request. FINDINGS THE COMMISSION FINDS: 1. The Williams Group, Inc., d/b/a TelPro 2000, filed an application pursuant to the provisions of RCW 80.36.350 and the rules and regulations of the Commission for an order approving its application for registration as a telecommunications company. 2. As to form, the application filed herein, as supplemented and amended, meets the requirements of RCW 80.36.350 and the rules and regulations of the Commission adopted pursuant thereto. 3. The registration of The Williams Group, Inc., d/b/a TelPro 2000, 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. O R D E R THE COMMISSION ORDERS: 1. After the effective date of this order and subject to the conditions hereof, the application of The Williams Group, Inc., d/b/a TelPro 2000, filed with the Commission pursuant to the provisions of RCW 80.36.350 requesting an order authorizing registration as a telecommunications company to provide service to the public in this state is approved. 2. The proposed tariff as filed on July 21, 1997, and amended, in Exhibit G, attached to the application, is satisfactory. Prior to supplying service to the public as a telecommunications company, The Williams Group, Inc., d/b/a TelPro 2000, shall file an initial tariff with the Commission identical to the amended Exhibit G of the application. The tariff shall bear an effective date not less than 30 days subsequent to the date of receipt by the Commission. 3. Prior to the effective date of the initial tariff, The Williams Group, Inc., d/b/a TelPro 2000, shall submit to the Commission a bond arrangement identical to the document filed as amended Exhibit F. The bond shall be for $1,000. As part of the bond arrangement and in the event the company ceases operations, The Williams Group, Inc., d/b/a TelPro 2000, will within 48 hours provide to the insurer and the Commission lists of outstanding account numbers and balances. 4. The Williams Group, Inc., d/b/a TelPro 2000, will limit the amount of debit calling cards to be purchased of not more than $50 increments for residential customers and $200 for business customers. 5. On or before October 15, 1997, The Williams Group, Inc., d/b/a TelPro 2000, will submit to the Commission the following financial data for the period ending September 30, 1997: a) Number of debit cards sold; b) Revenue from debit cards sold; c) Depletion of debit cards sold; and d) Outstanding balance of debit cards sold. Thereafter, each quarterly report must be filed by the 15th day of the month following each calendar quarter. The financial information must be specific to Washington state and the reporting requirements may be amended by letter from the Secretary of the Commission. The Williams Group, Inc., d/b/a TelPro 2000 will adjust the amount held in bond based on this data by the 15th of the month following the quarterly report if so notified by the Secretary of the Commission. After completion of one year's administration of the bond account, the reporting requirement may be modified to a semi-annual level if staff determines that the company has maintained a sufficient level in the bond account during the previous 12-month period. 6. The Williams Group, Inc., d/b/a TelPro 2000, shall state that there is a money-back guarantee on the debit calling cards and provide a statement warning customers to safeguard their cards. 7. In the event the company ceases operations, The Williams Group, Inc., d/b/a TelPro 2000, will provide refund information on the company's 800 phone number for its customers for a minimum of six months. 8. The Williams Group, Inc., d/b/a TelPro 2000, will provide a free call detail report to customers upon request. 9. Registration of The Williams Group, Inc., d/b/a TelPro 2000, 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. 10. As a telecommunications company providing service to the public in this state, The Williams Group, Inc., d/b/a TelPro 2000, is subject to the jurisdiction of this Commission under the provisions of Title 80 RCW and all rules and regulations of the Commission adopted pursuant thereto. DATED at Olympia, Washington, and effective this 13th day of August, 1997. STEVE McLELLAN, Secretary