BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Application and Petition of HighSpeed.Com of Washington, L.L.C., For Registration as a Telecommunications Company and Classification as a Competitive Telecommunications Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ) ) ) ) ) ) ) ) ) ) DOCKET UT-981427 ORDER AUTHORIZING REGISTRATION AND GRANTING PETITION FOR COMPETITIVE CLASSIFICATION AND APPROVING PRICE LIST By petition filed November 6, 1998, in Docket UT-981427, HighSpeed.Com of Washington, L.L.C., (HighSpeed.Com) 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. HighSpeed.Com proposes to offer switched intraexchange and interexchange telecommunication services. In support of its petition, HighSpeed.Com alleges inter alia that its services compete with other local exchange carriers’ telecommunication services. HighSpeed.Com states that customers have readily available equivalent alternatives and that there are no captive customers of the company’s services. HighSpeed.Com is a Washington limited liability company, headquartered in Walla Walla, Washington and is a wholly owned subsidiary of HighSpeed.Com, L.L.C. 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. HighSpeed.Com 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 HighSpeed.Com should be registered as a telecommunications company, classified as a competitive telecommunications com- pany, 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-981427 PAGE 1 1. HighSpeed.Com filed an application for registration as a telecommunications company and a petition for classification as a competitive telecom- munications company pursuant to the provisions of RCW 80.36.350 and 80.36.320, to provide switched intraexchange and interexchange telecommunication 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 HighSpeed.Com 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 HighSpeed.Com include, but are not limited to, AT&T Communications of the Pacific Northwest, 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. HighSpeed.Com has no captive customer base. 8. The services offered are subject to effective competition. 9. HighSpeed.Com should be permitted to provide services under its proposed price list. 10. HighSpeed.Com 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. HighSpeed.Com of Washington, L.L.C., should be registered as a telecommunications company pursuant to RCW 80.36.350 and classified as a competi- tive telecommunications company pursuant to RCW 80.36.320(1). 3. HighSpeed.Com of Washington, L.L.C., 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. HighSpeed.Com of Washington, L.L.C., 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 HighSpeed.Com of Washington, L.L.C., requesting an Order authorizing registration as a telecommunications company to provide service to the public in this state is approved. 2. The petition of HighSpeed.Com of Washington, L.L.C., for classifi-cation 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 HighSpeed.Com of Washington, L.L.C., for rates and services, is approved. 4. Registration of HighSpeed.Com of Washington, L.L.C., 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, HighSpeed.Com of Washington, L.L.C., 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. HighSpeed.Com of Washington, L.L.C., shall not collect advance payments or deposits without first showing that it has a satisfactory arrangement to protect customer monies as stated in WAC 480-121-040. 7. HighSpeed.Com of Washington, L.L.C., is authorized to offer rates and services pursuant to price list in the format prescribed by the Commission; 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, HighSpeed.Com of Washington, L.L.C., 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 newspaper(s) as are geographically situated to be circulated over the company's service area. 8. The services offered by HighSpeed.Com of Washington, L.L.C., 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 9th day of December, 1998. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION CAROLE J. WASHBURN, Secretary DOCKET UT- 981427 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