DOCKET UT-971106 Page 1 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Application ) DOCKET UT-971106 of RAINIER CONNECT, INC., ) for an order Authorizing ) ORDER AUTHORIZING the Registration as a ) REGISTRATION Telecommunications Company ) . . . . . . . . . . . . . . . . . .) On July 9, 1997, Rainier Connect, Inc., filed an application for registration as a telecommunications company pursuant to RCW 80.36.350. Applicant proposes to offer resold direct dialed long distance, inbound 800/888, travel card, alternate operator, and debit calling card services to the public. Rainier Connect, Inc., is a Washington corporation, headquartered in Eatonville, Washington and is wholly-owned by Mashell, Inc. Rates, terms, and conditions set forth in the proposed tariff are structured to be competitive with other telecommunication companies in relevant markets. Rainier Connect, Inc., has provided information showing that it possesses adequate financial resources, and technical competence to provide debit card long distance service. The nature of the debit card service implies Rainier Connect, Inc., proposes to collect advance payments from customers. Pursuant to statutes and rules governing registration applications, and advance payment proposals, Rainer Connect, Inc., has proposed a satisfactory bond arrangement for protection of those advance payments. Initially, the bond will be for $5,000 and will increase as customer base increases proportionally. If Rainier Connect, Inc., ceases operations, Rainier Connect, Inc., will provide the insurer and the Commission lists of outstanding account numbers and balances within 48 hours. Rainier Connect, Inc., will limit the denomination size of debit cards to not more than $50 to residential customers and $200 to business customers. Rainier Connect, Inc., will give the Commission quarterly reports listing outstanding debit calling card account balances and current company financial information. Rainier Connect, Inc., will adjust the amount held in bond based on this data. After one year's administration of the bond arrangement, the reporting requirement may be modified to a semi-annual level if the company has maintained adequate levels in the bond account during the previous 12-month period. Rainier Connect, Inc., 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 Rainier Connect, Inc., goes out of business, it will provide refund information on the company's 800 phone number for its customers. Rainier Connect, Inc., will provide a free call detail report to customers upon request. FINDINGS THE COMMISSION FINDS: 1. Rainier Connect, Inc., 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 Rainier Connect, Inc., 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 Rainier Connect, Inc., 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 9, 1997, and amended in Exhibit G, attached to the application, is satisfactory. Prior to supplying service to the public as a telecommunications company, Rainier Connect, Inc., 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, Rainier Connect, Inc., shall submit to the Commission a bond arrangement for $5,000. As part of the bond arrangement and in the event the company ceases operations, Rainier Connect, Inc., will within 48 hours provide to the insurer and the Commission lists of outstanding account numbers and balances. 4. Rainier Connect, Inc., will limit the amount of debit calling cards to be purchased to not more than $50 increments for residential customers and $200 for business customers. 5. Rainier Connect, Inc., will submit to the Commission quarterly financial data listing the total outstanding debit calling card balance and current company financial information determined by the Commission. Rainier Connect, Inc., will adjust the amount held in bond based on this data. 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. Rainier Connect, Inc., shall state that there is a money-back guarantee on the debit calling cards or on supplemental material that will be provided at the time the debit calling card is purchased and provide a statement warning customers to safeguard their cards. 7. In the event the company ceases operations, Rainier Connect, Inc., will provide refund information on the company's 800 phone number for its customers for a minimum of six months. 8. Rainier Connect, Inc., will provide a free call detail report to customers upon request. 9. Registration of Rainier Connect, Inc., 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, Rainier Connect, Inc., 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. 11. Rainier Connect, Inc., shall comply with WAC 480-120-141, alternate operator service rule. DATED at Olympia, Washington, and effective this 13th day of August, 1997. STEVE McLELLAN, Secretary