BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



In the Matter of the Competitive Classification on the Commission’s Own Motion 
of

EXECUTONE INFORMATION SYSTEMS, INC.

NORTH COUNTY COMMUNICATIONS CORPORATION




	    
	
	
	Docket No. UT-991035
	
	
	
	Docket No. UT-991127
	
	
	ORDER INITIATING COMPETITIVE CLASSIFICATION PROCEEDINGS; ORDER OF 
CONSOLIDATION; AND NOTICE OF OPPORTUNITY TO FILE COMMENTS 
	(SEPTEMBER 8, 1999)

 
  The Washington Utilities and Transportation Commission (Commission) initiates 
this proceeding to classify the above-named telecommunications companies as 
competitive telecommunications companies under RCW 80.36.320.

I. STATUTORY AUTHORITY

  The Commission is authorized by RCW 80.36.310(1) to competitively classify 
telecommunications companies on its own motion.

  The Commission shall competitively classify a telecommunications company if 
it finds that the services provided by the company are subject to effective 
competition as set forth in RCW 80.36.320(1).  “Effective competition” means 
that the company’s customers have reasonably available alternatives and that 
the company does not have a significant captive customer base.  In determining 
whether the services provided by a company are competitive, the Commission 
considers, at a minimum, the following factors set forth in RCW 80.36.320(1):

  (a)     The number and sizes of alternative providers of services;

  (b)     The extent to which services are available from alternative providers 
in the relevant market;


  (c)     The ability of alternative providers to make functionally equivalent 
or substitute services readily available at competitive rates, terms, and 
conditions; and

  (d)     Other indicators of market power, which may include market share, 
growth in market share, ease of entry, and the affiliation of providers of 
services.

II. DESCRIPTION OF SERVICES AT ISSUE

  Each of the above-named companies provides, or is authorized to provide, 
these telecommunications services:  long distance service, and local exchange 
service.

III. COMPETITIVE SHOWING

  The Commission alleges:

  A. All of the services provided by the above-named companies are subject to 
effective competition.

  B. There are numerous providers of the services provided by the above-named 
companies.  The telecommunications companies that provide competing services 
include, but are not limited to, GTE Northwest Incorporated, AT&T 
Telecommunications of the Pacific Northwest, Inc., MCIWorldcom, Inc., and 
Sprint Communications Company L.P.

  C. The rates, terms, and conditions of services provided by GTE Northwest 
Incorporated, and other companies that must file tariffs with the Commission 
are set forth in each company’s tariff filed with the Commission.  The rates, 
terms, and conditions of services provided by AT&T Telecommunications of the 
Pacific Northwest, Inc., MCIWorldcom, Inc., Sprint Communications Company L.P., 
and other competitively-classified companies are contained in each company’s 
price list on file with the Commission.

  D. The relevant geographic market is the state of Washington.

  E. None of the above-named companies has more than a very modest share of the 
telecommunications market in the state of Washington.

  F. Entry into the markets for all of the services at issue in this petition 
is accomplished with relative ease.  The ease of market entry is apparent by 
the number of market participants and the growing number of companies seeking 
to provide the services at issue.
 
  G. None of the above-named companies provide service to captive customers.


IV. PRICE LISTS

  If the competitive classification is approved, the Commission would order 
each above-named company to submit price lists to the Commission.  However, 
until such time as the price lists are submitted, the Commission would order 
that the tariff of each above-named company be deemed a price list.

V. NOTICE OF CHANGES IN PRICES, TERMS, AND CONDITIONS OF SERVICE

  Each of the above-named companies will provide to its customers written 
notice of price list changes at least 10 days prior to the effective date of 
the changes.

VI. WAIVER OF CERTAIN REGULATORY REQUIREMENTS

  The Commission believes that the following regulatory requirements should be 
waived because such requirements are unnecessary in light of the number of 
competitive-classified companies authorized to provide service in the state of 
Washington.  The Commission alleges that competitive market forces will serve 
the same purpose as the following statutes and regulations.

 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

VII. EFFECTIVE DATE

  The competitive classification of the above-named companies, if approved, 
shall be effective September 22, 1999.

VIII. OPEN MEETING 

  The Commission will consider the competitive classification of the 
above-named companies at an open public meeting on September 22, 1999.

IX. NOTICE OF OPPORTUNITY TO COMMENT

  Any person may file comments regarding the proposed competitive 
classification of any of the above-named companies, including comments 
regarding whether the Commission should set the competitive classification of 
any company for hearing under chapter 34.05 RCW or a formal investigation and 
fact-finding under RCW 80.36.145.  Comments must be received by the Commission 
on or before September 8, 1999.  Questions regarding this classification 
proceeding and comments should be addressed to Carole J. Washburn, Secretary, 
1300 S. Evergreen Park Drive S.W., P.O. Box 47250, Olympia, Washington, 
98504-7250, and include the company name and docket number.  

X. NOTICE OF COMPETITIVE CLASSIFICATION

  Pursuant to RCW 80.36.310, each of the above-named companies must keep a copy 
of this Order at its business office for public inspection.

XI. CONCLUSION

  The Commission believes that each of the above-named companies is subject to 
effective competition or will be subject to effective competition once it 
offers service in the state of Washington.  Washington consumers have multiple, 
reasonably available alternatives when choosing a telecommunications provider.  
Many companies, including large diverse telecommunications companies, offer 
services in Washington that compete with the services offered by the 
above-named companies.  These services are readily available to Washington 
consumers at competitive rates, terms, and conditions.

  The Commission believes good cause exists for competitively classifying each 
of the above-named telecommunications companies and granting a waiver of the 
statutes and regulations set forth above.


ORDER

 THE COMMISSION ORDERS: 

  1.     On its own motion, the Commission will consider whether each of the 
above-named companies should be competitively classified.

  2.     The above-captioned dockets are consolidated for determination; the 
Commission reserves the right to issue separate orders in individual dockets, 
as it may deem appropriate.

  3.     Any comments filed regarding this matter must be received by the 
Commission at the address shown below on or before September 8, 1999.

  4.     The Commission may, if it deems necessary and appropriate, set any of 
the above-captioned dockets for formal hearing or formal investigation and 
fact-finding.  If the Commission determines that any such hearing or formal 
investigation and fact-finding is necessary and appropriate, it will set a time 
and place for such proceedings by subsequent notice.

  DATED at Olympia, Washington, and effective this 11th day of August, 1999.

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



       RICHARD HEMSTAD, Commissioner



       WILLIAM R. GILLIS, Commissioner
       

Inquiries should be addressed to:

The Secretary    
Washington Utilities and   
  Transportation Commission   
1300 S. Evergreen Park Drive SW  
P. O. Box 47250    
Olympia, WA  98504-7250
(360) 664-1160