Docket UT-960599 Page 1 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Application ) DOCKET UT-960599 of Preferred Carrier Services, Inc., ) for an Order Granting ) ORDER GRANTING Amendment to Registration ) AMENDMENT TO to Provide Local Exchange ) REGISTRATION APPLICATION Services and Authorizing ) AND AUTHORIZING THE Provision of Intraexchange ) PROVISION OF SWITCHED Telecommunications ) INTRAEXCHANGE Services ) TELECOMMUNICATIONS ........................................................................) SERVICES On July 13, 1998, Preferred Carrier Services, Inc., (PCSI) filed an application to amend the company’s registration authority to provide local exchange service in Washington. PCSI requested extensions for additional time to complete its application for registration by letters to the Commission dated August 7, 1998, and August 31, 1998. PCSI is a Delaware corporation, headquartered in Tampa, Florida and is wholly owned by Phones For All, Inc. PCSI is currently authorized to offer intrastate long distance service within Washington in Docket UT-960599. PCSI plans to offer Washington customers local service and these services may be equipped with various features and functions. PCSI will provide customers access to 911 emergency services, directory assistance, operator assisted services, relay services, lifeline service and will also provide vertical features such as call waiting, call forwarding and Caller I.D. Initially, PCSI will purchase wholesale basic local exchange services from incumbent local exchange companies, PCSI may in the future provide telecommunication services through its own facilities, the purchase of unbundled network elements, or through a combination of all three. PCSI has filed a proposed tariff which is satisfactory and will mirror incumbent local exchange company (LEC) calling. PCSI has provided the information necessary to demonstrate PCSI possesses adequate financial resources and technical competence to provide the proposed services. PCSI has voluntarily committed to collect and remit to appropriate administrative agencies relevant excise taxes in support of various social programs, including enhanced 911, telecommunications relay services, and lifeline. PCSI does not propose to collect advanced payments or deposits from customers. FINDINGS THE COMMISSION FINDS: 1. Preferred Carrier Services, Inc., is a public service company subject to the jurisdiction of this Commission under the provisions of chapter 80.36 RCW. 2. Preferred Carrier Services, Inc., has provided sufficient information to show that it is financially and technically capable to provide the services proposed. 3. It appears, upon investigation, that the request for authority to amend the application for registration to provide intraexchange switched telecommunications services should be approved. 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 Preferred Carrier Services, Inc., filed with the Commission requesting authority to amend the application for registration to provide intraexchange telecommunications services is hereby granted. 2. This order shall in no way affect the authority of this Commission over rates, service, accounts, valuations, estimates or determination of costs, or any matters whatsoever that may come before it, nor shall anything herein be construed as an acquiescence in any estimate or determination of costs, or any valuation of property claimed or asserted. 3. The proposed tariff as filed and amended in Exhibit G, attached to the application, is satisfactory. Prior to supplying service to the public as a local exchange carrier or provision of resold services of incumbent and other local exchange carriers, Preferred Carrier Services, Inc., shall file and receive permission and approval for an initial tariff with the Commission. The tariff shall bear an effective date not less than 30 days subsequent to the date of receipt by the Commission. Failure to file an initial tariff within 30 days from the effective date of this Order and prior to supplying service to the public may result in the Commission taking action to cancel Preferred Carrier Services, Inc.’s registration as a telecommunications company in the state of Washington. 4. Preferred Carrier Services, Inc., shall not collect advanced payments or deposits to protect customer monies as stated in WAC 480-121-040. DATED at Olympia, Washington, and effective this 9th day of September, 1998. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION CAROLE J. WASHBURN, Secretary