DOCKET UT-980035 Page 1 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Supplemental Application ) DOCKET UT-930884 of GE Capital Communication Services Corp., ) d/b/a GE EXCHANGE and d/b/a GE Capital ) EXCHANGE For an Order Amending Registration ) Authority To Include Debit Card Services as an ) ORDER AMENDING Authorized Telecommunications Service ) AUTHORITY TO INCLUDE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ) DEBIT CARD SERVICES On February 17, 1999, GE Capital Communication Services Corp., d/b/a GE Exchange and d/b/a GE Capital (GE Capital) filed a supplemental application to revise its price list and to amend its authority as a telecommunications company to include debit card service pursuant to RCW 80.36.350 and Chapter 480-121 WAC. The nature of the debit card service implies that GE Capital proposes to collect advance payments from customers. Pursuant to statutes and rules governing registration applications and advance payment proposals, GE Capital has proposed a satisfactory bond agreement for protection of those advance payments. Initially, the bond agreement will be for $25,000 and will increase proportionally as customer base increases. If GE Capital ceases operations, GE Capital will provide the insurer and the Commission lists of outstanding account numbers and balances within 48 hours. GE Capital will limit the denomination of debit cards purchased by residential customers to not more than $50 and debit cards purchased by business customers to not more than $200. Within 15 days after June 30, 1999, and quarterly thereafter, GE Capital will be required to submit to the Commission a report containing the following information specific to State of Washington operations: (a) total outstanding debit card balance at the beginning of the reporting period (b) dollar amount of debit cards sold during the reporting period (c) depleted usage of debit cards during the reporting period and (d) total outstanding debit card balance at the end of the DOCKET NO. UT-980061 PAGE 3 reporting period. Statements shall continue to be filed within 15 days after each 3-month period thereafter until Commission staff informs applicant such reports are no longer required. Based upon this information, GE Capital will adjust the amount of the bond to assure compliance with WAC 480-121-040. In addition, Commission staff may request current company financial information. 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. GE Capital will state an unconditional money-back guarantee on the debit card or on supplemental material that will be provided at the time the debit card is purchased with a statement warning customers to safeguard their cards. If GE Capital goes out of business, it will provide refund information on the company's 800 phone number for its customers. GE Capital will provide a free call detail report to customers upon request. FINDINGS THE COMMISSION FINDS: 1. GE Capital filed a supplemental application pursuant to the provisions of Chapter 480-121 WAC and the rules and regulations of the Commission for an order amending GE Capital authority as a telecommunications company to provide debit card service. 2. The supplemental application filed by GE Capital to amend its authorization to provide debit card service as a telecommunications company is not inconsistent with the public interest. O R D E R THE COMMISSION ORDERS: 1. After the effective date of this order and subject to the conditions hereof, the supplemental application of GE Capital Communication Services Corp., d/b/a GE EXCHANGE and d/b/a GE Capital EXCHANGE filed with the Commission pursuant to the provisions of Chapter 480-121 WAC requesting an order amending authorization for registration as a telecommunications company to provide debit card service to the public in this state is approved. 2. GE Capital Communication Services Corp., d/b/a GE EXCHANGE and d/b/a GE Capital EXCHANGE filed with the Commission a satisfactory bond agreement in the amount of $25,000. As part of the bond agreement and in the event the company ceases operations, GE Capital Communication Services Corp., d/b/a GE EXCHANGE and d/b/a GE Capital EXCHANGE will within 48 hours provide to the insurer and the Commission lists of outstanding account numbers and balances. 3. GE Capital Communication Services Corp., d/b/a GE EXCHANGE and d/b/a GE Capital EXCHANGE will limit the amount of debit cards to be purchased of not more than $50 increments for residential customers and $200 for business customers. 4. Within 15 days after June 30, 1999, and quarterly thereafter, GE Capital Communication Services Corp., d/b/a GE EXCHANGE and d/b/a GE Capital EXCHANGE will be required to submit to the Commission a report containing the following information specific to State of Washington operations: (a) total outstanding debit card balance at the beginning of the reporting period (b) dollar amount of debit cards sold during the reporting period (c) depleted usage of debit cards during the reporting period and (d) total outstanding debit card balance at the end of the DOCKET UT-930884 PAGE 3 reporting period. Statements shall continue to be filed within 15 days after each 3-month period thereafter until Commission staff informs applicant such reports are no longer required. Based upon this information, GE Capital Communication Services Corp., d/b/a GE EXCHANGE and d/b/a GE Capital EXCHANGE will adjust the amount of the bond to assure compliance with WAC 480-121-040. In addition, Commission staff may request current company financial information. 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. 5. GE Capital Communication Services Corp., d/b/a GE EXCHANGE and d/b/a GE Capital EXCHANGE shall state that there is a money-back guarantee on the debit cards and provide a statement warning customers to safeguard their cards. 6. In the event the company ceases operations, GE Capital Communication Services Corp., d/b/a GE EXCHANGE and d/b/a GE Capital EXCHANGE will provide refund information on the company's 800 phone number for its customers for a minimum of six months. 7. GE Capital Communication Services Corp., d/b/a GE EXCHANGE and d/b/a GE Capital EXCHANGE will provide a free call detail report to customers upon request. 8. GE Capital Communication Services Corp., d/b/a GE EXCHANGE and d/b/a GE Capital EXCHANGE filed revisions to its price list no. 1 in Exhibit G, attached to the supplemental application, currently on file with the Commission. GE Capital Communication Services Corp., d/b/a GE EXCHANGE and d/b/a GE Capital EXCHANGE's revision to price list no. 1 is approved as filed. 9. As a telecommunications company providing service to the public in this state, GE Capital Communication Services Corp., d/b/a GE EXCHANGE and d/b/a GE Capital EXCHANGE 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 10th day of March, 1999. CAROLE J. WASHBURN, Secretary