BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Supplemental Application and Petition of Qwest Communications Corporation f/k/a Southern Pacific Telecommunications Company For Amendment to its Registration as a Telecommunications Company and Classification as a Competitive Telecommunications Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ) ) ) ) ) ) ) ) ) ) ) DOCKET UT-940120 FIRST SUPPLEMENTAL ORDER AMENDING REGISTRATION; COMPETITIVE CLASSIFICATION; AND APPROVING PRICE LIST TO INCLUDE LOCAL EXCHANGE SERVICES BACKGROUND By supplemental petition filed February 12, 1999, in Docket UT-940120, Qwest Communications Corporation f/k/a Southern Pacific Telecommunications Company (Qwest) seeks to amend its registration authority 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. Qwest requested an extension of time from the Commission by letter dated March 5, 1999 to finalize its petition. The supplemental application for registration, competitive classification petition, and initial price list were brought before the Commission at its regularly scheduled open public meeting of March 31, 1999. DISCUSSION Qwest proposes to amend its registration authority with the Commission as a telecommunications company to offer switched intraexchange and interexchange telecommunications service. Applicant is not proposing to collect advance payments or deposits from customers. In support of its petition, Qwest alleges inter alia that its services compete with other switched intraexchange and interexchange carriers’ telecommunication services. Qwest states that customers have readily available equivalent alternatives and that there are no captive customers of the Company’s services. Qwest is a Delaware corporation, headquartered in Denver, Colorado, and is a wholly owned subsidiary of Qwest Communications International, Inc. Rates, terms, and conditions set forth in the proposed price list are structured similarly to rates filed by other switched intraexchange and interexchange carriers for calls placed in the relevant market. Qwest 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 interests, 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 the proposed amendments to Qwest’s registration, competitive classification, and proposed price list should be approved. FINDINGS OF FACT DOCKET UT-940120 PAGE 1 1. Qwest filed a supplemental application to amend its registration authority as a telecommunications company and 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 telecommunications service. 2. As to form, the supplemental application and petition meet the requirements of RCW 80.36.350 and 80.36.320, and comply with the Commission’s rules and regulations. 3. The amendment of the registration of Qwest to include switched intraexchange and interexchange telecommunications services 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 Qwest include, but are not limited to, AT&T Communications of the Pacific Northwest, Inc., GTE Northwest Incorporated, MCIWorldCom, Inc., 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. Qwest has no captive customer base. 8. The services offered are subject to effective competition. 9. Qwest should be permitted to provide services under its proposed price list. 10. Qwest requested waivers of certain laws and rules relating to telecommunications services. The laws and rules for which waivers should be granted are listed in 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. Qwest should be authorized to provide switched intraexchange and interexchange telecommunications service as a telecommunications company pursuant to RCW 80.36.350 and classified as a competitive telecommunications company pursuant to RCW 80.36.320(1). 3. Qwest should be permitted to provide services under price lists promulgated under RCW 80.36.320 (2). These services will not include alternate operator services as defined in WAC 480-120-141. 4. Qwest should be granted waivers of the laws and rules listed in Appendix A; waivers of laws and rules requested that are not included in Appendix A should be denied. ORDER THE COMMISSION ORDERS: 1. After the effective date of this Order and subject to any conditions imposed, the supplemental application of Qwest Communications Corporation requesting an Order amending registration authorization as a telecommunications company to provide service to the public in this state is approved. 2. The petition of Qwest Communications Corporation for classification 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 Qwest Communications Corporation for rates and services is approved. 4. Registration of Qwest Communications Corporation 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, Qwest Communications Corporation 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. Qwest Communications Corporation is not authorized to collect advance payments or deposits unless it first demonstrates to the Commission’s satisfaction that it has an arrangement to protect customer monies as stated in WAC 480-121-040. 7. Qwest Communications Corporation 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 is not required. To comply with the statutory notice requirement, Qwest Communications Corporation may publish notice of price reductions or changes in terms and conditions of service that 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. Qwest Communications Corporation is not authorized to provide 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 31st day of March 1999. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION CAROLE J. WASHBURN Secretary DOCKET UT-940120 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 interests, transfer of property WAC 480-120-046 Services offered WAC 480-120-131 Reports of accidents