BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Supplemental Application and Petition of World Communications, Inc., For an Amendment to its Registration as a Telecommunications Company and Classification as a Competitive Telecommunications Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ) ) ) ) ) ) ) ) ) ) DOCKET UT-950810 FIRST SUPPLEMENTAL ORDER AMENDING REGISTRATION, COMPETITIVE CLASSIFICATION, AND APPROVING PRICE LIST BACKGROUND By supplemental petition filed January 24, 2000, in Docket UT-950810, World Communications, Inc., (World Communications) 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. 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 February 9, 2000. DISCUSSION World Communications proposes to amend its competitive classification and registration authority with the Commission as a telecommunications company to offer local exchange, operator services, ancillary services, and directory assistance. Services specified in Exhibit A but not included in its initial price list may not be offered until applicant amends its price list to include the description of service with rates and charges. In support of its petition, World Communications asserts that its services compete with other interexchange and local exchange carriers telecommunication services. World Communications states that customers have readily available equivalent alternatives and that there are no captive customers of the Company’s services. World Communications is a Washington corporation, headquartered in Seattle, Washington, and is owned by Michael L. Terpening. Rates, terms, and conditions set forth in the proposed price list are structured similarly to rates filed by other interexchange and local exchange carriers for calls placed in the relevant market. World Communications has provided information showing that it meets the requirements of RCW 80.36.350. Applicant does not propose to collect deposits from customers, or prepaid calling services. 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 World Communications registration, competitive classification, and proposed price list should be approved. Based on the entire record and the file in this matter, the Commission makes the following findings of fact and conclusions of law. FINDINGS OF FACT 1. World Communications filed a supplemental application to amend its registration authority as a telecommunications company and classification as a competitive telecommunications company pursuant to the provisions of RCW 80.36.350 and 80.36.320, to provide local exchange, operator services, ancillary services, and directory assistance. 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 World Communications to include local exchange, operator services, ancillary services, and directory assistance 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 World Communications include, but are not limited to, U S WEST Communications, Inc., GTE Northwest Incorporated, MCIWorldCom, Inc., and Sprint Communications Company L.P. All services are fully available from alternative providers in the relevant market. 6. The relevant market is the state of Washington. 7. World Communications has no captive customer base. 8. The services offered are subject to effective competition. 9. World Communications should be permitted to provide services under its proposed price list. 10. World Communications 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 World Communications. 2. World Communications should be authorized to provide local exchange, operator services, ancillary services, and directory assistance 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. World Communications should be permitted to provide services under price lists promulgated under RCW 80.36.320 (2). 4. World Communications should be granted waivers of the laws and rules listed in Appendix A. ORDER THE COMMISSION ORDERS: 1. Effective on the date of this Order and subject to any conditions imposed, the Commission approves the supplemental application of World Communications, Inc., requesting an order amending registration authorization as a telecommunications company to provide service to the public in this state. 2. The Commission approves the petition of World Communications, Inc., for classification as a competitive telecommunications company; and grants a waiver of the laws and rules listed in the attached Appendix A. 3. The Commission approves the proposed price list of World Communications, Inc., for rates and services. 4. Registration of World Communications, Inc., as a telecommunications company shall not be construed as an endorsement of financial viability or of the investment quality of any securities it may issue. 5. As a telecommunications company providing service to the public in this state, World Communications, Inc., 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. World Communications, Inc., is authorized to offer rates and services pursuant to the 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 that do not have rate impact, personal notice to customers is not required. To comply with the statutory notice requirement, World Communications, Inc., 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. 7. World Communications, Inc., must comply, as specified, with the requirements of WAC 480-120-141, Operator service providers rule. 8. World Communications, Inc., is not authorized to collect deposits from customers, or provide prepaid calling services. 9. The Commission retains jurisdiction over the subject matter and the Company to effectuate the terms of this Order. DATED at Olympia, Washington, and effective this 9th day of February, 2000. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION CAROLE J. WASHBURN Secretary DOCKET UT-950810 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