Prison Phone Justice

[Service Date May 31, 2007]

BEFORE THE WASHINGTON STATE
UTILITIES AND TRANSPORTATION COMMISSION

WASHINGTON UTILITIES AND
TRANSPORTATION COMMISSION,
Complainant,
v.
AT&T COMMUNICATIONS OF THE
PACIFIC NORTHWEST, INC.
Respondent.
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DOCKET UT-060962
COMPLAINT
NOTICE OF OPPORTUNITY TO
ADDRESS CONFIDENTIAL
INFORMATION
(By June 20, 2007)
NOTICE OF PREHEARING
CONFERENCE
(Set for June 22, 2007, 1:30 p.m.)

The Washington Utilities and Transportation Commission (Commission), on its own
motion, and through its Staff, alleges as follows:
I.

INTRODUCTION

2

Telecommunications companies subject to Commission jurisdiction must properly bill
customers by charging no more than the rates in their tariffs or schedules. RCW
80.36.130 provides that no telecommunications company may charge, demand,
collect, or receive different compensation for any service rendered or to be rendered
than the charge applicable to such service as specified in its schedule on file with the
Commission and in effect at that time.

3

As alleged below, AT&T Communications of the Pacific Northwest, Inc. (AT&T)
improperly charged customers receiving collect calls from prisons in Washington
State more than the amount stated in schedules on file with the Commission and in
effect, in violation of RCW 80.36.130.
II.

4

BACKGROUND INFORMATION

In August 2005, a consumer filed a complaint with the Commission, stating that he
had been improperly billed for collect calls made from pay phones at correctional
facilities within the state of Washington, and did not receive a sufficient explanation
of the disparate charges from AT&T. When Commission Staff found that AT&T had

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PAGE 2

improperly charged rates to all customers who accepted collect calls during portions
of March, April, May, and June 2005, from the Airway Heights Correction Center in
Spokane, Staff initiated a formal investigation. A copy of Staff’s Investigation Report
and Addendum are attached to this complaint.
5

In order to determine the extent of the improper rates charged, beginning on February
28, 2006, Staff issued multiple data requests to AT&T asking it to provide
information about the billing of correctional facility calls, and to supply Staff with a
list of customers who were improperly charged during the March through June 2005
calling period. AT&T did not provide complete responses to the data requests, stating
that it no longer had these records and could not furnish them because it sold its
correctional facility pay phone business to another company (Global Tel*Link
Corporation, or GTL). Staff was unable to continue its investigation into the extent of
the improper billing on the basis of the information that AT&T did provide.

6

On July 13, 2006, the Commission found that AT&T appeared to have violated
statutes and rules allowing Commission staff to review the books and records of any
public service company and requiring telecommunications companies to maintain
records for at least three years.1 The Commission found that AT&T is required by
law to maintain records of its operations and to furnish those records to the
Commission upon request and served AT&T with an Order to Produce Records. The
Order stated that a Commission investigation into the books, accounts, practices, and
activities of AT&T was necessary in order to carry out the duties imposed on the
Commission by law. Accordingly, the Order required AT&T to produce a list of all
Washington customers that were improperly billed by AT&T, or on behalf of AT&T,
for correctional facility collect calls made during March, April, May, and June 2005.

7

On August 22, 2006, AT&T provided records of improperly billed prison collect
calls. The furnished documents included GTL records subsequent to the sale of the
correctional facility pay phone business to GTL in June, 2005. The records
subsequent to the sale were therefore disregarded for purposes of Staff’s investigation
of AT&T, as described in the Addendum to Staff’s Investigation Report.

8

AT&T, through its billing agent, Zero Plus Dialing, Inc. (ZPDI), collected charges
from customers who accepted pay phone collect calls from the Airway Heights
Correctional Facility and the Washington State Penitentiary. AT&T’s tariff sheet
with the applicable rates and charges was on file with the Commission and in effect at
that time.
1

RCW 80.04.070; WAC 480-120-349.

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PAGE 3

9

Based upon the records provided by AT&T to the Commission, Staff determined that,
between March 14, 2005, and June 1, 2005, AT&T overcharged a significant number
of customers who accepted collect pay phone calls from either the Airway Heights
Correctional Facility or the Washington State Penitentiary.2

10

Staff completed its investigation in March 2007.

11

Under RCW 80.04.380, AT&T is subject to penalties of up to $1,000 for each
violation of RCW Title 80.
III.

PARTIES

12

The Washington Utilities and Transportation Commission is an agency of the state of
Washington, authorized by state law to regulate the rates, services, facilities, and
practices of public service companies, including telecommunications companies,
under the provisions of RCW Title 80.

13

AT&T Communications of the Pacific Northwest, Inc., is a telecommunications
company subject to regulation by the Commission pursuant to RCW 80.01.040.
IV.

14

JURISDICTION

The Commission has jurisdiction over this matter pursuant to RCW 80.01.040, RCW
80.04.110, 80.04.160, 80.04.380, 80.04.470, RCW 80.36, and WAC 480-120.
V.

CLAIMS AND CAUSES OF ACTION

15

The Commission, through its Staff, realleges the allegations contained in paragraphs 4
through 14 above.

16

AT&T’s rate schedule on file with the Commission, and in effect at the time, and
attached to Staff’s Investigation Report as Appendix D, provides in part:
AT&T Prison Collect with Controls Service is an AT&T Long
Distance Service that permits inmates to place collect calls originated
over the AT&T Network from authorized telephone numbers in a
2

The number of alleged overcharged customers and the total amount of the overcharges is
currently alleged to be confidential information and therefore is not identified in the complaint
and is redacted from the Staff’s investigation report. The Commission will consider whether the
information is confidential. If the information is deemed not to be confidential, the Commission
will issue an amended complaint identifying the number of calls for which AT&T allegedly
overcharged customers, as well as the total amount alleged to be overcharged.

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PAGE 4

Prison Administration controlled environment. The terms and
conditions of interstate Prison Collect with Controls Service as
described in AT&T's Tariff F.C.C. No. 27 apply to this service.3
Rates and Charges -- Operator Station Collect -- RATE PER MINUTE
$0.59, Service Charge Per Call $3.95.4
17

Between March 14, 2005 and June 1, 2005, AT&T failed to properly charge a
significant number of customers who accepted collect pay phone calls from the
Airway Heights Correctional Facility and the Washington State Penitentiary in
accordance with its rate schedules on file with the Commission.
VI.

REQUEST FOR RELIEF

18

Staff requests that the Commission find that AT&T violated Commission statutes and
rules, in particular RCW 80.36.130, and that each customer call that AT&T
improperly billed constitutes one violation of RCW 80.36.130.

19

Staff further requests that the Commission impose monetary penalties on AT&T
under RCW 80.04.380 and/or other sanctions against AT&T for violations of
Commission statutes and rules, including RCW 80.36.130, if the alleged violations
are proven.

20

Staff further requests the Commission order such other or further relief as is
appropriate under the circumstances.
VII.

21

PROBABLE CAUSE

Based on a review of Staff’s report on its investigation of AT&T, and all supporting
documents, and consistent with RCW 80.01.060 and WAC 480-07-307, the
Commission finds probable cause exists to issue this complaint.

VIII. NOTICE OF OPPORTUNITY TO ADDRESS CONFIDENTIALITY
22

Prior to Commission Staff requesting a probable cause determination to issue this
complaint, counsel for Staff and AT&T advised the Commission of a dispute over
AT&T’s designation of confidential information. AT&T asserts that confidential data

3
4

Original Sheet 77, paragraph 49.1.
Original Sheet 77, paragraph 49.2.1.

DOCKET UT-060962

PAGE 5

provided to Staff remains confidential even in an aggregated form.5 Staff disputes
AT&T’s claim of confidentiality. To preserve AT&T’s claim of confidentiality until
after the complaint is issued and there is a proceeding pending before the
Commission, the complaint does not include any information AT&T alleges to be
confidential. The Commission will address the issue of confidentiality at the
prehearing conference scheduled in this matter. If the information is determined not
to be confidential, the Commission will issue an amended complaint including the
information at issue.
23

NOTICE IS GIVEN That AT&T and Staff may file with the Commission
pleadings addressing the confidentiality of the aggregated information by June
20, 2007. To allow the Commission to address the issue effectively at the prehearing
conference, the Commission provides an opportunity for AT&T and Staff to explain
their positions in advance, in writing.
IX.

NOTICE OF PREHEARING CONFERENCE

24

THE COMMISSION GIVES NOTICE That it will hold a prehearing conference in
this matter at 1:30 p.m., on Friday, June 22, 2007, in Room 206, Second Floor,
Richard Hemstad Building, 1300 S. Evergreen Park Drive S.W., Olympia,
Washington. The purpose of the prehearing conference is to consider requests for
intervention, resolve scheduling matters including establishing a procedural
schedule, to, identify the issues in the proceeding and determine other matters to
assist the Commission in resolving the matter, as listed in WAC 480-07-430. The
parties will also be provided an opportunity at the prehearing conference to present
argument on the issue of the confidentiality of aggregated information in Staff’s
investigation report.

25

The Commission will hear this matter under the Administrative Procedure Act (APA),
particularly Part IV of RCW 34.05, relating to adjudications. The provisions of the
APA that relate to this proceeding include, but are not limited to, RCW 34.05.413,
RCW 34.05.431, RCW 34.05.434, RCW 34.05.440, RCW 34.05.449, and RCW
34.05.452. The Commission will also follow its procedural rules in WAC 480-07 in
this proceeding.

5

See May 10, 2007, letter to Carole J. Washburn from Gregory J. Kopta, counsel for AT&T.

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26

THE COMMISSION GIVES FURTHER NOTICE THAT ANY PARTY WHO
FAILS TO ATTEND OR PARTICIPATE IN THE HEARING SET BY THIS
NOTICE, OR ANY OTHER STAGE OF THIS PROCEEDING, MAY BE HELD IN
DEFAULT IN ACCORDANCE WITH RCW 34.05.440 AND WAC 480-07-450.

27

If any party or witness needs an interpreter or other assistance, please fill out the form
attached to this notice and return it to the Commission.

28

The names and mailing addresses of all parties and their known representatives are as
follows:
Complainant:

Washington Utilities and
Transportation Commission
1300 S. Evergreen Park Drive S.W.
PO Box 47250
Olympia, WA 98504-7250
(360) 664-1160

Representative:

Michael A. Fassio
Assistant Attorney General
1400 S. Evergreen Park Drive S.W.
PO Box 40128
Olympia, WA 98504-0128
(360) 664-1192

Respondent:

AT&T Communications of the
Pacific Northwest, Inc.
Letty S.D. Friesen
Senior Attorney
AT&T Enterprise Services, Inc.
2535 E. 40th Ave. Suite B-1223
Denver, CO 80205
(303) 299-5708

Representative:

Gregory J. Kopta
Davis Wright Tremaine LLP
1501 4th Avenue, Suite 2600
Seattle, WA 98101
(206) 628-7692

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29

Dennis J. Moss is appointed as the Administrative Law Judge from the Utilities and
Transportation Commission’s Administrative Law Division, 1300 S. Evergreen Park
Drive S.W., Olympia, Washington 98504-7250, and will preside at the hearing.

30

Notice of any other procedural phase will be given in writing or on the record as the
Commission may deem appropriate during the course of this proceeding.

DATED at Olympia, Washington, and effective May 31, 2007.
WASHINGTON STATE UTILITIES AND TRANSPORTATION COMMISSION

ANN E. RENDAHL
Administrative Law Judge

Inquiries may be addressed to:
Executive Secretary
Washington Utilities and
Transportation Commission
Richard Hemstad Building
1300 S. Evergreen Park Drive S.W.
P. O. Box 47250
Olympia, WA 98504-7250
(360) 664-1160

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NOTICE
PLEASE NOTE: The hearing facilities are accessible to interested people
with disabilities; that smoking is prohibited; and, if limited English-speaking or
hearing-impaired parties or witnesses are involved in a hearing and need an
interpreter, a qualified interpreter will be appointed at no cost to the party or witness.
The information needed to provide an appropriate interpreter or other
assistance should be stated below and returned to Washington Utilities and
Transportation Commission, Attention: Carole J. Washburn, 1300 S. Evergreen Park
Drive SW, P.O. Box 47250, Olympia, WA 98504-7250. (PLEASE SUPPLY ALL
REQUESTED INFORMATION)
Docket: _____________________________________________________________
Case Name: __________________________________________________________
Hearing Date: ______________________ Hearing Location: __________________
Primary Language: _____________________________________________________
Hearing Impaired: (Yes)_______________________

(No)_________________

Do you need a certified sign language interpreter?:
Visual__________________

Tactile__________________

Other type of assistance needed: __________________________________________
English-speaking person who can be contacted if there are questions:
Name: _______________________________
Address: _____________________________
_____________________________________
Phone No.: (____)______________________