Prison Phone Justice

BEFORE THE WASHINGTON STATE
UTILITIES AND TRANSPORTATION COMMISSION

WASHINGTON UTILITIES AND
TRANSPORTATION COMMISSION,
Complainant,

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v.

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AT&T COMMUNICATIONS OF THE
PACIFIC NORTHWEST, INC.,

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Respondent.

I

SETTLEMENT AGREEMENT

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This Settlement Agreement (Agreement) is entered into by the parties to this proceeding for
the purpose of resolving all issues raised in the above docket.

I.
2

DOCKET UT -060962

PARTIES

The parties to this Agreement are AT&T Communications of the Pacific Northwest
("AT&T"), and Staff of the Washington Utilities and Transportation Commission ("Staff')
(collectively, "the Parties").

II.

AGREEMENT

3

The Parties have reached agreement on the issues raised in this docket and wish to present
their agreement for the commission's consideration and approval. The Parties therefore
adopt the following Agreement, which the Parties enter into voluntarily, to resolve all
matters in dispute between them or that could arise between them from the issues presented
in this proceeding, and they seek to expedite the orderly disposition of this matter.

4

AT&T admits 29,971 collect calls were incorrectly billed, in violation ofRCW 80.36.130.
These calls originated from Airway Heights Correctional Facility and from the Washington
State Penitentiary, between March 14,2005, and June 1,2005. The Parties agree that this
resulted in total charges of $67,295 above those shown in AT&T's tariff. AT&T admits that
RCW 80.36.130 requires that telecommunications companies refrain from charging rates
different than those contained in their tariffs except under certain circumstances that are not
applicable here.

SETTLEMENT AGREEMENT

DOCKET UT-060962

PAGE 2

A. Penalties
5

The Parties agree that AT&T will pay to the commission a penalty totaling $302,705. The
amount shall be paid to the commission no more than thirty (30) days after the effective date
of this Agreement.
B. Refunds and Claims Process

6

AT&T agrees to refund up to $67,295 in total to customers who:
a. Contact AT&T, at a toll-free number to be established by AT&T subsequent to
this Agreement's execution, claiming to have received collect calls from Airway
Heights Correctional Facility and the Washington State Penitentiary between
March 14, 2005 to June 1, 2005, and were billed for such calls;
b. Submit a request form for a refund (or "claim") to AT&T's Customer Service
Department alleging that they were the account holder of a relevant telephone
number during this period; and
c. If the claimant's telephone number appears on the list of relevant numbers,
AT&T will refund the amount to that claimant, regardless of payment history.
AT&T will make refunds for the relevant numbers only once.

7

Based on available records, AT&T will determine the appropriate refund amount due to
each claimant.

8

AT&T agrees to notify potential claimants of the availability and process for refunds by
posting a public notice at the two correctional facilities identified herein. AT&T and Staff
will collaborate to determine the contents ofthe notice. AT&T shall post such notice starting
February 1, 2008 and the notice shall remain posted until September 1, 2008.

9

AT&T further agrees to notify potential claimants of the availability and process for refunds
by placing one display ad measuring approximately 2" by 4" in the following three
newspapers: Seattle Times, Spokane Spokesman Review and Tri-City Herald, and by
placing "tombstone notices" in the following five newspapers: Everett Herald, Tacoma
News Tribune, Vancouver Columbian, Walla Walla Union Bulletin, and Yakima Herald
Republic.

10

AT&T shall determine and pay for the appropriate ads and tombstone notices. AT&T will
provide Staff a reasonable opportunity to review the ads and tombstone notices in advance
of publication.

11

Customers shall have from February 1, 2008 to August 31, 2008 (seven months) to submit a
claim to AT&T (the "customer claim period"). Provided the customer complies with the
requirements in paragraph 6, subparts (a) through (c), AT&T agrees to resolve each claim
received within sixty (60) days of receipt.

SETTLEMENT AGREEMENT

DOCKET UT-060962

PAGE 3

12

AT&T agrees to complete all refunds to eligible customers no later than sixty (60) days
following the end of the customer claim period.

13

AT&T will establish and implement the claims process, and verify customer claims. AT&T
shaIl be responsible for any and all costs associated with providing refunds to consumers
under this Agreement.

14

Staff agrees to promptly refer any customers who contact Staff concerning a refund claim to
AT&T's toIl-free number to be established. Ifdisputes arise between customers and AT&T
conceming claims that AT&T is unable to resolve, AT&T agrees to refer those customers to
the commission's toll-free consumer complaint number. AT&T further agrees to refer all
claimants whose claims are not resolved within sixty (60) days of receipt by AT&T to the
commission.

15

During the customer claim period, AT&T agrees to file a quarterly report with the
commission, delivering copies of the customer claim forms received to date. In addition, this
report shall include the number of claims made to date as well as the number and amount of
refunds issued to date, and, if necessary, a summary of any issues of concem arising from
the claims process. The reports shall be an opportunity for commission Staff and AT&T to
periodically evaluate the effectiveness of the refund process and to adjust the process, if
needed, by subsequent agreement.

16

Following completion of the refunds as described in Paragraphs 6 through 15, AT&T agrees
to file with the commission documentation demonstrating that AT&T has completed the
refund process, as well as, if applicable, any donation made to the Offender Welfare
Betterment Fund, as described in paragraph 17. The documentation shall include, at a
minimum, I) the number of claims received, 2) the number of customers receiving refunds,
3) the amount refunded, and 4) proof that AT&T donated the money not refunded to
customers, if any, to the Offender Welfare Betterment Fund.

C. Public Purpose Fund
17

If after all refunds have been issued by AT&T the total amount of refunds is less than
$67,295, AT&T agrees to donate the difference to the Offender Welfare Betterment
Account, a public use fund administered by the Washington State Department of
Corrections. See Appendix A.
D. Future Compliance

18

The Parties agree that AT&T will comply with all applicable commission rules and statutes.
This Agreement does not preclude the commission from pursuing penalties for violations of
commission rules and statutes unrelated to the subject matter of this Agreement.

19

To ensure that it complies with commission rules and statutes, AT&T agrees that it will
continue to actively monitor the billing practices of companies with whom it has a
SETTLEMENT AGREEMENT

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DOCKET UT-060962

contractual relationship to provide billing services in Washington State on behalf of AT&T,
and conduct audits when there is reason to believe that the billing agent is not meeting its
service quality requirements consistent with existing contracts.

III.

GENERAL PROVISIONS

20

The Parties agree that this Settlement Agreement is a settlement of all contested issues
between them in this proceeding. The Parties understand that this Settlement Agreement is
not binding unless and until accepted by the commission. The effective date of this
Agreement is the date of the commission's order approving it.

21

The Parties agree to cooperate in submitting this Agreement promptly to the commission for
acceptance. The Parties further agree to support adoption of this Agreement in proceedings
before the commission through testimony or briefing. No party to this Agreement or their
agents, employees, consultants, or attorneys will engage in advocacy contrary to the
commission's adoption of this Agreement.

22

The Parties agree to I) provide each other the right to review in advance of publication any
and all announcements or news releases that the other party intends to make about the
Agreement (with the right of review to include a reasonable opportunity to request changes
to the text of such announcements), and 2) include in any news release or announcement a
statement to the effect that Staffs recommendation to approve the Agreement is not binding
on the commission itself.

23

The Parties have entered into this Agreement to avoid further expense, inconvenience,
uncertainty, and delay of continuing litigation. The Parties recognize that this Agreement
represents a compromise of the Parties' positions. As such, conduct, statements, and
documents disclosed during negotiations of this Agreement shall not be admissible as
evidence in this or any other proceeding, except in any proceeding to enforce the terms of
this Agreement or any commission order fully adopting those terms. This Agreement shall
not be construed against either party because it was the drafter of this Agreement.

24

The Parties have negotiated this Agreement as an integrated document to be effective upon
execution and commission approval. This Agreement supersedes all prior oral and written
agreements on issues addressed herein. Accordingly, the Parties recommend that the
commission adopt this Agreement in its entirety.

25

The Parties may execute this Agreement in counterparts and, as executed, shall constitute
one Agreement. Copies sent by facsimile are as effective as original documents.

26

The Parties shall take all actions necessary, as appropriate, to carry out this Agreement.

27

In the event the commission rejects all or any portion of this Agreement, each party reserves
the right to withdraw from this Agreement by written notice to the other party and the
SETTLEMENT AGREEMENT

PAGES

DOCKET UT-060962

commission. Written notice must be served within ten (l0) days ofthe order rejecting part or
all of this Agreement. In such event, neither party will be bound or prejudiced by the terms
of this Agreement, and either party shall be entitled to seek reconsideration of the order.
Additionally, the Parties will jointly request that a prehearing conference be convened for
purposes of establishing a procedural schedule to complete the case.

WASHINGTON UTILITIES AND
TRANSPORTATION COMMISSION
ROBERT M. MCKENNA
Attorney General

De,(.,.et#6?r

AT&T COMMUNICATIONS OF THE
PACIFIC NORTHWEST, INC.

WILLIAM M. ARCHER
Chief Marketing Officer - Business
AT&T Operations, Inc.
on behalf of AT&T Communications of the
Pacific Northwest, Inc.

MICHAEL A. FASSIO
Assistant Attorney General
Counsel for the Utilities and
Transportation Commission Staff

Dated:

ON~/'--

/3,2007

SETTLEMENT AGREEMENT

Atto ey or AT&T Communications of the
Pacific orthwest, Inc.

Dated:

f)u(V'16er 13

, 2007

APPENDIX A

STATE OF WASHINGTON

DEPARTMENT OF CORRECTIONS
P.o. Box 41100' Olympia, Washington 96504-1100

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October 1, 2007

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Mr. Dave Ptatt
Utilities and Transportation Commission
Post Office Box 47250
Olympia, WA 98504-7250
SUBJECT: OFFENDER WELFARE BETTERMENT ACCOUNT.
Dear Mr. Pratt:
This letter is written in response to your inquiry about using the Offender Welfare Betterment
Account as a public use fund as a destination for unclaimed monies in theAT &T settlement
agreement.
The Department believes that usirig the Offender Welfare Betterment Account (OBF) makes
sense since the primary revenue source for this fund is telephone commissions from toll phones
used by offenders. The assets of the OBF are used solely for offender betterment activities;
which may enhance the· security and orderly operation of a facility by reducing idleness and may·
encourage positive development of community ties.
Therefore; the Department is willing to be used as the public purpose fund and will accept the
unclaimed refunds designated by the settlerrient agreement. Additionally, in accordance·with
RCW 72.09.095, twenty-five percent (25%) of the amount received will be deposited into the
Crime Victims Compensation Fund.
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If you need additional information, please contact Anita Kendall at (360) 725-.8295 or myself at
(360) 725-8516. Thank you.
Sincerely,

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MelaniTRo~;rts,

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Depu!y Secretary
Office of Administrative Services
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