Opinion ID: 1230017
Heading Depth: 1
Heading Rank: 3

Heading: the trial courts decision affirming the commissions registration of both eli and dds is affirmed

Text: WITA, GTE, and Whidbey challenge the Commission's registrations of ELI and DDS on factual and legal grounds. Since we find that substantial evidence supports the Commission's factual findings and that its legal conclusions are based on the appropriate law, it is unnecessary for this court to determine whether these appellants have standing to challenge. [11] An administrative agency's findings of fact are governed by a substantial evidence standard. RCW 34.05.570(3). Substantial evidence is `evidence in sufficient quantum to persuade a fair-minded person of the truth of the declared premises.' Olmstead v. Department of Health, Med. Section, 61 Wn. App. 888, 893, 812 P.2d 527 (1991) (quoting Green Thumb, Inc. v. Tiegs, 45 Wn. App. 672, 676, 726 P.2d 1024 (1986)). Thus, the Commission's factual findings with respect to ELI and DDS will be upheld if sufficient evidence would persuade a fair-minded person that the Commission's findings are correct. WITA, GTE, and Whidbey contend ELI failed to show adequate financial resources as required by WAC 480-121-040 which provides: [A]n applicant must clearly show that ... [it] possesses adequate financial resources to provide the proposed service[.] The abundant evidence pursuant to which the Commission determined ELI met this requirement included the following: Citizens Utilities CapitalCorp (Citizens), the parent company of ELI's parent company, boasted annual revenues for the 12 months ending June 30, 1990, of $356 million with a net income of $93.7 million, Administrative Record (ELI) (Jan. 11, 1991), at 1617 (Testimony of Thomas L. Wilson, Jr.); Citizens is the only utility in the United States whose common stock has Standard & Poor's highest ranking, whose commercial paper has both Standard & Poor's and Moody's highest ratings, and whose bonds enjoy both Standard & Poor's and Moody's triple-A ratings, Administrative Record (ELI) (Sept. 7, 1990), at 1166; Citizens pledged to invest up to $10 million in ELI, Administrative Record (ELI), at 1143 (Direct Testimony of John Warta (Warta)); Administrative Record (ELI) (Jan. 11, 1991), at 1617 (Testimony of Thomas L. Wilson, Jr.); and ELI secured other financing commitments worth $11.4 million, Administrative Record (ELI), at 1143 (Warta). Also submitted under confidential seal were two pages from a Citizens Utilities CapitalCorp stock purchase agreement, concretely evidencing its commitment to the financial health and well-being of ELI. Administrative Record (ELI) (June 29, 1990), at 2023-24 (Purchase Agreement). This evidence is sufficient to persuade a fair-minded person that ELI possesses adequate financial resources. [12] WITA, GTE, and Whidbey also challenge the Commission's registration of ELI on the legal ground that ELI should not have been accorded registration in any area for which it has not submitted information to the Commission. WAC 480-121-050 is cited as support for this proposition. This provision of the WAC does not provide for regional or otherwise piecemeal registration. It merely directs applicants to provide a [d]etailed description of the telecommunications services applicant intends to offer, designating geographic areas of operation .... The regulation comports with RCW 80.36.350 which likewise contemplates 1-time, statewide registration, requiring new telecommunications companies to register with the commission before beginning operations in this state.  (Italics ours.) Nothing in the regulation or statute requires the Commission to limit an applicant's operating authority to the areas initially identified in a company's application. By designating geographical areas of operation in Washington as Seattle ... and ... other geographical areas that may seem feasible, Administrative Record (ELI exhibits  Application for Registration), at 1160, ELI complied with the statute as well as the regulation. The Commission's grant of statewide authority to ELI was therefore proper. DDS's registration is likewise fully supported. DDS is a wholly owned, indirect subsidiary of WestMarc Communications, Inc. (WestMarc). As part of its application, DDS provided financial reports for 3 years of WestMarc operations, each indicating the health of WestMarc. Administrative Record, at 207-330 (DDS's application with attachments exhibits C-3 through C-6). Jeffrey Roe, Vice President and General Manager of DDS, testified WestMarc would finance installations and maintenance of the network. Administrative Record (DDS), at 2255. Also submitted under confidential seal as part of DDS's application were: a WestMarc Letter of Credit, Administrative Record (DDS), at 354; DDS's Pro Forma Balance Sheet, Administrative Record (DDS), at 355; and DDS's Pro Forma Income Statement, Administrative Record (DDS), at 356. A staff economist with the Commission testified the value of DDS's stock was more than double the amount he believed necessary to operate a metropolitan area telecommunications network in Seattle. Administrative Record (DDS), at 2297. This evidence is sufficient to persuade a fair-minded person that DDS met the requirements of WAC 480-121-040. With respect to the legal question of whether statewide operating authority was properly granted, DDS, like ELI, communicated to the Commission its intention to operate initially in only a limited geographical area, i.e., the east Puget Sound area. Administrative Record (DDS's application), at 137. Like ELI, however, DDS complied with the statute and administrative regulations and its grant of statewide authority should be upheld. [13] GTE challenges DDS's registration on an additional, third ground. DDS is an indirect subsidiary of TCI and has expressed its intent to lease dark fiber from TCI in the event it provides dark fiber services. GTE argues that cable companies are telecommunications companies insofar as they provide their cable, a service identified by the Commission as a telecommunications service, for eventual resale to the general public. See RCW 80.04.010 (a corporation operating facilities used to provide telecommunications for resale to the general public is a telecommunications company). GTE contends that because TCI has failed to register as a telecommunications company, DDS's registration, premised on its use of TCI facilities, should also fail. It is unnecessary for us to consider whether TCI must register. Even if TCI has unlawfully evaded registration, no legal support was presented for defeating registration based on a company's speculative relationship with a company which has allegedly been operating as a telecommunications company without proper authority. An appellate court need not decide a contention not supported by citation to authority. See State v. Lord, 117 Wn.2d 829, 822 P.2d 177 (1991), cert. denied, 113 S.Ct. 164 (1992). Furthermore, the proper forum for challenging TCI's operations would be one in which TCI was a party. Finally, DDS's main plan appeared to be the provision of non-dark fiber services. Its application noted DDS may also offer dark fiber ... services ..., depending on the particular needs and requests of customers. (Italics ours.) Administrative Record, at 140 (DDS's application with attachments exhibit A). Even absent the provision of dark fiber by TCI to DDS, approval of DDS's application was appropriate.