ARCHIVED -  Telecom Public Notice CRTC 98-9

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Telecom Public Notice CRTC 98-9

  Ottawa, 11 May 1998
 

QUÉBEC-TÉLÉPHONE AND TÉLÉBEC LTÉE - 1998 CONTRIBUTION RATE

  Reference: 8695-C12-05/98
  I BACKGROUND
  In Implementation of Regulatory Framework for Québec-Téléphone and Télébec ltée, Telecom Decision CRTC 97-21, 18 December 1997 (Decision 97-21), the Commission implemented the split rate base for these companies effective 1998 and set interim 1998 contribution rates of $0.0561 for Québec-Téléphone and $0.0588 for Télébec ltée (Télébec).
  In Télébec - 1997 Contribution Charges, Telecom Public Notice CRTC 97-29, 31 July 1997 and Québec-Téléphone - 1997 Contribution, Telecom Public Notice CRTC 98-7, 23 March 1998 (the 1997 contribution proceedings), the Commission initiated proceedings to finalize the 1997 contribution rates for these companies. Those proceedings are still in progress.
  The Commission hereby initiates a proceeding to finalize the 1998 contribution rates for Québec-Téléphone and Télébec.
  II 1998 CONTRIBUTION REQUIREMENT
  A. De-Averaged Per-Minute Contribution Mechanism for Trunk-Side and Line-Side Connections
  In the 1997 contribution proceedings, the Commission directed Québec-Téléphone and Télébec to show cause as to why a de-averaged per-minute contribution rate applicable to trunk-side connections, as approved in Revisions to the Mechanism to Recover Contribution Charges, Telecom Decision CRTC 95-23, 4 December 1995, should not apply in their territories.
  The Commission also directed Québec-Téléphone and Télébec to show cause as to why a de-averaged per-minute contribution mechanism for line-side connections, as approved in Per-Minute Contribution Mechanism for Line-Side Connections, Telecom Decision CRTC 96-12, 12 December 1996, should not apply also in their territories.
  Notwithstanding the companies' responses to the directions to show cause in paragraphs 4 and 5 above, Québec-Téléphone and Télébec are to provide a breakdown of their proposed 1998 contribution rates by peak and off-peak periods for trunk-side and line-side connections, with all supporting calculations.
  B. Treatment of 1997 Excess Earnings
  The Commission indicated in Decision 97-21 that any excess earnings for 1997 should be dealt with in the proceedings to finalize the Québec-Téléphone and Télébec contribution rates for 1998. Where applicable, these companies are to file proposals in this regard, with supporting arguments.
  C. Accounting Reserve for Pole Rental
  In Decision 97-21, the Commission considered the issue of the amortization period for Télébec's accounting reserve for pole rental. For purposes of calculating the interim 1998 contribution rate, the Commission set a two-year amortization period for the accounting reserve balance as at 31 December 1997. It indicated that the amortization period would be finalized in the proceeding to determine Télébec's final 1998 contribution rate. Also, Télébec intended to purchase a large number of poles before the end of 1997 and to treat the purchase as it would any other operating expense. The Commission intended to re-assess, in the same proceeding, the need to maintain the accounting reserve. Accordingly, the Commission directs Télébec to file its proposals relating to these points, with supporting arguments.
  D. Directory Operations
  In Decision 97-21, the Commission indicated that the reasonableness of the deemed earnings from directory operations would be addressed in the proceedings to finalize the 1998 contribution rates for Québec-Téléphone and Télébec. Accordingly, the Commission directs them to file their proposals in this regard, with supporting arguments.
  E. Demand Information
  Québec-Téléphone and Télébec are directed to file, by 22 June 1998, their forecast 1998 split rate base results, as illustrated in Attachment B to Implementation of Regulatory Framework - Splitting of the Rate Base and Related Issues, Telecom Decision CRTC 95-21, 31 October 1995, adjusted to adapt to their respective accounting system. The companies are also directed to include explanations, with supporting data, for any change resulting from significant changes to methodology, or from variances in revenue, investment or expenses over the most current 1997 Phase III results, arranged by Utility and Competitive segments. Changes to methodology include those relating to accounting changes or to the implementation of the split rate base.
  By the same date, Québec-Téléphone and Télébec are to file proposed 1998 contribution rates. These proposed rates are to be based on the companies' forecast contribution requirements reflected in the split rate base results, budget views and forecasts of contribution-eligible minutes for 1998. Also to be reflected are the local rate increases approved for Québec-Téléphone in Telecom Order CRTC 97-1837 dated 16 December 1997, and approved on an interim basis for Télébec in Telecom Order CRTC 97-1787 dated 1 December 1997 as amended by Telecom Order CRTC 97-1787-1 dated 4 December 1997.
  Québec-Téléphone and Télébec are to provide forecasts of 1998 minutes for contribution-eligible services as defined in Regulatory Framework for Québec-Téléphone and Télébec ltée, Telecom Decision CRTC 96-5, 7 August 1996 (Decision 96-5).
  The Commission directs AT&T Canada Long Distance Services Company (AT&T Canada LDS), fONOROLA Inc. (fONOROLA) and Sprint Canada Inc. (Sprint), who originate or terminate contribution-eligible traffic in the territories of Québec-Téléphone or Télébec, to file for each company, by 22 June 1998, their forecast 1998 contribution-eligible minutes as defined in Decision 96-5.
  On 11 May 1998, the Commission addressed interrogatories relating to this Public Notice to Québec-Téléphone, Télébec and the interconnecting carriers.
  III PROCEDURE
  Québec-Téléphone and Télébec are made parties to this proceeding. AT&T Canada LDS, fONOROLA and Sprint (the interconnecting carriers) are also made parties to this proceeding.
  Other persons wishing to participate in this proceeding must notify the Commission of their intention to do so by writing to Mrs. Laura M. Talbot-Allan, Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, Fax: 819-953-0795, by 26 May 1998. Parties are to indicate in the notice their Internet email address, if available. If parties do not have access to the Internet, they are to indicate in their notice whether they wish to receive disk versions of hard copy filings. The Commission will issue a complete list of parties and their mailing addresses (including Internet email addresses if available), identifying those parties who wish to receive disk versions.
  Québec-Téléphone, Télébec and the interconnecting carriers are to file the information indicated in Part II of this Public Notice, serving copies on all parties, by 22 June 1998.
  By 22 June 1998, Québec-Téléphone and Télébec are directed to file tariff pages setting out their proposed contribution charges for 1998. Underlying calculations are to be provided by the same date.
  Those parties to whom the Commission has addressed interrogatories, as noted in Part II, are directed to file responses, serving copies on all parties, by 22 June 1998.
  Parties may file requests with the Commission for public disclosure of information for which confidentiality has been claimed, setting out the reasons for disclosure, by 29 June 1998, serving the party or parties asserting confidentiality.
  Replies to requests for public disclosure are to be filed with the Commission and served on the party or parties making the request by 2 July 1998.
  The Commission will issue a determination with respect to any requests filed pursuant to paragraph 20 as soon as possible. The Commission intends to direct that any information to be disclosed pursuant to its determination be placed on the public record and served on all parties by 22 July 1998.
  Any party may address interrogatories to any party who files information pursuant to paragraphs 17, 18 or 19 above. Any such interrogatories must be filed with the Commission and served on the party or parties in question by 29 July 1998.
  Responses to interrogatories addressed pursuant to paragraph 23 are to be filed with the Commission and served on all parties by 19 August 1998.
  Requests by parties for further responses to their interrogatories, specifying in each case why a further response is both relevant and necessary, and requests for public disclosure of information for which confidentiality has been claimed, setting out the reasons for disclosure, must be filed with the Commission and served on the party or parties in question by 26 August 1998.
  Written responses to requests for further responses to interrogatories and for public disclosure must be filed with the Commission and served on the party making the request by 31 August 1998.
  The Commission will make a determination with respect to requests for disclosure and for further responses as soon as possible. The Commission intends to direct that any information to be disclosed pursuant to its determination be filed with the Commission and served on all parties by 21 September 1998.
  All parties may file comments with the Commission on any matter raised in this proceeding, serving copies on all other parties, by 30 September 1998.
  Québec-Téléphone and Télébec may file reply comments, serving copies on all parties, by 13 October 1998.
  Where a document is to be filed or served by a specific date, the document must be actually received, not merely mailed, by that date.
  In addition to hard copy filings, parties are encouraged to file with the Commission electronic versions of their submissions in accordance with the Commission's Interim Telecom Guidelines for the Handling of Machine-Readable Files, dated 30 November 1995. The Commission's Internet email address for electronically filed documents is public.telecom@crtc.gc.ca. Electronically filed documents can be accessed at the Commission's Internet site at www.crtc.gc.ca.
  This document is available in alternative format upon request.
  Laura M. Talbot-Allan
Secretary General
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