ARCHIVED - Public Notice CRTC 2000-108

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Public Notice CRTC 2000-108

Ottawa, 21 July 2000
MTS Communications Inc. – Recovery of 2000 and 2001 income tax expense
Reference: 8661-C12-04/00
This public notice seeks input to determine the rate increases necessary to recover MTS Communications Inc.'s income tax expense for the years 2000 and 2001.

1.

By letter dated 1 May 2000, MTS Communications Inc. filed an application requesting local residential and business rate increases effective 1 July 2000 to recover some of its utility segment income tax expense for the year 2000.

2.

MTS noted in the application that a further request for rate increases would be necessary to recover income tax in a fully taxable year in 2001.

3.

In MTS Communications Inc. – Interim rate increases to recover income tax expense, Order CRTC 2000-677, dated 21 July 2000, the Commission approved, on an interim basis, a $3 basic local residential service rate increase as well as various rate increases to other services.

4.

In Order 2000-677, the Commission stated that the exact amount of utility segment income tax expense to be recovered will need to be reviewed in a more detailed process.

5.

The Commission hereby initiates a proceeding to determine MTS' utility segment income tax expense for the years 2000 and 2001 and the rates necessary to recover this expense.
Scope of proceeding

6.

The Commission will consider issues regarding;

a) MTS's utility segment financial situation;

b) the utility segment income tax expense to be recovered for the years 2000 and 2001;

c) the timing and amount of any rate increases;

d) the allocation of income tax recovery between capped and uncapped services as well as the capped sub-baskets;

e) the use of amounts in the deferral account; and

f) whether it is necessary to establish a new constraint on residential and single-line business rates for the purpose of recovering MTS's income tax expense.

7.

MTS is requested to file a submission and address the above noted issues.

8.

On 21 July 2000, under separate cover, MTS was requested to address interrogatories relating to the issues in this public notice.
Procedure

9.

MTS is made a party to this proceeding.

10.

Other parties wishing to participate in this proceeding must notify the Commission of their intention to do so by writing to the Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, fax: (819) 953-0795, by 21 August 2000. Parties are to indicate in the notice their email address, where 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.

11.

The Commission will issue, as soon as possible after the registration date, a complete list of parties and their mailing address (including their email address, if available), identifying those parties who wish to receive disk versions.

12.

Any person who wishes to file only written comments in this proceeding, without receiving copies of the various submissions, may do so by writing to the Commission at the address noted in paragraph 10 by 11 December 2000.

13.

MTS is directed to file its evidence or submissions in this proceeding regarding its proposal to recover its utility segment income tax for the years 2000 and 2001, including the issues noted in paragraph 6, serving copies on all parties, by 5 September 2000.

14.

MTS is directed to file responses to interrogatories, as noted in paragraph 8 above, serving copies on all parties, by 5 September 2000.

15.

MTS is directed to notify subscribers, through a billing insert, of the proposed local rate increases and to outline the procedures to be followed by subscribers who wish to comment and for company replies. The company is directed 1) to file the proposed text of the billing insert by 21 August 2000; and 2) to begin distributing the billing inserts by 5 September 2000.

16.

Requests by parties 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 MTS by 11 September 2000.

17.

Written responses to requests for public disclosure must be filed by MTS with the Commission and served on the party making the request by 18 September 2000.

18.

Requests for disclosure will be disposed of as soon as possible, and it is expected that the information to be provided pursuant to that disposition be filed with the Commission and served on all parties to the proceeding by 2 October 2000.

19.

Any party may address interrogatories to MTS. Any such interrogatories must be filed with the Commission and served on all parties by 12 October 2000.

20.

Responses to interrogatories addressed pursuant to paragraph 19 are to be filed with the Commission and served on all parties by 2 November 2000.

21.

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 must be filed with the Commission and served on MTS by 9 November 2000.

22.

Written responses to requests for further responses to interrogatories and for public disclosure must be filed by MTS with the Commission and served on the party making the request by 16 November 2000.

23.

Requests for disclosure and for further information will be dealt with as soon as possible, and it is expected that any information to be provided pursuant to that disposition be filed with the Commission and served on all parties to the proceeding by 30 November 2000.

24.

All parties may file comments, serving copies on all other parties, by 11 December 2000.

25.

All parties may file replies to any comments, serving copies on all parties who filed comments, by 22 December 2000.

26.

Where a document is to be filed or served by a specific date, the document must be actually received, not merely sent, by that date.

27.

Parties wishing to file an electronic version of their submissions can do so by email or on diskette. The Commission email address is procedure@crtc.gc.ca. 

28.

The electronic version should be in the HTML format. As an alternative, those making submissions may use "Microsoft Word" for text and "Microsoft Excel" for spreadsheets.

29.

Please number each paragraph of your submission. In addition, please enter the line ***End of document*** following the last paragraph. This will help the Commission verify that the document has not been damaged during transmission.

30.

The Commission will make submissions filed in electronic form available on its web site at www.crtc.gc.ca in the official language and format in which they are submitted. This will make it easier for members of the public to consult the documents.

31.

The Commission also encourages interested parties to monitor the public examination file (and/or the Commission's web site) for additional information that they may find useful when preparing their submissions.

32.

The record of this proceeding may be examined or will be made available promptly upon request at the following Commission offices during normal business hours:
Central building
Les Terrasses de la Chaudière
1 Promenade du Portage,
Room G-5
Hull, Quebec K1A 0N2
Tel: (819) 997-2429 – TDD: 994-0423
Fax: (819) 994-0218
Kensington Building
275 Portage Avenue
Suite 1810
Winnipeg, Manitoba R3B 2B3
Tel: (204) 983-6306 – TDD: 983-8274
Fax: (204) 983-6317
Cornwall Professional Building
2125 - 11th Avenue
Room 103
Regina, Saskatchewan S4P 3X3
Tel:(306) 780-3422
Fax:(306) 780-3319
Secretary General
This document is available in alternative format upon request and may also be examined at the following Internet site: http://www.crtc.gc.ca
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