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Telecom Public Notice
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Ottawa, 7 August 1984
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Telecom Public Notice CRTC 1984-39
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TELESAT CANADA - RATE INCREASES FOR 6/4 GHZ SPACE SERVICES
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Reference: Tariff Notice 69
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The Commission has received an application from Telesat Canada (Telesat, the Company), dated 30 May 1984, for approval of revisions to its General Tariff CRTC 8001 covering increases in rates for its 6/4 GHz space services of 6% effective 1 September 1984, 7.46% effective 1 July 1985 and 7.46% effective 1 January of each of 1986 to 1990 inclusive. In its application, Telesat stated that, based on its May 1984 utilization forecast, approval of the proposed rate increases will result in a return on equity of 15.5% for the 6/4 GHz space services over the rating period.
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In support of its application, Telesat has submitted an economic evaluation study.
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Telesat stated that the proposed 6/4 GHz rates include in-orbit life insurance costs of $7.1 million for operational Anik D satellites covering the period 1 September 1984 to 31 December 1990. Pursuant to Telesat Canada - Final Rates for 14/12 GHz Satellite Service and General Review of Revenue Requirements, Telecom Decision CRTC 84-9, 20 February 1984, the Commission has also received an application from Telesat under Tariff Notice 68, dated 30 May 1984, for approval of increases in 14/12 GHz rates to cover expenses associated with in-orbit life insurance for 14/12 GHz Anik C satellites. The Commission intends to deal with the question of the costs appropriately attributable to in-orbit satellite life insurance in the context of this filing and to apply its findings to both the 6/4 and 14/12 GHz service.
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The Commission has requested Telesat to provide certain additional information on or before 4 September 1984.
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The application file may be examined at Telesat's business offices at 333 River Road, Ottawa, Ontario or at the offices of the CRTC, Room 561, Central Building, Les Terrasses de la Chaudière, 1 Promenade du Portage, Hull, Quebec. A copy of the application and Telesat's responses to the Commission's requests for additional information may be obtained by any interested party upon request directed to the Company at the address shown below.
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If you wish to comment on the application, please write to Mr. Fernand Bélisle, Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, by 4 October 1984. A copy of your letter should be sent to Mr. T. Moss, Director, Regulatory Matters, Telesat Canada, 333 River Road, 14th floor, Tower "A", Ottawa, Ontario, K1L 8B9.
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The Commission has granted interim approval to rate increases of 4% for Telesat's 6/4 GHz space services to be effective on 1 September 1984 and will determine final rates following its consideration of comments in response to this public notice and its conclusion regarding the question of in-orbit life insurance for satellites.
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Fernand Bélisle
Secretary General
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