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Telecom Public Notice
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Ottawa, 20 March 1987
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Telecom Public Notice CRTC 1987-15
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BELL CANADA AND BRITISH COLUMBIA TELEPHONE COMPANY - RATE REBALANCING AND REVENUE SETTLEMENT ISSUES
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Reference: Bell Canada Tariff Notice 2270A
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A. Bell Canada
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On 3 February 1987, the Commission received two applications from Bell Canada (Bell) for tariff revisions providing for the implementation of a rate rebalancing plan. Noting that, in Interexchange Competition and Related Issues, Telecom Decision CRTC 85-19, 29 August 1985, the Commission had indicated its intention to review issues concerned with rate rebalancing, Bell submitted, under Tariff Notices 2269 and 2270, a specific rate rebalancing proposal for the Commission's consideration.
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Under Tariff Notice 2269, Bell proposed tariff revisions, to be effective 1 July 1987, that would generally reduce rates for TransCanada Message Toll Service (MTS) and non-intra company Wide Area Telephone Service (WATS) and increase rates for non-intra Canada 800 Service, and would increase monthly rates for a number of local services including business and residence individual, two-party, four party and trunk lines and Centrex access lines.
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Under Tariff Notice 2270, Bell proposed further tariff revisions, to be effective 1 January 1988, that would generally reduce rates for intra-company MTS, WATS and 800 Services and Canada-U.S. 800 Service. These revisions would also complete the rate rebalancing plan by increasing the monthly rates for a number of local services, and by increasing further those covered under Tariff Notice 2269.
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Bell stated that the rate rebalancing plan it has filed in this proceeding is intended as the first phase of a gradual, on-going process of rate rebalancing. Bell indicated that it has not developed detailed plans regarding future phases, but that the proceeding to consider the plan that it has filed should provide an appropriate vehicle for a more general discussion of rate rebalancing and related issues.
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The Commission has considered Bell's proposal to implement the toll and local rate revisions filed under Tariff Notice 2269 effective 1 July 1987, and has determined that it is not prepared to consider the proposed increases to local rates without a full public process including an oral public hearing. By letter dated 4 March 1987, the Commission notified Bell of this determination and indicated that it would nevertheless be prepared to consider the toll rate revisions in a separate written proceeding for implementation on an interim basis effective 1 July 1987.
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By letter dated 11 March 1987, Bell advised the Commission that, at this time, it is not prepared to implement the toll rate revisions without corresponding increases to local rates. Bell further indicated that it wished to withdraw Tariff Notice 2269. On 17 March 1987, Bell filed an application under Tariff Notice 2270A to replace those filed under Tariff Notices 2269 and 2270. The revised application integrates the tariff revisions filed under Tariff Notices 2269 and 2270 and updates the supporting information submitted with the original filings to reflect a new proposed effective date of 1 January 1988 for all tariff revisions.
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Bell said that it has estimated the cumulative financial effect of the toll and local rate revisions proposed under Tariff Notice 2270A at $-127.7 million and $+125.7 million, respectively, in 1988. It stated that, therefore, the net financial effect of the rate rebalancing plan has been estimated to be $-2.0 million in 1988.
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B. British Columbia Telephone Company
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The Commission has decided to join British Columbia Telephone Company (B.C. Tel) to the proceeding established by this public notice in order to consider any proposed tariff revisions the company may wish to file regarding its TransCanada toll rate schedules. By letter dated 3 March 1987, B.C. Tel has advised the Commission that it intends to file proposed tariff revisions which would generally reduce rates in its TransCanada toll rate schedules. B.C. Tel has further advised the Commission that it does not plan to file proposed tariff revisions related to its local rate schedule or to its remaining toll rate schedules at this time.
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C. Revenue Settlement Issues
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In addition to its consideration of proposed changes to Bell's and B.C. Tel's TransCanada toll rate schedules, the Commission has decided that it would be appropriate to review in this proceeding the issue of whether revenue from Canada-U.S. and Canada-Overseas traffic that is transmitted via the facilities of only one member of Telecom Canada should be excluded from Telecom Canada settlement revenues. This issue was raised in Bell Canada, British Columbia Telephone Company and Telesat Canada: Increases and Decreases in Rates for Services and Facilities Furnished on a Canada-Wide Basis by Members of the TransCanada Telephone System, and Related Matters, Telecom Decision CRTC 81-13, 7 July 1981, and again in Bell Canada - Review of Revenue Requirements for the Years 1985, 1986 and 1987, Telecom Decision CRTC 86-17, 14 October 1986.
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D. Extended Area Service
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In the covering letter accompanying the 3 February 1987 filing of its rate rebalancing plan, Bell referred to its proposal currently before the Commission to revise the criteria for establishing Extended Area Service (EAS) in its operating territory. In CRTC Telecom Public Notice 1986-34, dated 23 May 1986, the Commission indicated that it was deferring consideration of Bell's proposed revised EAS criteria pending receipt of a report by Bell on subscribers' acceptance of alternatives to EAS and consideration of Bell's anticipated proposals for restructuring its local and toll rates. In its 3 February 1987 letter, Bell expressed the view that it would be appropriate for the Commission to deal expeditiously with the company's EAS proposal separately from its rate rebalancing plan, and stated that it will be filing updated information regarding the former in the near future. Following receipt of this information, the Commission will determine how it intends to dispose of the company's EAS proposal.
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E. Procedure
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In light of the foregoing, the Commission announces the procedure set out below.
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1. B.C. Tel's application regarding revisions to its TransCanada toll rate schedules and any further information Bell or B.C. Tel may wish to provide regarding revenue settlement or other issues shall be filed with the Commission by 13 April 1987.
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2. Responses to Commission interrogatories of 20 March 1987 addressed to Bell and B.C. Tel shall be filed with the Commission by 21 April 1987.
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3. Bell's application and its responses to the Commission's interrogatories shall be made available for examination at Bell's business offices and may also be examined at the offices of the CRTC, Room 201, Central Building, Les Terrasses de la Chaudière, 1 Promenade du Portage, Hull, Québec, or Complex Guy-Favreau, East Tower, 200 Dorchester Blvd. West, 6th Floor, Montréal, Québec, or 700 West Georgia Street, Suite 1130, Vancouver, British Columbia. A copy of the Bell documentation may be obtained by any interested person upon request directed to Mr. E.E. Saunders, Q.C., c/o Mr. Peter J. Knowlton, Assistant General Counsel, Bell Canada, 25 Eddy Street, 4th Floor, Hull, Québec, J8Y 6N4.
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4. B.C. Tel's application and its responses to the Commission's interrogatories shall be made available for examination at B.C. Tel's business offices and may also be examined at the offices of the CRTC listed above. A copy of the B.C. Tel documentation may be obtained by any interested person upon request directed to Mr. K.D.A. Morrison, Secretary, British Columbia Telephone Company, 3777 Kingsway, Burnaby, British Columbia, V5H 3Z7.
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5. Persons wishing to participate in this proceeding (interveners) must notify the Commission of their intention to do so by writing to the Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, by 11 May 1987. The Commission will distribute a list of the applicants and interveners (parties) and their mailing addresses.
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6. Interveners may address interrogatories to Bell and B.C. Tel, filing a copy with the Commission, by 11 May 1987.
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7. Responses by Bell and B.C. Tel to the 11 May 1987 interrogatories must be filed with the Commission and served on the other parties by 8 June 1987.
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8. Requests by interveners 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 Bell and B.C. Tel by 18 June 1987.
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9. Answers by Bell and B.C. Tel to such requests shall be filed with the Commission, serving a copy on the intervener making the request, by 29 June 1987.
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10. Interveners who made such requests may reply by writing to the Commission, serving a copy on Bell and B.C. Tel, by 9 July 1987.
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11. The Commission will issue a written ruling regarding the adequacy of responses to the 11 May 1987 interrogatories and regarding confidentiality by 21 July 1987.
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12. Bell and B.C. Tel will be required to file with the Commission and serve on the other parties any further documents ordered pursuant to the ruling in paragraph 11 on or about 31 July 1987.
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13. Interveners intending to present evidence at the oral public hearing must file such evidence with the Commission, serving a copy on each of the other parties, by 21 August 1987.
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14. Parties may address interrogatories to any intervener filing evidence pursuant to paragraph 13, filing a copy with the Commission, by 4 September 1987.
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15. Responses by interveners to the 4 September 1987 interrogatories must be filed with the Commission and served on the other parties by 29 September 1987.
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16. Any person who wishes to submit comments in this proceeding and who is not a party to the proceeding may do so by writing to the Commission by 30 September 1987.
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17. Requests by parties for further responses to their 4 September 1987 interrogatories, specifying in each case why a further response is both relevant and necessary, and requests for public disclosure of 4 September 1987 interrogatory responses for which confidentiality has been claimed, setting out the reasons for disclosure, must be filed with the Commission and served on the intervener in question by 6 October 1987.
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18. The Commission will conduct a pre-hearing conference, scheduled for 14 October 1987, to settle all outstanding preliminary matters and issues in connection with this proceeding, including hearing oral answers and replies to requests for further responses and for public disclosure. The Commission will distribute an agenda in this regard to the parties prior to the commencement of the conference.
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19. The Commission will make a decision on matters arising out of the pre-hearing conference, including the order in which evidence will be presented and the order of questioning, by 20 October 1987.
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20. Any further documents ordered pursuant to the decision in paragraph 19 will be required to be filed with the Commission and served on the other parties on or about 27 October 1987.
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21. The oral public hearing is scheduled to commence 27 October 1987 in the Outaouais Room of the Conference Centre, Phase IV, Place du Portage, 140 Promenade du Portage, Hull, Quebec.
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22. It is contemplated that final argument will be in oral form.
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23. All documents referred to in this public notice are to be actually received by the dates mentioned, not merely mailed by those dates .
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Fernand Bélisle
Secretary General
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