ARCHIVED -  Telecom Public Notice CRTC 1990-1

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Telecom Public Notice

Ottawa, 4 January 1990
Telecom Public Notice CRTC 1990-1
NEWFOUNDLAND TELEPHONE COMPANY LIMITED - ANNUAL CONSTRUCTION PROGRAM REVIEW - 1990 CONSTRUCTION PROGRAM
The Commission considers that it is desirable at this time to establish an annual construction program review process for Newfoundland Telephone Company Limited (Newfoundland Tel).
Consistent with the review process initiated with other federally regulated carriers, the Commission proposes the following objectives for the annual review of Newfoundland Tel's construction program:
(1) to provide information that is useful in determining the appropriateness of the methods
employed by the company in developing its proposed construction program and in assigning
priorities for expenditures;
(2) to provide information on the steps taken by the company to ensure that proposed
expenditures are consistent with these methods;
(3) to afford an opportunity for interested parties to express their concerns with regard to the
proposed construction program itself;
(4) to provide a forum for an exchange of views among such interested parties, representatives
of the company and Commission staff; and
(5) to provide the Commission with sufficient information to assess the reasonableness of the
construction program.
As part of the first construction program review conducted by the Commission, the company will be required to make a presentation on its construction program management process. This presentation should include:
(1) an outline of the company's forecasting and planning process;
(2) the method of preparation of its five-year capital plan;
(3) the categorization of construction projects;
(4) the tracking of related capital expenditures;
(5) the monitoring of projected improvements in efficiency and quality of service;
(6) methods of measuring and forecasting utilization levels;
(7) the establishment of optimal utilization ranges for the various classes of telecommunications
plant facilities; and
(8) the methods recommended for the analysis and assessment of the construction program.
The Commission will conduct the annual reviews in three phases as follows:
(1) Phase One - Preliminary Meeting
The preliminary meeting, which may not be necessary every year, will be used to discuss follow-up items from any previous review, the construction program management process and any preliminary matters concerning the current review.
(2) Phase Two - Review Phase
The review phase will be devoted to a detailed review of the company's five-year capital plan and supporting documentation. The company will be expected to file with the Commission and interested parties to the process, its five-year capital plan and supporting documentation outlined herein. Interested parties will then have an opportunity to conduct a detailed review of the company's proposed construction program through an interrogatory process and a review meeting.
(3) Phase Three - Assessment
The Commission will invite interested parties who participated in the review phase to file comments on the reasonableness of the construction program. Upon receiving the company's reply to these comments, the Commission will review all of the information provided in the proceeding and issue its decision on the reasonableness of the construction program.
Whenever an application for a general rate increase is received prior to a scheduled review meeting, the Commission will expect the interveners and the company to comment on the reasonableness of the construction program in final argument during the rate proceeding. The decision of the Commission regarding the construction program will, in such cases, be issued as part of the decision on the application for a general increase in rates.
The Commission announces that it will conduct a review of the construction program of Newfoundland Tel for the year 1990. This review will be conducted in accordance with the procedure outlined below.
1. Any party wishing to participate in the review must file a notice of intention to participate with
the Commission, and serve a copy on the company, by 26 January 1990.
2. The company must file with the Commission, by 12 January 1990, the 1990 View of its
construction program and its responses to the Commission's initial set of interrogatories (300
series). The company is directed to serve a copy of the above material on all parties who have
filed a notice of intention to participate (interested parties) forthwith upon receipt of such
notice.
3. Interested parties may address interrogatories to Newfoundland Tel. Any such interrogatories
must be filed with the Commission and served on the company by 9 February 1990.
4. The company's written responses to these interrogatories and a copy of the presentation on its
construction program management process must be filed with the Commission and served on
all interested parties by 2 March 1990.
5. Requests by interested 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 company by 8 March 1990.
6. The company's written responses to requests for further responses to interrogatories and
requests for public disclosure of information must be filed with the Commission, and served on
all interested parties by 14 March 1990.
7. 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.
8. A preliminary meeting will be convened for the purpose of reviewing the company's
construction program management process and any preliminary matters pertaining to this
proceeding. The preliminary meeting is scheduled to commence on 20 March 1990 at 9:30
a.m. at the Radisson Plaza Hotel, 120 New Gower St., St. John's.
9. The review meeting will be held immediately following the preliminary meeting in the same
location as noted above.
10. The addresses to be used in connection with the construction program are:
Mr. Fernand Bélisle
Secretary General
CRTC
Ottawa, Ontario
K1A 0N2
and
General Manager
Rates and Regulatory Matters
Newfoundland Telephone Company Limited
P.O. Box 2110
St. John's, Newfoundland
A1C 5H6
Any person wishing to obtain additional information regarding the Newfoundland Tel Construction Program Review may contact Mr. Murray Lennox of the Commission staff at (819) 994-4716.
Fernand Bélisle
Secretary General

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