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Ottawa, 12 February 1993
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Telecom Public Notice CRTC 93-25
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BELL CANADA - APPLICATION FOR INTERIM RATES
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On 5 February 1993, Bell Canada (Bell) applied to the Commission for a general increase in local rates. In its application, the company is proposing, among other things, that interim increases in rates take effect on 1 April 1993. In particular, Bell is requesting interim increases of $1.40 a month for single-line residence service and $3.25 a month for single-line business subscribers. Bell expects that the interim rate increases would generate approximately $69 million of additional revenues, if in effect from 1 April 1993 to 31 August 1993.
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Bell forecasts that, with no rate increases, its regulated rate of return on average common equity (ROE) will be 10.8% in 1993. With approval of both the interim and the final rates proposed, Bell forecasts that it would earn a regulated ROE of 12.3% in 1993. Bell estimates that approval of its proposed final rates, without interim relief, would provide it with a regulated ROE of 11.7% in 1993.
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The test used by the Commission in considering interim rate increases was first enunciated in Bell Canada - General Increase in Rates, Telecom Decision CRTC 80-7, 25 April 1980, as follows:
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The Commission considers that, as a rule, general rate increases should only be granted following the full public process contemplated by Part III of its Telecommunications Rules of Procedure. In the absence of such a process, general rate increases should not in the Commission's view be granted, even on an interim basis, except where special circumstances can be demonstrated. Such circumstances would include lengthy delays in dealing with an application that could result in a serious deterioration in the financial condition of an applicant absent a general interim rate increase.
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The Commission has approved Directions on Procedure for Bell's application for a general rate increase, and a public hearing is scheduled to begin on 17 May 1993 to consider that application. The Commission hereby invites comment on Bell's application for interim rate increases. Interested persons are also invited to address whether, in the alternative, all tariffed rates approved prior to 1 April 1993 should be made interim effective that date.
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Procedure
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1. The full application is available for public inspection during normal business hours at the offices of the CRTC in the following locations:
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Room 201 Central Building
Les Terrasses de la Chaudière
1 Promenade du Portage
Hull, Quebec
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Complex Guy-Favreau
East Tower
200 René-Lévesque Blvd. West
Room 602
Montréal, Quebec
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The full application is also available for inspection at Bell's public offices in the following locations:
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Place Bell Canada
160 Elgin Street
Main Plaza
Ottawa, Ontario
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700 rue de la Gauchetière Ouest
Niveau A
Montréal, Quebec
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Bell Trinity Square
483 Bay Street
Floor 1, North Tower
Toronto, Ontario
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Part A of the application, consisting of the Request for Increase in Rates, is available for inspection at Bell's other public offices.
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2. A copy of Part A of the application can be obtained upon request directed to Bell. A copy of the full application, including Part B, consisting of Memoranda of Support (including Exhibit B-93-750 RR93, relating to the proposed interim rate increases in 1993), and Part C, consisting of responses to the initial set of Commission interrogatories, will be sent to anyone filing a notice of intention to participate in the main proceeding.
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3. If you wish to comment on Bell's application for interim rate increases, please write to Mr. Allan J. Darling, Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, by 8 March 1993 (fax: 819-953-0795). A copy of your letter should be sent to Mr. B.A. Courtois, Vice President, Law & Regulatory Affairs, Bell Canada, 105 Hôtel-de-Ville Street, 5th Floor, Hull, Quebec, J8X 4H7, also by 8 March 1993 (fax: 819-773-6186).
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4. Bell may file a reply, serving a copy on all those who filed comments, by 17 March 1993.
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5. Where a document is to be filed or served by a specific date, the document must be actually received, and not merely mailed, by that date.
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Allan J. Darling
Secretary General
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