ARCHIVED - Telecom Order CRTC 95-895
This page has been archived on the Web
Information identified as archived on the Web is for reference, research or recordkeeping purposes. Archived Decisions, Notices and Orders (DNOs) remain in effect except to the extent they are amended or reversed by the Commission, a court, or the government. The text of archived information has not been altered or updated after the date of archiving. Changes to DNOs are published as “dashes” to the original DNO number. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats by contacting us.
Telecom Order |
|
Ottawa, 11 August 1995
|
|
Telecom Order CRTC 95-895
|
|
IN THE MATTER OF applications filed by Téléphone Guèvremont Inc. (Guèvremont) under Tariff Notice 2 dated 28 December 1994 for Commission approval of tariff revisions for basic service, service charges, inside wiring, and the supply of the initial telephone set.
|
|
WHEREAS Telecom Order CRTC 95-186 dated 17 February 1995 ratified the decision of the Régie des Télécommunications du Québec setting a maximum rate of return on average common equity (ROE) of 13% for the independent companies in Quebec except Guèvremont, Télébec ltée and Québec-Téléphone;
|
|
WHEREAS Guèvremont indicated it is prepared to accept a maximum ROE of 13% on condition that it apply also to most Quebec telephone companies;
|
|
WHEREAS Guèvremont proposed tariff increases for basic service and service charges;
|
|
WHEREAS, without these tariff increases, the company forecasts an ROE of 16% for 1995;
|
|
WHEREAS the Commission considers a maximum ROE of 13% appropriate for Guèvremont;
|
|
WHEREAS, in light of the forecast ROE of 16%, the Commission considers the company's application for tariff increases unjustified;
|
|
WHEREAS the company indicated it is prepared to record any excess return in a reserve account;
|
|
WHEREAS a final decision on the procedures for using the reserve account will be made at the conclusion of deliberations in Regulatory Framework for the Independent Telephone Companies in Quebec and Ontario (except Ontario Northland Transportation Commission), Telecom Public Notice CRTC 95-15, 23 March 1995 (Public Notice 95-15);
|
|
WHEREAS the Commission feels the comments of Guèvremont on the use of the reserve account should be filed in the proceeding under Public Notice 95-15;
|
|
WHEREAS the company requested approval to withdraw two-party line service from the market;
|
|
WHEREAS the company submitted that this service was available in only one of the two exchanges it serves and few subscribers would be affected;
|
|
WHEREAS the Commission consents to the discontinuance of two-party line service availability for new installations, but feels that current subscribers to this service should be allowed to continue receiving it at the current tariff and subject to the current terms and conditions;
|
|
WHEREAS Guèvremont requested that it no longer be required to supply the first telephone set;
|
|
WHEREAS the Commission accepts this proposal by the company except for two-party line subscribers who have no alternative: they must continue to rent their telephone sets from the company;
|
|
WHEREAS Guèvremont proposed to transfer to subscribers the responsibility for installing and maintaining inside wiring;
|
|
WHEREAS the company submitted that the demand for wiring was almost nil, and, depending on the requirements of customers who want several connections, the inside wiring is more often installed by the customer, a contractor or an electrician;
|
|
WHEREAS Guèvremont proposed new tariffs for charges relating to on-site work which would include charges for site visits and materials and a twelve-month guarantee;
|
|
WHEREAS the Commission is of the view that responsibility for installing and maintaining inside wiring could be transferred to subscribers except in the case of two-party line subscribers and those with fixed telephone connections, which conditions are similar to those imposed upon other companies previously authorized by the Commission to make such a transfer -
|
|
IT IS HEREBY ORDERED THAT;
|
|
1. The tariff increases for basic service and service charges proposed in Tariff Notice 2 are denied.
|
|
2. The maximum rate of return on average common equity (ROE) in Guèvremont is set at 13%.
|
|
3. The company shall create a reserve account and shall record all excess returns in that reserve account.
|
|
4. Within the sixty (60) days following the date of this order, the company shall file revised tariff pages reflecting the decision of the Commission that two-party line service is to be discontinued for new installations but must continue to be available to existing subscribers at the current tariff and subject to the current terms and conditions;
|
|
5. Responsibility for installing and maintaining inside wiring is transferred to subscribers with effect from 1 May 1996, except subscribers to two-party line service and subscribers with fixed telephone connections.
|
|
6. Subscribers to two-party line service and subscribers with fixed telephone connections must continue under the existing regime for the installation and maintenance of inside wiring until two-party line subscribers can own their own telephones, and, as for subscribers with fixed telephone connections, until those connections are converted to jacks.
|
|
7. Guèvremont shall make available to its subscribers within the sixty (60) days following the date of this decision a wiring guide enabling subscribers to install inside wiring without danger, including the specifications for installing the wiring from the demarcation point to the telephone jacks, inclusive, including references to building codes and relevant industry standards.
|
|
8. Within the sixty (60) days following the date of this order, Guèvremont shall advise subscribers by letter of this decision by the Commission relating to inside wiring.
|
|
9. The letter should indicate clearly:
|
|
(a) that beginning on the date of the letter the company will make the wiring guide available to subscribers on request;
|
|
(b) that Guèvremont will install, extend, move or repair inside wiring at the tariff in effect on the date of this decision for subscribers who request such services before 1 May 1996, even if the work is carried out at a later date; and
|
|
(c) that beginning on 1 May 1996 subscribers will be responsible for inside wiring whether or not it was installed by Guèvremont, an owner or the subscriber, and that subscribers may do installations and maintenance themselves or have the work done by a contractor or Guèvremont.
|
|
10. The following tariffs for the installation and maintenance of inside wiring are approved with effect from 1 May 1996: $91. for the first hour, $18. for each additional period of 15 minutes; tariffs shall include charges for on-site visits and materials, as well as a twelve-month guarantee.
|
|
11. The current charges for on-site work shall remain in the company general tariff for subscribers to two-party line service and subscribers with fixed telephone connections.
|
|
12. Sixty (60) days before 1 May 1996, Guèvremont shall file with the Commission for approval general tariff pages reflecting the Commission decision relating to the transfer of responsibility for inside wiring.
|
|
Allan J. Darling
Secretary General |
|
|
- Date modified: