ARCHIVED -  Telecom Public Notice CRTC 95-52

Telecom Public Notice

Ottawa, 8 December 1995

Telecom Public Notice CRTC 95-52

1996 CONTRIBUTION CHARGES

I BACKGROUND

In Implementation of Regulatory Framework - Splitting of the Rate Base and Related Issues, Telecom Decision CRTC 95-21, 31 October 1995 (Decision 95-21), the Commission, among other things, set out a program of rate rebalancing, implemented the splitting of the rate bases for AGT Limited (AGT), BC TEL, Bell Canada (Bell), The Island Telephone Company Limited (Island Tel), Manitoba Telephone System (Manitoba Tel), Maritime Tel & Tel Limited (MT&T), The New Brunswick Telephone Company, Limited (NBTel) and Newfoundland Telephone Company Limited (Newfoundland Tel) (the telephone companies) and established the contribution requirement for the purpose of setting final 1995 contribution rates for the telephone companies, with the exception of AGT. The final 1995 contribution rate for AGT was determined in Contribution Regime in Alberta, Telecom Decision CRTC 95-22, 27 November 1995 (Decision 95-22). As a result, the contribution requirement for Alberta will be derived by combining the AGT and the ED TEL Communications Inc. (ED TEL) contribution requirements.

In Revisions to the Mechanism to Recover Contribution Charges, Telecom Decision CRTC 95-23, 4 December 1995 (Decision 95-23), the Commission confirmed that it is appropriate to change the present per-trunk based contribution charge for trunk-side access to one based on the actual minutes of usage, effective 1 June 1996. The Commission also determined that, coincident with the implementation of a per-minute mechanism, the contribution rates for trunk-side access should be de-averaged by peak and off-peak periods.

The Commission hereby initiates a proceeding to consider contribution charges for 1996, taking into account the directives contained in Decisions 95-21, 95-22 and
95-23, noted above.

In Implementation of Regulatory Framework - Split Rate Base, 1995 Contribution Charges, Broadband Initiatives and Related Matters, Telecom Public Notice CRTC 94-52, 1 November 1994, which established the proceeding leading to Decision 95-21, the Commission stated that the determination of the 1995 contribution charge would be confined to an examination of contribution estimates and supporting information, as was the case in the 1994 contribution charge proceeding. The Commission also stated that issues such as reductions of contribution discounts and the Direct Access Line (DAL) surcharge were beyond the scope of that proceeding. Accordingly, consistent with the above, the 1996 contribution charge proceeding will be limited to an examination of contribution estimates and supporting information.

II 1996 INTERIM CONTRIBUTION CHARGES

In Decision 95-21, the Commission considered it appropriate that contribution charges be reduced coincident with local rate increases to reflect the rate rebalancing initiative. Accordingly, the telephone companies, with the exception of Newfoundland Tel, were directed to file, with their annual rate rebalancing proposals, a new proposed Carrier Access Tariff (CAT) reflecting a reduced contribution charge. The Commission stated that the calculation of the charge is to be conducted in the same manner as described at page 131 of Review of Regulatory Framework, Telecom Decision CRTC 94-19, 16 September 1994 (Decision 94-19). Therefore, as it relates to the 1996 contribution charges proceeding, the telephone companies, with the exception of Newfoundland Tel, have filed on 1 December 1995, coincident with their 1996 local rate increase proposals, their interim contribution charges for 1996.

The Commission intends to give expeditious interim approval to the revised contribution charges that are reflected in the CAT, effective 1 January 1996. However, the Commission considers it appropriate that the final 1995 contribution rates approved in Decisions 95-21 (as amended by the Commission's letter dated 29 November 1995 to BC TEL) and 95-22 be made interim, effective 1 January 1996, pending approval of the 1996 interim contribution rates filed 1 December 1995 pursuant to Decision 95-21.

In Decision 95-21, the Commission also indicated that the implementation date for the introduction of rate rebalancing for MT&T would be dependent on the Commission's final determination with respect to MT&T's request for a general rate increase. In light of this, the Commission will issue further instructions related to MT&T's 1996 contribution charges. In the circumstances, the Commission considers that the 1995 final contribution charges for MT&T are appropriate for use in 1996, on an interim basis, until a decision in the 1996 contribution charge proceeding is issued.

With respect to the contribution charge for the province of Alberta, AGT is to file interim 1996 rates based on the 1995 final rates established in Decision 95-22, reduced, as contemplated in Decision 95-21, to reflect the rate rebalancing initiative. The ED TEL component of the 1996 interim contribution rate for Alberta will be set at the 1995 final contribution requirement level, as established in Decision 95-22.

III 1996 CONTRIBUTION REQUIREMENTS

A. De-averaged Per-Minute Contribution Mechanism

Pursuant to Decision 95-23, the telephone companies are required to file proposed contribution rates for the period 1 June to 31 December 1996 based on the de-averaged per-minute mechanism for trunk-side access detailed in that Decision.

The Commission notes that ED TEL was not a party to the proceeding leading to Decision 95-23 and is accordingly not subject to that Decision. The Commission also notes that ED TEL currently employs an average per-minute contribution mechanism. ED TEL is to provide, with the 21 February 1996 filing requirement noted below, comment as to why the de-averaged per-minute contribution mechanism established in Decision 95-23 should not apply to the ED TEL component of the 1996 province-wide contribution rate for Alberta.

B. Demand Information

The telephone companies and ED TEL are to file, by 3 January 1996, historical data regarding conversation minutes, in total and disagregated by originating and terminating minutes, by peak and off-peak periods for each of the first three quarters of 1995 and for each quarter of 1994. The Commission directs ACC Long Distance Ltd. (ACC), CAM-NET Communications Inc. (Cam-Net), fONOROLA Inc. (fONOROLA), Sprint Canada Inc. (Sprint), Unitel Communications Inc. (Unitel), and Westel Telecommunications Ltd. (Westel) (the entrants) to file, by the same date and for the same quarters, historical data regarding their respective total originating and terminating conversation minutes for peak and off-peak periods for each telephone company's operating territory. The Commission also directs the entrants to file, by 21 February 1996, non-stimulated conversation minute forecast data, structured in the same manner as the historical data referred to above revised, as contemplated by Decision 95-23, to include peak and off-peak periods.

The telephone companies and ED TEL are directed to file, by 14 February 1996, proposed 1996 contribution rates with an effective date of 1 January 1996. These proposed contribution charges are to be based on the company's 1996 forecast contribution requirement, reflecting the companies' 1996 Budget Views; 1996 conversation minute forecasts; the rate rebalancing initiative set out in Decision 95-21; the de-averaged regime to take effect 1 June 1996, as directed in Decision 95-23; and, for AGT and ED TEL, the province-wide methodology set out in Decision 95-22.

By letter dated 8 December 1995, the Commission has addressed interrogatories to the telephone companies, ED TEL and the entrants, seeking information regarding issues related to this Public Notice.

IV PROCEDURE

1. AGT, BC TEL, Bell, Island Tel, Manitoba Tel, MT&T, NBTel, and Newfoundland Tel (the telephone companies), ACC, Cam-Net, fONOROLA, Sprint, Unitel and Westel (the entrants), and ED TEL are made parties to this proceeding.

2. Other persons wishing to participate in this proceeding must notify the Commission of their intention to do so by writing to Mr. Allan J. Darling, Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, fax: 819-953-0795, by 18 December 1995. The Commission will issue a complete list of parties and their mailing addresses.

3. As described in Part III of this Public Notice, the telephone companies, ED TEL and the entrants are to file historical demand data, serving copies on all parties, by 3 January 1996.

4. Parties may file requests with the Commission for public disclosure of information for which confidentiality has been claimed, setting out the reasons for disclosure, by 10 January 1996, serving the party asserting confidentiality.

5. Replies to requests for public disclosure are to be filed with the Commission and served on the party making the request by 17 January 1996.

6. The Commission will issue a determination with respect to any requests filed pursuant to paragraph 4 as soon as possible. The Commission intends to direct that any information to be released pursuant to its determination be placed on the public record and served on all parties by 31 January 1996.

7. Those parties to whom the Commission has addressed interrogatories, as noted in Part III, are directed to file responses, serving copies on all parties, by 21 February 1996.

8. By 21 February 1996, the telephone companies and ED TEL are directed to file proposed tariff pages setting out estimated contribution charges for 1996. Underlying calculations are to be provided in the format shown in Attachment C to Decision 95-21. The telephone companies are also directed to file, by 21 February 1996, (i) proposed contribution rates for 1996 which reflect the introduction of a de-averaged per-minute mechanism, with an effective date of 1 June 1996, and (ii) forecasted 1996 split rate base results. By the same date, ED TEL is directed to file the required equivalent Phase III information as set out in Decision 95-22. At the same time that ED TEL files the calculation of its average per-minute contribution charge, it is to file the contribution rates assuming the de-averaged per-minute contribution mechanism to be effective 1 June 1996.

9. Any party may address interrogatories to any party who files information pursuant to paragraphs 3 or 8, above. Any such interrogatories must be filed with the Commission and served on the party or parties in question by 13 March 1996.

10. Responses to interrogatories addresses pursuant to paragraph 9 are to be filed with the Commission and served on all parties by 11 April 1996.

11. Requests by 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 party or parties in question by 18 April 1996.

12. Written responses to requests for further responses to interrogatories and for public disclosure must be filed with the Commission and served on the party making the request by 25 April 1996.

13. The Commission will make a determination with respect to requests for disclosure and for further responses as soon as possible. The Commission intends to direct that any information to be provided pursuant to that determination be filed with the Commission and served on all parties by 10 May 1996.

14. All parties may file comments with the Commission on any matter raised in this proceeding, serving copies on all other parties, by 24 May 1996.

15. The telephone companies, ED TEL and entrants may file replies to any comments, serving copies on all parties, by 31 May 1996.

16. 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

Allan J. Darling
Secretary General

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