ARCHIVED - Telecom Order CRTC 97-277
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Ottawa, 27 February 1997
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Telecom Order CRTC 97-277
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Reference: 96-2421
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WHEREAS deferral accounts for excess earnings were established for the Quebec independents while under the jurisdiction of the Régie des télécommunications du Québec;
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WHEREAS in Regulatory Framework for the Independent Telephone Companies in Quebec and Ontario (Except Ontario Northland Transportation Commission, Québec-Téléphone and Télébec ltée), Telecom Decision CRTC 96-6, 7 August 1996, the Commission directed that each company showing a balance in its deferral account accumulated to 31 December 1994 and any excess earnings deferred in 1995, submit a plan for the disposition of the funds by 7 October 1996;
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WHEREAS the Commission expressed the preliminary view that it would be prepared to approve plans that would apply the funds accumulated to 31 December 1994 to the improvement of basic local service;
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WHEREAS owing to the existence of a contribution component in the Carrier Access Tariff (CAT) in 1995, the Commission favoured a pro-rata refund of excess earnings in that year to long distance carriers;
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WHEREAS Valcourt proposed to apply its deferral account balance of $72,719 at 31 December 1994 to capital assets acquired to improve basic local service;
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WHEREAS St-Liboire de Bagot proposed to apply its deferral account balance at 31 December 1994 to any loss resulting from the disposal of the capital assets replaced in connection with the improvement of basic local service, to a maximum of $22,745, and the remainder of $98,555 to reducing the undepreciated cost of the assets acquired for the improvement of basic local service;
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WHEREAS Milot proposed to apply its deferral account balance of $236,428 at 31 December 1994 to assets acquired to improve basic local service;
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WHEREAS St-Ephrem proposed to apply the accumulated deferral account of $236,571 at 31 December 1994 and excess earnings of $17,711 deferred in 1995 to assets acquired for the purpose of improving basic local service;
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WHEREAS Warwick proposed to apply its deferral account balance of $261,911 at 31 December 1994 to the capitalized value of switching equipment;
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WHEREAS the Commission evaluated the above proposals for each of these companies and found them to be reasonable and in the best interest of their subscribers;
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WHEREAS Lambton proposed three different options to apply its deferral account balance of $104,259 at 31 December 1993: as a first option, it proposed to amortize the deferral account to the company's revenues; as a second option, to the cost of fibre-optics capital purchases in 1996; and, as a third option, to retained earnings;
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WHEREAS Lambton proposed to apply its excess earnings of $64,518 and $107,869 for the years ended 31 December 1994 and 31 December 1995 respectively, to the reimbursement to Bell Canada under a revenue settlement agreement signed on 28 March 1995;
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WHEREAS Bell Canada was the only long distance carrier in Lambton's territory for the years 1994 and 1995;
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WHEREAS the Commission is of the view that the second option proposed by Lambton for the disposition of its deferral account balance at 31 December 1993 is the most reasonable and in the best interest of its subscribers; and
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WHEREAS the Commission is of the view that the proposal put forward by Lambton to dispose of its excess earnings for the years ended 31 December 1994 and 31 December 1995 is reasonable -
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IT IS HEREBY ORDERED THAT:
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1. Lambton's second option of applying its deferral account balance at 31 December 1993 to the cost of fibre-optics capital purchases in 1996 is approved.
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2. The proposals of Valcourt, St-Ephrem, Warwick, Milot and St-Liboire de Bagot for the disposition of their respective deferral account balances at 31 December 1994 are approved.
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3. Lambton's proposal to dispose its excess earnings for the year ending 31 December 1994 is approved.
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4. The proposals of St-Ephrem and Lambton to dispose of their excess earnings for the year ending 31 December 1995 are approved.
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Allan J. Darling
Secretary General |
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