ARCHIVED - Telecom Order CRTC 97-278
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Telecom Order |
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Ottawa, 27 February 1997
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Telecom Order CRTC 97-278
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IN THE MATTER OF an application filed by La Compagnie de Téléphone de St-Victor (St-Victor) dated 4 October 1996, for approval of the use of its deferral account balance at 31 December 1994 and excess earnings deferred in 1995.
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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 St-Victor has proposed to apply its deferral account balance of $294,000 at 31 December 1994 and excess earnings of $90,000 for the year ended 31 December 1995 to retained earnings;
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WHEREAS St-Victor indicated that it had invested amounts totalling $450,000 towards improving basic local service between the years 1991 and 1994;
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WHEREAS St-Victor projected investments of $315,000 towards improving basic local service in 1996;
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WHEREAS St-Victor indicated that it had a revenue settlement agreement with Québec-Téléphone and was not part of any contribution component in the CAT;
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WHEREAS the Commission is of the view that St-Victor's proposal would permit the company's shareholders to retain the excess revenues rather than benefiting subscribers or reducing the CAT;
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WHEREAS the Commission is of the view that St-Victor's proposal is not in the best interest of its subscribers nor long distance carriers and should be rejected for the reasons outlined above; and
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WHEREAS the Commission is of the view that St-Victor's deferral account balance at 31 December 1994 and excess earnings for the year ended 31 December 1995 should be applied to the assets acquired as outlined in its proposal, for the purpose of improving basic local service -
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IT IS HEREBY ORDERED THAT:
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1. The company's proposed use of its deferral account balance at 31 December 1994 and of its excess earnings for the year ended 31 December 1995 is denied.
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2. St-Victor apply its deferral account balance at 31 December 1994 and excess earnings for the year ended 31 December 1995 to the assets acquired for improving basic local service.
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Allan J. Darling
Secretary General |
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