ARCHIVED -  Telecom Public Notice CRTC 98-22

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Telecom Public Notice CRTC 98-22

  Ottawa, 2 September 1998


  File No.: 8654-O4-02/98
  1. In Regulatory Framework - Ontario Northland Transportation Commission, Telecom Decision CRTC 98-14, 1 September 1998 (Decision 98-14), the Commission established a regulatory framework for the telecommunications operating division of Ontario Northland Transportation Commission (the telecommunications operating division of which is now known as O.N. Tel) (O.N. Tel).
  2. In Decision 98-14, the Commission agreed in principle with O.N. Tel's proposal for splitting the rate base into Competitive and Utility segments. The Commission determined that O.N. Tel's rate base would be split, effective 1 January 2000, into Competitive and Utility segments and that the Utility segment would be regulated on a rate base/rate of return basis. Further, the Commission determined that, concurrent with the splitting of the rate base, O.N. Tel's Utility segment rate of return (ROR) range is to be 10.375% to 12.375% with a midpoint of 11.375% and that O.N. Tel is to deduct 50 basis points from the midpoint of the ROR range in calculating its Carrier Access Tariff (CAT).
  3. In Decision 98-14, however, the Commission noted that, prior to splitting the rate base, it was necessary for O.N. Tel to have a costing methodology approved by the Commission. The Commission noted that, after the close of the record of that proceeding, O.N. Tel filed for approval, on 25 November 1997, its proposed Phase III Costing, CAT and Split Rate Base Procedures Manual (Phase III/SRB Manual). O.N. Tel, however, did not provide copies to interested parties. The Commission stated that it would initiate a proceeding to consider, among other things, O.N. Tel's proposed Phase III/SRB Manual.
  4. The Commission is therefore initiating a proceeding to consider, among other things, O.N. Tel's proposed Phase III/SRB Manual. In addition to the Phase III/SRB procedures, the Commission will determine the specific methodology to calculate the company's contribution requirement and will take into account its determination in Decision 98-14 that the ROR to be used to calculate O.N. Tel's CAT be 50 basis points below the midpoint of its ROR range.
  5. The Commission invites comments on O.N. Tel's proposed Phase III/SRB Manual and on the method to calculate O.N. Tel's contribution requirement as noted above. As well, the Commission invites proposals for appropriate audit procedures for Phase III/SRB results.
  6. The Commission plans to address interrogatories to O.N. Tel by 9 September 1998.
  7. O.N. Tel is made a party to this proceeding.
  8. Other parties wishing to participate fully in this proceeding must notify the Commission of their intention to do so by writing to Mrs. Laura M. Talbot-Allan, Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, fax: 819-953-0795, by 9 September 1998. Parties are to indicate in the notice their Internet email address, if available. If parties do not have access to the Internet, they are to indicate in their notice whether they wish to receive disk versions of hard copy filings. The Commission will issue a complete list of parties and their mailing addresses (including Internet email addresses if available), identifying those parties who wish to receive disk versions.
  9. O.N. Tel is to serve a copy of its proposed Phase III Manual on interested parties by 22 September 1998.
  10. O.N. Tel is directed to file response to Commission interrogatories by 5 October 1998, serving copies on interested parties.
  11. Any party may address interrogatories to O.N. Tel. Any such interrogatories must be filed with the Commission and served on O.N. Tel by 19 October 1998.
  12. Responses to interrogatories addressed pursuant to paragraph 11 are to be filed with the Commission and served on all other parties by 12 November 1998.
  13. Interested parties may file comments with the Commission by 2 December 1998, serving copies on all other parties.
  14. O.N. Tel may file reply comments, by 14 December 1998, serving copies on all parties.
  15. 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.
  16. In addition to hard copy filings, parties are encouraged to file with the Commission electronic versions of their submissions in accordance with the Commission's Interim Telecom Guidelines for the Handling of Machine-Readable Files, dated 30 November 1995. The Commission's Internet email address for electronically filed documents is Electronically filed documents can be accessed at the Commission's Internet site at
  17. The record of this proceeding may be examined at the Commission's offices in the following locations:
  Central Building
Les Terrasses de la Chaudière 1 Promenade du Portage
Room 201
Hull, Quebec
K1A 0N2
Tel.: (819) 997-2429
TDD: 994-0423
Fax: (819) 994-0218
  55 St. Clair Avenue East
Suite 624
Toronto, Ontario
Tel. : 1-877-249-2782 (Toll Free)
  This document is available in alternative format upon request.
  Laura M. Talbot-Allan
Secretary General
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