ARCHIVED -  Telecom Public Notice CRTC 99-23

Telecom Public Notice

Ottawa, 29 October 1999

Telecom Public Notice CRTC 99-23

Review of the Cost of Capital and Related Matters for the Independent Telephone Companies (Except Québec-Téléphone, Télébec ltée and Northwestel Inc.)

File No.: 8663-C12-01/99

Introduction

1.On 7 August 1996, the Commission issued 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, implementing regulatory frameworks for those independent telephone companies.

2.In Regulatory Framework - Prince Rupert City Telephones, Telecom Decision CRTC 98-5, 4 May 1998, Regulatory Framework for Abitibi-Consolidated and Cochrane Public Utilities Commission, Telecom Decision CRTC 98-13, 1 September 1998, and Regulatory Framework - Ontario Northland Transportation Commission, Telecom Decision CRTC 98-14, 1 September 1998, the Commission established the regulatory frameworks for those independent telephone companies.

3.In Review of Contribution Regime of Independent Telephone Companies in Ontario and Quebec, Telecom Decision CRTC 99-5, 21 April 1999, the Commission stated that it would initiate a proceeding to review the independents' capital structures and associated costs of debt and equity. The Commission stated that it intended to implement any changes to the capital structures and associated costs of debt and equity by 1 January 2001.

4.The Commission hereby initiates a proceeding to review the capital structures and associated costs of debt and equity for the independent telephone companies (the Independents) (except Québec-Téléphone, Télébec ltée and Northwestel Inc.).

Issues

5.The Commission seeks comments and also expects the Independents to provide evidence on the following:

i) the appropriate rate of return on common equity/average capital, taking into account the changes in the telecommunications industry and the financial markets that have occurred since the rates were initially set;

ii) the appropriate cost of debt for regulatory purposes; and

iii) the appropriate capital structure for regulatory purposes.

6.In order to reduce the regulatory burden and streamline the process, the Commission encourages the Independents to file, where possible, joint submissions.

Procedure

7.The Independents are made parties to this proceeding.

8.Other parties wishing to participate in this proceeding must notify the Commission of their intent by writing to the Secretary General, CRTC, Ottawa, Ontario, K1A 0N2, fax:  (819) 953-0795, by 15 December 1999. Parties are to indicate in their notice their e-mail addresses, if available. If parties do not have access to e-mail, 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 e-mail addresses, if available), identifying those parties who wish to receive disk versions.

9.The Commission will issue initial interrogatories to the Independents by 26 November 1999. Responses to these interrogatories are to be filed with the Commission and served on all interested parties by 31 March 2000.

10.The Independents are directed to file their submissions, including evidence, addressing the relevant matters as set out above, serving copies on all parties, by 31 March 2000.

11.Written requests by parties 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 7 April 2000.

12.Written responses from the Independents to requests for public disclosure must be filed with the Commission and served on the party or parties making the request by 14 April 2000.

13.The Commission will issue a determination with respect to requests for disclosure as soon as possible and intends to direct that any information to be provided pursuant to that determination shall be filed with the Commission and served on all parties to the proceeding by 28 April 2000.

14.Interrogatories may be addressed to the Independents. Any such interrogatories must be filed with the Commission and served on the Independents by 5 May 2000.

15.Responses to the interrogatories addressed pursuant to paragraph 14 are to be filed with the Commission and served on all parties by 26 May 2000.

16.Written requests for further responses to a party's own 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 2 June 2000.

17.Written responses by the Independents to requests for further responses to interrogatories and for public disclosure must be filed with the Commission and served on the party or parties making the request by 9 June 2000.

18.The Commission will issue a determination with respect to requests for disclosure and for further responses as soon as possible and intends to direct that any information to be provided pursuant to that determination be filed with the Commission and served on all parties to the proceeding by 23 June 2000.

19.Parties other than the Independents may file evidence or other submissions relevant to this proceeding. Parties intending to file such material should so inform the Commission and other parties by 2 June 2000, indicating the subject matter of their evidence. Any such evidence or other submissions must be filed with the Commission and served on all other parties by 7 July 2000. Should the Commission not receive any statement of intention to file material, the remaining filing dates in this proceeding will be modified.

20.Interrogatories may be addressed to the interveners who have filed material pursuant to paragraph 19. Any such interrogatories must be filed with the Commission and served on the intervener in question by 21 July 2000.

21.Responses to the interrogatories addressed pursuant to paragraph 20 are to be filed with the Commission and served on all parties by 4 August 2000.

22.All parties may file comments, serving copies on all other parties by 18 August 2000.

23.All parties may file replies to any comments serving copies on all other parties who filed comments by 25 August 2000.

24.Where a document is to be filed or served by a specific date, the document must be actually received, not merely sent, by that date.

25.The record of this proceeding may be examined, or will be made available promptly upon request, at the Commission's offices at the following addresses:

Central Building
Les Terrasses de la Chaudière
1 Promenade du Portage
Room G-5
Hull, Quebec K1A 0N2

Place Montréal Trust
1800 McGill College Avenue
Suite 1920
Montréal, Quebec H3A 3J6

CRTC Documentation Centre
55 St. Clair Avenue East
Suite 624
Toronto, Ontario M4T 1M2

530-580 Hornby Street
Vancouver, British Columbia
V6C 3B6

Kensington Building
275 Portage Avenue
Suite 1810
Winnipeg, Manitoba R3B 2B3

26.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 e-mail address for electronically filed documents is procedure.telecom@crtc.gc.ca. Electronically filed documents can be accessed at the Commission's Internet site at http://www.crtc.gc.ca.

Secretary General

This document is available in alternative format upon request and may also be viewed at the following Internet site: http://www.crtc.gc.ca.