ARCHIVED -  Telecom Order CRTC 99-637

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Telecom Order CRTC 99-637


Ottawa, 9 July 1999


On 31 March 1998, both Québec-Téléphone and Télébec ltée (Télébec) filed for approval Phase III/Split Rate Base (SRB) Manual update reports to reflect various directives specified in Implementation of Regulatory Framework for Québec-Téléphone and Télébec ltée, Telecom Decision CRTC 97-21, 18 December 1997 (Decision 97-21).


File Nos.: 8654-Q1-02/98 and 8654-T5-01/98


1. Decision 97-21 directed Québec-Téléphone and Télébec to file, among other things, updates to their respective Phase III/SRB Manuals to reflect changes brought about by the splitting of their rate bases, the assignment of broadband-related investment and expenses and changes to various other revenue, investment and expense studies due to the conversion to a SRB reporting format.


2. No parties submitted comments.


3. The Commission notes that all of the updates submitted by both companies constitute compliance filings in response to the directives included in Decision 97-21 and, with two exceptions, finds them reasonable and acceptable.


4. The exceptions involve the companies’ proposals related to (1) the tracking of costs and revenue streams that arise from the Competitive segment use of Utility-related facilities at tariffed rates needed to ensure the auditability of SRB results and (2) the treatment of broadband-related investment and expenses.


5. With respect to each company’s cost/revenue tracking proposals, the Commission considers that both companies have stated only what sources of information they would use but failed to explain how or why their respective proposals ensure auditability. A directive in this regard is set out below.


6. With respect to the proposed treatment of broadband-related investment and expense, the Commission notes that the matter is the subject of a separate proceeding involving the former Stentor-member companies.


7. In the Commission’s view, disposition of the treatment of broadband-related investment and expense for Québec-Téléphone and Télébec should await its findings as it relates to the former Stentor-member companies.


8. In light of the foregoing, the Commission approves all revisions filed by Québec-Téléphone and Télébec as being in compliance with Decision 97-21, except for the broadband-related and cost/revenue stream tracking proposals.


9. Québec-Téléphone and Télébec are directed to provide, within 30 days, a detailed explanation on how and why their respective proposals for the tracking of costs and revenue streams that arise from the Competitive segment use of Utility-related facilities at tariffed rates will ensure the auditability of their respective SRB results.


10. In accordance with established Phase III Manual update procedures, each company is directed to file with the Commission all Phase III Manual pages approved in this Order within 30 days.


11. Copies of the amended pages to Québec-Téléphone’s and Télébec’s Phase III/SRB Manuals are also to be served on interested parties within 30 days of the date of this Order.


Secretary General


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