ARCHIVED - Telecom - Commission Letter - 8654-Q1-07/00 - Proposed Revisions to the1999 Phase III/Split Rate Base Manual of Québec-Téléphone

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Letter

Our File: 8654-Q1-07/00

Ottawa, 9 August 2000

BY TELECOPIER

Ms. Dorothée Biron
Director Corporate Affairs and Secretary
Québec-Téléphone
9 Jules-A.-Brillant Street
P.O. Box 903
Rimouski, Québec
G5L 7C9
Dear Ms. Biron:

Subject: Proposed Revisions to the 1999 Phase III/Split Rate Base Manual of Québec-Téléphone

The Commission has reviewed the company’s Phase III/Split Rate Base (SRB) Manual Update report filed on 28 March 2000 as amended on 8 May 2000.

The Commission considers that the proposed revisions to Québec-Téléphone’s Phase III/SRB Manual are primarily of a housekeeping nature, constitute improvements to the assignment process and maintain the requisite cost causality principles that are embodied in the company’s Phase III procedures.

The Commission notes that the company acknowledged its proposed treatment of software investment, maintenance and repair and publicity and promotion expense included incorrect assignments to the Common category. The company indicated that it would correct these errors in its next update submission. Although the proposal to eliminate the assignments to the Common category for these studies is acceptable, the Commission considers that, for audit purposes, these procedures should be documented in the 1999 version of Québec-Téléphone's Phase III/SRB Manual that will be used to produce the company’s 1999 Phase III/SRB results to be filed by 31 October 2000.

Québec-Téléphone is directed to file with the Commission and serve on interested parties amended Phase III Manual pages that reflect the approved updates, including the necessary corrections with respect to software investment, maintenance and repair expense as well as publicity and promotion expense, within 30 days of the date of this letter.

Yours sincerely,

Ursula Menke
Secretary General

c.c.: Bruce Richardson, CRTC, (819) 997-4678

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