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ARCHIVED - Order CRTC 2001-218

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Order CRTC 2001-218

 

Ottawa, 15 March 2001

 

Télébec ltée - Final 2000 contribution rate

 

Reference: Tariff Notice 254

 

The Commission approves Télébec's proposed final 2000 contribution rate with an adjustment to reflect the Commission's decision to review and vary Order CRTC 2000-531.

 

The Commission directs Télébec to:

 

  •  issue revised tariff pages within 15 days reflecting the approved final 2000 contribution rate;

 

  •  proceed with billing adjustments as expeditiously as possible; and

 

  •  file its proposed final 2001 contribution requirement and rate including all required supporting calculations and information by 30 April 2001.

1.

Télébec filed Tariff Notice 254 on 6 November 2000.

2.

Interested parties did not file comments regarding Télébec's proposed final 2000 contribution rate.

 

Contribution-eligible minutes

3.

Télébec estimated 694 million contribution-eligible minutes for the year 2000.

4.

The Commission finds Télébec's proposed contribution-eligible minutes to be reasonable for the purpose of calculating the final 2000 contribution rate.

 

Contribution requirement and rate

5.

Télébec filed its proposed final 2000 contribution rate using the approved mid-point rate of return on average common equity (ROE) of 11.4%.

6.

Télébec's proposed final 2000 contribution requirement was $26.1 million for a corresponding contribution rate of $0.0376. This rate represents a decrease from the final 1999 contribution rate of $0.0437.

7.

In Order CRTC 2001-216 dated 14 March 2001, the Commission decided to review and vary Order CRTC 2000-531 dated 9 June 2000, Télébec ltée - Rate restructuring. Among other things, the decision to review and vary required Télébec to place the funds generated by the rate restructuring in a deferral account. The Commission establishes the amount to be placed in a deferral account for the six months from 1 July to 31 December 2000 at $1.6 million.

8.

If tariff notice 239 leading to Order 2000-531 had been initially denied, or if Télébec had known about the impact of Order 2000-531, then Télébec would have, under the rules governing its contribution requirement, filed a higher proposed final 2000 contribution requirement than the amount it filed. The contribution requirement would have been higher by $1.6 million.

 

Required adjustment

9.

The Commission has therefore adjusted Télébec's proposed final 2000 contribution requirement to include the $1.6 million reduction in regulated revenue resulting from the above-noted review and vary order.

10.

Télébec's final contribution requirement is therefore set at $27.7 million for a corresponding contribution rate of $0.0399.

11.

The Commission notes that, with this adjustment, Télébec's approved 2000 contribution rate continues to respect the rate cap established in Order CRTC 2000-861 dated 19 September 2000 (Télébec 1999 final contribution rate approved).

 

Implementation

12.

In light of the foregoing, the Commission orders that Télébec:

 

a) issue revised tariff pages within 15 days of this order reflecting the approved contribution rate;

 

b) proceed with billing adjustments as expeditiously as possible;

 

c) file its proposed final 2001 contribution requirement and rate by 30 April 2001 including the projected:

 

  •  Phase III results;

  •  contribution-eligible minutes;

  • calculations;

  • impact of proposed local rate increases to be implemented in 2001(if any); and

  • number of network access services (NAS) identifying residential and business separately.

 

Secretary General

 

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

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