ARCHIVED - Telecom Order CRTC 2002-230

Telecom Order CRTC 2002-230

Ottawa, 7 June 2002

Amtelecom Inc.

Reference: 8663-C12-05/01 and 8622-A2-01/02

1.

In a letter dated 29 January 2002, Amtelecom Inc. (Amtelecom) requested a formal ruling by the Commission on revision 7 of tariff page 6, section 100 of its General Tariff (tariff revision 7), issued by Amtelecom on 24 December 2001.

2.

Tariff revision 7 was issued by Amtelecom to implement rates, which it believed were contemplated by Regulatory framework for the small incumbent telephone companies, Decision CRTC 2001-756, 14 December 2001 (Decision 2001-756).

3.

In Decision 2001-756, at paragraph 61, the Commission allowed the small incumbent local exchange carriers (ILECs) to make monthly residential local rate increases to reach $22.75 per network access service (NAS), effective 1 January 2002, for those small ILECs whose residential local rates were between $18.75 and $22.74, at that time. The ILECs whose residential local rates were below $18.75 could only increase the monthly residential local rates by a maximum of $4.00 per year.

4.

Amtelecom sought a formal ruling and clarification of this decision after receiving a letter, dated 14 January 2002, from Commission staff indicating that tariff revision 7 was not in compliance with Decision 2001-756. Amtelecom put forth the position that, for the purpose of implementing rate increases pursuant to Decision 2001-756, its primary residential rate should be considered to be $19.85, which excludes the increase previously approved by the Commission for Amtelecom's service improvement plan (SIP). Further, Amtelecom stated that it would continue to apply tariff revision 7 as issued on 24 December 2001. Amtelecom stated that, upon receipt of a formal ruling, it would fully rebate any excess monies collected from its subscribers if it was ordered to do so.

5.

The Commission notes that, pursuant to Amtelecom Inc. - Service improvement plan, Order CRTC 2000-1097, 4 December 2000 (Order 2000-1097) Amtelecom's approved residential individual line rate is $25.10, with the exception of its Manitoulin exchange where the approved rate is $26.75. The Commission further notes that, pursuant to tariff revision 7, Amtelecom began charging its residential individual line customers, with the exception of those in its Manitoulin exchange, a monthly rate of $28.00, effective 1 January 2002.

6.

In the Commission's view, Decision 2001-756 does not provide the grounds to allow the exclusion of any rate increases related to SIPs for the purpose of determining whether or not a rate increase is permitted under that decision.

7.

Accordingly, the Commission considers that, for the purpose of Decision 2001-756, Amtelecom's approved rates for residential individual line service exceed $22.74, and finds that Amtelecom's tariff revision 7 does not comply with the rate changes allowed under that decision.

8.

The Commission therefore directs Amtelecom to:

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