ARCHIVED - Telecom Decision CRTC 2004-82

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Telecom Decision CRTC 2004-82

  Ottawa, 13 December 2004

Northwestel Inc. - Follow-up to Decisions 2004-64 and 2004-64-1 - Repayment of 2003 excess supplemental funding and disposition of the 2003 revenue deferral account balance

  Reference: 8695-C12-200307414
  In this Decision, the Commission approves Northwestel Inc.'s proposal and directs it to remit $3.741 million to the Central Fund Administrator by 15 December 2004 in order to repay the 2003 excess supplemental funding and to dispose of the revenue deferral account balance for 2003.


In Long-distance competition and improved service for Northwestel customers, Decision CRTC 2000-746, 30 November 2000, the Commission directed Northwestel to accumulate, beginning in 2001, the difference between the forecast and actual toll, settlement, and carrier access tariff (CAT) revenues in a deferral account. The Commission also directed that any amount accumulated in the deferral account, in any given year, would be disposed of in conjunction with the determination of any supplemental funding requirement for the following year.


In Northwestel Inc. - Supplemental funding requirement for 2003, Telecom Decision CRTC 2004-64, 30 September 2004, as amended by Telecom Decision CRTC 2004-64-1 dated 18 October 2004 (Decision 2004-64), the Commission determined that the company had received $3.8 million more in supplemental funding from the Central Fund Administrator (CFA) than it was entitled to have received in 2003.


In Decision 2004-64, Northwestel was directed to submit, for Commission approval, a proposal to remit to the CFA the excess funding of $3.8 million by 20 October 2004. Parties to the proceeding were provided with the opportunity to provide comments by 1 November 2004, and Northwestel was provided with the opportunity to provide reply comments by 9 November 2004.


In Decision 2004-64, the Commission also directed Northwestel to file an application for the disposition of the 2003 balance in the revenue deferral account within 30 days of the issuance of that Decision.


On 20 October 2004, Northwestel submitted its proposal for the repayment of the excess 2003 supplemental funding and the disposition of the balance in the revenue deferral account. Northwestel proposed to remit to the CFA the $3.8 million excess funding that it had received for 2003 as a lump-sum payment on 15 December 2004. In addition, Northwestel noted that the actual toll, settlement, and CAT revenues for 2003 were $59,000 lower than the revenues forecast for these services that had been used in the determination of the 2003 supplemental funding amount. Northwestel proposed to reduce the lump-sum excess supplemental funding payment to the CFA by the $59,000 shortfall in the toll, settlement, and CAT revenue deferral account. Northwestel indicated that netting out the supplemental funding overpayment and the shortfall in the revenue deferral account would result in a one-time, lump-sum payment to the CFA of $3.741 million.


The Commission received no comments on Northwestel's proposal.


The Commission considers that the company's proposal is appropriate, as it would remit to the CFA the excess funding for 2003, and dispose of the shortfall in the revenue deferral account, in a simple, effective, and timely manner. Therefore, the Commission approves Northwestel's proposal and directs the company to remit $3.741 million to the CFA by 15 December 2004.
  Secretary General
  This document is available in alternative format upon request and may also be examined at the following Internet site:

Date Modified: 2004-12-13

Date modified: