ARCHIVED - Telecom - Commission Letter - 8740-L2-20414194 - Tariff Notice 31 - Residential and business primary exchange services

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Letter

Ottawa, 3 February 2005

File No.: 8740-L2-200414194

By Fax and E-mail
(418) 486-7627
tellambton@tellambton.net

Mr. André Carrier
President
La Compagnie de Téléphone de Lambton Inc.
233 College Street
Lambton, Quebec
G0M 1H0

 Dear Mr. Carrier:

 Re: Tariff Notice 31 - Residential and business primary exchange services

On 24 November 2004 , the Commission received an application from La Compagnie de Téléphone de Lambton Inc. (Lambton) proposing increases to residential and business primary exchange (PES) rates effective 1 January 2005 .   The company proposed to increase its rates as follows:

  • residential individual line, from $18.13 to $22.13; and
  • business individual line, from $33.13 to $34.26.

In Regulatory framework for the small incumbent telephone companies , Decision CRTC 2001-756, 14 December 2001 (Decision 2001-756), paragraph 30, the Commission determined that rate increases on any individual rate element, with respect to residential and business PES, would generally be proposed once in a 12-month period.   The Commission further indicated, in paragraph 60 of Decision 2001-756, that annual increases to the monthly rates for residential PES should be limited to $4.00 in order to mitigate rate shock.   With respect to business PES rates, in paragraph 28 of Decision 2001-756, the Commission indicated that rates would be permitted to increase by no more than inflation, on an annual basis.

Commission staff notes that Lambton received a residential PES rate increase of $2.00 in La Compagnie de Téléphone de Lambton Inc ., Telecom Order CRTC 2004-244, 22 July 2004 (Order 2004-244).   This increase, combined with the current proposal to increase the residential PES rates by an additional $4.00 within a 12-month period, would be contrary to the Commission's determinations in Decision 2001-756.   Commission staff also notes that Lambton already received its annual increase in business PES rates related to inflation in Order 2004-244.   Consequently, this file has been closed.

The Commission is open to the company filing an application, under the cover of a new tariff notice, that would address the concerns noted above.

Sincerely,

'Original signed by S. Hutton'

Scott Hutton
Director General,
Competition, Costing and Tariffs

cc:    C. Abbott, CRTC (819) 997-4509

Date modified: 2005-02-03

Date modified: