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ARCHIVED - Telecom Commission Letter - 8740-K1-200605123

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Letter

Ottawa, 2 May 2006

File No. 8740-K1-200605123

BY EMAIL

Mr. Stace Gander
Sales and Marketing Manager
Kenora Municipal Telephone Service
110 Matheson Street South
Kenora , Ontario
P9N 1T8

sgander@kmts.biz

Dear Mr. Gander:

Re:   Kenora Municipal Telephone Service Tariff Notice 40 - Basket 1 & 2 Increases, Unused Rate Increase Credit Submission, Submission of Exogenous Factors, Resale of Local Competition                                                                    

On 28 April 2006 , the Commission received an application by Kenora Municipal Telephone Service (KMTS) proposing, among other things, to increase primary exchange service (PES) rates for residential and business customers.

The company is requested to provide its response to the attached questions.   To allow the Commission to deal expeditiously with the application, response is requested by 18 May 2006 .

The Commission expects to render a decision on the application for the proposed rate increases within 45 days of receipt of the tariff notice.

Yours sincerely,

'Original signed by S. Bédard '

Suzanne Bédard
Senior Manager, Tariffs
Telecommunications

cc:   Nancy Webster Cole, CRTC (819) 934-6377
       Michel Murray, CRTC (819) 997-9300

Attach.

ATTACHMENT

Kenora Municipal Telephone Notice Tariff Notice 40 Interrogatories

1)   In its application, KMTS provided a schedule of unused rate increase credits for business PES pursuant to Revised regulatory framework for the small incumbent local exchange carriers, Telecom Decision CRTC 2006-14, 29 March 2006 , (Decision 2006-14).   The table indicates exogenous factors of $175,412.00 in the year 2005 and $170,656.00 in the year 2006 for the allowable recovery of losses in excess of 35% pursuant to paragraph 93 of Direct toll and network access costing methodology for small incumbent local exchange carriers , 31 January 2005 , Telecom Decision 2005-3 (Decision 2005-3).   Provide the following:

a)   The updated total revenue loss in excess of 35% pursuant paragraph 145 of Decision 2006-14;

b)   The revenue loss recovered by the rate increase approved in Telecom Order CRTC 2005-171, 10 May 2005 ;

c)   The amount of the proposed business PES monthly rate increase that is attributed to the Decision 2005-3 exogenous factor;

d)  The revenue loss KMTS intends to recover with the proposed business PES monthly rate increase;

e)  Supporting calculations.

2)     In its application, KMTS provided, in attachment 1, its total Central Fund Administrator (CFA) fees for 2005.   KMTS proposes to increase its business PES rate by an exogenous factor based on the cost recovery of the revenue-percent charge related to the annual subsidy pursuant to paragraph 109 Decision 2006-14.   Provide the following:

a)  The amount of the proposed monthly rate increase that is attributed to the revenue percent charge; and,

b)  Supporting calculations including the revenue-percent charge used.

3)    Provide an updated schedule of unused rate increase credits for business PES.

Date Modified: 2006-05-12
Date modified: