ARCHIVED - Telecom Commission Letter - 8740-N1-200707961
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LetterOttawa, 7 June 2007 File No.: 8740-N1-200707961 BY E-MAIL
Mr. Dallas Yeulett REGULATORYAFFAIRS@nwtel.com Dear Mr.Yeulett: Re: Northwestel Inc. Tariff Notice 845 On 24 May 2007 , the Commission received an application by Northwestel Inc. (Northwestel), under cover of Tariff Notice 845, in which the company filed its annual price cap filing pursuant to Price cap regulation for Northwestel Inc. Telecom Decision CRTC 2007-5, 2 February 2007 (Decision 2007-5). Commission staff notes that Northwestel proposed revisions to rates of services in its Other Capped Services basket to 1) recover its revenue shortfall of $0.3 million, and 2) restructure certain rates within the basket. Commission staff further notes that, with respect to the recovery of the 2007 revenue shortfall, in Decision 2007-5, the Commission considered that the shortfall of $0.3 million qualified as an exogenous factor and permitted the company to propose an exogenous adjustment to the Business Services and/or the Other Capped Services baskets in its 31 March 2007 price cap filing to recover this amount. As such, the company proposed to recover the shortfall through an exogenous adjustment to its Other Capped Services basket. Commission staff notes that Northwestel did not modify its service band limit (SBL) for its Other Capped Services basket to reflect the exogenous adjustment, nor did it modify the service band index (SBI) to reflect the rate adjustments proposed to recover the shortfall of $0.3 million. Moreover, since the indices reflect annualized impacts, the company's proposal to increase rates to ensure the recovery of the 2007 revenue shortfall in 2007 would result in the SBI exceeding the SBL for the Other Capped Services basket. Consequently, this file is now closed. The Commission is open to examining a new application from the company which addresses the above noted deficiencies. The application must be filed under cover of a new tariff notice. Yours sincerely, 'Original signed by P. Godin'
Paul M. Godin cc: Cliff Abbott, CRTC, (819) 997-4509 Date Modified: 2007-06-07 |
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