Telecom Commission Letter Addressed to Dallas Yeulett (Northwestel Inc.)

Ottawa, 24 July 2018

Our reference: 8740-N1-201805061

By Email

Mr. Dallas Yeulett
Senior Manager, Regulatory Compliance
Northwestel Inc.
P.O. Box 2727
Whitehorse, Yukon, Y1A 4Y4
regulatoryaffairs@nwtel.ca

Re:  Northwestel Inc. Tariff Notice 1025: Revision to Occupancy Rates – Request for information

On 3 July 2018, the Commission received Northwestel Tariff Notice (TN) 1025 which proposed revisions to its Special Service Tariff (CRTC 3010) – Item 702 Occupancy Rates for Radio Sites. In its application Northwestel among other things proposed updated cost-based rates for its Power Commercial Rates, with an effective date of 15 August 2018.

In order to assist in the continuing analysis of this application, Northwestel is to provide response to the attached Request for information (RFI) by 10 August 2018. Parties may file comments on the application and responses to RFI by 17 August 2018 and Northwestel may file reply comments by 24 August 2018.

Copies of the document should also be sent to nat.natraj@crtc.gc.ca

Sincerely,

Original signed by

Lyne Renaud
Director, Competitor Services and Costing Implementation
Telecommunications Sector

c.c: Lyne Renaud, CRTC, lyne.renaud@crtc.gc.ca
Mohammed Omar, CRTC, 819-934-6378, mohammed.omar@crtc.gc.ca
B.Natraj (Nat Natraj), CRTC, 819-953-0361, nat.natraj@crtc.gc.ca

Attach. (1)

Request for information

Refer to company’s report on the Economic Evaluation for the tariff revision of Commercial Power Rates dated 3 July 2018

  1. Provide an electronic copy of the Economic Model (including all associated files required to run the model) that was used to estimate the proposed Power Commercial rates
  2. Refer to paragraph 15 of Attachment 1 where it is indicated that the demand quantity in watts for each of DC and AC is the average provisioned capacity for Northwestel Central Office or radio site. Define average provisioned capacity and explain with supporting rationale how the company estimated this capacity.
  3. Refer to Item A1 titled “Development of Power Consumption Unit Costs” for Yukon, Table 6a-Expenses, Appendix B where “Draw per building per year (2018)” is estimated.
    1. Explain with supporting rationale why the company has assumed that the service provider will use 100% of this power (i.e.24 hours a day and 365 days a year).
    2. Explain with supporting rationale, why it will not be appropriate for the company to assume that the service provider power consumption will be 75% of the power capacity purchased for DC and 25% of the power purchased for AC (protected and unprotected 120 volts) consistent with the Telecom Decision 2012-226Footnote1 determinations (paragraphs 16 and 22 ). 
  4. Refer to the incremental cost driver demand forecast provided in Item A, Table 6b titled “Capital Equipment Occupancy Commercial Power Service Phase II”, Appendix B. Confirm whether the demand forecast (i.e. 35,312 and 81,490) are average provisioned capacities.
    1. If not, explain why not with supporting rationale.  Further define these capacities and explain with supporting rationale how the company estimated these capacities.
    2. If yes, explain why the company has estimated the unit cost per capacity driver in item A1 table using average provisioned capacity instead of maximum capacity.
  5. Refer to Item A “Capital cash flow estimated based on Supplier prices (example Yukon)”, Table 6b-Capital Equipment, Appendix B where the PWAC for DC Rectifier is provided, Provide a copy of the Economic Model that estimates only the PWAC of DC Rectifier and includes the associated DC Rectifier input data (all the input data should be clearly displayed). The PWAC of DC Rectifier in this Economic Model should match the PWAC of DC Rectifier provided in column titled “Present Worth of Annualized Costs (PWAC)” for DC Rectifier.
  6. For each of Northwest Territories, Nunavut and British Columbia. Provide the same information as provided in Tables 6a and 6b for Yukon, Appendix B,
  7. Provide revised (i) paragraph 8 in Attachment 1, (ii) Attachment 2, (iii) Appendix A, (iv) Appendix B (all tables) for each of Yukon, Northwest Territories, Nunavut and British Columbia, and (v) a copy of the Economic Model that reflects the following changes in assumptions.  
    1. Assume that DC power consumption is 75% of power purchased (i.e. revise DC Draw per building per year in Item A1, Table 6a, Appendix B by multiplying it by 0.75)
    2. Assume that AC 120V (protected and unprotected power consumption) is 25% of power purchased (i.e. revise AC Draw per building per year in Item A1, Table 6a, Appendix B by multiplying it by 0.25)
    3. Assume 100% working fill factor in calculating unit cost per capacity driver in Item A1, Table 6b, Appendix B if the Supplier Identified Capacities (i.e. 35,312 and 81,490) are not maximum capacities.
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