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Telecom - Staff Letter addressed to Imran Khan (Northwestel Inc.)

Ottawa, 24 October 2024

Reference: 8740-N1-202403781

BY EMAIL

Imran Khan
Chief Financial Officer & Vice-President
Northwestel Inc.
10th Floor 5201 Franklin Ave #100
Yellowknife, NT X1A 2P1
regulatoryaffairs@nwtel.ca

Subject:  Northwestel Inc. Tariff Notice (TN) 1224 – Revise Special Services Item 702 – Site Space, Power and Tower Attachment Rates

On 10 July 2024, the Commission received an application from Northwestel Inc. (Northwestel) proposing to revise Item 702 – Site Space, Power and Tower Attachment Rates, within its Special Services Tariff CRTC 3010.

Commission staff notes that while no interventions were filed in respect to this application, the analysis is ongoing and additional information is required. Paragraph 28(1)(a) of the Canadian Radio-television and Telecommunications Commission Rules of Practice and Procedure provides that the Commission may require parties to file information or documents if necessary. To assist in the analysis, Commission staff requests that Northwestel provide responses to the following request for information (RFI) by 7 November 2024.

In that respect, the process and associated dates are as follows:

All documents filed and served must be received, not merely sent, by the date provided. Parties are to send an electronic copy of all documents to Commission staff copied on this letter.

The Commission requires the responses or other documents to be submitted electronically by using the secured service “My CRTC Account” (Partner Log In or GCKey) and filling the “Telecom Cover Page” located on the Commission’s website.

An abridged copy of this letter and all related correspondence will be added to the public record of the proceeding.

As set out in section 39 of the Telecommunications ActFootnote1 and in Broadcasting and Telecom Information Bulletin CRTC 2010-961Footnote2, Procedures for filing confidential information and requesting its disclosure in Commission proceedings, persons may designate certain information as confidential. A person designating information as confidential must provide a detailed explanation on why the designated information is confidential and why its disclosure would not be in the public interest, including why the specific direct harm that would be likely to result from the disclosure would outweigh the public interest in disclosure. Furthermore, a person designating information as confidential must either file an abridged version of the document omitting only the information designated as confidential or provide reasons why an abridged version cannot be filed.

Sincerely,

Original signed by

Chris Noonan
Director, Competitor Services & Costing Implementation
Telecommunications Sector

c.c.:  Stais Armstrong, CRTC, 819-775-0401, stacey.armstrong@crtc.gc.ca
Daniel Cardozo, CRTC, 819-962-5720, daniel.cardozo@crtc.gc.ca

Attach. (1)

Request for Information

For the following questions, refer to the following files:

  1. Refer to paragraphs 16 to 18 of the Cost Study Report, as well as the tab “Demand Table 3” of Appendix A wherein the demand (i.e., annual power capacity on a per-plant basis) for the various service regions (i.e., Yukon, Northwest Territories, Nunavut, and British Columbia) is presented. Further, refer to Note 2 on page 6 of the 2018 Cost Study, wherein Northwestel states:
    “[a] single amp is equal to 52 operating watts of DC power or 120 watts of AC power.”

    In respect to the present worth of demand (PWOD) in watts for both DC and AC power within each region:

    1. Explain, with supporting rationale, why the PWOD for DC and AC power does not differ, given that a single amp is equal to 52 operating watts of DC power and 120 watts of AC power.
    2. If the response to question a) above necessitates a revision to Northwestel’s PWOD estimates, submit a revised Appendix A and Appendix B.
  2. Refer to Section A1 within the “Table 6b – Capital” tab in Appendix B for Yukon, Northwest Territories, Nunavut, and British Columbia, wherein the installed first cost for each of rectifiers, batteries, generators and associated materials, grounding, and DC to AC inverters are presented. Further, refer to row 24 in Tab “2 Capital Parameters” within the Northwestel Manual Appendix V, wherein Power Equipment (Asset Code/Class 207C) reflects a capital increase factor (CIF) of 1.60%.
    1. Refer to the supplier prices and installed first costs for the following capital items used in each region’s respective tab “Table 6b - Capital” in the 2024 Cost Study:
      1. Rectifiers
      2. Batteries
      3. Generators and associated material
      4. Grounding
      5. DC to AC inverters.

      Explain how the supplier prices were established for the above capital items and specify whether the supplier prices are based on actual or forecasted costs.

    2. Provide the supplier prices, showing the following:
      • The separate cost related to the supplier price excluding engineering and installation
      • The separate engineering and installation cost for the following capital items used in the 2018 Cost Study in each region:
        1. Rectifiers
        2. Batteries
        3. Generators and associated material
        4. Grounding
        5. DC to AC inverters.
    3. Confirm that the capital items referred to in question 2 a) from the 2024 Cost Study are the same as the capital items referred to in question 2) b) from the 2018 Cost Study.  If they differ:
      1. Explain how these capital items itemized in the respective tabs “Table 6b – Capital” in Appendix B for each region differ from those specified in the 2018 Cost Study and 2018 RFI Responses.
      2. Explain, with supporting rationale, how the capital expenditures of new capital for this technology are reflective of growth technology.
    4. If the response to question 2) c) is that they do differ:
      1. Provide an explanation for the variances between the supplier prices excluding the costs related to engineering and installation for the following capital items used in the 2018 Cost Study in each region referred to in question 2) b), and the related supplier prices in each region’s respective tab “Table 6b - Capital” in the 2024 Cost Study.
      2. Explain with supporting rationale why the installed first cost for rectifiers, batteries, generators and associated material, grounding, and DC to AC inverters in “Table 6b – Capital” in Appendix B for each region reflects an annual increase in excess of 1.60%.
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