Telecom Order
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Ottawa, 9 February 1998
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Telecom Order CRTC 98-123
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MTS NetCom Inc. (MTS) filed for approval a Phase III/Split Rate Base (SRB) Manual Update report on 29 August 1997, as amended with additional revisions on 27 November, 16 December 1997 and on 22 January 1998 for use in the production of its 1996 Phase III/SRB results.
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File No.: 8638-C12-01/97
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1. The Phase III/SRB Manual Update report was filed, with explanations, in accordance with Proposed Revisions to the Phase III Manual Update Procedure, Telecom Letter Decision
CRTC 89-26, 1 December 1989, and in response to Telecom Order CRTC 97-144, 31 January 1997.
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2. MTS' Update report included revisions to its Phase III/SRB Manual that reflected significant changes to its accounting methodology as a result of MTS' new corporate structure adopted in 1996.
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3. As a result, the 1996 version of MTS' Phase III/SRB Manual and its 1996 results only include the regulated portions of the company.
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4. In its submission, MTS also included revised pages to the 1995 version of its Phase III/SRB Manual to correct errors and omissions which were identified in the company's 1995 audited results filed on 12 June 1997.
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5. No comments were filed by any interested party.
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6. The Commission conducted a detailed review of all of MTS' proposed revenue, investment and expense revisions and issued interrogatories to clarify various aspects of the company's proposals.
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7. On the basis of its review, the Commission considers that, except for the proposed assignment of all Long Distance Directory Assistance (LDDA) revenues to the Utility segment, the prescribed assignment procedures conform to the assignment methodology previously approved by the Commission.
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8. In the Commission's view, MTS' LDDA proposal is premature and 1996 LDDA revenues should continue to be assigned in accordance with the procedures established in Implementation of Regulatory Framework - Splitting of the Rate Base and Related Issues, Telecom Decision CRTC 95-21, 31 October 1995.
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9. On the basis of its directives in Unbundled Rates to Provide Equal Access, Telecom Decision CRTC 97-6, 10 April 1997, the Commission considers that MTS' LDDA revenue reassignment proposal should be filed in its next update submission applicable to 1997 Phase III/SRB results.
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10. In light of the foregoing, the Commission:
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a) approves the proposed Phase III/SRB Manual Update report filed by MTS, except for the proposed assignment of LDDA revenues;
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b) directs MTS to file a complete set of amended Manual pages, which include all updates approved in this Order that are relevant to the production of the company's 1996 Phase III/SRB results, within 30 days of the date of this Order;
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c) directs MTS to serve copies of the amended pages to its Phase III/SRB Manual on interested parties by the same date; and
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d) directs MTS to include in its next update submission, to be filed by 31 March 1998, a proposal to assign LDDA revenues and associated investment and expense to the Utility segment.
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Laura M. Talbot-Allan
Secretary General
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This document is available in alternative format upon request.
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