Re:	Rules Adopted in Public Utilities Commission Rulemaking Docket No. 05R-529T

RULES REGULATING TELECOMMUNICATIONS PROVIDERS, SERVICES, AND PRODUCTS, 
4 CCR 723-2; amending rule 723-2-2855., concerning Calculation of Support per Access Line for Rural ILECs.

BASIS AND PURPOSE
To establish that the CHCSM is distributed equitably to eligible providers, and that any eligible provider would not experience a reduction in its high cost support based upon a Commission rule that is not applicable to other telecommunications providers.

STATUTORY AUTHORITY
House Bill 05-1203, CONCERNING THE EQUITABLE DISTRIBUTION BY THE PUBLIC UTILITIES COMMISSION OF HIGH COST SUPPORT MECHANISM FUNDING TO ELIGIBLE PROVIDERS, and Sections 40-15-201(1) and 40-15-208(2)(a), C.R.S.  Sections 40-15-201(1) and 40-15-208(2)(a), C.R.S., directs and authorizes the Commission to promulgate rules and establish a mechanism for the support and maintenance of the high cost support mechanism.

HB 05-1203 added two statutory definition sections to § 40-15-102, C.R.S., defining the phrases “distributed equitably” in subsection 6.5, and “non-discriminatory and competitively neutral basis” in subsection 19.3. The effect of HB 05-1203 was to eliminate CHCSM provisions contained in Commission rules applicable only to eligible providers serving rural areas.