2855.	Calculation of Support per Access Line for Rural ILECs.
Incumbent rural providers, who are not average schedule rural providers, shall be eligible for support from the HCSM for high costs in three areas:  loops; local switching; and exchange trunks, upon a proper showing.  Incumbent average schedule rural providers shall be eligible for support from the HCSM for high costs as determined by subparagraph (f)(I), upon a proper showing.
(a)	Support for high loop costs.  The HCSM revenue requirement for high loop costs of rural providers who are not average schedule rural providers shall be determined as follows:
(I)	For rural providers with an average unseparated loop cost per working loop less than or equal to 115 percent of the national average unseparated loop cost per working loop, the HCSM revenue requirement for high loop costs shall be the sum of:
(A)	Zero; and
(B)	The difference between 0.265 and twice the rural provider's intrastate interexchange subscriber line usage (SLU) multiplied times the provider's average unseparated loop cost per working loop, provided the difference between 0.265 and twice the provider’s SLU is greater than zero.
(II)	For rural providers with an average unseparated loop cost per working loop in excess of 115 percent but not greater than 150 percent of the national average unseparated loop cost per working loop, the HCSM revenue requirement for high loop costs shall be the sum of:
(A)	The difference between the rural provider's average unseparated loop cost per working loop and 115 percent of the national average unseparated loop cost per working loop, times 0.10; and
(B)	The difference between 0.265 and twice the rural provider's intrastate interexchange SLU times 115 percent of the national average unseparated loop cost per working loop, provided the difference between 0.265 and twice the provider’s SLU is greater than zero.
(III)	For rural providers with an average unseparated loop cost per working loop greater than 150 percent of the national average unseparated loop cost per working loop, the HCSM revenue requirement for high loop costs shall be the sum of:
(A)	The difference between 150 percent of the national average unseparated loop cost per working loop and 115 percent of the national average unseparated loop cost per working loop, times 0.10; and
(B)	The difference between 0.265 and twice the rural provider's intrastate interexchange SLU times 115 percent of the national average unseparated loop cost per working loop, provided the difference between 0.265 and twice the provider’s SLU is greater than zero.
(b)	Support for high local switching costs.  Rural providers who are not average schedule rural providers shall be eligible for support for high local switching costs.  The HCSM revenue requirement for high local switching cost support shall be determined as follows:
(I)	For rural providers with an average unseparated local switching equipment investment per working loop less than or equal to the Colorado average unseparated local switching investment per working line as determined by paragraph 2854(f), the HCSM revenue requirement for local switching cost support shall be zero.
(II)	For rural providers with an average unseparated local switching equipment investment per working loop in excess of the Colorado average unseparated local switching equipment investment per working loop as determined in paragraph 2854(f), the revenue requirement for high local switching cost support shall be calculated by creating a new service category in the separations study and apportioning the costs of the provider to this service generally following 47 C.F.R., Part 36.  The service category for the HCSM high local switching cost support shall be assigned a portion of Category 3 of local switching equipment investment.
(A)	The percentage of Category 3 allocated to the HCSM service category shall be known as the "Colorado High Local Switching Cost Allocation Factor" and shall be calculated as one minus the sum of:
(i)	The interstate factor(s);
(ii)	The intrastate factor(s) of subparagraph 2415(b)(I)(C); and
(iii)	The local exchange factor.
(B)	The local exchange factor for each rural provider shall be calculated as the:
(i)	Colorado average unseparated local switching equipment Category 3 investment per working loop, as determined by paragraph 2854(f);
(ii)	Multiplied by the rural provider's local DEM percentage;
(iii)	Divided by the rural provider's average investment per working loop.
(C)	The Colorado High Local Switching Cost Allocation Factor shall not be less than zero.  If, by the application of the formula of subparagraph (b)(II), the Colorado High Local Switching Cost Allocation Factor is less than zero, the factors (ii) and (iii) of subparagraph (II)(A) shall be reduced proportionally.
(c)	Support for high exchange trunk costs.  Rural providers who are not average schedule rural providers shall be eligible for support for high exchange trunk costs.  The HCSM revenue requirement for high exchange trunk cost support shall be determined as follows:
(I)	For rural providers with an average unseparated exchange trunk investment per working loop less than or equal to the Colorado average unseparated exchange truck investment per working loop, as determined by paragraph 2854(f), the HCSM revenue requirement for exchange trunk cost support shall be zero.
(II)	For rural providers with an average unseparated exchange trunk equipment investment per working loop in excess of the Colorado average unseparated exchange truck investment per working loop, as determined in paragraph 2854(f), the revenue requirement for high exchange trunk cost support shall be calculated by apportioning the costs of the rural provider to the HCSM service category as established in paragraph (b) of the rural provider's separations study following 47 C.F.R., Part 36, as modified by the rules found in rule 2415.  The HCSM service category shall be assigned a portion of the investments of Cable and Wire Facilities, Category 2 Exchange Trunk, 47 C.F.R. § 36.155 and a portion of Category 4.12, Exchange Trunk Circuit Equipment, 47 C.F.R. § 36.126(c)(2).
(A)	The percentage allocated to the HCSM service category shall be calculated separately for each of these types of investments as one minus the sum of:
(i)	The interstate factor(s), for exchange trunk;
(ii)	The intrastate factor(s) for exchange trunk; and
(iii)	The local factor for exchange trunk.
(B)	The local factor for Category 2 exchange trunk for Cable and Wire Facilities for each rural provider shall be calculated as the Colorado average unseparated investment per working loop as determined by paragraph (f) of this rule, times the rural provider's local relative number of minutes of use percentage divided by the rural provider's average investment per working loop.
(C)	The local transport allocation factor for Category 4.12 Exchange Trunk Circuit Equipment, for each rural provider shall be calculated as the Colorado average unseparated investment per working loop, as determined by paragraph 2854(f), times the rural provider's local relative number of minutes of use percentage divided by the rural provider's average investment per working loop.
(d)	Support for high costs of average schedule rural providers.
(I)	The HCSM support requirement for high cost support for average schedule rural providers shall be determined as the remainder, if positive, of the following process:
(A)	First, the total company revenue requirement for the average schedule rural provider shall be determined;
(B)	Next, a value known as the "imputed local network services revenues" shall be calculated by the Administrator as the average of the local network services revenues, 47 C.F.R. §§ 32.5000 through 32.5069 for all rural providers who are not average schedule rural providers, excluding any HCSM revenues;
(C)	Then, the following revenues shall be subtracted from the revenue requirement of subparagraph (d)(I)(A):
(i)	All interstate activities and Universal Service Fund (USF) support;
(ii)	Intrastate network access services;
(iii)	Long distance network services;
(iv)	All miscellaneous revenues; and
(v)	The "imputed local network services revenues".
(e)	Local network services Tariff cap.  In no event shall the local network services revenue requirement, as defined in 47 C.F.R. §§ 32.5000 through 32.5069 (1995) for rural providers exceed 130 percent of the average of such revenue requirement for local exchange providers that are not rural providers.  Such excess shall be considered as a part of the rural provider’s HCSM support revenue requirement.
(f)	Colorado High Cost Fund Administration.
(I)	The Commission, acting as Administrator, and pursuant to rules 2854 and 2855, shall determine and establish by order, the HCSM support revenue requirement to be received by a rural provider.
(A)	At any time, a rural provider designated as an eligible provider pursuant to rule 2847 may request that the Commission establish or revise its HCSM support revenue. Such request shall take the form of a petition and include the information required in paragraph 2003(b) as well as all information necessary to complete the calculations contained in paragraphs (a) through (e) of this rule, as applicable. If this information is already on file with the Commission, the petitioner must identify when and in what form the information relied on was filed.
(B)	Once the Commission, by order, has established the HCSM support revenue amount, or revised that amount, the Commission will monitor the rural provider’s earnings on an annual basis. A rural provider receiving HCSM support revenue must file with its annual report, required by rule 2006(a), its earnings information on a HCSM earnings form available from the Commission’s website.
(C)	If the information contained in a rural provider’s HCSM earnings form, annual report, or other filed document indicates that HCSM support revenue for that rural provider should be adjusted, Staff of the Commission may request that the Commission issue, or the Office of Consumer Counsel may file, a formal complaint. The Commission, acting as Administrator and following an opportunity for hearing, may revise the rural provider’s HCSM support revenue as a result of the complaint proceeding.	
	
2856. – 2869.	[Reserved].