About the Colorado High Cost Support Mechanism (HCSM)

Pursuant to Rule 723-2-2846, the Commission, acting as the CHCSM Administrator, has determined the Colorado Universal Service Charge shall be 2.6 percent.

Each telecommunications services provider, as a participant in the Colorado High Cost Support Mechanism, shall make changes to its tariff, if necessary, to reflect the current rate element for the Colorado Universal Service Charge.

Who Must File?

All Telecommunications carriers providing intrastate telecommunications services within the State of Colorado must file a Colorado High Cost Fund Worksheet.

4 CCR 723-2, RULES REGULATING TELECOMMUNICATIONS PROVIDERS, SERVICES, AND PRODUCTS

Colorado High Cost Support Mechanism Rules

723-2-2840. High Cost Support Mechanism and High Cost Administration Fund
Requirements are at Rule 2846. Contributors, Reporting Requirements, Rate Element Calculation, Application of Rate Element to Customer Billings, and Remittance of Contributions

Status of the HCSM

PROCEEDING NO. 98M-236T in PUC E-Filings
IN THE MATTER OF THE ADMINISTRATION OF THE COLORADO HIGH COST SUPPORT MECHANISM.

In order to accomplish the goal of universal basic service, the Colorado Public Utilities Commission was directed to create a system of support mechanisms to assist in the provision of basic service in high-cost areas (§40-15-502(5)(a) Colorado Revised Statutes (C.R.S.)) Specifically, the Colorado High Cost Fund (CHCF) was created under §40-15-208 C.R.S. with the Commission designated as its administrator.

See High Cost Support Mechanism and High Cost Administration Fund, rules 2840. ff. which require all telecommunications service providers that provide Colorado intrastate telecommunications services to contribute to the Colorado High Cost Fund based on their proportionate share of end-user telecommunications revenues.

Effective July 1, 1998, Senate Bill 98-177 amended §§ 40-15-208 and 40-15-502(5) and required significant changes to the existing high cost fund program previously adopted by the Commission.

Senate Bill (SB)18-002, requires that contributions remain at 2.6 percent through 2023 with any change in the rate not occurring until on or after July 1, 2023. House Bill (HB) 23-1051, extended basic service support payments to the twelve rural providers until September 1, 2024, the date that the enabling statute for the CHCSM (at § 40-15-208, C.R.S.) is scheduled to be repealed.

Notably, the CHCF is in actuality a fund in the State treasury administered in accordance with the Commission's CHCF rules. Senate Bill 98-177 abolishes the existing CHCF, while authorizing the Commission to establish in its place a High Cost Support Mechanism ("HCSM"). The size of the CHCF is, in effect, determined by proxy cost models approved by the Commission in separate proceedings (e.g. Proceeding No. 97M-063T). Senate Bill 98-177 also effected various other changes to the CHCF program and the manner in which it is to be administered by the Commission.