§ 40-15-503. Opening of Competitive Local Exchange Market – Process of Negotiation and Rule-Making – Issues to Be Considered by Commission – Definition

1. Repealed.
2. 1. and
   2. Repealed.
   3. 1. The commission shall consider changing to forms of price regulation other than rate-of-return regulation for any telecommunications provider that provides services regulated under part 2 or 3 of this article and shall consider the conditions under which such a change may take place to ensure that telecommunications services continue to be available to all consumers in the state at fair, just, and reasonable rates. This paragraph (c) shall not be construed to limit the manner and methods of regulation available under section 40-15-302.
      2. As used in this paragraph (c), “price regulation” means a form of regulation that may contain, without limitation, any of the following elements:
         1. Regulation of the price and quality of services;
         2. Price floors and price ceilings;
         3. Flexibility in pricing between price floors and price ceilings;
         4. Modified tariff requirements;
         5. Incentives for increased efficiency, productivity, and quality of service.
   4. The commission shall adopt rules providing for simplified regulatory treatment for rural telecommunications providers as defined in section 40-15-102 (24.5). Such simplified treatment may include, but shall not be limited to, optional methods of regulatory treatment that reduce regulatory requirements, reduce the financial burden of regulation, and allow pricing flexibility. Such simplified treatment may also allow extensions of time for the implementation of requirements under this part 5 in rural exchanges for which there are no competing basic local exchange providers certified.
   5. Applications for certificates of public convenience and necessity to provide basic local exchange service may be filed with the commission at any time. A person that, on or before January 1, 1995, held a certificate of public convenience and necessity to provide basic local exchange service under part 2 of this article and who still holds the certificate need not reapply to the commission for additional or continued authority. A provider of local exchange services shall not operate in this state without a certificate of public convenience and necessity.
   6. A telecommunications provider that is granted a certificate of public convenience and necessity to provide local exchange telecommunications service in competition with an incumbent provider of local exchange service shall be regulated under part 3 of this article unless the commission determines that the services of such provider are not subject to effective competition from the incumbent local exchange provider.
   7. 1. to (III) Repealed.

      (IV) (A) Repealed.

      (B) In adopting commission tariffs, the commission shall determine whether the rates, terms, and conditions of sale to be set forth in such tariffs are based on cost and are nondiscriminatory. Such rates, terms, and conditions of sale may include a reasonable profit.

      (V) As used in this paragraph (g), “true-up” means recovery of the difference between:

      (A) The rates paid under temporary interim tariffs before the adoption of commission tariffs or, if interconnection agreements as contemplated in subparagraph (III) of this paragraph (g) are in effect, the rates paid under temporary interim tariffs before the effective dates of such agreements; and

      (B) The rates that would have been paid during the same time period had the commission tariffs or interconnection agreements been in effect instead of such temporary interim tariffs.

      (VI) True-up shall be accomplished by means of lump-sum cash payments unless the commission orders another method of payment. If the commission orders a refund or an additional payment to be made at the time of true-up, such refund or additional payment shall be paid with interest at a rate to be determined by the commission.

      (VII) Repealed.

      (VIII) In all proceedings initiated pursuant to this paragraph (g), the burden of proof shall be on the telecommunications service provider.

      (IX) The following entities shall be exempt from the requirements of this paragraph (g):

      (A) A basic local exchange provider that serves only rural exchanges of ten thousand or fewer access lines;

      (B) As to the interim rates, a college or vocational school as defined in section 23-3-103, C.R.S.

   8. The commission shall require by rule that any telecommunications service provider required to file temporary interim tariffs and, to the extent such a requirement is permissible under federal law, any basic local exchange provider that serves only rural exchanges of ten thousand or fewer access lines and that has received a bona fide request for interconnection shall file advice letters with the commission to place into effect temporary interim tariffs and commission tariffs for unbundled facilities or functions, interconnection, services for resale, or local number portability by such dates certain as the commission may determine by rule.
3. During the period of negotiation and rule-making as contemplated in this section, the director of the commission may request, on a case-by-case basis, and the commission may grant, extensions to the statutorily directed times for completion of proceedings before the commission; except that no such extension shall be requested for proceedings under this section. During rule-making under this section, the commission may, on its own motion and on a case-by-case basis, grant such extensions; except that no such extension shall be granted for proceedings under this section.

Source: L. 95: Entire part added, p. 750, § 1, effective May 24. L. 96: (2)(g) and (2)(h) added, p. 706, § 1, effective May 15. L. 2000: (2)(d) amended, p. 48, § 7, effective March 10. L. 2013: (2)(b)(V) amended, (HB 13-1300), ch. 316, p. 1708, § 133, effective August 7. L. 2014: (1), (2)(a), (2)(b), (2)(g)(I), (2)(g)(II), (2)(g)(III), (2)(g)(IV)(A), and (2)(g)(VII) repealed and (2)(e) amended, (HB 14-1330), ch. 151, p. 520, § 7, effective May 9. L. 2019: (2)(h) amended, (SB 19-236), ch. 359, p. 3316, § 24, effective May 30.