HomeMy WebLinkAbout20001185.tiff *** LEGISLATIVE ALERT ***
USWEST
1801 California Street,Suite 4760
Denver,CO 80202
MEMORANDUM
TO: Colorado County Commissioners
FROM: Micki M. Hackenberger
303-896-4269
Pete Kirchhof
303-896-7388
DATE: April 13, 2000
RE: HB 1447-Telecommunications Competition
We are writing to urge your support for HB 1447; legislation that will encourage greater
telecommunications competition while providing important protections to Colorado consumers. We
believe this legislation will provide a better opportunity for communities to receive advanced
telecommunications services and better attract businesses to your county.
There has been a lot of confusion about the impacts of this bill because of the misinformation being
distributed by other telecommunications providers and so-called consumer groups who are satisfied with
the status quo. We have enclosed for your review some factual information(section summary,fact sheet,
supporting principles,re-engrossed bill)about HB 1447. In addition,we have also included copies of letters
from organizations supporting HB1447.
HB 1447 allows all telecommunications companies to compete on a level playing field and respond quickly
to the needs of business and residential customers.FIB 1447 will provide all companies with the ability to
react quickly to the market and reduce prices for telecommunications services—and just as important it will
encourage companies to offer telecommunications services to more and more consumers. This is exactly
what we need to spur economic development in the county that you represent.
Furthermore,HB 1447 is also essential in positioning our state to be a leader in the rapidly changing
economy. Colorado's telecommunications laws date back to the mid-1980's when the Internet was an
obscure tool used by academics and the military. Today,the Internet and the World Wide Web are
changing the way we work,play,communicate and interact at every level. It is essential that Colorado's
telecommunications regulation reflect today's telecommunications realities. FIB 1447 does just that.
As you may know,the Denver Post and the Grand Junction Sentinel endorsed similar telecommunications
reform legislation(SB 25)on the basis that it would bring about greater competition in Colorado. Both
newspapers recently reaffirmed their position(see enclosed)by supporting HB1447. HB 1447 reforms
Colorado's telecommunication laws but it also includes important consumer protections,raised as issues in
SB 25, including giving the Public Utility Commission authority over rate issues. We feel very strongly
that HB 1447 is good for Colorado consumers and will spur economic development in areas of the state
that need it. For these reasons,we strongly encourage you to support it.
Thank you for your consideration of this important issue and we strongly urge you to immediately contact
your State Senator to ask for their support of HB 1447.
Enclosures
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('F CI 2000-1185
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4'
Second Regular Session
Sixty-second General Assembly
LLS NO. 00-1009.01 Duane Gall HOUSE BILL 00-1447
STATE OF COLORADO
BY REPRESENTATIVES Dean,Tate,and Coleman;
also SENATOR Chlouber.
REENGROSSED
A BILL FOR AN ACT
CONCERNING REGULATORY PROCESSES TO ENSURE INCREASED COMPETITION IN THE RETAIL
TELECOMMUNICATIONS MARKET.
Bill Summary
(Note: This summary applies to this bill as introduced and does not necessarily
reflect any amendments that may be subsequently adopted)
Declares that the public utilities commission(PUC)should adopt flexible regulatory
treatments for different telecommunications services. Effective July 1,2000,directs the PUC
to allow providers of "part 2" services (i.e., services subject to the most comprehensive
regulation, including residential basic service)and "part 3" services("emerging competitive
services")to reduce their retail prices for such services below the prices that were in effect on
July 1,2000,subject to a prohibition on predatory pricing.
Authorizes the PUC to inspect the books and documents of any provider of a part 2
or part 3 service,not only providers of basic local exchange service. Repeals current provisions
for audits of the books and records of an affiliate of a local exchange provider when the
affiliate also provides local exchange service using shared equipment or shared costs.
Effective July 1,2001:
Allows a provider of basic service to raise its retail rates for "first line"
residential access annually up to the amount of the previous calendar year's
percentage change in the U.S.gross domestic product price index subject to HOUSE
existing provisions that allow the PUC to deny price increases based on 3rd
Reading
failure to meet service quality standards;and Unamend
ed
• Deregulates intraLATA and interLATA interexchange services, subject to
April
the PUC's authority to designate at least two, and, at the option of a rural 10,
local exchange provider, no more than two, intraLATA interexchange 2000
providers to serve a rural area at standard prices.
Effective July I,2004:
Deregulates the second and additional access lines to a residence or business,
subject to annual pricing restrictions based on the U.S. gross domestic HOUSE
Amende
product price index and existing provisions that allow the PUC to deny price d 2nd
increases based on failure to meet service quality standards;and Reading
April 7,
2000
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute.
• Deregulates all part 3 retail services unless the PUC affirmatively finds,
before July 1,2004,that such deregulation would harm consumers of such
a service.
In existing provisions allowing the PUC to delay or deny a price increase based on
substantial violation of rules governing service quality or held service orders,allows a provider
to demonstrate substantial progress toward meeting service quality standards as a condition to
being granted such price increase.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 10 40-15-101,Colorado Revised Statutes, is amended to read:
40-15-101. Legislativedeclaration.The general assembly hereby finds,determines,
and declares that it is the policy of the state of Colorado to promote a competitive
telecommunications marketplace while protecting and maintaining the wide availability of
high-quality telecommunications services. Such goals are best achieved by legislation that
brings telecommunications regulation into the modern era by guaranteeing the affordability of
basic telephone service while fostering free market competition within the telecommunications
industry. The general assembly further finds that the technological advancements and
increased customer choices for telecommunications services generated by such market
competition will enhance Colorado's economic development and play a critical role in
Colorado's economic future. However,the general assembly recognizes that the strength of
competitive force varies widely between markets and products and services. Therefore, to
foster, encourage, and accelerate the continuing emergence of a competitive
telecommunications environment, the general assembly declares that THE PUBLIC UTILITIES
COMMISSION SHOULD ADOPT flexible regulatory treatments are appropriate for different
telecommunications services.
SECTION 20 Part 1 of article 15 of title 40,Colorado Revised Statutes,is amended
BY THE ADDITION OF THE FOLLOWING NEW SECTIONS to read:
-2- Reengrossed 1447
40-15-110.5. Pricing of regulated retail services-downward pricing flexibility
-definition.(1) IN FURTHERANCE OF THE STATES POLICIES FAVORING INCREASED CHOICES FOR
CUSTOMERS AND INCREASED INCENTIVES TO COMPETITION IN THE PROVISION OF
TELECOMMUNICATIONS SERVICES,THE COMMISSION SHALL ALLOW PROVIDERS OF SERVICES
SUBJECT TO PART 2 AND PART 3 OF THIS ARTICLE TO REDUCE THE RETAIL PRICES OF SUCH
SERVICES BELOW THE RETAIL PRICES FOR SUCH SERVICES THAT WERE IN EFFECT ON ANUARY I
2001; EXCEPT THAT NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PERMIT PREDATORY
PRICING.
(2) PRICE REDUCTIONS PURSUANT TO THIS SECTION SHALL BE EFFECTIVEIIPON FIVE
DAYS NOTICE TO THE COMMISSION.
(3) AS USED IN THIS SECTION, "PREDATORY PRICING" OF A SERVICE SHALL BE
DETERMINED USING A STANDARD TO BE ESTABLISHED BY THE COMMISSION. SUCH STANDARD
SHALL BE APPLIED IN A NONDISCRIMINATORY AND COMPETITIVELY NEUTRAL MANNER TO ALL
PART 2 AND PART 3 TELECOMMUNICATIONS SERVICES AND PROVIDERS IN THE STATE.
(3.5) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE CONTRARY,THE
COMMISSION SHALE..AT ALL TIMES ENSURE THAT NO PROVIDER OF A TELECOMMUNICATIONS
SERVICE. PRICES SUCH SERVICE IN A MANNER THAT WILL IMPEDE THE DEVELOPMENT OF A
COMPETITIVE RETAIL TELECOMMUNICATIONS MARKET IN COLORADO.
4) Wfru THE EXCEPTION OF PRICE REDUCTIONS PURSUANT TO THIS SECTION.NOTHING
IN THIS ARTICLE SHALL BE CONSTRUED TO NULLIFY OR OTHERWISE AFFECT ANY EXISTING
AGREEMENT OR PROCEEDING BETWEEN OR AMONG THE PUBLIC 11TILIT'IES COMMISSION AND A
PROVIDER OR PROVIDERS OF PART2, PART 3,OR,TO THE EXTENT PERMITTED BY THE FEDERAL
"TELECOMMUNICATIONS ACT of 1996", PART 5 TELECOMMUNICATIONS SERVICES THAT WAS
COMMENCED.ENTERED INTO.OR IN EFFECT ON OR BEFORE THE EFFECTIVE DATE OF THIS SECTION.
40-15-110.7. Expedited procedure- availability. (1) A COMPLAINT ALLEGING A
VIOLATION OF THE PROHIBITION ON PREDATORY PRICING CONTAINED IN SECTION40-15-1 10.5
-3- Reengrossed 1447
OR OF THE COMMISSION'S RULES GOVERNING(U %IJTY OF SERVICE SI IALL BE FILED WITH THE
COMMISSION. THE COMMISSION,IN ITS SOLE DISCRETION,SHALL DETERMINE IF THE MATTER
WILT..BE HEARD ON AN EXPEDITED BASIS. IF SO, IT MAY BE HEARD BY THE COMMISSION OR AT
TIIF COMMISSION'S DISCRETION, BY AN ADMINISTRATIVE LAW MIDGE DESIGNATED BY TILE
COMMISSION.
(2) A HEARING ON A COMPLAINT DESCRIBED IN SUBSECTION(1) OF TEAS SECTION
SHALL BE IIELD IN ACCORDANCE.WITH THE PROCEDURESSET FORT!!IN ARTICLE 6 OF THIS TITLR
EXCEPT TI I KTT IlE COMMISSION IN ITS DISCRETION AND UPON NOTICE TO T I IF PA RITES.MAY USE
AN EXPEDITED OR ACCELERATED TIME SCHEDULE ADOPTED BY THE COMMISSION BY RULE OR
MAY APPLY THE FOLLOWING EXPEDITED TIME SCHEDULE:
(a) THE COMPLAINT SHALL BE SERVED BY HAND DELIVERY UPON THE RESPONDENT AND
FILED WITH THE. COMMISSION ON THE SAME DAY THAT IT'IS SERVED UPON THE RESPONDENT.
(b) AN ANSWER OR OTHER RESPONSIVE PLEADING TO THE COMPLAINT SHALE.BE FILED
WITIf THE COMMISSION NOT MORE THAN TEN CALENDAR DAYS AFTER RECEIPT OF THE
COMPLAINT. COPIES OF THE ANSWER OR RESPONSIVE.PLEADING SHALL BE SERVED BY HAND
DELIVERY UPON THE COMPLAINANT ON HIE SAME DAY TIIAT IT IS FILED.
(c) WITHIN TEN CALENDAR DAYS AFTER BEING SERVED WITH THE ANSWER OR OTHER
RESPONSIVE PLEADING.THE COMPLAINANT SHAI I.FILE AND SERVE ON ALL OTHER PARTIES A LIST
OF WITNESSES AND EXHIBITS IT INTENDS TOOFFER AT THE HEARING.TOGETHER WITH A BRIEF
SUMMARY OF THE TESTIMONY OF EACH W 1 ENESS,THE ADDRESS AND TE.I:.EPIIONE NUMBER OF
EACH WI NESS,AND COPIES OF ALL EXHIBITS IT INTENDS TOOFFER INTO EVIDENCE WITHIN TEN
CALENDAR DAYS AFTER BEING SERVED WITH THE COMPLAINANT'S LIST OF WITNESSES AND
EXHfBUIS. THE RESPONDENT AND EACH OTHER PARTY SHALL FILE E AND SERVE ON ALL OTHER
PARTIES ITS OWN LIST OF WITNESSES AND EXHIBITS,TOGETHER WITH ALL CORRESPONDING
SUMMARIES.COPIES,AND OTHER INFORMATION AS REQUIRED OF THE COMPLAINANT UNDER THIS
PARAGRAPH(C).
-4- Reengrossed 1447
(d) A PREITEARING CONTERENOT,SHALL BE MID NOT LATERTHAN THIRTY DAYS AFTER
TIIF ANSWER IS FILED. A HEARING ON TIIE COMPLAINT SI IALL COMMENCE NOT LATER THAN
FORTY-FIVE DAYS AFTER THE COMPLAINT IS FILED.
(t') WITHIN TWENTY DAYS AFTER THE HEARING IS CONDUCTED.THE COMMISSION
SHALL EITHER PREPARE A DECISION OR APPROVE THE DECISION OF THE ADMINISTRATIVE LAW
JUDGE. TILL FINAL DECISION SI IALL BE ISSUED AS AN ORDER OF'HIE COMMISSION.
(0 DISCOVERY SHALL BE GOVERNED LW PROCEDURES ADOPTED BY THE COMMISSION
EXCEPT THAT THE NUMBER OF INTERROGATORIES.INCLUDING ALL DISCRETE SUBPARTS AND
REQUESTS FOR PRODUCTION OF DOCUMENTS,SHALL NOT EXCEED TWENTY. AND TIIU NUMBER OF
DEPOSITIONS SHALL NOT EXCEED TWO PER PARTY UNLESS OTHERWISE ORDERED. DISCOVERY
SHALL COMMENCE BY FIND DELIVERY\VITHIN FIFTEEN DAYS AFTER SERVICE OF THE COMPLAINT.
RESPONSES'TO WRITTEN DISCOVERY,INCLUDING ANY OBJECTIONS.SHALL BE SERVED BY HAND
DELIVERY WITHIN SEVIN CALENDAR DAYS AFTL-R RECEIPT. MOI IONS TO COMPEL RESPONSES'1.0
DISCOVERY SHALL BE FILED WITHIN FIVE DAYS AFTER RECEIPT OF ANY O13JEC'TION,AND SUCH
MOTIONS SHALL BE GOVERNED BY PROC E.DURESADOPTED BY THE COMMISSION;EXCEPT'THAT
SUCH MOTIONS SHALL BE HAND-DELIVERED AND RESPONSES THERETO SHALL BE SERVED AND
FILED WITHIN SEVEN CALENDAR DAYS AFTER RECEIPT.
(g)(I) IF THE COMMISSION OR ADMINISTRATIVE LAW JUDGE FINDS THAT A VDLATION
OF THIS SECTION HAS OCCURRED,THE COMMISSION SHALL,WITHIN FIVE BUSINESS DAYS.ORDER
THE VIOLATOR TO REMEDY THE VIOLATION WITHIN A SPECIFIED PERIOD OF TIME. THE
COMMISSION MAY PRESCRIBE SPECIFIC ACTIONTO BE TAKEN BY THE VIOLATOR,INCLUDING.BUT
NOT LIMITED TO.SUBMITTING A PLAN FOR PREVENTING ING FUTUREVIOLATIONS. THE COMMISSION
SHALL REVIEW AND APPROVE OR DISAPPROVE THE PLAN. IN ADDITION,THE COMMISSION MAY
ORDER BILL CREDITS, TO THE TELECOMMUNICATIONS PROVIDER WHOSE SERVICE AND
CUSTOMERS WERE RE AFFECTED.IN AN AMOUNT THAT EQUITABLY REFLECTS THE IMPAIRMENT OF
SERVICE SUFFERED BY THAT PROVIDER AND ITS CUSTOMERS.
-5- Reengrossed 1447
(II) II= THE VIOLAITON CONTINUES BEYOND 'TILE TIME PERIOD SPECIFIED IN THE
COMMISSION'S ORDER OR IF THE VIOLATOR DOES NOT MEET THE GOALS OF ITS IMPROVEMENT
PLAN WITHIN THE 'TIME PERIOD SPECIFIED IN THE PLAN. ADDITIONAL PENALTIES MAY BE.
ASSESSED AGAINST T IlE VIOLA-MR. THE COMMISSION ON ITS OWN MOTION OR UPON ITIE MOTION
OF AN INTERESTED PARTY MAY IMPOSE SUCH PENALTIES ON TILE VIOLATOR.
SECTION 30 40-15-502(3)(b)(I)and(3)(b)(II),Colorado Revised Statutes,are
amended to read:
40-15-502. Expressions of state policy.(3) Universal basic service-affordability
of basic service.(b)(I) Consistent with the public interest goal of maintaining affordable and
just and reasonably priced basic local telecommunications service for all citizens of the state,
the commission shall structure telecommunications regulation to achieve a transition to a fully
competitive telecommunications market with the policy that prices for residential basic local
exchange service,including zone charges,if any,do not rise above the levels in effect on May
24, 1995. for comparable service: except that AS FOLLOWS:
(A) The price of such service may be adjusted by an amount equal to the chance in
the United States cross domestic product price index. minus an index that represents
telesommunieations productivitwchanees as determined by the commissioi.L This adjustment
shall be Granted only to the extent the commission determines an adjustment is required to
cover reasonable costs.mot exceed five percent in any one year.-Ti IF AMOUNT OF THE
ADJUSTMENT.AS APPLIED TO RURAL:TELECOMMUNICA'T'IONS PROVIDERS.MAY BE DIFFERENT
FROM THE AMOUNT OF ME ADJUSTMENT AS APPLIED TO PROVIDERS OTHER TITAN RURAL
TELECOMMUNICATIONS PROVIDERS.
(B) NOTWITHSTANDING SUB-StJBPARAGRAPI I(A)OF THIS SUBPARAGRAPI I(I).PRICES
FOR RESIDENTIAL. BASIC LOCAL, EXCHANGE SERVICE, INCLUDING ZONE CHARGES. IF ANY,
Cl IARGED By A RURAL.TI LECOMML.NICATIONS PROVIDER 11TAT IS COOPERATIVELY OWNED MAY
-6- Reengrossed 1447
RISE ABOVE THE LEVELS IN EFFECT ON MAY 24. 1995, FOR COMI'ARAf3LE SERVICE UPON THE
AFFIRMATIVE VOTE OF AT LEAST'TWO-THIRDS OF TI IL MEMBERS OF TIIE GOVERNING BODY OF
SUCH A PROVIDER.
O.5) The commission shall not allow prices for residential basic service plus zone
charees to increase outside base rate areas by an amount greater than any price increase within
base rate areas.
(II) The commission may delay or deny a price increase for residential basic service
FOR,OR DEREGULATION OF,ANY SERVICE REGULATED UNDER PART 2 OF THIS ARTICLE if a
provider is in substantial violation of the commission's rules governing quality of service or
held
service orders.
SECTION 40 Part 2 of article 15 of title 40,Colorado Revised Statutes,is amended
BY THE ADDITION OF A NEW SECTION to read:
40-15-209. Pricing of services and products. EFFECTIVE JULY 1,2004,THE PRICE
OF THE SECOND AND ANY ADDITIONAL ACCESS LINES TO A RESIDENCE OR BUSINESS SHALL BE
DEREGULATED;EXCEPT THAT THE PROVISIONS OF SECTION 40-15-502(3)(b)(I)AND(3)(b)(II)
SHALL APPLY.
SECTION 50 40-15-305, Colorado Revised Statutes, is amended BY THE
ADDITION OF A NEW SUBSECTION to read:
40-15-305. Time period for consideration of deregulation of emerging
competitive telecommunications service-date-certain deregulation-conditions.(3) ON
OR BEFORE JANUARY 1,2004,'HIE STAFF OF TI IL COMMISSION SIHAl.l.PROVIDE THE COMMISSION
WITH A REPORT ASSESSING TIFF.•. STATus OF COMPETITION IN THE: COLORADO
TELECOMMUNICATIONS MARKET AND. I3EFORE JANUARY 1, 2004. THE COMMISSION SHALL.
INSTI rt rE A PROCEEDING TO DETERMINE WHETHER `IIIE COLORADO)TEI_ECOMMt1NIC:ATIONS
MARKET IS SUFFICIENTLY COMPETITIVE. IF, AFTER SUCH PROCEEDING, THE COMMISSION
-7- Reengrossed 1447
DETERMINES THE COLORADO'IEL E:COMMUNt('ATIONS MARKET IS SUFFICIENTLY COMPETITIVE.
EFFE:CrIVE JULY 1,2004,AND EXCEPT AS OTHERWISE PROVIDED IN SECTIONS 40-15-306 AN!)
40-15-401,ALL RETAIL TELECOMMUNICATIONS SERVICES SUBJECT TO REGULATION UNDER THIS
PART 3 ARE EXEMPT FROM REGULATION UNDER THIS ARTICLE OR UNDERARTI(:l..ES 1 TO 7 OF THIS
Trrr.E. II, AFTER SUCH PROCEEDING, THE COMMISSION DETERMINES THAT THE COLORADO
TELECOMMUNICATIONS MARKET IS NOT SUFFICIENTLY Co PFTITIVE,THL COMMISSION SHAI.I,
RETAIN JURISDICTION OVER ALL SUCII SERVICES.
SECTION 60 40-15-306,Colorado Revised Statutes,is amended to read:
40-15-306. IntraLATA interexchange services. EFFECTIVE JULY 1,2001, RETAIL
INTRALATA AND RETAIL intraLATA interexchange telecommunications services shall be
a
, . ARE
DEREGULATED AS PROVIDED IN SECTION 40-15-401 (1) (n) AND(1) (o); EXCEPT THAT THE
COMMISSION SHALL RETAIN JURISDICTION OVER SWITCIIII)ACCESS SERVICES AND SHALL.IfAVE
THE AUTHORITY TO DESIGNATE A MINIMUM OF TWO INTRALATA INTEREXCHANGE
TELECOMMUNICATIONS SERVICE PROVIDERS TO PROVIDE SUCH SERVICES TO SUBSCRIBERS OF
RURAL TELECOMMUNICATIONS PROVIDERS THROUGHOUT THE STATE. TIE COMMISSION SHALL
DESIGNATE AT LEAST TWO PROVIDERS IF REQUESTED TO DO SO BY A RURAL LOCAL EXCHANGE I
PROVIDER WHOSE CUSTOMERS HAVE FEWER THAN TWO CHOICES OF INTRALATA
INTEREXCHANGE TELECOMMUNICATIONS SERVICE PROVIDERS. ALL SUCH SERVICES SHALL BE
PROVIDED BY THE DESIGNATED PROVIDERS TO SUBSCRIBERS OF RURAL TELECOMMUNICATIONS
PROVIDERS AT STATEWIDE LIST PRICES. THE STANDARD PER-MINUTE LIST PRICE SHALL BE THE
-8- Reengrossed 1447
SAME IN RURAL EXCHANGES AS IN NONRURAL EXCHANGES.
SECTION 70 40-15-401 (1), Colorado Revised Statutes, is amended BY THE
ADDITION OF THE FOLLOWING NEW PARAGRAPHS to read:
40-15-401. Services, products,and providers exempt from regulation. (I) The
following products, services, and providers are exempt from regulation under this article or
under the"Public Utilities Law"of the state of Colorado:
(n) EFFECCIV! JULY I. 2001, IN'I FRLATA TOLL; EXCEPT THAT THE COMMISSION
SHALL RETAIN JURISDICTION FOR THE PURPOSE OF ENFORCING THE PROVISIONS OF SECTION
40-15-112;
(o) EFFECTIVE: JULY I, 2001. INIRALATA TOLL; EXCEPT THAT THE COMMISSION
SHALL RETAIN JURISDICTION FOR THE PURPOSE OF ENFORCING THE PROVISIONS OF SECTION
40-15-112;
(p) EFFECTIVE JULY 1,2004,UNLESS OTHERWISE SPECIFICALLY DETERMINED BY THE
COMMISSION PURSUANT TO SECTION40-15-305(3),ALL RETAIL PRODUCTS AND SERVICES THAT
WERE SUBJECT TO REGULATION UNDER PART 3 OF THIS ARTICLE ON JUNE 30,2004.
SECTION 80 Effective date. This act shall take effect July 1,2000.
SECTION 90 Safety clause. The general assembly hereby finds,determines, and
declares that this act is necessary for the immediate preservation of the public peace, health,
and safety.
-9- Reengrossed 1 447
04/10/00 Section by Section of HB 1447 (Dean,Tate & Coleman & Chlouber) As
Amended by the House
Concerning the Regulatory Process used to ensure increased competition in the retail
telecommunications market.
Section 1. Legislative Declaration. Directs the Colorado Public Utilities Commission to adopt
flexible regulatory treatment.
Section 2. Downward Pricing Flexibility. Declaration of policy that on January 1, 2001
providers shall have downward pricing flexibility five days after filing notice of the reduction
with the Public Utilities Commission all Part 2 and 3 retail services (basic phone service, intra
lata toll and optional features such as call-waiting) as long as the Commission does not find the
prices to be predatory. Directs the Commission to establish a standard for predatory pricing and
apply such standard in a non-discriminatory and competitively neutral manner. Current law
requires a two week waiting period before new prices can go into effect.
Directs the Commission to ensure no provider prices such services in a manner which will
impede the competitive retail telecommunications market. Creates an expedited procedure to
process any complaints on predatory pricing or service quality.
Section 3. Statutory setting of rates. Declares that after July 1, 2001 a provider (except those
with a pricing agreement i.e. US WEST) may ask that the rate for residential basic service be
adjusted annually by an inflation factor. Retains Commission authority to delay or deny an
inflation adjustment for violations of the commissions rules governing quality of service or
held service orders; Retains Commission authority to ensure no rate adjustment for inflation
will occur unless it is necessary to recover costs, also ensures that outside the base area
(metro area) no increase will occur by an amount greater than any price adjustment within
the base area.
Section 4. Second and additional lines. Effective July 1, 2004 the price of second and additional
access lines to a residence or business shall be price deregulated. Except the above inflation
limit on upward inflation adjustments and service quality restrictions apply.
Section 5. Commission reporting to the Legislature: Requires the Commission to report to the
legislature on the state of competition prior to January 1, 2004.
Date Certain: Effective July 1, 2004, Part 3, (optional) services are exempt from regulation
unless prior to that date the commission makes an affirmative finding that consumers of
such service will be harmed by such deregulation. Part 3 services are considered emerging
and competitive services that are optional and non essential to the provision of basic service.
Section 6 Rural protection on intraLATA toll deregulation. On July 1, 2001 intra lata toll is
deregulated except that the Commission retains the authority to do the following: Designate
at least two or more providers of toll services in rural areas, and retains jurisdiction over
switched access rates and consumer protection issues such as slamming.
Section 7. Clarifies that as of July 1,2004 and unless otherwise determined by the Commission,
all optional retail products and services that were subject to regulation under part 3 (optional
services) are deregulated.
HB 1447, Representatives Dean, Tate & Coleman As Amended
Telecommunications Competition Legislation
Background
HB1447 provides a four year schedule to transition from today's regulated
telecommunications market to a fully competitive one. HB1447 provides safeguards for
the PUC to provide consumer protections while fulfilling their statutory obligation to
ensure that the market is open to competition. HB1447 pertains only to RETAIL
telecommunications.
What the Bill Does:
• Provides statutory direction to the PUC to replace the outdated structure of
telecommunications regulation with a system appropriate for the new, competitive
market;
• Allows for downward pricing flexibility on January 1, 2001, for all Part 2 and 3 retail
services including basic phone service, intra lata toll and optional features such as call
waiting. Ensures the PUC will establish predatory pricing standards & an expedited
complaint process for predatory pricing and service quality complaints;
• Provides consumer protection from excessive rate hikes. The bill establishes that
after July 1, 2001, the price for retail residential phone service cannot be increased
more than the previous year's percentage change in the U.S. Gross Domestic Product
index. The PUC would retain their existing provision to delay or deny price
increases based on a provider's failure to meet service quality standards;(us WEST
would be required to honor it's existing contract with the PUC and would not be able to ask for
an inflation increase until 2004, the PUC could then deny the request if service quality
standards were not being met); or the cost was not justified.
• Deregulates inter& intra lata toll (in-state long distance) as of July 1, 2001. Protects
all providers against predatory pricing by requiring the Commission to establish
predatory pricing standards. Toll prices must be set on a statewide average;
• Establishes the date of July 1, 2004, when all optional Part 3 emerging and
competitive telecommunications services would be deregulated except for:
-PUC authority to deny such deregulation upon an affirmative finding that
consumers may be harmed from such deregulation;
-Price and service protection for all residential lines;
-Services which the local exchange carriers are required to provide under Federal
law(e.g. interconnection, unbundling network elements);
-Consumer protection for unlawful practices (i.e. slamming, service quality);
What the Bill Doesn't Do:
Allow prices to go sky high. HB1447 does not take any authority away from the Public
Utilities Commission to ensure that consumers and competition is protected when
deregulation occurs in 2004. In fact, the Commission is given the tools necessary to
protect consumers from potential harms. Should a provider fail to meet PUC service
quality standards, the Commission may delay or deny that provider's request for
deregulation.
HB 1447 is a balanced approach to transitioning the telecommunications market while
protecting consumers with service quality rules and price controls. The
telecommunications world is changing every day, but the laws are not. Please vote YES
on HB1447. VOTE YES ON HB 1447 TO PROMOTE COMPETITION!
04-70-00 Contact:Mcki Hackenberger US WEST 896-4269
Supporting Principles of HB 1447
✓ The Public Utilities commission will have complete jurisdiction to
determine whether or not to delay, deny or approve any aspect of
lowering, increasing prices on or deregulation of all products and
services. They will make this determination on several factors, including
a providers' ability to provide quality services and ability to meet the
service quality standards established.
✓ History in the telecommunications industry has shown that competition
leads to more choices of services and providers; better quality of service,
and lower prices based on real costs (i.e., long distance, telephone
equipment) and other industries (i.e., computers and consumer
electronics).
✓ The explosion of the internet and wireless industries is the best example
of how market forces were allowed to flourish in a non-regulated
environment leading to better technologies (high-speed data), instant
access to more information and services, and the ability to market
products worldwide regardless of whether you live in Denver or
Alamosa.
✓ With date certain deregulation in 2004 for services considered emerging
and competitive today, consumers will have a better opportunity to
receive advances services and have a choice of who will provide those
services.
✓ An artificial environment has been created for basic phone service by
capping the rates in statute in 1995. It is time to allow for an inflation
factor. This bill would allow providers (except US WEST, who is
under a contract with the PUC until 2004) to request an increase in
basic service equal to an inflation index after July 1, 2001. The PUC can
approve or deny this request. By the Office of Consumer Counsel's own
calculation, if the rate cap had not been locked in statute in 1995, US
WEST's rate would have increased an average of 23 cents a year due to
inflation. There is no mention of the handful of independent companies
that currently charge between $4-8.00/month.
DENVER POST
April 11, 2000
The second chime around
ove, the lyricist reminds us, sion on the prices it can charge for
is much more wonderful the first line into residential and
"the second time around." business customers, as well as for
Likewise, the Legislature's overall quality of service issues.U S
second try at partially deregulating West would be limited to no more
U S West is definitely more consum- than inflation-linked increases in
er-friendly than the first. second and additional-access lines to
It's not that the original effort, residences or businesses — and the
Sen.Ken Chlouber's SB 25,was lack- PUC would retain the power to veto
ing in merit. Indeed, The Post en- any rate increase if it finds U S West
dorsed the measure, which would deficient in quality of service.
have opened some portions of the After July 1, 2004, all "Part 3
• telecommunications market in Colo- emerging and competitive services"
rado to competition by July 1, 2003. such as caller ID, call waiting and
We were particularly impressed call forwarding would be deregu-
with the support for the measure lated. "Part 4 services," such as
from independent rural telephone -voice messaging, are already con-
companies,who felt that they other- sidered fully competitive and al-
wise faced an uncertain future in ready deregulated.
keeping up with the rapidly chang- Regardless of HB 1443's fate,U S
ing telecommunications technolo- West also would continue to be sub-
, gies ject to regulation by the Federal
Still,U S West critics and compet- Communications Commission. That
itors managed to kill Chlouber's bill means IT S West will continue to
on the Senate floor, partly by evok- have strong incentive to open up lo-
ing the specter of runaway price in- cal service to competition — be-
creases. Frankly, we think such a cause the FCC demands such local
. strategy would be suicidal in a com- competition before it will allow the
petitive market.But we don't object regional operating companies to
to the new protections against price enter the lucrative long-distance
gouging that House Majority Leader market.
. Doug Dean built into a revised de- We urge the Senate to pass BB
regulation bill,HB 1447,which won 1447. While it leaves more power
final approval in the House, 38-26, with the Public Utilities Commission
on Monday. than SB 25 did,it still opens U S West
' Like its predecessor, HB 1447 to more of the regulation that counts:
' stops far short of total deregulation. The competitive heat of the market-
. After July 1, 2003, U S West would place. As frequent critics of U S
still be subject to regulation by the West's service quality,we're frankly
Colorado Public Utilities Commis- eager to hold its feet to that fire.
'tN me Uauy Jer,tinel - Fbonbdy,re.a.,., L
TEE i1DAux
SENTINEL AC9,Ncm3Me
caviled N 189J •
George orbanek,Editor and Publisher , • _,
• Dennis M.Herzog,Managing Editor Bud Winslow,Operations Director.•
Bob Sllbernagel,.Editorial Page Uhler ,
• Mare R.Mastcrier,City Editor
taurena Mope Davis,Editorial Board
. Editorials•Deregulation .redux
• S West,unsuccessful in one attempt to see deregulation
Ulegislation-adopted this year,is back for a second try.
And this time one of the most vociferous opponents of
the first measure.AT&T.is remaining neutral,
However, while House Bill 1447 makes a reasonable
attempt to protect consumers while allowing deregulation
to proceed gradually over the next four years.It has drawn
the ire of the Colorado Office of Consumer Counsel.
The watchdog group argues that the legislation will cost
' many consumers money. particularly those in rural and
poor areas where there isn't likely to be much competition,
because starting next year it would allow phone companies
•
to request that their basic phone rates increase with the
rate of inflation.
However, as House Majority Leader and bill sponsor
Doug Dean notes,the Colorado Public Utilities Commission
would still have authority to determine before an
inflation
• increase is granted whether a company Is providing •
ade-
quate service or engaging in predatory pricing, West.is
Moreover,the state's largest phone company,US
bound by an agreement with the PUC that doesn't allow it to
apply for a rate increase on basic phone service before 2004.
Dean wrote a scathing letter to Ken Reif,executive direc-
tor of the Office of Consumer Counsel,accusing the office of
attempting to block any deregulation of local phone service.
despite the fact that both the state Legislature and U.S.
Congress have mandated it.
• In truth, the Office of Consumer Counsel has objected to
virtually every attempt at deregulating local phone service-
•In doing so. it ignores the fact that long-distance deregula-
tion has saved consumers billions of dollars as firms have
competed to offer the best prices. The same thing is hap-
pening in wireless communications.
Only in conventional,local phone service are companies
•
bound by regulatory systems first forged in the early days
of the past century. •
HB 1447 would not end that regulation overnight.Instead,
it would gradually reduce regulation over four years,while
maintaining state oversight to ensure quality service and
protect consumers in low-competition areas.
Moreover.during those four years and beyond,the Legis-
lature will be able to change the rules and enact new ones if
it appears the deregulation is not working.
'The Odiice of Consumer Counsel's emphasis on main'
taming the 20th century status quo ill serves Colorado con-
• sumers in the 21st century.The Legislature should proceed
.with limited deregulation of local phone service.
SIB-d Z0/Z0'd 762-1 91ZV77Z016 129;h 'S•n-wad w795:60 00-1Z-rEl'1
hvr 12 00 0S: 58a Seniors ! Inc. 303-300-6950 p, Z
10 April 2000 SSeniors! Inc.
a new slant on aging
Senator Ken Chlouber
Colorado State Senate
State Capitol Building
Denver, Colorado 80203
Re: HB1447
VIA Fax 303/866-3807 and U.S. Mail
Dear Senator Chlouber,
I am not a legislative insider or telecommunications expert. And I have no political agenda other
than my goal to fulfill the charitable mission of'SeniorsLInc. and serve the citizens of Colorado.
Like you, I often see the world in ways different than my colleagues and peers.
I have followed HB1447 and the production that surrounds it. I see AARP aligned with MCI and
Colorado's Office of Consumer Council in opposition to the bill;a combination that predictably
cries'wolf whenever telecommunications legislation is being considered in Colorado.
Unfortunately,that approach perpetuates the illusion that older Coloradans vote as a block and
categorically oppose everything,that even remotely implies higher costs to them: And as you
know, that is simply not the case.
When I filter through all the rhetoric and get beyond traditional scare tactics deployed by
professional lobbyists and so-called senior advocacy groups;here's the conclusion I come to:
• HB1447 poses no threat to Colorado's senior community and may actually serve in their
best interest. Why? Because it defines what most consumers fear the most... the
unknown.
• It allows older consumers to anticipate downward pricing over the next four years;
afterwhich consumers may see nominal rate increases not greater than inflation.
Additionally, consumer,safeguards ensure that even:this rate increase is subject to service
quality standards and PUC approval.
Don't be fooled by lobbyists and advocacy groups that profess to represent Colorado's"senior"
population;or those who believe to be old is to be poor. Colorado's'older,population spans
three generations and is as diverse as the state itself. The vast majority of Coloradans over the
age of 65 are doing quite well; and Ilke me, are offended by stereotypes and innuendo that
portray 'them' as weak, poor and vulnerable. .
Thl y are not. We are not.
incerely;
r
L II s
e Director
S ' sl Inc.is dedicated to promoting independence and enriching the quality of life as we age. Services
e end throughout 21 Colorado Counties and Include eldercare family services,In•home can,employment and
job training.The 1999 Seniors!Inc..Annual Report(attached)provides additional information.
5840 East Evans Avenue
Denver,Colorado 80222
(303) 300-6900 AMile High United Way Agency
Fax (303) 300-6950 - www.seniorsinc.org
qPR-11-00 03 :02 PM AURORA CHAMBER
0__441..r.9 f- .
AURORA CHAMBER
OF COMMERCE
;(c 5:16LE lioutEV4RV.SulTE 21)0
AURORA,COI.I IRAI)o;lloII
toP ;44.15O) •F.,v Lt0{) 144-1 Win; -
April 7, 2000
Senator Ken Chlouber
Colorado State Capitol
200 East Colfax
Denver, CO 80203
Dear Senator Chlouber,
Representing the 3r a largest Chamber in the metro area, the Aurora Chamber of
Commerce Board of Directors, our Public Issues Committee, and on behalf of our
business community, we are in support of House Bill 1447.
Competition that will benefit businesses and resident consumers by lowering prices,
improving services and increasing the number of products offered in the market place,
can not be ignored any longer. House Bill 1447 will hasten the advent of competition in
Colorado.
The lowering of prices for the next four years is guaranteed and the small risk of an
increase four years from now is a worthwhile agreement. Please support the free
enterprise system we have in the United States by supporting the passage of HB 1447.
Yours truly,
ev;_ciAAr
Kevin L. Hougen
President/CEO
t1/rh. “1,wmuota(i..itontg,n; • I min hi/Hy/1,11)1,um
4 '4 G c4;G'aCYl C4..... zdJc _..._ ,
• Broomfield Economic
iS , Development Corporation
4 Garden Center,Suite 210
BroomNeld.Colorado 80020
302/489-7646 1 FAX:303/469.9102
I • e-mail;bede@usamet / www.broomfleldedc.com
April 4, 2000
Representative Doug Dean , •
Colorado State Capitol 1
200 East Colfax
Denver, CO 80203 •
Re: KB 1447 .
IDear Representative Dean:, • •
We support BB 1447 as it will provide all Colorado residents the telecommunication
competition that is envisioned when Congress passed the Telecommunication Act of
1996. It will provide consumers protection from excessive rte hikes, deregulates inter& '
infra lata tolls. The bill will provide a balanced approach to telecommtutication9 markets
. by protecting the consumer. ]
i We support this bill and hope it is passed by this years Colorado State Legislature.
. Sincerely,itiP
Donald G.Dunshee
President &CEO
•
DGD/tlg • •
i i
Member
METRO oi1NER EYWOS
i , • i
, •
•
ii 500,4/1/4,frorenver
• i C 11 AMBER • OF • COMMERCE
NOT YOUR ORMNARY CIIAMOER •• I I
April 3,2000 '
State Senator Keh Chlouber '
Colorado State Capitol
• 200 East Coliax I
Denver)CO 80203 •
I
Dear Senator Ch ouber:
On bell(of the nearly 2000 business members of the South Metro Denver Chamber of
Commdree and it the direction of our Board of Directors,I am expressing our support for :
the passlage of 11'[31447. We believe this bill is long overdue in leveling the playing field
. for all telecommunication companies in our state. I
Qualityjservice It the best price can only be achieved when competitive markets exist and
the free enterpribe system is allowed to work the way it was intended. All customers,
both residential end business, should have the opportunity to choose the service they wish
to use.
In addition,the rate cannot continue to mandate that one telecommunications company
provide service to everyone,while their competitors have the ability to pick and choose
only the most profitable markets. This bill makes the market more equitable for all
•
•
telecommunication companies in the state.
•
'Therefore, we respectfully urge your support for the passage of HB 1447.
Sincerely,
'Vogt ,
President
I
i
f901 SOUT/UPARB P1.47A, 5u(TE 110 • LITTLETON,COLORADO 80120 • 303.795.0142 • 303.795.7520 FAX
www.bestehamber.com
P. Id NI 966 605 'ON MI 3N1 "0 •aaEYiVH0 'Q I .s ;Ant of; :Oi NO? 00-5 -Ulf
LEE. r_cnL: ( z JdC o4S( .63./e1G
( THE GREATER'"
PUEBLO CHAMBER
maimir We Mean Business®
302 N. Santa Fe Ave. • Pueblo, CO 81003 • (719) 542-1704 • (719) 542.1624 fax • pubcham@iex.net
www.pueblochamber.org
March 28, 2000
The Honorable Doug Dean
The Colorado House
State Capitol
Denver, Colorado 80203
Dear Representative Dean:
Perhaps the most important element in Pueblo's economic revival has been our competitive desire
to attract new business and by extension new jobs to our community. To be, if you will, the best
and most logical place for a plant location manager to establish a presence, competition, the
hallmark of a market economy, insures that consumers will trigger their choice options within a
reasonable assurance that they will receive reliable goods or services tailored to their specific
financial means.
It is because of my strong belief that the public at large ultimately benefits from the fruits of the
competitive arena that I seek your support of H.B. 1447. I will not shortchange your
understanding of the bill's provisions and ramifications as I am confidant the bill's proponents and
and opponents will visit upon you a monumental sales promotion effort suffice it to say that it is
my opinion that H.B. 1447 is one of the better consumer friendly bills to come before the house in
some time and I urge your support.
Sincerely,
Rod Slyhoff
President and CEO
RS/mm
Serving Pueblo County since 1912
wrd5-q 11:G5aa Frco:.5. Wait 97024442)5 T-808 7.05/Qa F-9b0
Grand Juneda Arca
ar$4,40100ea
mien Rathume Cannedtse n
March 28,2000
The Honomlele
eve Man th red
State Caphol B.�9 Ruthann
Et
Denver,CO 80403
DearRepraearative ?•iaftb,
The Goverment')Ail-sirs Committee has recently decided to support 181447,the Competition in Retail Talecommuniaatlons Market bill that will deregulate the
telecommunication industry in Colorado.
This hull is consistent with the 2000 Grand 71moton Chantbetr of Co
Taleco wi aiicatttons The policy states, °The Chamber a tnomely emicy on
oh of
regulatory manure"in order to encamp the complete deployment of
telscommtmioaffi1ns eminent and services in Western Calmedo. While the Chamber
ne:ogriaes that regulation of the teleco municaticros industry may be necessary through
the trination boa competitive marketplace,competition should replace regulations
wherever possible,as quickly as possible."
Thank you far yeurpw ti al` ation is
p today's meeting.
Sincerely
r •
4
D Schwenk.
President
II�
36O Oimd Munn•Grand Junz os.CO$1301 •in 97134O4214•Aux 9762424604
a��.-ir..�Y-.r - .-..A. V6.r-i.►n�L.�.�
•
Prim Chwiser et CriMes Tim Baits PeNAgasn Us:NM fine 1145:10 PM Papa 1 091
OOAN0 JUNCTION AREA COAINEN OE ilEIIlE®P! SEOIOLATIVZ FAX
March 27,2000
Tareomanntmlmtlona, fill 1441, a revamped teleaaermuaieatioea deregulation bill cues Sr 4ucod in the
House on Thursday,March Id. It was as ed to dm House Business Afars Committee. Proponents argue
i tat US West deregulation, which would CS=by July 1, 2004, would lead to more competition. The bill
i would allow triers to more fatly reduce prices for certain services ibr competitive reasons, but it also
allows carriers to increase the price of phone litres by the anmiai wet of inflation, if service Drgem ue met
and regulators tie'aided. Opponents e:gue that by giving US West the option to lower the price of some
services. such as Caller IDs predatory prising will result and giving US West the option to lower rho price of
lotto services. such as Caller ID may anbrally drive competing companies driven out of the market The
i Chamber ii suppardng HR 1447.
Tares: State lawmaking have intoduoed a bill to exclude Coltrado•bued Internet Service Providers(1SPs)
i from=Son on access charges. ISPs currently avoid tmmties war a slat,menster]om tat expires within
bill sponsor Rep. Penn Piifftter(R-Leleswood), "Rather than pushing it off another ref,two years,we want
to address It now, We don't want to stint down the Internet, damage the growth of the Internet,by taxing the
ISPs." Lei 1440 would errata a permamett stele moratorium.
Under the current proposal,to draft WI would put ISPs into a category similar to that enjoyed by catalog
meralumn who also avoid turation. Questions have been raised by the Colorado Munialpal League about
whether or not votes would have to approve set taxing ISPs under TABOR. TABOR reserves to the
citizcua decisions on increasing taxes. Cove=Owens is on record opposing tamatton of Intranet teens
Isad ttsnnctiocs.
I In addition to addressing to ISP taxation issue,HR 1440 also dines the Governor's office of melange and
I mcbnology to conduct a windy of Interest trsneastlm tar gems, including an analysis of potential
economic and 5soal impacts tat various tsar systems men have on to Colorado economy.
News from Cents:The U5 House of Representatives approved legislation last week tat would give
developers expedited recourse in federal court laws deprive them of all eoorwmic use of their land must take
their claims to state court and also undergo negotiations with local authorities. The procedure is in keeping
with a Supreme Court decision on the issue tut soled that landowners must Stet seek eempenaation in stew
court before filing a suit in federal court
The Hause-passed bill would allow developers to to in federal court after they appeal a zoning decision and
apply fix a waiver with local authorities Although the bill is popular with building and development
interests,it aces a very tough Sght in the US Senate. A similar bill. passed la 10117,died in to Senate.
Should the bill make it through the Sate, President Clinton has indicated tat the bill is a veto target,
C 1999 by Grad frmetiast Mrs Ckansber of Cosotanee
Grated Msadtos Mn Caber of Cbtsusmey AM Grand Ara,Grand Mod" Cr711S01
Ptiesa (970 2424214,FAX 242-H$4,newer( eaabetwra
:ts-d Z0/20'd O:t-1. StZPPPt0IZ us* t5-meld 5061190 00-12-Ae11
Tii'c -c C
•
The Latino Chamber of Commerce of Pueblo . 215$•Victoria Awnuc. i�icblo, CO 81003
(719) 542513.
,March 27, 2000 •
•
FMr,lr • •
Representatives;Doug Dom,Penfield Tate d:Fran Coleman
Senators'Ket Chlouber •
• 136 Stare Capitol • •
Denver, CO $0203 • •
•
fl. HOUSE BILL 1447
The Latino Chamber of Commerce ofPudrlo is a dynamic business organization
committed to create and promote opportunity,growth, and progress of minority and small •
businesses with primary emphasis on the economic and educational, advancement tithe
Latino Community.
•
.Currently,the Latino Chamber has a total of 650 members. It is our vision to create an
•environment of choice for our members,allowing thereto purchase products and/or
saviors based on quality and individual needs •Therefore;the Latino Chamber of
Commerce supports the concept of gee enterprise which ethane's economic development
in all areas of our community specifically the Soudan Colorado area
We support a competitive marketplace with full tad felt caietition. We feel our
members well benefit from the cholera zomputition will bring to our community.
Thank you for your interest and consideration.. •
Sincerely, ,
•
Sandyoutieires •
• President/CEO . .
• CC: • Martin'Ayaia, Chirp—arson• . •
• •
•
03/23/00 16:47 FAX 8702458300
CLUB 20 %Jul
"Voice of the Western Slope, since 1953"
A coalition of counties, communities, businesses& individuals
970 / 2424264 *• FAX 970 / 2454300
x 550
Grand Junction, Colorado 550
w .cl b20 org
March 23, 2000
Representative Carl Miller
111 West 3`d Street
Leadville, CO 81302
Dear Carl:
On March 16,HB 00-1447 was introduced by Representative Dean with Senator ort this
Chlouber as the Senate sponsor. On behalf of CLUB 20,I would urge you to supp
legislation.
As you know, telecommunications across the Western Slope continues to be locked into a
black hole. Daily we here about many business decisions that are affected by poor
service, inadequate infrastructure and poor bandwidth. All of these needs are now
limited because there is an ongoing argument that there is not a business case to develop
new or expanded service in rural areas,while the metro areas enjoy aggressive markets
which provide good service.
We must look at a way to level the playing field in rural Colorado. Setting a time frame
to accomplish this process is the first step. While no piece of legislation is perfect, I
would suggest that BB 00-1447 is a beginning.
Please feel free to give me a call if we can provide additional information.
Best personal regards, and thanks for all your hard work this year!
Sincerely,
Stan B me
Presid t
MESA COUNTY ECONOMIC DEVELOPMENT COUNCIL
March 23, 2000
Representative Matthew Smith
Statehouse, State Capitol
Denver, Colorado 80203
Re: HB 1447
Dear Representative Smith,
Please let this letter serve as an expression of my support for HB 1447, which concerns regulatory
processes to ensure increased competition in the retail telecommunications market. As I
understand it, HB 1447 provides a four year schedule to transition from today's regulated
telecommunications market to a fully competitive one. It provides safeguards for the Public
Utilities Commission to provide consumer protections while fulfilling its statutory obligation to
ensure that the market is open to competition.
HB 1447 gives the PUC the necessary tools to protect consumers from potential harm. Should a
provider fail to meet PUC services quality standards, the Commission may delay or deny that
provider's request for deregulation.
As you know, the existing regulatory process cannot move quickly enough to keep pace with the
rapidly changing development of new technologies. All providers need the ability to build the
most efficient networks possible for rapid service delivery to all customers in Colorado. HB 1447
is a balanced approach to transitioning the telecommunications market while protecting
consumers with service quality rules and price controls.
As the Mesa County Economic Development Council continues to recruit technology driven
employers, this issue will be of growing importance to the economic health of Mesa County.
Sincerely,
-.S4 A11;1,,N.S
Steven Ausmus
President & Executive Director
cc: Steven M. Irion
2323 WALKER FIELD DRIVE • THIRD FLOOR • GRAND JUNCTION. COLORADO 81506
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