4 Colo. Code Regs. § 723-2-2406

Current through Register Vol. 47, No. 20, October 25, 2024

Section 4 CCR 723-2-2406 - Cost Segregation Standards Generally

For purposes of these rules, and in order to comply with §§ 40-15-106 and 40-15-108(2), C.R.S.:

(a) All providers of telecommunications services may perform a FDC study for Commission use. In performing an FDC study, all providers shall follow generally accepted cost accounting and cost causation principles.

(b) When performing a FDC study the following cost-segregation principles shall be used by all providers (listed in descending order of preferred application):

(I) Cost causation: Costs are assigned to all services that cause those costs to be incurred.

(II) Traceability: Costs that are identified in their entirety with a specific service are directly assigned to that service.

(III) Variability: Costs that are not directly traceable to a particular service, but do vary in total with some measure of the volume of activity that is associated with services, are segregated according to the estimated rate of variability.

(IV) Capacity Required: Costs of capacity are assigned according to whether they are necessary for the performance of the service.

(V) Beneficiality: A service benefits from a cost if that cost is necessary to render that service.

(c) Any investments or expenses that are used jointly by two or more different services or that are used in common by services shall be segregated among all of those services using allocators that, to the maximum extent practicable, track how those costs are incurred.

(d) Consistent with FCC Docket 86-111, adopted December 23, 1986, paragraph 131, these rules do not require or suggest the sole use of Cost Accounting Standards Board (CASB) standards.

(e) The method for segregating investments and associated expenses which are common or jointly used shall ensure that all services that use those investments and expenses are allocated a portion of the joint investments and expenses. Incremental marginal cost studies will not be accepted for the purposes of this rule.

4 CCR 723-2-2406

39 CR 21, November 10, 2016, effective 12/1/2016

40 CR 15, August 10, 2017, effective 9/1/2017

41 CR 03, February 10, 2018, effective 3/2/2018

42 CR 02, January 25, 2019, effective 2/14/2019

42 CR 07, April 10, 2019, effective 4/30/2019

43 CR 02, January 25, 2020, effective 2/14/2020

43 CR 17, September 10, 2020, effective 8/17/2020

44 CR 17, September 10, 2021, effective 8/11/2021

44 CR 18, September 25, 2021, effective 10/15/2021

45 CR 03, February 10, 2022, effective 12/29/2021

45 CR 01, January 10, 2022, effective 1/30/2022

46 CR 05, March 10, 2023, effective 3/30/2023