C. Office of Ratepayer Advocates' (ORA) Response to Motion

ORA recommends that, should the Commission grant the motion, the CHCF-A funding waterfall should be reset to 100% for only one year, the year 2001, subject to the means test. ORA recommends that thereafter, the CHCF-A waterfall should be 80% for the year 2002, 50% for year 2003, and 0% for year 2004.

In their motion, the small LECs ask the Commission to reset the CHCF-A funding waterfall to 100% for the year 2001. ORA agrees with the small LECs that the timing of a decision in this case, the termination of the settlement agreements, the reduction of the CHCF-A to 80% and the preparation and filing of GRCs could impose a hardship on some of the LECs. ORA asserts the CHCF-A funding level drop to 80% in 2001, coupled with the uncertainty surrounding the outcome of the settlement application, could impact the ability of the LECs to provide service to their customers. Granting the small LECs' motion will give the small LECs ample opportunity prepare and file their GRCs.