Floor Packet Page No. 68 Amend CSSB 7 in Subchapter Z, Chapter 39, Utilities Code, as added by SECTION 40 of the bill (House committee report page 153, between lines 16 and 17) by adding a new Section 39.909 to read as follows: Sec. 39.909. RURAL UNIVERSAL SERVICE FUND. (a) The commission shall adopt rules consistent with this section to establish a rural universal service fund to provide monthly payments during the transition to retail customer choice that will ensure that rural consumers have equal access to competitively priced electric energy and to offset high distribution costs in rural areas. The fund shall be established not later than January 1, 2000. (b) The fund shall be funded by a charge of 15 cents per megawatt hour, assessed at the generator, for all non-cooperative and municipal generation sold in this state. (c) The commission shall determine the eligibility criteria and methods for the allocation of the total available funds to rural electric cooperatives participating in the fund. Eligibility and allocations shall be based on a retail electric utility's distribution costs or density of its customers or sales. (d) An electric cooperative receiving payments from the fund shall use the money to reduce its distribution plant balances or for other purposes to achieve a long-term reduction to its cost of providing distribution service. The commission may not impose restrictions on eligibility or use of money from the fund except as provided by this section. (e) During 2010 the commission shall assess the need for the fund and report the results of this assessment to the legislature before February 1, 2011.