RES 94114 - Laserfiche WebLink

Mr. Shris Sherwood City of Pleasanton July 25, 1994 Page 4 Although this answer does not specifically address the issue of channels which are shared between regulated and unregulated use (the example given involves two types of regulated services), it Would appear reasonable that the "preponderance of use" standard would apply to this situation. In this case, assuming that the 1992 hours of carriage were reasonably comparable to the hours utilized in 1993, this would reduce the regulated channels in December 1993 to 32 (16 satellite) and in September 1992 to 31 (16 satellite). The impact on the permitted rate is indicated below (Note: Rates listed are exclusive of the franchise fee): Current Rate Permitted Difference Rate Basic Service $ 12.93 $ 12.34 -0.59 (17 Channels) Tier 2 10.13 10.89 +0.76 {15 channels) Total 23.06 23.23 +0.17 As can be seen, the total rate could have been higher than charged by Viacom. This is due to the inverse ratio of channels to the benchmark rate. However, it is possible that the rote charged to subscribers could result in being reduced. Before explaining how this may be possible, it is very important for the Cities to understand that the FCC rules are less than clear cut in this area. Despite repeated requests from both cable operators and franchising authorities, the FCC has been slow in responding to many specific questions regarding implementation of the rules. The FCC's regulations for review of Form 393 appear to permit the regularcry authority (either a city or the FCC) to reduce rates which exceed the permitted amount, or freeze rates which are less than the permitted amount. In the specific case before the cities, this may mean that the Cities could order the Basic Service rate to be reduced to $12.34. Upon notification to the FCC by the cities, the FCC may ~hen "freeze" the Tier 2 rate at $10.13. This would be significant because the second round of rate regulation utilizes the rates which were in place on