[Congressional Record Volume 140, Number 76 (Thursday, June 16, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[Congressional Record: June 16, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                         CABLE TELEVISION RATES

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                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                        Wednesday, June 15, 1994

  Mr. STARK. Mr. Speaker, understanding cable television rate 
structures seems to require an advanced degree in calculus, but we all 
understand the bottom line. When the cable monopolies were unregulated, 
East Bay consumers were gouged: from 1986 to 1991 rates rose up to 120 
percent. Consumers demanded relief so Congress passed the 1992 Cable 
Reform Act ordering the Federal Communications Commission [FCC] to 
regulate the cable operators and reduce rates.
  Last year, the FCC set maximum rates for the cable operators that 
were intended to lower customer bills. However, the rates were still 
too high and cable operators too tricky so this year the FCC ordered a 
second rate reduction.
  Last week, I announced that TCI had ignored the first set of Federal 
rules and overbilled East Bay customers by $1.1 million. This million 
dollar overcharge was discovered because cities and customers filed 
rate complaints with the FCC. The 13th Congressional District was one 
of only a handful in the country where every city filed a complaint to 
ensure a rollback to legal rates and maximum refunds to customers.
  Recently, TCI stated that it is reducing some rates, effective July 
15, to comply with the second round of FCC mandated reductions. I 
always welcome cable rate reductions, but consumers should be wary. 
These newly announced reductions don't change the fact that TCI has 
already violated FCC's first rate reduction order, overcharged its 
customers, and now owes local subscribers a bundle in refunds. Even the 
newly announced reductions may not be enough to bring the company into 
compliance with the law and the company may be forced to pay even more 
refunds in the future.
  The cable operators and the Federal bureaucracy are making this too 
complicated and we're paying too much! I want to see rates simplified, 
lowered, and enforced. I also want cable operators to agree to a Cable 
Customer Bill of Rights and be held accountable, to their customers, 
for lousy service. I am continuing to work closely with East Bay cities 
and consumers to achieve these goals.

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