[Federal Register Volume 59, Number 65 (Tuesday, April 5, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8220]


[[Page Unknown]]

[Federal Register: April 5, 1994]


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FEDERAL COMMUNICATIONS COMMISSION
 

FCC Cable Forms

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This document summarizes the revised regulations that will 
govern cable service rate regulations by local and federal officials. 
As a result of these Commission actions, several FCC forms were 
developed in order for the Commission to assess whether rates for 
regulated basic cable services and rates for regulated cable 
programming services are reasonable.

EFFECTIVE DATE: April 5, 1994.

FOR FURTHER INFORMATION CONTACT:
Michael Rugar at 202-416-0856. For copies of the forms, call 202-416-
0919.

SUPPLEMENTARY INFORMATION: This is a synopsis of the rate regulation 
forms developed in response to actions taken in MM Docket No. 92-266, 
MM Docket 92-262 and MM Docket No. 93-215, adopted February 22, 
1994.\1\
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    \1\Not published in the Federal Register.
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    1. The Commission adopted a Second Order on Reconsideration, Fourth 
Report and Order, and Fifth Notice of Proposed Rulemaking in MM Docket 
No. 92-266. The Second Order on Reconsideration describes revised 
regulations that will govern cable service rate regulation by local and 
federal officials. These regulations will be used by cable operators to 
assess whether rates for regulated basic cable services and rates for 
regulated cable programming services are reasonable. Generally, the 
Commission refined and improved its statistical and economic analysis 
of the cable industry, and adopted a new benchmark formula which will 
replace the old benchmark formula after May 15, 1994. The benchmark 
formula is based on the competitive differential between rates charged 
by cable systems subject to effective competition and those charged by 
systems not subject to effective competition, and establishes maximum 
permitted levels for regulated cable service rates. The Commission has 
established a price cap mechanism to govern regulated cable service 
rates on a going-forward basis. The revised regulations also include 
rules governing permitted rate adjustments for changes in inflation, 
and permitted rate adjustments for changes in external costs, for 
instance, programming costs associated with new and existing 
programming, retransmission consent fees, and taxes imposed on the 
provision of cable service. The Fourth Report and Order describes 
revised regulations to govern permitted rate adjustments when operators 
seek to add or delete channels on regulated service tiers.
    2. The Commission also adopted a Third Order on Reconsideration in 
MM Docket Nos. 92-266 and 92-262 in which it, inter alia, refined the 
calculations necessary to determine permitted equipment and 
installation costs. The 1992 Cable Act requires equipment and 
installation rates be based on actual cost. Pursuant to this Order, 
cable operators must generally calculate and provide their equipment 
and installation charges on several occasions: (1) When establishing 
maximum initial permitted rates for regulated cable services because 
Commission rules require operators to separate out equipment and 
installation rates in the determination of initial regulated rates for 
basic cable service, and (2) to update equipment and installation 
charges on an annual basis.
    3. Finally, the Commission also adopted a Report and Order and 
Further Notice of Proposed Rule Making in MM Docket No. 93-215 
regarding cost-based cable regulation. In that document, the Commission 
adopted rules and procedures for cost of service rate showings. Under 
these regulations, a cable operator may request relief from the 
required reduction in rates by showing that its costs of service are 
unusually high. This approach balances the interests of the cable 
operators and their customers, permitting operators to recover from 
customers only the reasonable costs of providing regulated services, 
including operating expenses and a reasonable rate of return. The 
Commission provided for reduced showings by small cable systems seeking 
to justify rates based on costs. Small systems can use a form that 
calls for significantly less information in cost showings than other 
operators. This reduces the regulatory burden on those businesses.
    4. To implement the rules adopted in MM Docket No. 92-266, the 
Commission has developed the following forms.
    5. FCC Form 1200, Setting Maximum Initial Permitted Rates for 
Regulated Cable Services and Equipment Pursuant to Rules Adopted 
February 22, 1994 (the ``First Time Filers Form''). This form is 
designed to collect information sufficient to permit an operator 
regulated by a local franchise authority or the FCC to calculate 
figures relating to regulated revenues per subscriber as of March 31, 
1994, figures relating to the benchmark as of that date, and figures 
relating to the Full Reduction Rate, which reflects application of the 
full 17 percent competitive differential. This form then compares these 
sets of figures to derive the maximum permitted rates for regulated 
cable services as of May 15, 1994. The form will be filed with local 
franchising authorities (or the FCC in limited circumstances) in 
response to basic service rate regulation, and with the FCC in response 
to cable programming service rate complaints. OMB Control Number: 3060-
0571, estimated annual burden: 11,200 responses; 20 hours per response; 
224,000 hours total annual burden.
    6. FCC Form 1201, Facsimile Request. This form permits cable 
operators to request assistance from the Commission in completing FCC 
Form 1200. The operator may request assistance in determining the 
census income figure, the revised benchmark calculation and the channel 
adjustments. OMB Control Number: 3060-0597, estimated annual burden: 
14,000 responses; 1 hour per response; 14,000 hours total annual 
burden.
    7. FCC Form 1205, Determining Costs of Regulated Cable Equipment 
and Installation. This form collects information sufficient to allow a 
cable operator to determine the costs associated with regulated 
equipment and installation for the basic service tier and the maximum 
permitted charges for such equipment. This form will be filed in 
conjunction with FCC Form 1200, to update equipment and installation 
charges on an annual basis. The form will be filed with local 
franchising authorities (or the FCC in limited circumstances) in 
response to basic service rate regulation, and with the FCC in response 
to cable programming service rate complaints. OMB Control Number: 3060-
0592, estimated annual burden: 16,600 responses; 20 hours per response; 
332,000 hours total annual burden.
    8. FCC Form 1210, Updating Maximum Permitted Rates for Regulated 
Services and Equipment. This form collects information sufficient to 
allow the operator to calculate changes in external costs, addition and 
deletion of channels, and inflation that have taken place since March 
31, 1994. The form may be filed up to four times per year, once in each 
calendar year quarter, by operators wishing to claim adjustments to 
maximum permitted rates to reflect increased costs. This form must also 
be filed if there is a decrease in costs and to reflect channel 
deletions. The form will be filed with local franchising authorities 
(or the FCC in limited circumstances) in response to basic service rate 
regulation, and with the FCC in response to cable programming service 
rate complaints. OMB Control Number: 3060-0595, estimated annual 
burden: 33,600 responses; 10 hours per response; 336,000 hours total 
annual burden.
    9. FCC Form 1215, A La Carte Channel Offerings. This form is 
designed to collect and compare information about channels offered on 
an individual (a la carte) basis and packages of these channels offered 
on April 1, 1993. This form must be filed by the cable operator in 
conjunction with each FCC Form 1200 and FCC Form 1210. The form will be 
filed with local franchising authorities (or the FCC in limited 
circumstances) in connection with basis service rate regulation, and 
with the FCC in response to cable programming service rate complaints. 
OMB Control Number: 3060-0593, estimated annual burden: 44,800 
responses; 1 hour per response; 44,800 hours total annual burden.
    10. To implement the rules adopted in the Report and Order and 
Further Notice of Proposed Rule Making in MM Docket No. 93-215, the 
Commission has developed the following forms.
    11. FCC Form 1220, Cost of Service Schedule. This form is designed 
to be used by cable operators wishing to justify rates above levels 
determined under the benchmark approach. The form will be filed with 
local franchising authorities (or the FCC in limited circumstances) in 
response to basic service rate regulation, and with the FCC in response 
to cable programming service rate complaints. OMB Control Number: 3060-
0594, estimated annual burden: 2,100 responses; 80 hours per response; 
168,000 hours total annual burden.
    12. FCC Form 1225, Cost of Service Schedule For Small Systems. This 
form can be used by independent small systems and by small systems 
owned by a multiple system operator that services 250,000 subscribers 
or less, has no system with more than 10,000 subscribers, and has an 
average system size of 1,000 subscribers or less. The form will be 
filed with local franchising authorities (or the FCC in limited 
circumstances) in response to basic service rate regulation, and with 
the FCC in response to cable programming service rate complaints. OMB 
Control Number: 3060-0596, estimated annual burden: 700 responses; 60 
hours per response; 42,000 hours total annual burden.
    13. Note: The information collections associated with this notice 
have been approved by the Office of Management and Budget for ninety 
days under the emergency processing procedures contained in 5 CFR 
1320.18 and assigned the OMB numbers listed above. The Commission will 
resubmit these collections during this ninety day period for routine 
clearance. Copies of these OMB submissions may be purchased from 
International Transcription Service, Inc., 2100 M Street, NW., suite 
140, Washington, DC 20037 (202) 857-3800. Comments for these 
information collections are encouraged and will be accepted until June 
5, 1994. Persons wishing to comment on these information collections 
should contact Timothy Fain, Office of Management and Budget, room 3221 
NEOB, Washington, DC 20503. Printed copies of these forms may be 
obtained by calling (202) 416-0919, or by writing to Federal 
Communication Commission, Cable request Form (specify form number), 
P.O. Box 18238, Washington, DC 20036. They will also be available in 
room 207, 2033 M Street NW., Washington, DC.

    Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 94-8220 Filed 4-4-94; 8:45 am]
BILLING CODE 6712-01-M