[Federal Register Volume 61, Number 68 (Monday, April 8, 1996)]
[Rules and Regulations]
[Pages 15388-15389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-8455]



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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 76

[MM Docket No. 92-266, FCC 95-150]


Cable Television Consumer Protection and Competition Act of 1992; 
Rate Regulation

AGENCY: Federal Communications Commission.

ACTION: Final Rule; petition for reconsideration.

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SUMMARY: This Eleventh Order on Reconsideration (``The Order'') 
eliminates the requirement that cable systems subject to transition 
rate treatment keep track of both their transition rates and full 
reduction rates on external cost forms filed with the Commission. This 
Order is intended to reduce paperwork burdens on cable operators when 
they file requests for rate adjustments.

EFFECTIVE DATE: May 8, 1996.

FOR FURTHER INFORMATION CONTACT: Paul Glenchur, Cable Service Bureau, 
(202) 416-0800.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
Eleventh Order on Reconsideration in MM Docket No. 92-266, FCC 95-150, 
adopted on April 7, 1995 and released April 26, 1995. The complete text 
of this document is available for inspection and copying during normal 
business hours in the FCC Reference Center, 1919 M St., N.W., 
Washington, D.C.

I. Introduction

    1. In this Order, the Commission on its own motion modifies 
reporting requirements described in its Second Order on 
Reconsideration, Fourth Report and Order, and Fifth Notice of Proposed 
Rulemaking (``Second Reconsideration Order''), 59 FR 17943 (April 15, 
1994), which direct certain small systems and low price systems to 
calculate both their ``transition'' rates and their ``full reduction 
rates'' for submission on applicable rate forms.

II. Elimination of Parallel Rate Tracking

A. Background

    2. In the Second Reconsideration Order, we required regulated cable 
systems, as a general matter, to reduce their rates by the full 
competitive differential established in that Order. We further 
provided, however, that certain qualifying systems would be eligible 
for transition treatment under which such systems would not be required 
to reduce their rates by the full competitive differential. These 
transition systems include ``cable operators which have a total 
subscriber base of 15,000 or fewer customers and which are not 
affiliated with a larger operator.'' They also include systems having 
March 31, 1994 rates that are at or below the revised benchmark and 
systems having March 31, 1994 rates above the benchmark but having 
permitted rates at or below the benchmark.
    3. We further provided in the Second Reconsideration Order that a 
system qualifying for transition relief would not be able to adjust its 
transition rate for inflation until its transition rate equaled its 
full reduction rate. We required transition systems to calculate both 
their transition and full reduction rates for the purpose of future 
rate adjustments. To enable parallel tracking of the transition and 
full reduction rates, we established on the FCC Form 1210, the form 
used to modify already justified rates, a reporting module 
acknowledging the difference in inflation adjustments for the two 
rates. All other cost adjustments, however, were allowed for both 
transition and full reduction rate calculations.

B. Discussion

    4. In the Ninth Order on Reconsideration, 60 FR 10512 (February 27, 
1995), we determined that it would be appropriate to allow transition 
systems to adjust their transition rates for inflation. By lifting the 
prohibition on inflation adjustments for transition rates, we 
eliminated the only difference in adjustment mechanisms between 
transition and full reduction rates. Accordingly, it is no longer 
necessary to require systems eligible for transition relief to render 
separate calculations for adjustments in transition and full reduction 
rates.
    5. In light of the foregoing, and in order to relieve transition 
system operators of burdens associated with the separate calculation of 
transition and full reduction rates, we are eliminating the requirement 
that transition system operators report both rates in their 
applications for external rate adjustments. Rather, such systems will 
only be required to report their transition rates adjusted pursuant to 
the commission's price cap rules for inflation, changes in external 
costs and changes in the number of channels on regulated tiers. We will 
make correlative adjustments on the FCC Form 1210.

III. Regulatory Flexibility Act Analysis

    6. Pursuant to the Regulatory Flexibility Act of 1980, 5 U.S.C. 
Secs. 601-12, the Commission's final analysis with respect to the 
Eleventh Order on Reconsideration is as follows:

[[Page 15389]]

    7. Need and purpose of this action. The Commission, in compliance 
with Sec. 3 of the Cable Television Consumer Protection and Competition 
Act of 1992, 47 U.S.C. Sec. 543 (1992), pertaining to rate regulation, 
adopts revised rules and procedures intended to ensure that cable 
services are offered at reasonable rates with minimum regulatory and 
administrative burdens on cable entities.
    8. Summary of issues raised by the public in response to the 
Initial Regulatory Flexibility Analysis. There were no comments 
submitted in response to the Initial Regulatory Flexibility Analysis. 
The Chief Counsel for Advocacy of the United States Small Business 
Administration (SBA) filed comments in the original rulemaking order. 
The Commission addressed the concerns raised by the Office of Advocacy 
in the Report and Order and Further Notice of Proposed Rulemaking, 58 
FR 29736 (May 21, 1993).
    9. Significant alternatives considered and rejected. In the course 
of this proceeding, petitioners representing cable interests and 
franchising authorities submitted several alternatives aimed at 
minimizing administrative burdens. The Commission has attempted to 
accommodate the concerns expressed by these parties. In this order, the 
Commission is providing relief to small systems and low-price systems 
by terminating the requirement that such systems report both their 
adjusted transition rate and their full reduction rate on forms 
requesting external cost adjustments.

IV. Paperwork Reduction Act

    10. The requirements adopted herein have been analyzed with respect 
to the Paperwork Reduction Act of 1980 and found to impose new or 
modified information collection requirements on the public. 
Implementation of any new or modified requirement will be subject to 
approval by the Office of Management and Budget as prescribed by the 
Act.

V. Ordering Clauses

    11. Accordingly, it is ordered that, pursuant to Sections 4(i), 
4(j), 303(r), 612 and 623 of the Communications Act of 1934, as 
amended, 47 U.S.C. Sections 154(i), 154(j). 303(r), 532, 542(c) and 
543, the rules, requirements and policies discussed in this Order ARE 
ADOPTED.
    12. It is further ordered that the revised reporting requirements 
adopted in this Order will become effective as soon as they may be 
approved by the Office of Management and Budget but not sooner than May 
28, 1996.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 96-8455 Filed 4-5-96; 8:45 am]
BILLING CODE 6712-01-P