[Federal Register Volume 62, Number 28 (Tuesday, February 11, 1997)] [Notices] [Pages 6246-6247] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 97-3257] ======================================================================= ----------------------------------------------------------------------- FEDERAL COMMUNICATIONS COMMISSION Notice of Public Information Collections Being Reviewed by the Federal Communications Commission February 5, 1997. SUMMARY: The Federal Communications Commission, as part of its continuing effort to reduce paperwork burden invites the general public and other Federal agencies to take this opportunity to comment on the following information collection, as required by the Paperwork Reduction Act of 1995, Public Law 104-13. An agency may not conduct or sponsor a collection of information unless it displays a currently valid control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the Paperwork Reduction Act (PRA) that does not display a valid control number. Comments are requested concerning (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; (b) the accuracy of the Commission's burden estimate; (c) ways to enhance the quality, utility, and clarify of the information collected; and (d) ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology. DATES: Persons wishing to comment on this information collection should submit comments April 14, 1997. ADDRESSES: Direct all comments to Dorothy Conway, Federal Communications Commission, Room 234, 1919 M St., NW., Washington, DC 20554 or via internet to [email protected]. FOR FURTHER INFORMATION CONTACT: For additional information or copies of the information collections contact Dorothy Conway at 202-418-0217 or via internet at [email protected]. SUPPLEMENTARY INFORMATION: OMB Approval Number: 3060-0685. Title: Annual Updating of Maximum Permitted Rates for Regulated Cable Services. Form No.: FCC Form 1240. Type of Review: Extension of approval of a currently approved collection. Respondents: Business or other for-profit entities; state and local governments. Number of Respondents: 4,500. (3,000 cable operators and 1,500 local franchise authorities (``LFAs''). Estimated Time Per Response: 1-15 hours. Total Annual Burden: 47,250 hours. We report the burden for all aspects of this information collection as follows: The modification of the Form 1240 rate methodology requirement only pertains to first-time filings of FCC Form 1240. The modification merely results in permitting operators to project and recoup certain costs sooner, rather than later; therefore there is no measurable burden revision for this information collection. If there were an additional burden significant enough to be measured, any burden added to an operator's first Form 1240 filing would be negated by the decreased burden in completing the operator's second Form 1240 filing. The Commission therefore reports no revised burden to complete Form 1240 on a per filing basis. However, based on latest data available, the Commission adjusts the estimated number of Form 1240 filings that are annually filed by operators. The Commission estimates that there are no more than 3,000 Form 1240s filed annually; roughly 1,500 (50%) with the Commission and roughly 1,500 (50%) with LFAs. Burden for operators: We estimate that 25% of operators will contract out the burden of filing and that it will take 1 hour to coordinate information with those contractors. The remaining 75% of operators are estimated to employ in house staff to complete the filing. 750 filings (25% contracted out) x 1 hour = 750 hours. 2,250 filings (75% in house) x 15 hours = 33,750 hours. Additionally, 76.933(g)(2) states: If an LFA has taken no action within the 90-day review period, then the proposed rates may go into effect at the end of the review period, subject to a prospective rate reduction and refund if the LFA subsequently issues a written decision disapproving any portion of such rates. However, if an operator inquires as to whether the LFA intends to issue a rate order after the initial review period, the LFA or its designee must notify the operator of its intent in this regard within 15 days of the operator's inquiry. We estimate this will occur in 25% of the instances when Form 1240s are filed by cable operators with their LFAs. 25% of 1,500 = 375 inquiries at an estimated 1 burden for each inquiry = 375 hours. Total burden hours to operators = 750 + 33,750 + 375 = 34,875 hours. Burden to LFAs: The Commission estimates there will be 1,500 FCC Form 1240s filed with LFAs, annually. Average LFA reviewing time for each FCC Form 1240 is estimated to be 8 hours. 1,500 x 8 hours = 12,000 burden hours. Additionally, we estimate 375 responses to operator requests pursuant to 76.933(g)(2). 375 notifications at an estimated 1 burden hour for each notification = 375 hours. Total burden hours to LFAs = (1,500 x 8 hrs.) + (375 x 1 hr.) = 12,375 hrs. Total burden hours for all respondents = 34,875 + 12,375 = 47,250 hours. Total costs for Respondents: $1,139,000. We estimate an annual purchase of 1,000 diskette versions of FCC Form 1240 @ $5 per diskette = $5,000. Printing, photocopying and postage costs incurred by operators and LFAs is estimated to be $2 per entity (4,500 entities x $2) = $9,000. We estimate that assistance for completing Form 1240 filings will be performed by legal and accounting contractors at an average of $100/hour for 25% of the filings. $100/hour x 750 filings (25% of Form 1240 filings) x 15 hours = $1,125,000. Total respondent costs: $5,000 + $9,000 + $1,125,000 = $1,139,000. Needs and Uses: On September 22, 1995, the Commission released the Thirteenth Order on Reconsideration (``Order''), FCC 95-397, MM Docket No. 92-266, which adopted a new optional rate adjustment methodology permitting cable operators to make annual rate changes to their basic service tiers (``BSTs'') and cable programming [[Page 6247]] service tiers (``CPSTs''). Operators electing to use this methodology adjust their rates once per year to reflect reasonably certain and reasonably quantifiable changes in external costs, inflation, and the number of regulated channels that are projected for the 12 months following the rate change. To enable operators to use this optional rate adjustment methodology the Commission created FCC Form 1240 Annual Updating of Maximum Permitted Rates for Regulated Cable Services. Subsequent to the availability of FCC Form 1240, the Commission received numerous requests for waiver of certain rate adjustment requirements contained in the Order. Therefore, on, November 1, 1996, the Commission released an Order, DA 96-1804, which granted for all cable operators' initial Form 1240 filing, a waiver of the requirement that only costs that have actually been incurred may be included in the true-up period. Specifically, an operator's initial Form 1240 filing may now include projected changes in costs, inflation, channels and subscriber information attributable to the period between the last date for which historical cost data is available and the effective date of the new rates. These projections must be accompanied by a separate calculation and explanation of the basis for the costs (for the period between the last full month for which actual cost data is available and the effective date of the new rate). The creation of this blanket waiver modified the Form 1240 information collection requirement (though not the actual Form 1240, hence the July 1996 edition remains intact) and therefore required the approval of the Office of Management and Budget (``OMB''). The Commission received emergency OMB approval on December 12, 1996. The Commission now initiates a 60-day public comment period concerning the Form 1240 information collection requirement in order to obtain regular OMB approval for the collection. FCC Form 1240 is filed by cable operators seeking to adjust maximum permitted rates for regulated services to reflect changes in external costs. Cable operators submit FCC Form 1240 to their respective local franchising authorities to justify rates for the basic service tier or with the Commission (in situations where the Commission has assumed jurisdiction). FCC Form 1240 is also filed with the Commission when responding to a complaint filed with the Commission about cable programming service rates and associated equipment. Information contained in FCC Form 1240 filings has been used by the Commission and LFAs to adjudicate permitted rates for regulated cable services and equipment, for the addition of new programming tiers, to account for the addition and deletion of channels, and for the allowance for pass through of external costs and costs due to inflation. Federal Communications Commission. William F. Caton, Acting Secretary. [FR Doc. 97-3257 Filed 2-10-97; 8:45 am] BILLING CODE 6712-01-P