[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]


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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