[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
