NEWS November 18, 1994 CABLE BUREAU TASK FORCE ESTABLISHED TO MONITOR RATE COMPLAINT PROCESS ORDERS ISSUED ON ADDITIONAL CABLE TELEVISION RATE COMPLAINTS: THREE OPERATORS ORDERED TO PROVIDE REFUNDS TOTALLING ABOUT 900 THOUSAND As part of the Cable Service Bureau's effort to ensure that rate complaints are resolved expeditiously and at a regular pace, the Chief of the Cable Services Bureau, Meredith J. Jones has established a Commission task force to analyze the Commission's rate complaint process and determine whether there are any procedures which can be modified to speed up the process. The task force will monitor the progress on resolving complaints. This will ensure fairness to consumer, local franchising authorities and operators by making sure that all complaints are examined in a timely fashion. The task force plans to make its recommendations for changes before the end of the year. The Cable Services Bureau of the Federal Communications Commission today also issued 6 orders resolving 24 cable service rate complaints filed by consumers and local franchising authorities against cable operators. In three of the 6 cases, consumer refunds were ordered, totalling approximately $900,000. The refunds were ordered in Milwaukee, WI (Warner Cable), Virginia Beach, VA (Cox Cable), and parts of Los Angeles, CA (United Cable). The orders resolve these complaints and cover rates in effect prior to May 15, 1994. In addition to the three refund orders, complaints involving three other franchise areas served by one other operator have been resolved. In these cases the rates were found to comply with the Commission's rate orders. Those additional franchise areas are: Toledo, OH, Rossford, OH, and Oregon, OH. All three areas are served by Buckeye Cablevision. The 1992 Cable Act permits subscribers and local franchising authorities to file complaints challenging the compliance of a cable operator with rate regulations. The complaints trigger a Commission adjudicatory proceeding whereby the cable operator is required to file a detailed written response justifying the rates it is charging. The Cable Services Bureau's Consumer Protection Division analyzes and reviews the complaint, the response and any supplementary information provided by the cable company, to determine whether the rates being charged are reasonable. -over- - 2 - All six of the orders issued today are benchmark orders. Essentially, under the benchmark system, an operator's rates are compared to benchmark levels, which approximate the rates that would be charged by similar systems which are subject to effective competition. Cost-of-service cases are determined by examining the actual costs an operator incurs in providing cable service. Action by the Chief, Cable Services Bureau, November 18, 1994, by Memorandum Opinion andOrders (DA 94-1283-1288). - FCC - Cable Services Bureau news media contact: Morgan Broman (202) 416-0852 Cable Services Bureau contacts: Jeffrey Steinberg, Mary Woytek (202) 416-0800