NEWSReport No. DC-2689     ACTION IN DOCKET CASE          December 13. 1994

        TREATMENT OF PUBLIC SERVICE ANNOUNCEMENTS FOR CALCULATING
                      LOWEST UNIT CHARGE UNCHANGED
                            (MM DOCKET 91-168)

     The Commission has upheld its decision to treat paid Public Service Announcements
(PSAs) in the same manner as bonus spots for purposes of calculating the lowest unit charge
(LUC) offered to candidates during the statutory pre-election periods.

     In its original order, the Commission concluded that, because paid PSAs, particularly
those which run as 30-second spots, are of more than a de minimis value to commercial
advertisers, they should be included in a licensee's calculation of LUC in the same manner as
bonus spots.  

      The Commission said it continued to believe that PSAs provided to advertisers in
connection with a paid schedule of time were of more than a de minimis value, and should
be treated in the same manner as bonus spots when calculating LUC.    It also found no
merit in the argument that the policy discourages commercial support for local non-profit
organizations and for issue responsive programming.

     Action by the Commission October 28, 1994, by Memorandum Opinion and Order
(FCC 94-279).  Chairman Hundt, Commissioners Barrett, Ness and Chong, with
Commissioner Quello concurring in the result. 

                                  - FCC -

     News Media contact: Rosemary Kimball at (202) 418-0500.
     Mass Media Bureau contact: Marsha MacBride at (202) 632-7586.