Goto Section: 76.930 | 76.934 | Table of Contents

FCC 76.933
Revised as of September 1, 2021
Goto Year:2020 | 2022
  §  76.933   Franchising authority review of basic cable rates and equipment
costs.

   (a) After a cable operator has submitted for review its existing rates
   for the basic service tier and associated equipment costs, or a
   proposed increase in these rates (including increases in the baseline
   channel change that results from reductions in the number of channels
   in a tier) under the quarterly rate adjustment system pursuant to
   Section 76.922(d), the existing rates will remain in effect or the
   proposed rates will become effective after 30 days from the date of
   submission; Provided, however, that the franchising authority may toll
   this 30-day deadline for an additional time by issuing a brief written
   order as described in paragraph (b) within 30 days of the rate
   submission explaining that it needs additional time to review the
   rates.

   (b) If the franchising authority is unable to determine, based upon the
   material submitted by the cable operator, that the existing, or
   proposed rates under the quarterly adjustment system pursuant to
   Section 76.922(d), are within the Commission's permitted basic service
   tier charge or actual cost of equipment as defined in § § 76.922 and
   76.923, or if a cable operator has submitted a cost-of-service showing
   pursuant § § 76.937(c) and 76.924, seeking to justify a rate above the
   Commission's basic service tier charge as defined in § § 76.922 and
   76.923, the franchising authority may toll the 30-day deadline in
   paragraph (a) of this section to request and/or consider additional
   information or to consider the comments from interested parties as
   follows:

   (1) For an additional 90 days in cases not involving cost-of-service
   showings; or

   (2) For an additional 150 days in cases involving cost-of-service
   showings.

   (c) If a franchising authority has availed itself of the additional 90
   or 150 days permitted in paragraph (b) of this section, and has taken
   no action within these additional time periods, then the proposed rates
   will go into effect at the end of the 90 or 150 day periods, or
   existing rates will remain in effect at such times, subject to refunds
   if the franchising authority subsequently issues a written decision
   disapproving any portion of such rates: Provided, however, That in
   order to order refunds, a franchising authority must have issued a
   brief written order to the cable operator by the end of the 90 or
   150-day period permitted in paragraph (b) of this section directing the
   operator to keep an accurate account of all amounts received by reason
   of the rate in issue and on whose behalf such amounts were paid.

   (d) A franchising authority may request, pursuant to a petition for
   special relief under § 76.7, that the Commission examine a cable
   operator's cost-of-service showing, submitted to the franchising
   authority as justification of basic tier rates, within 30 days of
   receipt of a cost-of-service showing. In its petition, the franchising
   authority shall document its reasons for seeking Commission assistance.
   The franchising authority shall issue an order stating that it is
   seeking Commission assistance and serve a copy before the 30-day
   deadline on the cable operator submitting the cost showing. The cable
   operator shall deliver a copy of the cost showing, together with all
   relevant attachments, to the Commission within 15 days of receipt of
   the local authority's notice to seek Commission assistance. The
   Commission shall notify the local franchising authority and the cable
   operator of its ruling and of the basic tier rate, as established by
   the Commission. The rate shall take effect upon implementation by the
   franchising authority of such ruling and refund liability shall be
   governed thereon. The Commission's ruling shall be binding on the
   franchising authority and the cable operator. A cable operator or
   franchising authority may seek reconsideration of the ruling pursuant
   to § 1.106(a)(1) of this chapter or review by the Commission pursuant to
   § 1.115(a) of this chapter.

   (e) Notwithstanding paragraphs (a) through (d) of this section, when
   the franchising authority is regulating basic service tier rates, a
   cable operator that sets its rates pursuant to the quarterly rate
   adjustment system pursuant to § 76.922(d) may increase its rates for
   basic service to reflect the imposition of, or increase in, franchise
   fees or Commission cable television system regulatory fees imposed
   pursuant to 47 U.S.C. 159. For the purposes of paragraphs (a) through
   (c) of this section, the increased rate attributable to Commission
   regulatory fees or franchise fees shall be treated as an “existing
   rate”, subject to subsequent review and refund if the franchising
   authority determines that the increase in basic tier rates exceeds the
   increase in regulatory fees or in franchise fees allocable to the basic
   tier. This determination shall be appealable to the Commission pursuant
   to § 76.944. When the Commission is regulating basic service tier rates
   pursuant to § 76.945 or cable programming service rates pursuant to
   § 76.960, an increase in those rates resulting from franchise fees or
   Commission regulatory fees shall be reviewed by the Commission pursuant
   to the mechanisms set forth in § 76.945. A cable operator must adjust
   its rates to reflect decreases in franchise fees or Commission
   regulatory fees within the periods set forth in § 76.922(d)(3)(i),(iii).

   (f) For an operator that sets its rates pursuant to the quarterly rate
   adjustment system pursuant to Section 76.922(d), cable television
   system regulatory fees assessed by the Commission pursuant to 47 U.S.C.
   § 159 shall be recovered in monthly installments during the fiscal year
   following the year for which the payment was imposed. Payments shall be
   collected in equal monthly installments, except that for so many months
   as may be necessary to avoid fractional payments, an additional $0.01
   payment per month may be collected. All such additional payments shall
   be collected in the last month or months of the fiscal year, so that
   once collections of such payments begin there shall be no month
   remaining in the year in which the operator is not entitled to such an
   additional payment. Operators may not assess interest. Operators may
   provide notice of the entire fiscal year's regulatory fee pass-through
   in a single notice.

   (g) A cable operator that submits for review a proposed change in its
   existing rates for the basic service tier and associated equipment
   costs using the annual filing system pursuant to Section 76.922(e)
   shall do so no later than 90 days from the effective date of the
   proposed rates. The franchising authority will have 90 days from the
   date of the filing to review it. However, if the franchising authority
   or its designee concludes that the operator has submitted a facially
   incomplete filing, the franchising authority's deadline for issuing a
   decision, the date on which rates may go into effect if no decision is
   issued, and the period for which refunds are payable will be tolled
   while the franchising authority is waiting for this information,
   provided that, in order to toll these effective dates, the franchising
   authority or its designee must notify the operator of the incomplete
   filing within 45 days of the date the filing is made.

   (1) If there is a material change in an operator's circumstances during
   the 90-day review period and the change affects the operator's rate
   change filing, the operator may file an amendment to its Form 1240
   prior to the end of the 90-day review period. If the operator files
   such an amendment, the franchising authority will have at least 30 days
   to review the filing. Therefore, if the amendment is filed more than 60
   days after the operator made its initial filing, the operator's
   proposed rate change may not go into effect any earlier than 30 days
   after the filing of its amendment. However, if the operator files its
   amended application on or prior to the sixtieth day of the 90-day
   review period, the operator may implement its proposed rate adjustment,
   as modified by the amendment, 90 days after its initial filing.

   (2) If a franchising authority 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 franchising authority subsequently issues a written decision
   disapproving any portion of such rates, provided, however, that in
   order to order a prospective rate reduction and refund, if an operator
   inquires as to whether the franchising authority intends to issue a
   rate order after the initial review period, the franchising authority
   or its designee must notify the operator of its intent in this regard
   within 15 days of the operator's inquiry. If a proposed rate goes into
   effect before the franchising authority issues its rate order, the
   franchising authority will have 12 months from the date the operator
   filed for the rate adjustment to issue its rate order. In the event
   that the franchising authority does not act within this 12-month
   period, it may not at a later date order a refund or a prospective rate
   reduction with respect to the rate filing.

   (3) At the time an operator files its rates with the franchising
   authority, the operator may give customers notice of the proposed rate
   changes. Such notice should state that the proposed rate change is
   subject to approval by the franchising authority. If the operator is
   only permitted a smaller increase than was provided for in the notice,
   the operator must provide an explanation to subscribers on the bill in
   which the rate adjustment is implemented. If the operator is not
   permitted to implement any of the rate increase that was provided for
   in the notice, the operator must provide an explanation to subscribers
   within 60 days of the date of the franchising authority's decision.
   Additional advance notice is only required in the unlikely event that
   the rate exceeds the previously noticed rate.

   (4) If an operator files for a rate adjustment under Section
   76.922(e)(2)(iii)(B) for the addition of required channels to the basic
   service tier that the operator is required by federal or local law to
   carry, or, if a single-tier operator files for a rate adjustment based
   on a mid-year channel addition allowed under Section
   76.922(e)(2)(iii)(C), the franchising authority has 60 days to review
   the requested rate. The proposed rate shall take effect at the end of
   this 60-day period unless the franchising authority rejects the
   proposed rate as unreasonable. In order to order refunds and
   prospective rate reductions, the franchising authority shall be subject
   to the requirements described in paragraph (g)(1) of this section.

   (5) Notwithstanding paragraphs (a) through (f) of this section, when
   the franchising authority is regulating basic service tier rates, a
   cable operator may increase its rates for basic service to reflect the
   imposition of, or increase in, franchise fees. The increased rate
   attributable to Commission regulatory fees or franchise fees shall be
   subject to subsequent review and refund if the franchising authority
   determines that the increase in basic tier rates exceeds the increase
   in regulatory fees or in franchise fees allocable to the basic tier.
   This determination shall be appealable to the Commission pursuant to
   § 76.944. When the Commission is regulating basic service tier rates
   pursuant to § 76.945 or cable programming service rates pursuant to
   § 76.960, an increase in those rates resulting from franchise fees or
   Commission regulatory fees shall be reviewed by the Commission pursuant
   to the mechanisms set forth in § 76.945.

   (h) If an operator files an FCC Form 1205 for the purpose of setting
   the rate for a new type of equipment under Section 76.923(o), the
   franchising authority has 60 days to review the requested rate. The
   proposed rate shall take effect at the end of this 60-day period unless
   the franchising authority rejects the proposed rate as unreasonable.

   (1) If the operator's most recent rate filing was based on the system
   that enables them to file up to once per quarter found at Section
   76.922(d), the franchising authority must issue an accounting order
   before the end of the 60-day period in order to order refunds and
   prospective rate reductions.

   (2) If the operator's most recent rate filing was based on the annual
   rate system at Section 76.922(e), in order to order refunds and
   prospective rate reductions, the franchising authority shall be subject
   to the requirements described in paragraph (g)(1) of this section.

   [ 58 FR 29753 , May 21, 1993, as amended at  59 FR 17973 , Apr. 15, 1994;
    59 FR 53115 , Oct. 21, 1994;  60 FR 52119 , Oct. 5, 1995;  61 FR 18978 ,
   Apr. 30, 1996]

   


Goto Section: 76.930 | 76.934

Goto Year: 2020 | 2022
CiteFind - See documents on FCC website that cite this rule

Want to support this service?
Thanks!

Report errors in this rule. Since these rules are converted to HTML by machine, it's possible errors have been made. Please help us improve these rules by clicking the Report FCC Rule Errors link to report an error.
hallikainen.com
Helping make public information public