# FCC Cable Forms > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A94-8220 ## Record - **Collection:** Federal Register - **Document type:** Uncategorized Document - **Published:** April 5, 1994 ## Text FEDERAL COMMUNICATIONS COMMISSION FCC Cable Forms AGENCY: Federal Communications Commission. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: This document summarizes the revised regulations that will govern cable service rate regulations by local and federal officials. As a result of these Commission actions, several FCC forms were developed in order for the Commission to assess whether rates for regulated basic cable services and rates for regulated cable programming services are reasonable. EFFECTIVE DATE: April 5, 1994. FOR FURTHER INFORMATION CONTACT: Michael Rugar at 202-416-0856. For copies of the forms, call 202-416- 0919. SUPPLEMENTARY INFORMATION: This is a synopsis of the rate regulation forms developed in response to actions taken in MM Docket No. 92-266, MM Docket 92-262 and MM Docket No. 93-215, adopted February 22, 1994.\1\ --------------------------------------------------------------------------- \1\Not published in the Federal Register. --------------------------------------------------------------------------- 1. The Commission adopted a Second Order on Reconsideration, Fourth Report and Order, and Fifth Notice of Proposed Rulemaking in MM Docket No. 92-266. The Second Order on Reconsideration describes revised regulations that will govern cable service rate regulation by local and federal officials. These regulations will be used by cable operators to assess whether rates for regulated basic cable services and rates for regulated cable programming services are reasonable. Generally, the Commission refined and improved its statistical and economic analysis of the cable industry, and adopted a new benchmark formula which will replace the old benchmark formula after May 15, 1994. The benchmark formula is based on the competitive differential between rates charged by cable systems subject to effective competition and those charged by systems not subject to effective competition, and establishes maximum permitted levels for regulated cable service rates. The Commission has established a price cap mechanism to govern regulated cable service rates on a going-forward basis. The revised regulations also include rules governing permitted rate adjustments for changes in inflation, and permitted rate adjustments for changes in external costs, for instance, programming costs associated with new and existing programming, retransmission consent fees, and taxes imposed on the provision of cable service. The Fourth Report and Order describes revised regulations to govern permitted rate adjustments when operators seek to add or delete channels on regulated service tiers. 2. The Commission also adopted a Third Order on Reconsideration in MM Docket Nos. 92-266 and 92-262 in which it, inter alia, refined the calculations necessary to determine permitted equipment and installation costs. The 1992 Cable Act requires equipment and installation rates be based on actual cost. Pursuant to this Order, cable operators must generally calculate and provide their equipment and installation charges on several occasions: (1) When establishing maximum initial permitted rates for regulated cable services because Commission rules require operators to separate out equipment and installation rates in the determination of initial regulated rates for basic cable service, and (2) to update equipment and installation charges on an annual basis. 3. Finally, the Commission also adopted a Report and Order and Further Notice of Proposed Rule Making in MM Docket No. 93-215 regarding cost-based cable regulation. In that document, the Commission adopted rules and procedures for cost of service rate showings. Under these regulations, a cable operator may request relief from the required reduction in rates by showing that its costs of service are unusually high. This approach balances the interests of the cable operators and their customers, permitting operators to recover from customers only the reasonable costs of providing regulated services, including operating expenses and a reasonable rate of return. The Commission provided for reduced showings by small cable systems seeking to justify rates based on costs. Small systems can use a form that calls for significantly less information in cost showings than other operators. This reduces the regulatory burden on those businesses. 4. To implement the rules adopted in MM Docket No. 92-266, the Commission has developed the following forms. 5. FCC Form 1200, Setting Maximum Initial Permitted Rates for Regulated Cable Services and Equipment Pursuant to Rules Adopted February 22, 1994 (the ``First Time Filers Form''). This form is designed to collect information sufficient to permit an operator regulated by a local franchise authority or the FCC to calculate figures relating to regulated revenues per subscriber as of March 31, 1994, figures relating to the benchmark as of that date, and figures relating to the Full Reduction Rate, which reflects application of the full 17 percent competitive differential. This form then compares these sets of figures to derive the maximum permitted rates for regulated cable services as of May 15, 1994. The form will be filed with local franchising authorities (or the FCC in limited circumstances) in response to basic service rate regulation, and with the FCC in response to cable programming service rate complaints. OMB Control Number: 3060- 0571, estimated annual burden: 11,200 responses; 20 hours per response; 224,000 hours total annual burden. 6. FCC Form 1201, Facsimile Request. This form permits cable operators to request assistance from the Commission in completing FCC Form 1200. The operator may request assistance in determining the census income figure, the revised benchmark calculation and the channel adjustments. OMB Control Number: 3060-0597, estimated annual burden: 14,000 responses; 1 hour per response; 14,000 hours total annual burden. 7. FCC Form 1205, Determining Costs of Regulated Cable Equipment and Installation. This form collects information sufficient to allow a cable operator to determine the costs associated with regulated equipment and installation for the basic service tier and the maximum permitted charges for such equipment. This form will be filed in conjunction with FCC Form 1200, to update equipment and installation charges on an annual basis. The form will be filed with local franchising authorities (or the FCC in limited circumstances) in response to basic service rate regulation, and with the FCC in response to cable programming service rate complaints. OMB Control Number: 3060- 0592, estimated annual burden: 16,600 responses; 20 hours per response; 332,000 hours total annual burden. 8. FCC Form 1210, Updating Maximum Permitted Rates for Regulated Services and Equipment. This form collects information sufficient to allow the operator to calculate changes in external costs, addition and deletion of channels, and inflation that have taken place since March 31, 1994. The form may be filed up to four times per year, once in each calendar year quarter, by operators wishing to claim adjustments to maximum permitted rates to reflect increased costs. This form must also be filed if there is a decrease in costs and to reflect channel deletions. The form will be filed with local franchising authorities (or the FCC in limited circumstances) in response to basic service rate regulation, and with the FCC in response to cable programming service rate complaints. OMB Control Number: 3060-0595, estimated annual burden: 33,600 responses; 10 hours per response; 336,000 hours total annual burden. 9. FCC Form 1215, A La Carte Channel Offerings. This form is designed to collect and compare information about channels offered on an individual (a la carte) basis and packages of these channels offered on April 1, 1993. This form must be filed by the cable operator in conjunction with each FCC Form 1200 and FCC Form 1210. The form will be filed with local franchising authorities (or the FCC in limited circumstances) in connection with basis service rate regulation, and with the FCC in response to cable programming service rate complaints. OMB Control Number: 3060-0593, estimated annual burden: 44,800 responses; 1 hour per response; 44,800 hours total annual burden. 10. To implement the rules adopted in the Report and Order and Further Notice of Proposed Rule Making in MM Docket No. 93-215, the Commission has developed the following forms. 11. FCC Form 1220, Cost of Service Schedule. This form is designed to be used by cable operators wishing to justify rates above levels determined under the benchmark approach. The form will be filed with local franchising authorities (or the FCC in limited circumstances) in response to basic service rate regulation, and with the FCC in response to cable programming service rate complaints. OMB Control Number: 3060- 0594, estimated annual burden: 2,100 responses; 80 hours per response; 168,000 hours total annual burden. 12. FCC Form 1225, Cost of Service Schedule For Small Systems. This form can be used by independent small systems and by small systems owned by a multiple system operator that services 250,000 subscribers or less, has no system with more than 10,000 subscribers, and has an average system size of 1,000 subscribers or less. The form will be filed with local franchising authorities (or the FCC in limited circumstances) in response to basic service rate regulation, and with the FCC in response to cable programming service rate complaints. OMB Control Number: 3060-0596, estimated annual burden: 700 responses; 60 hours per response; 42,000 hours total annual burden. 13. Note: The information collections associated with this notice have been approved by the Office of Management and Budget for ninety days under the emergency processing procedures contained in 5 CFR 1320.18 and assigned the OMB numbers listed above. The Commission will resubmit these collections during this ninety day period for routine clearance. Copies of these OMB submissions may be purchased from International Transcription Service, Inc., 2100 M Street, NW., suite 140, Washington, DC 20037 (202) 857-3800. Comments for these information collections are encouraged and will be accepted until June 5, 1994. Persons wishing to comment on these information collections should contact Timothy Fain, Office of Management and Budget, room 3221 NEOB, Washington, DC 20503. Printed copies of these forms may be obtained by calling (202) 416-0919, or by writing to Federal Communication Commission, Cable request Form (specify form number), P.O. Box 18238, Washington, DC 20036. They will also be available in room 207, 2033 M Street NW., Washington, DC. Federal Communications Commission. William F. Caton, Acting Secretary. [FR Doc. 94-8220 Filed 4-4-94; 8:45 am] BILLING CODE 6712-01-M --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-8220. Public record. Not legal advice.