Notice of Public Information Collections Being Reviewed by the Federal Communications Commission

FEDERAL COMMUNICATIONS COMMISSION

Notice of Public Information Collections Being Reviewed by the

Federal Communications Commission

February 5, 1997.

SUMMARY: The Federal Communications Commission, as part of its

continuing effort to reduce paperwork burden invites the general public

and other Federal agencies to take this opportunity to comment on the

following information collection, as required by the Paperwork

Reduction Act of 1995, Public Law 104-13. An agency may not conduct or

sponsor a collection of information unless it displays a currently

valid control number. No person shall be subject to any penalty for

failing to comply with a collection of information subject to the

Paperwork Reduction Act (PRA) that does not display a valid control

number. Comments are requested concerning (a) Whether the proposed

collection of information is necessary for the proper performance of

the functions of the Commission, including whether the information

shall have practical utility; (b) the accuracy of the Commission's

burden estimate; (c) ways to enhance the quality, utility, and clarify

of the information collected; and (d) ways to minimize the burden of

the collection of information on the respondents, including the use of

automated collection techniques or other forms of information

technology.

DATES: Persons wishing to comment on this information collection should

submit comments April 14, 1997.

ADDRESSES: Direct all comments to Dorothy Conway, Federal

Communications Commission, Room 234, 1919 M St., NW., Washington, DC

20554 or via internet to [email protected].

FOR FURTHER INFORMATION CONTACT: For additional information or copies

of the information collections contact Dorothy Conway at 202-418-0217

or via internet at [email protected].

SUPPLEMENTARY INFORMATION:

OMB Approval Number: 3060-0685.

Title: Annual Updating of Maximum Permitted Rates for Regulated

Cable Services.

Form No.: FCC Form 1240.

Type of Review: Extension of approval of a currently approved

collection.

Respondents: Business or other for-profit entities; state and local

governments.

Number of Respondents: 4,500. (3,000 cable operators and 1,500

local franchise authorities (``LFAs'').

Estimated Time Per Response: 1-15 hours.

Total Annual Burden: 47,250 hours. We report the burden for all

aspects of this information collection as follows: The modification of

the Form 1240 rate methodology requirement only pertains to first-time

filings of FCC Form 1240. The modification merely results in permitting

operators to project and recoup certain costs sooner, rather than

later; therefore there is no measurable burden revision for this

information collection. If there were an additional burden significant

enough to be measured, any burden added to an operator's first Form

1240 filing would be negated by the decreased burden in completing the

operator's second Form 1240 filing. The Commission therefore reports no

revised burden to complete Form 1240 on a per filing basis. However,

based on latest data available, the Commission adjusts the estimated

number of Form 1240 filings that are annually filed by operators.

The Commission estimates that there are no more than 3,000 Form

1240s filed annually; roughly 1,500 (50%) with the Commission and

roughly 1,500 (50%) with LFAs. Burden for operators: We estimate that

25% of operators will contract out the burden of filing and that it

will take 1 hour to coordinate information with those contractors. The

remaining 75% of operators are estimated to employ in house staff to

complete the filing. 750 filings (25% contracted out) x 1 hour = 750

hours. 2,250 filings (75% in house) x 15 hours = 33,750 hours.

Additionally, 76.933(g)(2) states: If an LFA 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 LFA subsequently issues a written decision

disapproving any portion of such rates. However, if an operator

inquires as to whether the LFA intends to issue a rate order after the

initial review period, the LFA or its designee must notify the operator

of its intent in this regard within 15 days of the operator's inquiry.

We estimate this will occur in 25% of the instances when Form 1240s are

filed by cable operators with their LFAs. 25% of 1,500 = 375 inquiries

at an estimated 1 burden for each inquiry = 375 hours.

Total burden hours to operators = 750 + 33,750 + 375 = 34,875

hours.

Burden to LFAs: The Commission estimates there will be 1,500 FCC

Form 1240s filed with LFAs, annually. Average LFA reviewing time for

each FCC Form 1240 is estimated to be 8 hours. 1,500 x 8 hours =

12,000 burden hours. Additionally, we estimate 375 responses to

operator requests pursuant to 76.933(g)(2). 375 notifications at an

estimated 1 burden hour for each notification = 375 hours.

Total burden hours to LFAs = (1,500 x 8 hrs.) + (375 x 1 hr.) =

12,375 hrs.

Total burden hours for all respondents = 34,875 + 12,375 = 47,250

hours.

Total costs for Respondents: $1,139,000. We estimate an annual

purchase of 1,000 diskette versions of FCC Form 1240 @ $5 per diskette

= $5,000. Printing, photocopying and postage costs incurred by

operators and LFAs is estimated to be $2 per entity (4,500 entities x

$2) = $9,000. We estimate that assistance for completing Form 1240

filings will be performed by legal and accounting contractors at an

average of $100/hour for 25% of the filings. $100/hour x 750 filings

(25% of Form 1240 filings) x 15 hours = $1,125,000.

Total respondent costs: $5,000 + $9,000 + $1,125,000 = $1,139,000.

Needs and Uses: On September 22, 1995, the Commission released the

Thirteenth Order on Reconsideration (``Order''), FCC 95-397, MM Docket

No. 92-266, which adopted a new optional rate adjustment methodology

permitting cable operators to make annual rate changes to their basic

service tiers (``BSTs'') and cable programming

[[Page 6247]]

service tiers (``CPSTs''). Operators electing to use this methodology

adjust their rates once per year to reflect reasonably certain and

reasonably quantifiable changes in external costs, inflation, and the

number of regulated channels that are projected for the 12 months

following the rate change. To enable operators to use this optional

rate adjustment methodology the Commission created FCC Form 1240 Annual

Updating of Maximum Permitted Rates for Regulated Cable Services.

Subsequent to the availability of FCC Form 1240, the Commission

received numerous requests for waiver of certain rate adjustment

requirements contained in the Order. Therefore, on, November 1, 1996,

the Commission released an Order, DA 96-1804, which granted for all

cable operators' initial Form 1240 filing, a waiver of the requirement

that only costs that have actually been incurred may be included in the

true-up period. Specifically, an operator's initial Form 1240 filing

may now include projected changes in costs, inflation, channels and

subscriber information attributable to the period between the last date

for which historical cost data is available and the effective date of

the new rates. These projections must be accompanied by a separate

calculation and explanation of the basis for the costs (for the period

between the last full month for which actual cost data is available and

the effective date of the new rate).

The creation of this blanket waiver modified the Form 1240

information collection requirement (though not the actual Form 1240,

hence the July 1996 edition remains intact) and therefore required the

approval of the Office of Management and Budget (``OMB''). The

Commission received emergency OMB approval on December 12, 1996. The

Commission now initiates a 60-day public comment period concerning the

Form 1240 information collection requirement in order to obtain regular

OMB approval for the collection.

FCC Form 1240 is filed by cable operators seeking to adjust maximum

permitted rates for regulated services to reflect changes in external

costs. Cable operators submit FCC Form 1240 to their respective local

franchising authorities to justify rates for the basic service tier or

with the Commission (in situations where the Commission has assumed

jurisdiction). FCC Form 1240 is also filed with the Commission when

responding to a complaint filed with the Commission about cable

programming service rates and associated equipment. Information

contained in FCC Form 1240 filings has been used by the Commission and

LFAs to adjudicate permitted rates for regulated cable services and

equipment, for the addition of new programming tiers, to account for

the addition and deletion of channels, and for the allowance for pass

through of external costs and costs due to inflation.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

[FR Doc. 97-3257 Filed 2-10-97; 8:45 am]

BILLING CODE 6712-01-P