The rate filing submitted by the operator, either for its current rates or for a change in its current rates, must show that the rates the operator charges or proposes to charge for basic service and equipment are reasonable and in compliance with all applicable FCC rules and regulations. The burden of proof is on the operator to show that the rates are reasonable and in compliance with all applicable FCC rules and regulations.
(1) If the operator asserts that its current rates or its proposed rates are no greater than the maximum rate permitted by FCC rules, it must fullycomplete applicable FCC forms and otherwise provide material to support its position.
(2) If the operator claims that its present rate for which it is seeking approval or a requested increase in rates is based in whole or in part upon the adjustments for inflation and external costs contemplated by 47 C.F.R. § 76.922, it must supplement the information provided to the city on standard FCC forms by providing:
a. Evidence of the basis of the inflation adjustment;
b. A statement itemizing each external cost claimed on the standard FCC form, explaining how the external costs shown on the form were derived, including the total cost to the operator for the external costs it claims, and providing the basis for any allocation for the external costs between tiers of service and any accounting and cost allocation decisions or adjustments made pursuant to 47 C.F.R. § 76.924.
(3) For any costs claimed to be for compliance with franchise requirements, a clear and specific statement of what constitutes those costs, both direct and indirect, and the basis of any allocation of general administrative overhead or other costs to the franchise requirements. All allocations and costs shall be computed and allocated in a manner consistent with 47 C.F.R. § 76.925.
(4) The operator shall provide a sworn statement by the operator's chief financial officer or an independent, certified accountant stating that he or she has examined the filing submitted by the operator and that all rate adjustments being sought on account of external costs are consistent with the requirements of 47 C.F.R. § 76.922 and § 76.924, including any reductions in external costs required as a result of deletion of channels, movement of channels between tiers or substitution of channels.
(5) If the operator proposes to justify its rates by making a "cost-of-service" showing it shall do so in accordance with rules and regulations adopted by the FCC. In seeking to make a "cost-of-service" showing, the operator must fully complete applicable FCC forms and otherwise provide material to supplement its position.
(6) If the operator proposes to add or delete channels or service, or to move certain channels from the basic service tier to the cable programming service tier as defined by the FCC or to a non-regulated tier, it must explain in writing the impact of the addition, deletion or removal on its basic service rates and demonstrate why the addition, deletion or removal complies with FCC rules and regulations.
(7) The operator must show why all rates for all customer classifications are reasonable.
(Ord. No. 1623, 4-8-02)