(A) Rates subject to regulation by the county. Rates subject to regulation by the county include rates for the basic cable television service plus the leased equipment necessary for the rendition of basic service (including converter boxes, remote control units and wiring) and installation and extra set charges.
(B) Rate changes and discrimination.
(1) Unless approved by the county and to the extent consistent with federal law, no franchisee may in its rates or charges, or in the availability of the services or facilities of its system, or in any other respect, make or grant undue preferences or advantages to any subscriber or potential subscriber to the system, including preferences based on the geographic location of the subscriber, or to any user or potential user of the system, nor subject any such persons to any undue prejudice or any disadvantage. Notwithstanding the foregoing, a franchisee may afford reasonable discounts for senior citizens and other economically disadvantaged groups.
(2) Rates may be changed by the franchisee following a minimum 30 days’ prior notice to the county and the subscribers.
(C) Rate regulation.
(1) Upon certification of the county by the FCC to institute rate regulation, the following procedures shall apply to those rates that are subject to local regulation.
(a) When the county, on recommendation from the County Cable Communications Authority, desires to initially review the basic service rates and other rates subject to local regulation under federal law, it shall notify the franchisee to file its schedule or rates with the County Cable Communications Authority within 30 days of the receipt of such notice, together with the data and information necessary to determine whether the rates meet the FCC rate standards. Such supporting information shall include, at minimum, the completed worksheets of FCC Form 393 and all relevant supporting information and notes.
(b) When the franchisee desires to increase rates subsequent to the initial rate review, it shall submit to the County Cable Communications Authority the revised rate schedule, together with data and supporting information necessary to determine whether the new rates meet the FCC rate standards. Before filing for such rate increases, the franchisee shall give notice to its subscribers as required herein, and by FCC rules.
(c) If the County Cable Communications Authority finds that the rates submitted by the franchisee are consistent with FCC rate standards following the procedure specified below, it shall so notify the franchisee within 30 days of the filing of the rates, and any rate increases will become effective on the thirty-first day after their filing. If the Authority cannot find the rates are reasonable under the FCC standards within the 30-day period, it shall so notify the franchisee and may issue a brief order postponing the effectiveness of any rate increases for up to an additional 90 days; provided, however, if the franchisee is depending on a cost of service study to demonstrate reasonableness, the Authority may postpone the effectiveness of any rate increase for up to an additional 150 days.
(2) Members of the public and other interested parties may file written comments with the County Cable Communications Authority within 14 days of the date a franchisee files its rates for initial review or for review of a rate increase. The Authority shall schedule a public hearing on rates before it for review following appropriate advance announcement to the public and the franchisee. The hearing may be before the County Fiscal Court, or it may delegate the Authority to take public testimony and report to the Fiscal Court. Whenever the Fiscal Court disapproves rates or rate increases, in whole or in part, or approves rates over the objections of interested parties, it shall do so by written order explaining its reasons and provide public notice thereof.
(D) Remedies. Whenever the Fiscal Court disapproves a schedule of rates upon initial review or subsequent rate increases, it may employ any combination of the following remedies.
(1) A prospective reduction in rates may be ordered consistent with FCC rate standards or the results of a cost of service study.
(2) New rates may be prescribed by the city, upon recommendation of the County Cable Communications Authority, to bring rates found to be unreasonable into compliance with FCC rate standards or a cost of service study.
(3) Upon recommendation of the County Cable Communications Authority, the county may, consistent with division (D)(4) below, order the franchisee to refund to subscribers an amount by which rates are found to be unreasonable under any of the following circumstances:
(a) As part of the initial review of rates;
(b) When the franchisee has failed to comply with a rate decision and has continued to charge unreasonable rates; or
(c) Where the county has tolled a prospective rate increase for 90 to 150 additional days (as applicable) and the rate increase later found to be unreasonable has gone into effect.
(4) When refunds may become applicable under division (D)(3) above, the county shall issue a brief order when the tolled rates go into effect directing the franchisee to keep accurate account of all amounts paid by individual subscribers relative to the rates in question (an “accounting order”). The period for which refunds may be ordered shall not exceed one year or extend back in time before September 1, 1993, whichever period is less. Before ordering a refund, the county must give the franchisee prior notice and an opportunity to make a presentation, either orally in a hearing context or by paper filings. Refunds shall include interest computed at the rate used by the Internal Revenue Service for refunds and additional tax payments. Normally, refunds shall be made to individual subscribers that paid the unreasonable charges; however, where no accounting order has been issued or the franchisee can demonstrate that such specific refunds will entail undue burden compared with the amount of the refund, the county may authorize a one-time credit to all subscribers of the class that paid the unreasonable rates.
(E) Conflicts and interpretations. If any provision in this section shall be determined to be in conflict with a rule, regulation, policy or order of the FCC, then in that circumstance the FCC requirement shall take precedence over the requirement of this section. If any requirement of this section shall have ambiguity in interpretation or in applicability, it shall be interpreted in a way that is consistent with FCC rules, requirements and opinions.
(Ord. 94-2, passed 5-9-1994)