Agenda - Council - 01/09/1996 - Laserfiche WebLink

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I I I I ! i I I I I I I I I I I I I I A'I-TORNEY'S REPORT-7 7.1 Rate Increase Notice - Tolling Order Vose discussed the FCC's form 1205 for the rate increase. There are a number of reasons for a rate increase, one is a programming change and the second is inflation adjustments. The allowed FCC increase would change the "Basic" rate from $7.90 to $9.95. This substantial rate increase was concerning because the 400+ basic subscribers are people who usually choose cable for two reasons, one they can't afford the "Preferred" tier, or they subscribe simply for better reception than an off-air antenna provides. With the understanding that a goal of Meredith's is to provide the lowest possible rate for "Basic", Creighton approached the company to propose the possibility of taking the increase and adding to the "Preferred" rate. The "Preferred" rate was slatted to decrease from $13.18 to $12.87. Meredith will petition the FCC for approval to apply the rate increase to the "Preferred" tier which would keep the "Basic" rate at $7.90 and increase the "Preferred" rate to $14.57. The tolling order to be approved has two components, one is to toll the review process of the rates they have submitted. This gives the Commission and additional 120 days to review the rate forms. The second portion is to allow the company to go forward and request FCC approval for taking the increase on the higher tier. Discussion continued about what is the Commission's role in rate regulation and what powers they had regarding rate increases. Specifically Johnson asked if the Commission had the authority to denied the rate increase altogether. Vose responded by informing the Commission that they had the right to ":review the forms and documentation", but couldn't approve or disapprove rates. That authority lies with the FCC. Motion was made by Peterson, seconded by ]acobson, TO APPROVE THE TOLLING ORDER. 7 ayes - 0 nays. Motion carried. Other Business O'Connell informed the Commission that he received a request from Regional Channel 6 for a $500 contribution into their sustaining fund. He said that the Commission has not contributed for the past couple of years due to the amounts requested. He felt the new request was quite reasonable and should be considered for this year. Peterson suggested this matter to the Budget Committee.