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NATIONAL ASSOCIATION OF TELECOMMUNICATIONS OFFICERS AND ADVISORS INATOA) CABLE CONFERENCE REPORT Commissioner Macht presented the following report dated May 3, 1993: DATE: MAY 31 1993 TO: BOARD OF COUNTY COMMISSIONERS JAMES E. CHANDLER COUNTY ADMINISTRAT THRU: TERRANCE G. PINTO � �/�? DIRECTOR OF UTILI Y ICES FROM: CINDY E. WHITE FRANCHISE COORDQNATOR DEPARTMENT OF UTILITY SERVICES SUBJECT: NATOA CABLE CONFERENCE - APRIL 26-27, 1993 The recent NATOA conference held in Covington, Kentucky, dealt with several issues regarding the new Cable Television Consumer Protection and Competition Act of 1992 (111992 Cable Act"). A summary of the rate regulation procedure is outlined below: On April 1, 1993, the FCC adopted rules governing the regulation of cable rates. The final text of these rules is to be published in the FCC Report and Order in the Federal Register, and should be available this month. Essentially, the FCC adopted a series of national per -channel benchmark rates to determine what is reasonable. These rates will be used with both basic broadcast and "expanded basic" tiers; programming such as HBO, Showtime, and pay-per-view events cannot be rate regulated at all (the FCC ordered a rate freeze for 120 days for all cable rates in effect on April 5, 1993, so that franchising authorities would have a reasonable period of time to start this rate regulation process). Franchising authorities are to look at each cable operator's basic rates in effect as of September 30, 1992. •If their basic rates are above the benchmark rates, Indian River County may then require the September 30, 1992, rates to be further reduced to the benchmark rate level, or by ten percent, whichever is a smaller reduction. In order for basic service rates to be regulated, the franchising authority must become certified by the FCC. The certification form is anticipated to be a one-page document, and must certify that Indian River County has the legal authority to adopt, and the personnel to administer, the regulations. Franchising authorities may begin filing for certification 30 days after publication of the Report and Order. The FCC (not the franchising authority) will determine if c- rate reduction is necessary for "expanded basic" tiers, but only in response to consumer and/or franchise authority complaints, or by complaints from other relevant local or state governmental entities. The April 12, 1993, issue of Multichannel News stated that the 28 -town Cincinatti-area 25 MAY 41993 BOOK 89 PAGE 443