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Rule2025-13107

Cable Television Rate Regulations

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Published

July 14, 2025

Effective

August 13, 2025

Issuing agencies

Federal Communications Commission

Abstract

In this document, the Federal Communications Commission (FCC) eliminates unnecessary cable rate regulation forms and rules; deregulates cable equipment not used exclusively to receive the basic cable service tier; deregulates small cable systems serving 15,000 or fewer subscribers that are owned by small cable companies serving 400,000 or fewer subscribers; declines to extend rate regulation to commercial establishments; and modifies rules to account for the sunset of CPST regulation and clarifies their application. This action is necessary because many of the FCC's rules governing cable rate regulation have been rendered obsolete or unworkable due to the sunset of cable programming service tier (CPST) rate regulation and the passage of time. In addition, in this document, the FCC closes several moot proceedings and dockets which are either resolved by this document or have become obsolete or irrelevant due to regulatory updates, technology advances, marketplace changes, or have been addressed in other FCC orders. The actions taken in this document by the FCC will have the effect of streamlining the cable television rate regulations, unleashing prosperity through deregulation, and reducing the administrative burdens on the cable industry, franchising authorities, and the FCC, while continuing to fulfill the statutory obligation to subscribers to ensure reasonable rates for cable service and equipment.

Full Text

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<title>Federal Register, Volume 90 Issue 132 (Monday, July 14, 2025)</title>
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[Federal Register Volume 90, Number 132 (Monday, July 14, 2025)]
[Rules and Regulations]
[Pages 31145-31157]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-13107]

[[Page 31145]]

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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1 and 76

[MB Docket Nos. 02-144; MM Docket Nos. 92-266, 93-215; CS Docket No.
94-28; FCC 25-33; FR ID 301311]

Cable Television Rate Regulations

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission (FCC)
eliminates unnecessary cable rate regulation forms and rules;
deregulates cable equipment not used exclusively to receive the basic
cable service tier; deregulates small cable systems serving 15,000 or
fewer subscribers that are owned by small cable companies serving
400,000 or fewer subscribers; declines to extend rate regulation to
commercial establishments; and modifies rules to account for the sunset
of CPST regulation and clarifies their application. This action is
necessary because many of the FCC's rules governing cable rate
regulation have been rendered obsolete or unworkable due to the sunset
of cable programming service tier (CPST) rate regulation and the
passage of time. In addition, in this document, the FCC closes several
moot proceedings and dockets which are either resolved by this document
or have become obsolete or irrelevant due to regulatory updates,
technology advances, marketplace changes, or have been addressed in
other FCC orders. The actions taken in this document by the FCC will
have the effect of streamlining the cable television rate regulations,
unleashing prosperity through deregulation, and reducing the
administrative burdens on the cable industry, franchising authorities,
and the FCC, while continuing to fulfill the statutory obligation to
subscribers to ensure reasonable rates for cable service and equipment.

DATES: Effective August 13, 2025, except the amendments to Sec. Sec.
1.1204 (amendatory instruction 2), 1.1206 (amendatory instruction 3),
76.911 (amendatory instruction 5), 76.922 (amendatory instruction 6),
76.923 (amendatory instruction 7), 76.934 (amendatory instruction 10),
76.944 (amendatory instruction 15), and 76.990 (amendatory instruction
21), which are delayed. The FCC will publish a document in the Federal
Register announcing the effective date.

FOR FURTHER INFORMATION CONTACT: For additional information on this
proceeding, contact Katie Costello, Policy Division, Media Bureau at
<a href="/cdn-cgi/l/email-protection#4902283d202c670a263a3d2c252526092f2a2a672e263f"><span class="__cf_email__" data-cfemail="723913061b175c311d0106171e1e1d321411115c151d04">[email&#160;protected]</span></a> or (202) 418-2233.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order, in MB Docket Nos. 02-144; MM Docket Nos. 92-266, 93-215; CS
Docket No. 94-28; FCC 25-33, adopted on June 26, 2025 and released on
June 27, 2025. The full text of this document is available via FCC
website at <a href="https://docs.fcc.gov/public/attachments/FCC-25-33A1.pdf">https://docs.fcc.gov/public/attachments/FCC-25-33A1.pdf</a>. The
full text of this document will also be available via ECFS <a href="https://www.fcc.gov/cgb/ecfs/">https://www.fcc.gov/cgb/ecfs/</a>). (Documents will be available electronically in
ASCII, Word, and/or Adobe Acrobat.) To request these documents in
accessible formats for people with disabilities, send an email to
<a href="/cdn-cgi/l/email-protection#3e585d5d0b0e0a7e585d5d10595148"><span class="__cf_email__" data-cfemail="482e2b2b7d787c082e2b2b662f273e">[email&#160;protected]</span></a> or call the Commission's Consumer and Governmental
Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432 (TTY).

Synopsis

Introduction. This Report and Order streamlines the cable
television rate regulations in Part 76 of the FCC rules. Many of the
FCC's rules governing cable rate regulation have been rendered obsolete
or unworkable due to the sunset of CPST rate regulation and the passage
of time. In 2018, the FCC initiated a rulemaking to review and update
its rate regulations, 83 FR 60804. This Report and Order deregulates
cable equipment not used exclusively to receive the BST; deregulates
small cable systems serving 15,000 or fewer subscribers that are owned
by small cable companies serving 400,000 or fewer subscribers; declines
to extend rate regulation to commercial establishments; modifies
Sec. Sec. 76.980 and 76.984 of the FCC's rules to acknowledge the
sunset of CPST regulation; revises and simplifies the process for cable
operators to establish an initial regulated rate after becoming subject
to regulation; modifies and simplifies the inter-tier channel movement
rules to account for the sunset of CPST regulation; clarifies the
instructions for calculating interest in Module H of Form 1240; and
eliminates unnecessary forms and rules and terminates several open
dockets.
Background. Section 623 of the Communications Act of 1934, as
amended, 47 U.S.C. 543 (the Act), requires the FCC to ensure that rates
for the basic service tier (BST) are reasonable and that regulations
are implemented to achieve the goal of protecting subscribers of any
cable system that is not subject to effective competition. Section 623
also requires the FCC to establish rate regulations for the
installation and lease of equipment used to receive the BST on the
basis of actual cost. For cable systems that are not subject to
effective competition, section 623 permits local franchising
authorities (LFAs) to apply the FCC's rules to regulate the charges for
the BST and the installation and lease of cable customer premises
equipment used by subscribers to receive the BST. To implement section
623, the FCC adopted rate regulation rules, beginning in 1992, that
continue to serve three basic functions: setting initial BST rates,
updating those rates, and setting equipment rates. The FCC developed a
common set of tier-neutral benchmarks and regulations so that the same
methodology was to be used to set rates for BST and the CPST. However,
in 1996, Congress added a sunset provision applicable to the regulation
of all tiers of cable service except the BST.
Equipment Regulation. This Report and Order updates FCC rules to
limit cable equipment rate regulation to equipment that is used by BST-
only subscribers to receive the regulated BST and any additional per
channel or per program services, but that is not used for any
unregulated tiers of cable service. The FCC retains the requirement to
apply the actual cost standard to equipment used to receive the BST,
but the FCC no longer believes the statute supports continued rate
regulation of equipment used by subscribers to receive CPSTs, in light
of the statutorily mandated sunset of CPST regulation, which includes
equipment used to receive a CPST by definition. The result is that BST-
only subscribers will continue to pay a regulated price for equipment
whereas subscribers to the non-regulated CPST will receive an
unregulated price for equipment.
Small System Deregulation. This Report and Order exempts from rate
regulation small cable systems serving 15,000 or fewer subscribers that
are owned by small cable companies serving 400,000 or fewer
subscribers. Consequently, the Report and Order eliminates rules
establishing alternate methodologies for small systems as well as the
Form 1230. The FCC previously identified unique qualitative
characteristics of small systems owned by small cable companies that
differed from larger systems, and found that the larger cable companies
had higher revenue and a greater number of subscribers per mile, making
it easier to attract the financing and investment necessary to maintain
and improve service. The larger systems also were better able to absorb
the costs and

[[Page 31146]]

burdens of regulation due to their expanded administrative and
technical resources. The Report and Order finds that the benefits of
regulating small systems owned by small cable companies do not outweigh
the potential of placing an inordinate hardship upon smaller cable
companies in terms of labor and other resources that must be devoted to
ensuring compliance. The FCC thinks consumers will benefit from
deregulation by allowing these small systems to better attract the
financing and investment necessary to maintain and improve service. The
FCC agrees that it has ample legal authority to grant relief to small
systems. The Report and Order is consistent with the Act, including
section 623(i), which requires the FCC to reduce the administrative
burdens and costs of compliance for small cable systems, and also
section 623(m). This action will encourage investment in small
companies, rely on the marketplace for setting rates for small systems
owned by small cable companies for the foreseeable future, and ensure
small systems owned by small cable companies will be able to fully
recoup investment in expanding their systems. Thus, exemption from rate
regulation for these small systems, and elimination of associated
forms, provides needed regulatory certainty and reduces potential
significant administrative costs.
Non-Residential Service Regulation. The Report and Order concludes
that the FCC's rate regulation rules apply only to residential
customers. Thus, cable services offered to non-residential subscribers,
such as retail stores and restaurants, are not subject to the FCC's
rate regulations. In limiting rate regulation to cable service and
equipment provided to subscribers in households and not non-residential
establishments, the Report and Order notes that the FCC, in applying
the test for effective competition, has determined that the term
household means occupied housing units. The Report and Order finds that
using the term occupied housing unit, as the FCC has interpreted it in
the effective competition context, to distinguish residential from non-
residential subscribers provides a bright line and allows a clear
distinction between regulated and unregulated services. The Report and
Order defines residential subscribers as subscribers residing in an
occupied housing unit, such as a house, an apartment, a mobile home or
trailer, a group of rooms, or a single room occupied as separate living
quarters.
Modification of Section 76.980. The Report and Order modifies Sec.
76.980, which limits charges cable operators may impose when a customer
changes its service tier subscription, adopted pursuant to section
623(b)(5)(C) of the Act, which requires that the FCC impose standards
and procedures to prevent unreasonable charges for changes in the
subscriber's selection of services or equipment. Given the language of
the statute and the section's placement and purpose in the statutory
scheme, the FCC believes the best reading of section 623(b)(5)(C) is
that it was intended to ensure that the rates of the BST are
reasonable. Accordingly, the Report and Order finds that Sec. 76.980,
which was adopted pursuant to this statutory section, is not required
to sunset along with other CPST regulations. The Report and Order
modifies Sec. 76.980 so that it applies only to changes in service
tiers that result in a selection of a BST-only service. Section 76.980
will continue to protect subscribers from being penalized for
downgrading their service to a BST-only tier, which is particularly
important for subscribers who are facing financial challenges.
Modification of Section 76.984. The Report and Order modifies Sec.
76.984, which requires uniformity of rates throughout a franchise area,
to reflect the sunset of CPST rate regulation. This rule was adopted
pursuant to section 623(d) of the Act to prohibit cable operators from
selling the same cable service at different prices in different parts
of a given franchise area unless the franchise area as a whole faces
effective competition. In light of the congressional intent not to
apply the uniform rate requirement to unregulated services, the Report
and Order concludes that the statutory provision no longer applies to
the CPST and eliminates the reference to CPST in Sec. 76.984 of the
FCC rules. The FCC rule will continue to prevent discriminatory and
anti-competitive behavior and promote competition in areas where the
cable system is not subject to effective competition, but will be
limited to rate-regulated BST services and equipment.
Establishing Initial Rates. The Report and Oder revises the FCC
methodology for newly regulated cable operators to establish initial
regulated BST rates. Specifically, the Report and Order requires a
cable operator to use, as its initial regulated BST rate, the BST rate
in effect 60 days prior to the date an LFA files its certification to
regulate BST rates. This methodology replaces the existing methodology
that requires initial rates to be calculated using historical financial
and rate data from the 1990s, when the FCC adopted rules establishing
initial rates. The Report and Order modifies the FCC transition rules
for entities losing their rate regulation exemption status to conform
with the rules for other newly regulated operators. Under the FCC's
existing rate regulation rules, the process for setting an initial BST
rate when a cable system becomes regulated is complicated and requires
using data from as far back as 1992. After LFAs and cable operators set
initial regulated rates, increases are governed on a going-forward
basis by a price cap mechanism, which permits periodic adjustments for
inflation, changes in the number of regulated channels on tiers, and
changes in external costs. Regulated rates are expected to allow cable
operators to recover their costs and obtain a reasonable profit. Under
the FCC's current rules, a newly regulated cable operator choosing the
benchmark methodology must use Form 1200 to calculate its initial
regulated rates and Form 1240 to justify subsequent rate increases. The
revisions today will eliminate the Form 1200 calculation and change the
starting rate entered on the Form 1240. Choosing the cable operator's
actual unregulated rate as a starting point presumes that an operator
has set its unregulated rates to sufficiently recover its costs and
earn a reasonable profit. In light of the fact that the FCC's current
system is based on data collected in 1992 and requires detailed back-up
on rates and channel line-up changes made years or even decades earlier
(often by a prior system owners), the Report and Order finds that
basing initial regulated rates on unregulated rates in effect 60 days
prior to the date an LFA files its certification to regulate the BST is
a reasonable update consistent with the FCC's statutory requirements. A
regulated cable operator will identify to the LFA its BST rate that was
in effect 60 days prior to the date the LFA filed its certification to
regulate BST rates and file supporting documentation such as a rate
card. This rate will be inserted as the Current Maximum Permitted Rate
on Line A1 of operator's initial Form 1240 when justifying a subsequent
rate increase. This rate will include the entire amount charged for the
BST, whether or not an operator has broken out individual components of
the rate as separate line items on its subscribers' bills. It will not
include promotional or discount rates nor include charges for equipment
used to receive the BST. After this initial rate is entered on the Form
1240, the Form 1240 will be used to account for subsequent changes in
external costs and inflation and changes in the number of channels on
the BST that have occurred since the operator

[[Page 31147]]

implemented its most recent unregulated BST rate or subsequent
regulated BST rates. The BST rate in effect 60 days prior to the LFA's
certification filing date will be deemed reasonable and will be used as
the initial regulated rate and the starting rate for future rate
increases that are subject to regulation. In the interest of uniformity
and consistency, the Report and Order modifies the three-month period
that applies to small cable operators who lose their deregulatory
status to conform with the new 60 day rule applicable to other newly
regulated operators. Under the FCC's existing rules, if a small cable
operator subsequently becomes ineligible for small operator status, the
operator may maintain the rates it charged prior to losing small cable
operator status if such rates were in effect for the three months
preceding the loss of small cable operator status. The revised rule now
states that upon regulation, actual rates and subsequent rate increases
will be subject to generally applicable regulations governing rates and
rate increases, which includes the newly adopted 60 day rule. The
Report and Order notes that the date used for establishing the initial
regulated rate and the effective date of regulation are not the same.
The Report and Order uses the date 60 days before an LFA files its
certification to establish initial regulated rates. However, the
effective date of regulation is the date an LFA notifies a cable
operator that it has been certified and adopted regulations. For
purposes of refund liability, the Report and Order simplifies the
refund rule so that a cable operator's liability for refunds runs from
the effective date of regulation until the operator reduces its rate in
compliance with an LFA order. The effective date of regulation for a
cable operator remains the date that an LFA notifies the cable operator
that the BST is subject to regulation; a cable operator will not be
required to refund overcharges prior to that date.
Channel Movement Calculation. The Report and Order modifies the
FCC's channel movement rules to account for the sunset of CPST
regulation and to simplify the process. When the FCC adopted rules
pertaining to the addition and deletion of channels from a regulated
tier of service, or channel movement, both the BST and CPST were
subject to rate regulation, and the FCC indicated its intention to
provide a rate adjustment mechanism for channel movement between
regulated BST and CPST tiers.
Channel Number Component. The Report and Order eliminates the
requirement that rates be adjusted based on changes in the total number
of regulated channels on the system when channels are added to or
deleted from the BST. The rate regulation rules currently allow for a
rate adjustment based on changes in the total number of channels on all
regulated tiers. This per channel adjustment factor is calculated using
a markup table, which is premised on having a regulated CPST and a
system with fewer than 100 channels. Because the table calculation
includes now-deregulated CPST channels, and the table maxes out at 99.5
channels with a rate adjustment of one cent for each additional
channel, an updated table would likely have no effect on maximum
permitted rates, let alone actual rates, which are generally lower than
the calculated maximum permitted rates. The Report and Order eliminates
this adjustment and the accompanying table. Regulated BST rates will no
longer include adjustments based solely on a change in the total number
of regulated channels.
Residual Component. The Report and Order simplifies the FCC's
methodology to account for a reduction in BST channels. The residual
amount can be roughly analogized to the cost of providing and
maintaining the network and offering the service. Under the FCC's
current rules, when a channel is removed from the CPST or BST, a per
channel residual amount is removed as well and moves with the channel
to its new tier location. Now that the CPST is no longer regulated,
there is not a regulated residual calculation available to move with a
channel that is moved to the BST from a CPST. However, when a channel
is removed from the BST, the FCC's current rules continue to require
the removal of the per channel share of the residual portion of the BST
permitted charge. Without a regulated CPST, this sets up an imbalance
between the tiers because a regulated per channel residual can no
longer move from the CPST to the BST. The FCC proposed to simplify the
rule so that no per channel residual is moved to the BST when the cable
operator moves a CPST channel to the BST, and no per channel residual
is removed from the BST when a channel is removed from the BST, unless
the total number of channels on the BST falls below the total number of
channels included in the initial regulated BST rate, in which case the
residual is removed. The Report and Order adopts the proposed solution,
which addresses the sunset of CPST regulation while seeking to maintain
the integrity of the process for determining reasonable maximum
permitted BST rates in regulated communities. The Report and Order
adopts the proposed changes to the process for calculating and removing
the per channel residual component from the BST. The per channel
residual is the permitted charge for the BST, minus the external costs,
divided by the total number of channels on the BST. Rather than
requiring cable operators to complete the existing complicated and
time-consuming worksheets, cable operators will be required to simply
record the number of channels included on the BST at the time the
initial regulated rate was established (Initial Channel Count) and at
each Form 1240 update. If the total number of channels on the BST falls
below the Initial Channel Count, then the cable operator should perform
the residual calculation and remove the residual amount associated with
the number of removed channels from the BST rate. Any other channel
movement to or from the BST that does not cause a drop in channels
below the Initial Channel Count will not require the removal of any
residual or otherwise change the Initial Channel Count. This updated
methodology is both simple and equitable, and will ensure that
unregulated CPST residual amounts are not added to the BST and that
excessive amounts of residual are not removed from the BST. The Report
and Order notes that cable operators and LFAs have the flexibility to
agree that a residual for a small number of channels would be so
insignificant that its removal should be waived. In those cases, the
FCC will defer to their judgment and waive the requirement to remove
the residual component. Overall, the modifications adopted today will
greatly simplify and balance the channel movement rules.
Form 1240 True-Up Accrual of Interest. The Report and Order
clarifies the FCC's Form 1240 instructions to prevent cable operators
from accruing interest on costs not passed through to subscribers when
they are first entitled to recover those costs. The Form 1240 allows an
operator to calculate a maximum permitted rate using projected costs.
The operator is then required to true up its rate by comparing the
projected costs with actual costs once they are known. The operator is
not required to pass through all of its costs to subscribers in the
rate it chooses to implement but may accrue costs to pass through at a
later date. When interest continues to accrue on these costs, it can
result in excessive maximum permitted rates calculated on the Form
1240. The FCC has stated in numerous decisions, and our rules state,
that interest should not continue to

[[Page 31148]]

accrue on these unrecovered costs. The Report and Order supplements the
FCC's Form 1240, Module H instructions as follows: when calculating
interest in Module H of Form 1240, operators will not include
unrecovered costs for which interest has previously been calculated.
This will prevent cable operators from using the form to continue to
accrue interest on costs not passed through to subscribers when they
are first entitled to recover those costs. The Report and Order finds
that this clarification is consistent with the FCC's prior conclusion
that if an operator elects not to recover its accrued costs with
interest on the date the operator is entitled to make its annual rate
adjustment, the interest will cease to accrue. The Report and Order
notes that this clarification does not take away an operator's ability
to recover accrued costs and allowable accrued interest at a later
date.
Elimination of Unnecessary Forms and Rules. The Report and Order
eliminates or updates certain forms and rules that have become obsolete
due to the FCC's action today or to previous FCC action and are no
longer necessary. These include forms and rules related to the FCC's
now obsolete benchmark methodology for establishing initial rates,
forms and rules related to the FCC's now obsolete cost of service
alternative methodologies, and forms and rules that have simply become
unnecessary due to the passage of time and the sunset of CPST
regulation.
Initial rate-setting forms and rules. As a consequence of the FCC
decision today to use an operator's BST rate in effect 60 days prior to
the date an LFA files its certification to regulate BST rates for the
initial regulated rate, the Report and Order eliminates Form 1200
(Setting Maximum Permitted Rates for Regulated Cable Systems for First
Time Filers) and its related rules, including Sec. 76.922(f)(4) which
addresses adjustments for increases in external costs incurred during
the period between September 1992 and the initial date of regulation;
any references in the FCC's rules to the Form 393, the predecessor form
to the Form 1200; Sec. Sec. 76.911(b)(3) (refers to the simplified
refund rule); 76.922 (incorporates changes to the rate calculations,
removes references to the CPST and obsolete forms and methodologies);
76.923 (limits equipment regulation); 76.924 (removes references to the
CPST, 1993 accounting practices and small system regulation); 76.930
(refers to the new 60 day rule); 76.933 (streamlines the process for
LFA review of rate filings); 76.934 (adds deregulation of small systems
owned by small cable companies and removes alternative methodologies);
76.935 (removes references to obsolete time periods for rate review by
LFAs); 76.937 (removes reference to cost of service methodology);
76.938 (removes references to obsolete forms); 76.939 (removes
references to obsolete forms); 76.942 (streamlines refund rules);
76.944 (conforms citation to revised 76.922); 76.945 (removes reference
to cost of service); 76.963 (removes rule only applicable to CPST);
76.980 (limits rule to BST); 76.982 (removes rule applicable to pre-
1990 agreements); 76.984 (removes reference to CPST); 76.990 (conforms
to 60 day rule); and 76.1805 (removes the provision regarding
alternative agreements based on deregulation of small systems owned by
small cable companies).
Cost of service forms and rules. The Report an Order eliminates the
labor-intensive and infrequently used Form 1220 (Cost of Service Filing
for Regulated Cable Systems) and the concomitant cost of service
methodology, which is an alternative means to the Form 1200 for setting
initial regulated rates. The cost of service methodology was adopted as
a safety valve for high cost systems that might not receive an adequate
rate of return using the benchmark system methodology to establish
initial rates. Now that initial rates will be determined based on the
BST rate in effect 60 days prior to the date an LFA files its
certification to regulate BST rates, which the Report and Order
presumes cable operators set to recover costs and earn a reasonable
profit when not rate regulated, there is no longer a need to provide
this under-utilized safety valve. For these reasons, the Report and
Order eliminates Form 1220 and accompanying rules. Likewise, instead of
adopting the changes to Form 1235 (Abbreviated Cost of Service Filing
for Cable Network Upgrades), the FCC is persuaded by the record to
eliminate the form altogether. Under FCC's existing rules, cable
operators may recover significant network upgrade costs through a
surcharge on regulated rates, by filing a Form 1235 with LFAs. Cable
operators, who are the beneficiaries of the Form 1235 abbreviated cost
of service methodology and associated rules, proposed eliminating the
form. The Form 1235 benefits cable operators by allowing them to
justify rate increases for system upgrades without having to file a
full cost of service showing. The Report and Order finds no
justification to retain this form. Its beneficiaries find it to be
unnecessary and, as with the FCC's other cost of service alternatives,
the FCC can assume that unregulated rates are set to include a return
adequate for system upgrades. The Report and Order eliminates Form 1235
and its accompanying rules. Cable operators sought to reaffirm their
ability to seek redress if facing severe economic hardship as a result
of compliance with the FCC's rules. Because of the greater flexibility
cable operators now have in setting rates for cable services, the FCC
is skeptical that such redress will be necessary. However, the Report
and Order reiterates that a cable television system operator may file a
petition asking the FCC to find it in the public interest to waive any
provision of part 76 of the FCC's rules or impose additional or
different requirements.
Miscellaneous obsolete forms and rules. The Report and Order
eliminates other inactive or obsolete rate forms and delete references
to them in the FCC's rules. The eliminated forms are: FCC Form 1210
(Updating Maximum Permitted Rates for Regulated Cable Systems); Form
1211 (a small system alternative to FCC Form 1210); Form 1215 (a la
carte channel offerings); Form 1225 (a small systems cost of service
form); and Form 329 (an obsolete CPST complaint form). We eliminate
rules that are obsolete due to the sunset of CPST regulation, including
Sec. 76.922(e)(2)(iii)(C) (allows an adjustment to the CPST and BST of
single-tier systems); Sec. 76.982 (refers to agreements pre-dating the
1990 rule changes and is not needed to implement section 623(j) of the
Act); and Sec. 76.963 (applies to CPST complaints). Section 76.963 was
adopted to limit the FCC's existing forfeiture authority from being
applied to FCC orders resolving complaints regarding CPST service and
equipment rates, and is no longer necessary. The Report and Order
deletes references to the Form 329 contained in our practice and
procedure rules, 1.1204(b)(6) and 1.1206(a)(11).
Closing of Proceedings. The Report and Order closes MB Docket No.
02-144, which includes the FCC's notice of proposed rulemaking, 67 FR
56882, initiated to resolve open issues related to the sunset of CPST
regulation and the experience gained with the application of the FCC's
rate regulations. The Report and Order closes MM Docket No. 92-266, the
original Report and Order implementing the statutory scheme for rate
regulation. The Report and Order closes MM Docket No. 93-215 and CS
Docket No. 94-28, the dockets addressing cost of service alternatives,
and terminates the FCC's 1996 further notice of proposed rulemaking in
those dockets and dismisses the various pending petitions for
reconsideration in

[[Page 31149]]

those dockets, which are rendered moot. The FCC closes the above-
captioned proceedings with this Report and Order because any open
issues raised therein are resolved by this Report and Order, have
become obsolete or irrelevant due to regulatory updates, technology
advances, or marketplace changes, or have been addressed in other FCC
orders and no longer need to be resolved.
Regulatory Flexibility Act. As required by the Regulatory
Flexibility Act of 1980, as amended (RFA), the FCC incorporated an
Initial Regulatory Flexibility Analysis (IRFA) in the Further Notice of
Proposed Rulemaking, Revisions to Cable Television Rate Regulations, 83
FR 60804 (2018 FNPRM). The FCC sought written public comment on the
proposals in the 2018 FNPRM, including comment on the IRFA. No comments
were filed addressing the IRFA. This Final Regulatory Flexibility
Analysis (FRFA) conforms to the RFA.
Need for, and Objectives of, the Rules. The Report and Order makes
changes to remove rule sections and eliminate rate calculation forms
that are obsolete due to the sunset of CPST rate regulation. In the
past, the FCC developed rules and forms for the regulation of cable
television rates when both the BST and the CPST were subject to rate
regulation. In the Report and Order, the FCC updates rules and rate
forms to reflect the March 1999 sunset of CPST rate regulation pursuant
to the Telecommunications Act of 1996 and to address issues which have
arisen over time. The Report and Order updates and streamlines the
cable rate regulations in Part 76 of the FCC's rules governing
multichannel video and cable television service. The Report and Order
also streamlines the initial rate-setting methodology, clarifies how
cable operators may adjust their rates every year, eliminates rate
regulation of some equipment used to receive cable signals, and
eliminates rate regulation of small systems owned by small cable
companies. Further, the Report and Order eliminates rate forms that are
no longer necessary. These changes relieve regulatory burdens for small
and other cable operators, modernize and streamline cable rate
regulations, and update regulations to account for the deregulation of
cable programming service tier rates. For cable systems in general,
including small cable systems, all of these changes have the effect of
eliminating or reducing regulatory burdens.
Summary of Significant Issues Raised by Public Comments in Response
to the IRFA. There were no comments filed that specifically addressed
the proposed rules and policies presented in the IRFA. However, there
were comments regarding the impact of the rule on small entities
stating that the administrative burdens faced by small cable operators
are greater than those of larger operators that have more
administrative and technical resources. These comments favored the
FCC's proposal to deregulate small cable systems serving 15,000 or
fewer subscribers, that are owned by small cable companies serving
400,000 or fewer subscribers. In the Report and Order, the FCC finds
that the benefits of regulating small systems owned by small cable
companies do not outweigh the potential hardship of regulatory
compliance for small entities. The FCC's action will allow small
systems to better attract the financing and investment necessary to
maintain and improve service.
Response to Comments by the Chief Counsel for Advocacy of the Small
Business Administration. Pursuant to the Small Business Jobs Act of
2010, which amended the RFA, the FCC is required to respond to any
comments filed by the Chief Counsel for Advocacy of the Small Business
Administration (SBA), and provide a detailed statement of any change
made to the proposed rules as a result of those comments. The Chief
Counsel did not file any comments in response to the proposed rules in
this proceeding.
Description and Estimate of the Number of Small Entities to Which
the Rules Will Apply. The RFA directs agencies to provide a description
of, and where feasible, an estimate of the number of small entities
that may be affected by the rules adopted herein. The RFA generally
defines the term small entity as having the same meaning as the terms
small business, small organization, and small governmental
jurisdiction. In addition, the term small business has the same meaning
as the term small business concern under the Small Business Act. A
small business concern is one which: (1) is independently owned and
operated; (2) is not dominant in its field of operation; and (3)
satisfies any additional criteria established by the SBA.
Cable Companies and Systems (Rate Regulation). The FCC has
developed its own small business size standard for the purpose of cable
rate regulation. Under the FCC's rules, a small cable company is one
serving 400,000 or fewer subscribers nationwide. Based on industry
data, there are about 420 cable companies in the U.S. Of these, only
seven have more than 400,000 subscribers. In addition, under the FCC's
rules, a small system is a cable system serving 15,000 or fewer
subscribers. Based on industry data, there are about 4,139 cable
systems (headends) in the U.S. Of these, about 639 have more than
15,000 subscribers. Accordingly, the FCC estimates that the majority of
cable companies and cable systems are small.
Cable System Operators (Telecom Act Standard). The Communications
Act of 1934, as amended, contains a size standard for a small cable
operator, which is a cable operator that, directly or through an
affiliate, serves in the aggregate fewer than one percent of all
subscribers in the United States and is not affiliated with any entity
or entities whose gross annual revenues in the aggregate exceed
$250,000,000. For purposes of the Telecom Act Standard, the FCC
determined that a cable system operator that serves fewer than 498,000
subscribers, either directly or through affiliates, will meet the
definition of a small cable operator. Based on industry data, only six
cable system operators have more than 498,000 subscribers. Accordingly,
the FCC estimates that the majority of cable system operators are small
under this size standard. We note however, that the FCC neither
requests nor collects information on whether cable system operators are
affiliated with entities whose gross annual revenues exceed $250
million. Therefore, we are unable at this time to estimate with greater
precision the number of cable system operators that would qualify as
small cable operators under the definition in the Communications Act.
Small Governmental Jurisdictions. The small entity described as a
small governmental jurisdiction is defined generally as governments of
cities, counties, towns, townships, villages, school districts, or
special districts, with a population of less than fifty thousand. U.S.
Census Bureau data from the 2022 Census of Governments indicate there
were 90,837 local governmental jurisdictions consisting of general
purpose governments and special purpose governments in the United
States. Of this number there were 36,845 general purpose governments
(county, municipal and town or township) with populations of less than
50,000 and 11,879 special purpose governments (independent school
districts) with enrollment populations of less than 50,000.
Accordingly, based on the 2022 U.S. Census of Governments data, we
estimate that at least 48,724 entities fall into the category of small
governmental jurisdictions. As noted in the Report and Order, nearly
all, if not all, cable operators now face effective competition

[[Page 31150]]

and are not subject to rate regulation. This means that few, if any,
local governments, including small governmental jurisdictions, are
certified to regulate rates at this time. Therefore, we expect the
number of small governmental jurisdictions, to which these rule changes
would apply at this time, to be negligible.
Description of Economic Impact and Projected Reporting,
Recordkeeping and Other Compliance Requirements for Small Entities. The
RFA directs agencies to provide a description of the projected
reporting, recordkeeping and other compliance requirements of the
proposed rule, including an estimate of the classes of small entities
which will be subject to the requirement and the type of professional
skills necessary for preparation of the report or record. The Report
and Order updates and streamlines the cable rate regulations in Part 76
of the FCC's rules governing multichannel video and cable television
service. All of the rule changes are either neutral or reduce existing
reporting, recordkeeping, or other compliance requirements for small
and other entities. Specifically, the Report and Order exempts systems
serving 15,000 or fewer subscribers that are owned by small cable
companies of 400,000 or fewer subscribers from all rate regulation. The
Report and Order also limits cable equipment regulation to equipment
that is used by BST-only subscribers to receive the BST and additional
per channel or per program services. Further, it streamlines the
process for establishing initial regulated rates by updating the
methodology for newly regulated cable operators to establish initial
BST rates using the BST rate in effect 60 days prior to the date a
local franchising authority (LFA) files its certification to regulate
BST rates. In addition, the Report and Order sunsets the unabbreviated
and abbreviated cost of service methodologies and clarifies and or
eliminates obsolete rules and forms. These changes are necessary to
relieve regulatory burdens, modernize and streamline cable rate
regulations, and update regulations to account for the deregulation of
CPST rates. No increase in the regulatory burden on small systems or
small governmental entities is expected to result from this proceeding.
Discussion of Steps Taken to Minimize the Significant Economic
Impact on Small Entities, and Significant Alternatives Considered. The
RFA requires an agency to provide a description of the steps the agency
has taken to minimize the significant economic impact on small
entities, including a statement of the factual, policy, and legal
reasons for selecting the alternative adopted in the final rule and why
each one of the other significant alternatives to the rule considered
by the agency which affect the impact on small entities was rejected.
The Report and Order updates and streamlines the cable rate regulations
in Part 76 of the FCC's rules governing multichannel video and cable
television service. This includes streamlining channel addition and
deletion rules and the process for establishing initial regulated
rates, the further deregulation of small entities, and the elimination
of obsolete rules and forms. Many of the alternatives considered in the
Report and Order relieve regulatory burdens for small and other cable
operators, modernize and streamline cable rate regulations, and update
regulations to account for the deregulation of CPST rates. For example,
there were comments in favor of the FCC's proposal to eliminate
administrative burdens for small cable systems serving 15,000 or fewer
subscribers that are owned by small cable companies of 400,000 or fewer
subscribers, because those burdens would discourage investment in
services by these cable systems. In considering whether to adopt this
alternative, the FCC finds these assertions to be persuasive. These
changes do not increase the regulatory burden small systems face as a
result of rate regulation. Instead, they lessen it by reducing the
amount of information required to be reported. The Report and Order
also considered whether to extend rate regulation beyond residential
customers, but instead, considering the language of the Act and FCC
precedent, decided not to include non-residential subscribers, such as
retail stores and restaurants. Additionally, the FCC modified the
three-month period for cable operators that lose their status as small
operators to now conform with the new 60 day rule for other operators
subject to these regulations.
Report to Congress. The FCC will send a copy of the Report and
Order, including this Final Regulatory Flexibility Analysis, in a
report to Congress pursuant to the Congressional Review Act. In
addition, the FCC will send a copy of the Report and Order, including
this Final Regulatory Flexibility Analysis, to the Chief Counsel for
Advocacy of the SBA.
Paperwork Reduction Act. This document may contain new or modified
information collections subject to the Paperwork Reduction Act of 1995
(PRA), 44 U.S.C. 3501-3521. All such new or modified information
collections will be submitted to the Office of Management and Budget
(OMB) for review under section 3507(d) of the PRA. OMB, the general
public, and other Federal agencies will be invited to comment on any
new or modified information collections contained in this proceeding.
In addition, we note that pursuant to the Small Business Paperwork
Relief Act of 2002, 44 U.S.C. 3506(c)(4), we previously sought specific
comment on how the Commission might further reduce the information
collection burden for small business concerns with fewer than 25
employees. In this present document, we have assessed the effects of
our rule modifications, including streamlining the initial rate-setting
methodology, eliminating rate regulation of some equipment used to
receive cable signals, and eliminating rate regulation of small systems
owned by small cable companies, and find that all of these changes have
the effect of eliminating or reducing regulatory burdens for all cable
systems, including small business concerns. Additionally, this document
may contain non-substantive modifications to approved information
collections. Any such modifications will be submitted to OMB for review
pursuant to OMB's non-substantive modification process.
Congressional Review Act. The Commission has determined, and the
Administrator of the Office of Information and Regulatory Affairs,
Office of Management and Budget, concurs, that this rule is ``non-
major'' under the Congressional Review Act, 5 U.S.C. 804(2). The
Commission will send a copy of this Report and Order to Congress and
the Government Accountability Office pursuant to the Congressional
Review Act, see 5 U.S.C. 801(a)(1)(A).
Accordingly, it is ordered that, pursuant to the authority found in
sections 1, 2(a), 3, 4(i), 4(j), 303(r), 601(3), 602, and 623 of the
Communications Act of 1934, as amended, 47 U.S.C. 151, 152(a), 153,
154(i), 154(j), 303(r), 521, 522, 543, this Report and Order is
adopted.
It is further ordered that, pursuant to the authority found in
sections 1, 2(a), 3, 4(i), 4(j), 303(r), 601(3), 602, and 623 of the
Communications Act of 1934, as amended, 47 U.S.C. 151, 152(a), 153,
154(i), 154(j), 303(r), 521, 522, 543, the FCC's rules are amended as
set forth below.
It is further ordered that this Report and Order shall be effective
30 days after publication in the Federal Register, except that the
amendments to Sec. Sec. 1.1204, 1.1206, 76.911, 76.922, 76.923,
76.934, 76.944, 76.990, 47 CFR

[[Page 31151]]

1.1204, 1.1206, 76.911, 76.922, 76.923, 76.934, 76.944, 76.990, which
may contain new or modified information collections, will not become
effective until the Office of Management and Budget completes review of
any information collections that the Bureau determines is required
under the Paperwork Reduction Act. The FCC directs the Bureau to
announce the effective date for Sec. Sec. 1.1204. 1.1206, 76.911,
76.922, 76.923, 76.934, 76.944, 76.990 by notice in the Federal
Register and by subsequent Public Notice.
It is further ordered that the Commission's Office of the
Secretary, shall send a copy of this Report and Order, including the
Final Regulatory Flexibility Analysis, to the Chief Counsel for
Advocacy of the Small Business Administration.
It is further ordered that the Office of the Managing Director,
Performance Program Management, shall send a copy of this Report and
Order in a report to be sent to Congress and the Government
Accountability Office pursuant to the Congressional Review Act, see 5
U.S.C. 801(a)(1)(A).
It is further ordered that should no petitions for reconsideration
or petitions for judicial review be timely filed, MB Docket No. 02-144,
MM Docket Nos. 92-266 and 93-215, and CS Docket No. 94-28 shall be
terminated, and their dockets closed.
It is further ordered that the FNPRM in Dockets MM 93-215 and CS
94-28, FCC 95-502, 11 FCC Rcd 2220 (1996), is terminated and any
pending petitions for reconsideration of Report and Order, FCC 95-502,
11 FCC Rcd 2220 (1996), are dismissed.

List of Subjects

47 CFR Part 1

Administrative practice and procedure.

47 CFR Part 76

Television.

Federal Communications Commission.
Marlene Dortch,
Secretary.

Final Rules

For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR parts 1 and 76 as follows:

PART 1--PRACTICE AND PROCEDURE

0
1. The authority citation for part 1 continues to read as follows:

Authority: 47 U.S.C. chs. 2, 5, 9, 13; 28 U.S.C. 2461 note; 47
U.S.C. 1754, unless otherwise noted.

Sec. 1.1204 [Amended]

0
2. Delayed indefinitely, amend Sec. 1.1204 by:
0
a. Adding ``and'' at the end of paragraph (b)(4);
0
b. Removing ``; and'' at the end of paragraph (b)(5) and adding a
period in its place; and
0
c. Removing paragraph (b)(6).

Sec. 1.1206 [Amended]

0
3. Delayed indefinitely, amend Sec. 1.1206 by removing and reserving
paragraph (a)(11).

PART 76--MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE

0
4. The authority citation for part 76 continues to read as follows:

Authority: 47 U.S.C. 151, 152, 153, 154, 301, 302, 302a, 303,
303a, 307, 308, 309, 312, 315, 317, 325, 335, 338, 339, 340, 341,
503, 521, 522, 531, 532, 534, 535, 536, 537, 543, 544, 544a, 545,
548, 549, 552, 554, 556, 558, 560, 561, 562, 571, 572, 573.

0
5. Delayed indefinitely, amend Sec. 76.911 by revising paragraph
(b)(3) to read as follows:

Sec. 76.911 Petition for reconsideration of certification.

* * * * *
(b) * * *
(3) In any case in which a stay of rate regulation has been
granted, if the petition for reconsideration is denied, the cable
operator may be required to refund any rates or portion of rates above
the permitted basic service tier charge or permitted equipment charge
in accordance with Sec. 76.942.
* * * * *

0
6. Delayed indefinitely, revise Sec. 76.922 to read as follows:

Sec. 76.922 Rates for the basic service tier.

(a) Basic service tier rates. Basic service tier rates for cable
service provided to residential subscribers shall be subject to
regulation by the Commission and by state and local authorities, as is
appropriate, in order to assure that they are in compliance with the
requirements of 47 U.S.C. 543. For purposes of this section,
residential subscribers are defined as subscribers residing in an
occupied housing unit, such as a house, an apartment, a mobile home or
trailer, a group of rooms, or a single room occupied as separate living
quarters. Rates that are demonstrated, in accordance with this part,
not to exceed the permitted charge as described in this section, plus a
charge for franchise fees, will be accepted as in compliance. The
maximum monthly charges for regulated programming services shall not
include any charges for equipment or installations. Charges for
equipment and installations are to be calculated separately pursuant to
Sec. 76.923. Equipment and installation rates that are demonstrated
not to exceed the maximum permitted rates as specified in Sec. 76.923,
will be accepted as in compliance.
(b) Permitted charge--(1) Establishment of initial regulated rates.
The initial maximum permitted rate for newly regulated cable systems
shall be the actual rate in effect on the date 60 days prior to the
date the local franchising authority (LFA) files its certification to
regulate rates. The cable operator may establish its initial basic
service tier rate by providing to the LFA written notice of its rate in
effect on the date 60 days prior to the date the local franchising
authority files its certification to regulate rates, along with a rate
card or other supporting documentation. This initial basic service tier
rate is not subject to review by the LFA.
(2) Subsequent permitted charge. Subsequent permitted charges for
the basic service tier shall be the maximum permitted rate calculated
using FCC Form 1240. Regulated basic service tier rates established
prior to August 13, 2025, will be reviewed for conformance with the
rules in this part in effect at the time the basic service tier rates
were established.
(c) Annual rate adjustment method--(1) Generally. Except as
provided for in paragraph (c)(2)(iii)(B) of this section and Sec.
76.923(o), operators using the annual rate adjustment method may not
adjust their rates more than annually to reflect inflation, changes in
external costs, changes in the number of regulated channels, and
changes in equipment costs. Operators must file on the same date a Form
1240 for the purpose of making rate adjustments to reflect inflation,
changes in external costs and changes in the number of regulated
channels and a Form 1205 for the purpose of adjusting rates for
regulated equipment and installation. Operators may choose the annual
filing date, but they must notify the franchising authority of their
proposed filing date prior to their filing. Franchising authorities or
their designees may reject the annual filing date chosen by the
operator for good cause. If the franchising authority finds good cause
to reject the proposed filing date, the franchising authority and the
operator should work together to reach a mutually acceptable date. If
no agreement can be reached, the franchising authority may set the
filing date up to 60 days later than the date chosen by the operator.
An operator

[[Page 31152]]

may change its filing date from year to year, except, as described in
paragraph (c)(2)(iii)(B) of this section, at least twelve months must
pass before the operator can implement its next annual adjustment.
(2) Projecting inflation, changes in external costs, and changes in
number of regulated channels. An operator using the annual rate
adjustment method may adjust its rates to reflect inflation, changes in
external costs and changes in the number of regulated channels that are
projected for the 12 months following the date the operator is
scheduled to make its rate adjustment pursuant to Sec. 76.933.
(i) Inflation adjustments. The residual component of a system's
permitted charge may be adjusted annually to project for the 12 months
following the date the operator is scheduled to make a rate adjustment.
The annual inflation adjustment shall be based on inflation that
occurred in the most recently completed quarter, converted to an annual
factor. Adjustments shall be based on changes in the Gross National
Product Price Index as published by the Bureau of Economic Analysis of
the United States Department of Commerce.
(ii) External costs. (A) Permitted charges for the basic service
tier may be adjusted annually to reflect actual changes in external
costs experienced but not yet accounted for by the cable system, as
well as for projections in these external costs for the 12-month period
on which the filing is based. In order that rates be adjusted for
projections in external costs, the operator must demonstrate that such
projections are reasonably certain and reasonably quantifiable.
Projections involving copyright fees, retransmission consent fees,
other programming costs, Commission regulatory fees, and cable specific
taxes are presumed to be reasonably certain and reasonably
quantifiable. Operators may project for increases in franchise related
costs to the extent that they are reasonably certain and reasonably
quantifiable, but such changes are not presumed reasonably certain and
reasonably quantifiable. Operators may pass through increases in
franchise fees pursuant to Sec. 76.933.
(B) In all events, a system must adjust its rates every twelve
months to reflect any net decreases in external costs that have not
previously been accounted for in the system's rates.
(C) Any rate increase made to reflect increases or projected
increases in external costs must also fully account for all other
changes and projected changes in external costs, inflation and the
number of channels on a regulated basic service tier that occurred or
will occur during the same period. Rate adjustments made to reflect
changes in external costs shall be based on any changes, plus
projections, in those external costs that occurred or will occur in the
relevant time periods since the periods used in the operator's most
recent previous FCC Form 1240.
(iii) Channel adjustments. (A) Permitted charges for a basic
service tier may be adjusted annually to reflect changes not yet
accounted for in the number of regulated channels provided by the cable
system, as well as for projected changes in the number of regulated
channels for the 12-month period on which the filing is based. In order
that rates be adjusted for projected changes to the number of regulated
channels, the operator must demonstrate that such projections are
reasonably certain and reasonably quantifiable.
(B) An operator may make rate adjustments for the addition of
required channels to the basic service tier that are required under
Federal or local law at any time such additions occur, subject to the
filing requirements of Sec. 76.933(c)(5), regardless of whether such
additions occur outside of the annual filing cycle. Required channels
may include must-carry, local origination, public, educational and
governmental access and leased access channels. Should the operator
elect not to pass through the costs immediately, it may accrue the
costs of the additional channels plus interest, as described in
paragraph (c)(3) of this section.
(3) True-up and accrual of charges not projected. As part of the
annual rate adjustment, an operator must ``true up'' its previously
projected inflation, changes in external costs and changes in the
number of regulated channels and adjust its rates for these actual cost
changes. The operator must decrease its rates for overestimation of its
projected cost changes and may increase its rates to adjust for
underestimation of its projected cost changes.
(i) Where an operator has underestimated costs, future rates may be
increased to permit recovery of the accrued costs plus 11.25% interest
between the date the costs are incurred and the date the operator is
entitled to make its rate adjustment.
(ii) If an operator has underestimated its cost changes and elects
not to recover these accrued costs with interest on the date the
operator is entitled to make its annual rate adjustment, the interest
will cease to accrue as of the date the operator is entitled to make
the annual rate adjustment, but the operator will not lose its ability
to recover such costs and interest. An operator may recover accrued
costs between the date such costs are incurred and the date the
operator implements its rate adjustment.
(d) External costs. (1) External costs shall consist of costs in
the following categories:
(i) State and local taxes applicable to the provision of cable
television service;
(ii) Franchise fees;
(iii) Costs of complying with franchise requirements, including
costs of providing public, educational, and governmental access
channels as required by the franchising authority;
(iv) Retransmission consent fees and copyright fees incurred for
the carriage of broadcast signals;
(v) Other programming costs;
(vi) Commission cable television system regulatory fees imposed
pursuant to 47 U.S.C. 159; and
(vii) Headend equipment costs necessary for the carriage of digital
broadcast signals.
(2) The permitted charge for a regulated basic service tier shall
be adjusted on account of programming costs, copyright fees and
retransmission consent fees only for the program channels or broadcast
signals offered on that tier.
(3) Adjustments for external costs in the true-up portion of the
FCC Form 1240 may be made on the basis of actual changes in external
costs only. The starting date for adjustments to external costs for
newly regulated systems shall be the implementation date of the initial
maximum permitted rate established in paragraph (b)(1) of this section.
(4) Changes in franchise fees shall not result in an adjustment to
permitted charges, but rather shall be calculated separately as part of
the maximum monthly charge per subscriber for a regulated basic service
tier.
(5) Adjustments to permitted charges to reflect changes in the
costs of programming purchased from affiliated programmers, as defined
in Sec. 76.901, shall be permitted as long as the price charged to the
affiliated system reflects either prevailing company prices offered in
the marketplace to third parties (where the affiliated program supplier
has established such prices) or the fair market value of the
programming.
(i) For purposes of this section, entities are affiliated if either
entity has an attributable interest in the other or if a third party
has an attributable interest in both entities.
(ii) Attributable interest shall be defined by reference to the
criteria set forth in notes 1 through 5 to Sec. 76.501 provided,
however, that:

[[Page 31153]]

(A) The limited partner and LLC/LLP/RLLP insulation provisions of
note 2(f) shall not apply; and
(B) The provisions of note 2(a) regarding five (5) percent
interests shall include all voting or nonvoting stock or limited
partnership equity interests of five (5) percent or more.
(6) Adjustments to permitted charges on account of increases in
costs of programming shall be further adjusted to reflect any revenues
received by the operator from the programmer. Such adjustments shall
apply on a channel by channel basis.
(7) In calculating programming expense, operators may add a mark-up
of 7.5% for increases in programming costs. Operators shall reduce
rates to reflect decreases in programming costs and remove the 7.5%
mark-up, if any, taken on the removed costs.
(e) Changes in the number of channels on the regulated basic
service tier--(1) Generally. A system must adjust annually the residual
component of its permitted rate for the basic service tier to reflect
any decreases in the number of channels that were on the that tier as
of the date used for determining the initial maximum permitted rate on
its initial Form 1240. Cable systems shall use FCC Form 1240 to justify
rate changes made on account of changes in the number of channels on
the basic service tier and include any off-form calculations.
(2) Deletion of channels. (i) When dropping a channel from a basic
service tier, operators shall reflect the net reduction in external
costs in their rates. With respect to channels to which the 7.5% markup
on programming costs was applied, the operator shall treat the markup
as part of its programming costs and subtract the markup from its
external costs.
(ii) When the removal of channels results in a reduction of the
total basic service tier channel count that existed when the initial
maximum permitted rate was established (Initial Channel Count), an
operator shall also reduce the price of the basic service tier by any
``residual'' associated with the removed channels. For subsequent Form
1240 updates, if the number of channels included in the current maximum
permitted rate on the Form 1240 is less than the Initial Channel Count,
the operator shall reduce the price of the basic service tier by any
``residual'' associated with the subsequently removed channels. For
purposes of this calculation, the per channel residual is the permitted
charge for the basic service tier, minus the external costs, divided by
the total number of channels on the basic service tier.
(3) Movement of channels to the basic service tier. When a channel
is moved from another tier of service to the basic service tier, the
moved channel shall be treated as a new channel.
(4) Substitution of channels on a basic service tier. An operator
may substitute a new channel for an existing channel on a basic service
tier. The substituted channel will carry the same residual as the
original channel for which it was substituted. Operators substituting
channels on a basic service tier shall be required to reflect any
reduction in programming costs in their rates and may reflect any
increase in programming costs, including the 7.5% markup.
(f) Forms and attachments. Permitted charges for a basic service
tier shall be determined in accordance with forms and associated
instructions established by the Commission, this part, and any
Commission orders. Off-form calculations shall be included as
attachments with the established forms.
(g) Hardship rate relief. A cable operator may adjust charges by an
amount specified by the Commission or the franchising authority for the
basic service tier if it is determined that:
(1) Total revenues from cable operations, measured at the highest
level of the cable operator's cable service organization, will not be
sufficient to enable the operator to attract capital or maintain credit
necessary to enable the operator to continue to provide cable service;
(2) The cable operator has prudent and efficient management; and
(3) Adjusted charges on account of hardship will not result in
total charges for regulated cable services that are excessive in
comparison to charges of similarly situated systems.

0
7. Delayed indefinitely, amend Sec. 76.923 by revising the
introductory text of paragraph (a)(1) and paragraph (n) to read as
follows:

Sec. 76.923 Rates for equipment and installation used to receive the
basic service tier.

(a) * * *
(1) The equipment regulated under this section consists of all
equipment in a subscriber's home, provided and maintained by the
operator, that is used to receive the basic service tier and video
programming offered on a per channel or per program basis, if any,
except if such equipment is additionally used by that subscriber to
receive other tiers of programming service. Such equipment shall
include, but is not limited to:
* * * * *
(n) Timing of filings. An operator shall file FCC Form 1205 in
order to establish its maximum permitted rates at the following times:
(1) When the operator sets its initial regulated equipment rates;
(2) On the same date it files its FCC Form 1240. If an operator
elects not to file an FCC Form 1240 for a particular year, the operator
must file a Form 1205 on the anniversary date of its last Form 1205
filing; and
(3) When seeking to adjust its rates to reflect the offering of new
types of customer equipment other than in conjunction with an annual
filing of Form 1205, 60 days before it seeks to adjust its rates to
reflect the offering of new types of customer equipment.
* * * * *

0
8. Amend Sec. 76.924 by revising paragraphs (a) and (c) through (e) to
read as follows:

Sec. 76.924 Allocation to service cost categories.

(a) Applicability. The requirements of this section are applicable
to cable operators for which the basic service tier is regulated by
local franchising authorities or the Commission. The requirements of
this section are applicable for purposes of rate adjustments on account
of external costs and for cost of service showings, including equipment
pricing in accordance with Sec. 76.923.
* * * * *
(c) Accounts level. Cable operators making cost of service showings
or seeking adjustments due to changes in external costs shall identify
investments, expenses and revenues at the franchise, system, regional,
and/or company level(s) in a manner consistent with the accounting
practices of the operator on its initial date of regulation or re-
regulation. However, in all events, cable operators shall identify at
the franchise level their costs of franchise requirements, franchise
fees, local taxes and local programming.
(d) Summary accounts. Cable operators making cost of service
showings shall report all investments, expenses, and revenue and income
adjustments accounted for at the franchise, system, regional and/or
company level(s) to the summary accounts listed in the following table.

Table 1 to Paragraph (d)--Summary Accounts
------------------------------------------------------------------------

-------------------------------------------------------------------------
Ratebase
Net Working Capital
Headend
Trunk and Distribution Facilities
Drops

[[Page 31154]]

Customer Premises Equipment
Construction/Maintenance Facilities and Equipment
Programming Production Facilities and Equipment
Business Offices Facilities and Equipment
Other Tangible Assets
Accumulated Depreciation
Plant Under Construction
Organization and Franchise Costs
Subscriber Lists
Capitalized Start-up Losses
Goodwill
Other Intangibles
Accumulated Amortization
Deferred Taxes
Operating Expenses
Cable Plant Employee Payroll
Cable Plant Power Expense
Pole Rental, Duct, Other Rental for Cable Plant
Cable Plant Depreciation Expense
Cable Plant Expenses--Other
Plant Support Employee Payroll Expense
Plant Support Depreciation Expense
Plant Support Expense--Other
Programming Activities Employee Payroll
Programming Acquisition Expense
Programming Activities Depreciation Expense
Programming Expense--Other
Customer Services Expense
Advertising Activities Expense
Management Fees
General and Administrative Expenses
Selling General and Administrative Depreciation Expenses
Selling General and Administrative Expenses--Other
Amortization Expense--Franchise and Organizational Costs
Amortization Expense--Customer Lists
Amortization Expense--Capitalized Start-up Loss
Amortization Expense--Goodwill
Amortization Expense--Other Intangibles
Operating Taxes
Other Expenses (Excluding Franchise Fees)
Franchise Fees
Interest on Funded Debt
Interest on Capital Leases
Other Interest Expenses
Revenue and Income Adjustments
Advertising Revenues
Other Cable Revenue Offsets
Gains and Losses on Sale of Assets
Extraordinary Items
Other Adjustments
------------------------------------------------------------------------

(e) Allocation to service cost categories. (1) For cable operators
making cost of service showings, investments, expenses, and revenues
contained in the summary accounts identified in paragraph (d) of this
section shall be allocated among the Equipment Basket, as specified in
Sec. 76.923, and the following service cost categories:
(i) Basic service cost category. The basic service category shall
include the cost of providing basic service as defined by Sec.
76.901(a). The basic service cost category may only include allowable
costs as defined by Sec. 76.922.
(ii) Cable programming services cost category. The cable
programming services category shall include the cost of providing cable
programming services as defined by Sec. 76.901(b). The cable
programming service cost category may include only allowable costs as
defined in Sec. 76.922.
(iii) All other services cost category. The all other services cost
category shall include the costs of providing all other services that
are not included in the basic service or cable programming services
cost categories as defined in paragraphs (e)(1)(i) and (ii) of this
section.
(2) Cable operators seeking an adjustment due to changes in
external costs identified in FCC Form 1240 shall allocate such costs
among the equipment basket, as specified in Sec. 76.923, and the
following service cost categories:
(i) The basic service category as defined by paragraph (e)(1)(i) of
this section;
(ii) The cable programming services category as defined by
paragraph (e)(1)(ii) of this section;
(iii) The all other services cost category as defined by paragraph
(e)(1)(iii) of this section.
* * * * *

0
9. Revise Sec. Sec. 76.930 and 76.933 to read as follows:

Sec. 76.930 Initiation of review of basic cable service and equipment
rates.

A cable operator shall file its rate justifications for the basic
service tier and associated equipment with a franchising authority
within 30 days of receiving written notification from the franchising
authority that the franchising authority has been certified by the
Commission to regulate rates for the basic service tier, or within 30
days from the date the franchising authority notifies the operator that
the operator will be subject to the generally applicable rate rules
because the operator's regulatory status has changed. Basic service
tier filings for proposed rate increases and equipment rate filings for
existing rates or proposed rate increases (including increases that
result from reductions in the number of channels on a tier) must use
the appropriate official FCC form, a copy thereof, or a copy generated
by FCC software. Failure to file on the official FCC form, a copy
thereof, or a copy generated by FCC software, may result in the
imposition of sanctions specified in Sec. 76.937(d). A cable operator
shall include rate cards and channel line-ups with its filing and
include an explanation of any discrepancy in the figures provided in
these documents and its rate filing.

Sec. 76.933 Franchising authority review of basic cable rates and
equipment costs.

(a) A cable operator that submits for review its existing rates for
equipment may continue the existing rates in effect pending franchising
authority review and subject to the refund liability provisions of
Sec. 76.942.
(b) A cable operator that submits for review a proposed change in
its existing rates for the basic service tier and associated equipment
costs shall do so no later than 90 days prior to the effective date of
the proposed rates.
(c)(1) The franchising authority will have 90 days from the date of
the rate filing to review it. However, if the franchising authority or
its designee concludes that the operator has submitted a facially
incomplete filing, the franchising authority's deadline for issuing a
decision, the date on which a rate increase may go into effect if no
decision is issued, and the period for which refunds are payable will
be tolled while the franchising authority is waiting for this
information, provided that, in order to toll these effective dates, the
franchising authority or its designee must notify the operator of the
incomplete filing within 45 days of the date the filing is made.
(2) If there is a material change in an operator's circumstances
during the 90 day review period and the change affects the operator's
rate filing, the operator may file an amendment to its rate filing
prior to the end of the 90 day review period. If the operator files
such an amendment, the franchising authority will have at least 30 days
to review the filing. Therefore, if the amendment is filed more than 60
days after the operator made its initial filing, the operator's
proposed rate change may not go into effect any earlier than 30 days
after the filing of its amendment. However, if the operator files its
amended application on or prior to the sixtieth day of the 90 day
review period, the operator may implement its proposed rate adjustment,
as modified by the amendment, 90 days after its initial filing.
(3) If a franchising authority has taken no action within the 90
day review period, then the existing rates may continue in effect or
the proposed rates may go into effect at the end of the review period,
subject to a prospective rate reduction and refund if the franchising
authority subsequently issues a written decision disapproving any
portion of such rates, provided,

[[Page 31155]]

however, that in order to order a prospective rate reduction and
refund, if an operator inquires as to whether the franchising authority
intends to issue a rate order after the 90 day review period, the
franchising authority or its designee must notify the operator of its
intent in this regard within 15 days of the operator's inquiry. If the
franchising authority has not issued its rate order by the end of the
90 day review period, the franchising authority will have 12 months
from the date the operator filed for the rate adjustment to issue its
rate order. In the event that the franchising authority does not act
within the 12-month period, it may not at a later date order a refund
or a prospective rate reduction with respect to the rate filing.
(4) At the time an operator files its rate justifications with the
franchising authority, the operator may give customers notice of the
proposed rate changes. Such notice should state that the proposed rate
change is subject to approval by the franchising authority. If the
operator is only permitted a smaller increase than was provided for in
the notice, the operator must provide an explanation to subscribers on
the bill in which the rate adjustment is implemented. If the operator
is not permitted to implement any of the rate increase that was
provided for in the notice, the operator must provide an explanation to
subscribers within 60 days of the date of the franchising authority's
decision. Additional advance notice is required if the rate to be
implemented exceeds the previously noticed rate.
(5) If an operator files for a rate adjustment for the addition of
channels to the basic service tier that the operator is required by
Federal or local law to carry, the franchising authority has 60 days to
review the requested rate. The proposed rate shall take effect at the
end of this 60 day period unless the franchising authority rejects the
proposed rate as unreasonable. The franchising authority shall be
subject to the requirements described in paragraphs (c)(1) through (3)
of this section for ordering refunds and prospective rate reductions,
except that the initial review period is 60 rather than 90 days.
(6) When the franchising authority is regulating basic service tier
rates, a cable operator may increase its rates for basic service to
reflect the imposition of, or increase in, franchise fees or cable
television system regulatory fees imposed pursuant to 47 U.S.C. 159.
The increased rate attributable to Commission cable television system
regulatory fees or franchise fees shall be subject to subsequent review
and refund if the franchising authority determines that the increase in
basic tier rates exceeds the increase in regulatory fees or in
franchise fees allocable to the basic tier. This determination shall be
appealable to the Commission pursuant to Sec. 76.944. When the
Commission is regulating basic service tier rates pursuant to Sec.
76.945, an increase in those rates resulting from franchise fees or
Commission regulatory fees shall be reviewed by the Commission pursuant
to the mechanisms set forth in Sec. 76.945.
(d) If an operator files an FCC Form 1205 for the purpose of
setting the rate for a new type of equipment under Sec. 76.923(o), the
franchising authority has 60 days to review the requested rate. The
proposed rate shall take effect at the end of this 60 day period unless
the franchising authority rejects the proposed rate as unreasonable.
The franchising authority shall be subject to the requirements
described in paragraphs (c)(1) through (3) of this section for ordering
refunds and prospective rate reductions, except that the initial review
period is 60 rather than 90 days.

0
10. Delayed indefinitely, revise Sec. 76.934 to read as follows:

Sec. 76.934 Small systems and small cable companies.

(a) System size. For purposes of rules governing the regulatory
status of small systems, the size of a system or company shall be
determined by reference to its size as of the date the system files
with its franchising authority or the Commission the documentation
necessary to qualify for the relief sought. Where relief is dependent
upon the size of both the system and the company, the operator must
measure the size of both the system and the company as of the same
date. A small system shall be considered affiliated with a cable
company if the company holds a 20 percent or greater equity interest in
the system or exercises de jure control over the system.
(b) Certification. A franchising authority that has been certified,
pursuant to Sec. 76.910, to regulate rates for basic service and
associated equipment may permit a small system as defined in Sec.
76.901 to certify that the small system's rates for basic service and
associated equipment comply with Sec. 76.922, the Commission's
substantive rate regulations.
(c) Regulation of small systems. A small system, as defined by
Sec. 76.901(c), that receives a notice of regulation from its local
franchising authority must respond within the time periods prescribed
in Sec. 76.930.
(d) Petitions for extension of time. Small systems may obtain an
extension of time to establish compliance with rate regulations
provided they can demonstrate that timely compliance would result in
severe economic hardship. Requests for extension of time should be
addressed to the local franchising authority. The filing of a request
for an extension of time to comply with the rate regulations will not
toll the effective date of rate regulation for small systems or alter
refund liability for rates that exceed permitted levels.
(e) Small systems owned by small cable companies. Small systems
owned by small cable companies are not subject to rate regulation as
long as they meet the definitions of small system and small cable
company in Sec. 76.901. When a system no longer qualifies for
deregulatory status, the system must give the franchising authority
notice of its change in status. Upon regulation, actual rates and
subsequent rate increases will be subject to generally applicable
regulations governing rates and rate increases. After receiving notice
of regulation from the franchising authority, the system shall file its
schedule of rates consistent with Sec. 76.930.
(f) Small cable operators. For rules governing small cable
operators, see Sec. 76.990.

0
11. Revise Sec. 76.935 to read as follows:

Sec. 76.935 Participation of interested parties.

In order to regulate basic service tier rates or associated
equipment costs, a franchising authority must have procedural laws or
regulations applicable to rate regulation proceedings that provide a
reasonable opportunity for consideration of the views of interested
parties. Such rules must take into account the time periods that
franchising authorities have to review rates under Sec. 76.933.

0
12. Amend Sec. 76.937 by:
0
a. Removing paragraph (c);
0
b. Redesignating paragraphs (d) and (e) as paragraphs (c) and (d); and
0
c. Revising newly redesignated paragraph (d).
The revision reads as follows:

Sec. 76.937 Burden of proof.

* * * * *
(d) A franchising authority or the Commission may order a cable
operator that has filed a facially incomplete form to file supplemental
information, and the franchising authority's deadline to rule on the
reasonableness of the proposed rates will be tolled pending the receipt
of such information. A franchising authority may set reasonable

[[Page 31156]]

deadlines for the filing of such information, and may find the cable
operator in default and mandate appropriate relief, pursuant to
paragraph (c) of this section, for the cable operator's failure to
comply with the deadline or otherwise provide complete information in
good faith.

0
13. Revise Sec. Sec. 76.938 and 76.939 to read as follows:

Sec. 76.938 Proprietary information.

A franchising authority may require the production of proprietary
information to make a rate determination in those cases where cable
operators have submitted initial rates for review or have proposed rate
increases. The franchising authority shall state a justification for
each item of information requested and, where related to an FCC form
filing, indicate the question or section of the form to which the
request specifically relates. Upon request to the franchising
authority, the parties to a rate proceeding shall have access to such
information, subject to the franchising authority's procedures
governing non-disclosure by the parties. Public access to such
proprietary information shall be governed by applicable state or local
law.

Sec. 76.939 Truthful written statements and responses to requests of
franchising authority.

Cable operators shall comply with franchising authorities' and the
Commission's requests for information, orders, and decisions. Any
information submitted to a franchising authority or the Commission in
making a rate determination pursuant to an FCC form filing is subject
to the provisions of Sec. 1.17 of this chapter.
0
14. Revise Sec. 76.942 to read as follows:

Sec. 76.942 Refunds.

(a) A franchising authority (or the Commission, pursuant to Sec.
76.945) may order a cable operator to refund to subscribers that
portion of previously paid rates determined to be in excess of the
permitted basic service tier charge or above the actual cost of
equipment. Before ordering a cable operator to refund previously paid
rates to subscribers, a franchising authority (or the Commission) must
give the operator notice and opportunity to comment.
(b) The refund period shall run as follows:
(1) From the date the operator implements the rate under review
until it reduces the rate in compliance with a valid rate order or
justifies that rate or a higher rate in its next rate filing, whichever
is sooner, however, the refund period shall not begin before the
effective date of regulation.
(2) For rates in effect and justified on rate forms filed before
August 13, 2025 as amended, the refund period shall be determined by
the rules in this part in effect at the time of filing.
(3) Refund liability shall be calculated on the reasonableness of
the rates as determined by the rules in this part in effect during the
period under review by the franchising authority or the Commission.
(c) The cable operator, in its discretion, may implement a refund
in the following manner:
(1) By returning overcharges to those subscribers who actually paid
the overcharges, either through direct payment or as a specifically
identified credit to those subscribers' bills; or
(2) By means of a prospective percentage reduction in the rates for
the basic service tier or associated equipment to cover the cumulative
overcharge. The refund shall be reflected as a specifically identified,
one-time credit on prospective bills to the class of subscribers that
currently subscribe to the cable system.
(d) Refunds shall include interest computed at applicable rates
published by the Internal Revenue Service for tax refunds and
additional tax payments.
(e) Once an operator has implemented a rate refund to subscribers
in accordance with a refund order by the franchising authority (or the
Commission pursuant to paragraph (a) of this section), the franchising
authority must return to the cable operator an amount equal to that
portion of the franchise fee that was paid on the total amount of the
refund to subscribers. The franchising authority must promptly return
the franchise fee overcharge either in an immediate lump sum payment,
or the cable operator may deduct it from the cable system's future
franchise fee payments. The franchising authority has the discretion to
determine a reasonable repayment period, but interest shall accrue on
any outstanding portion of the franchise fee starting on the date the
operator has completed implementation of the refund order. In
determining the amount of the refund, the franchise fee overcharge
should be offset against franchise fees the operator holds on behalf of
the franchising authority for lump sum payment. The interest rate on
any refund owed to the operator presumptively shall be 11.25%.

0
15. Delayed indefinitely, amend Sec. 76.944 by revising paragraph (c)
to read as follows:

Sec. 76.944 Commission review of franchising authority decisions on
rates for the basic service tier and associated equipment.

* * * * *
(c) An operator that uses the annual rate adjustment method under
Sec. 76.922(c) may include in its next true up under Sec.
76.922(c)(3) any amounts to which the operator would have been entitled
but for a franchising authority decision that is not upheld on appeal.

0
16. Revise Sec. 76.945 to read as follows:

Sec. 76.945 Procedures for Commission review of basic service rates.

(a) Upon assumption of rate regulation authority, the Commission
will notify the cable operator and require the cable operator to file
its basic service tier rate schedule with the Commission within 30
days, with a copy to the local franchising authority.
(b) Basic service tier and equipment rate schedule filings for
existing rates or proposed rate increases or adjustments (including
increases that result from reductions in the number of channels in a
tier) must use the official FCC form, a copy thereof, or a copy
generated by FCC software. Failure to file on the official FCC form or
a copy may result in the imposition of sanctions specified in Sec.
76.937(c).
(c) Filings for proposed rate increases or adjustments must be made
90 days prior to the proposed effective date and can become effective
on the proposed effective date unless the Commission issues an order
deferring the effective date or denying the rate proposal. Petitions
filed in accordance with Sec. Sec. 76.6 and 76.7, that oppose such
filings must be filed within 15 days of public notice of the filing by
the cable operator and be accompanied by a certificate that service was
made on the cable operator and the local franchising authority. A cable
operator opposing such petition must file its opposition within five
days of the filing of the petition, certifying to service on both the
petitioner and the local franchising authority.

Sec. 76.963 [Removed]

0
17. Remove Sec. 76.963.

0
18. Amend Sec. 76.980 by:
0
a. Revising paragraphs (a) and (e); and
0
b. Removing note 1 to the section.
0
The revisions read as follows:

Sec. 76.980 Charges for customer changes.

(a) This section shall govern charges for any changes in service
tiers or equipment provided to the subscriber that are initiated at the
request of a subscriber after initial service installation and that
result in the

[[Page 31157]]

subscriber receiving only a basic tier of service, with or without
additional non-tier services, and no additional tier of service.
* * * * *
(e) Cable operators must also notify subscribers of potential
charges for customer service changes, as provided in Sec. 76.1604.
* * * * *

Sec. 76.982 [Removed]

0
19. Remove Sec. 76.982.

0
20. Amend Sec. 76.984 by:
0
a. Revising paragraph (a);
0
b. Removing notes 1 and 2 to paragraph (c)(3); and
0
c. Adding paragraph (c)(4);
The revision and addition read as follows:

Sec. 76.984 Geographically uniform rate structure.

(a) The rates charged by cable operators for basic service and
associated equipment and installation shall be provided pursuant to a
rate structure that is uniform throughout each franchise area in which
cable service is provided.
* * * * *
(c) * * *
(4) Requests for discovery for predatory pricing complaints will be
addressed pursuant to the procedures specified in Sec. 76.7(f).
Parties submitting confidential material believed to be exempt from
disclosure pursuant to the Freedom of Information Act (FOIA), 5 U.S.C.
552(b), and the Commission's rules at Sec. 0.457 of this chapter,
should follow the procedures in Sec. 0.459 of this chapter and Sec.
76.9.

0
21. Delayed indefinitely, amend Sec. 76.990 by:
0
a. Revising paragraphs (a) and (b)(2);
0
b. Removing paragraph (b)(3);
0
c. Revising paragraph (c); and
0
d. Removing the note to the section.
The revisions read as follows:

Sec. 76.990 Small cable operators.

(a) Exemption. A small cable operator is exempt from rate
regulation on its basic service tier if that tier was the only service
tier subject to rate regulation as of December 31, 1994, in any
franchise area in which that operator services 50,000 or fewer
subscribers.
(b) * * *
(2) Once the operator has certified its eligibility for
deregulation on the basic service tier, the local franchising authority
shall not prohibit the operator from taking a rate increase and shall
not order the operator to make any refunds unless and until the local
franchising authority has rejected the operator's certification in a
final order that is no longer subject to appeal or that the Commission
has affirmed. The operator shall be liable for refunds for revenues
gained (beyond revenues that could be gained under regulation) as a
result of any rate increase taken during the period in which it
erroneously claimed to be deregulated, plus interest, in the event the
operator is later found not to be deregulated. The limits on refund
liability will not be applicable during that period to ensure that the
filing of an invalid small operator certification does not reduce any
refund liability that the operator would otherwise incur.
(c) Transition from small cable operator status. If a small cable
operator subsequently becomes ineligible for small operator status, the
operator will become subject to regulation. Upon regulation, actual
rates and subsequent rate increases will be subject to generally
applicable regulations governing rates and rate increases. A cable
operator must give its franchising authority notice of its change in
status. The system shall file its rate justifications consistent with
Sec. 76.930. For rules governing small cable systems and small cable
companies, see Sec. 76.934.

Sec. 76.1805 [Removed]

0
22. Remove Sec. 76.1805.

[FR Doc. 2025-13107 Filed 7-11-25; 8:45 am]
BILLING CODE 6712-01-P

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