Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992Rate Regulation

In this Memorandum Opinion and Order (``Order''), the Commission revisits the decision in the Third Report and Order to require cable operators to use the same method of initial rate regulation, either benchmark or cost-of-service, for both the BST and the CPSTs. This requirement applies for one year from the date that the operator first becomes subject to regulation on any tier. The Third Report and Order sought to remove incentives to engage in retiering strategies during the initial rate setting process that would result in operators receiving more than compensatory rates. The Commission indicated that it would review the requirement after 18 months. Upon review of the record the Commission elects to modify the requirement set forth in the Third Report and Order so that consistent rate methodologies must be used for the entire period in which an operator is subject to rate regulation on both the BST and CPST(s). This Order is adopted concurrently with a Notice of Proposed Rulemaking which is summarized elsewhere in this issue of the Federal Register. The intended effect of this Order is that consistent rate methodologies be used for the entire period in which an operator is subject to rate regulation on both the BST and CPST(s).