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File pnmc5021 (.txt & .wp) is in directory \pub\Public_Notices\Miscellaneous. ************************************************************************* Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of:) ) Multimedia Cablevision, Inc. ) ) Petition for Revocation) of the Certification of) Lenoir County, North Carolina ) to Regulate Basic Cable Service Rates) (NC0143)) MEMORANDUM OPINION AND ORDER Adopted: September 19, 1996 Released: September 25, 1996 By the Chief, Cable Services Bureau: INTRODUCTION 1.On April 18, 1996, Multimedia Cablevision, Inc. ("Multimedia") filed a Petition for Revocation challenging the certification of Lenoir County, North Carolina ("the County") to regulate Multimedia's rates for basic cable service and associated equipment. The County did not file an opposition. 2.Section 623(a)(4) of the Communications Act of 1934, as amended, ("Communications Act") allows franchising authorities to become certified to regulate basic cable service rates of cable operators that are not subject to effective competition. To qualify for certification, a franchising authority must confirm that it has the legal authority and personnel to regulate rates, that it will adopt and administer regulations that are consistent with the Commission's rules, and that interested parties will be provided with a reasonable opportunity to comment during rate proceedings. Certification becomes effective 30 days from the date of filing unless the Commission finds that the franchising authority does not meet the statutory certification requirements. Cable operators may file petitions for reconsideration of the franchising authority's certification within 30 days from the date such certification becomes effective. After that time period has expired, a cable operator may challenge a franchising authority's certification by filing a petition for revocation. Grounds for revocation of a franchising authority's certification include, inter alia, the nonconformity of state and local laws to the Commission's rate regulations. DISCUSSION 3.In its petition, Multimedia argues that the County's certification to regulate basic service tier rates should be revoked because the County did not properly apply the Commission's rules in rendering a local rate order. Multimedia explains that, on November 6, 1995, it submitted to the County FCC Form 1210, setting forth justification for a proposed increase in basic service tier rates. Multimedia alleges that, on December 4, 1995, the County issued a Resolution denying the requested rate increase. Multimedia argues that the County's denial is inconsistent with the Commission's rules and procedures for review of basic service tier rates. Specifically, Multimedia contends that the County ignored applicable benchmark methodology for determining the permitted basic service tier charge, and based its denial of a rate increase on irrelevant factors. Although Multimedia filed an appeal of the County's rate order which is currently pending, Multimedia also requests that the Commission revoke the County's certification to regulate basic service tier rates on the grounds that the County is "neither willing nor able to administer a rate regulation scheme that is consistent with the Commission's rules and procedures." 4.If the Commission, after granting the franchising authority reasonable opportunity to comment and cure any minor nonconformance, determines that state and local laws and regulations are not consistent with the Commission's rules, the Commission shall revoke the certification of the franchising authority. Here, Multimedia has filed an appeal of the County's rate order alleging that the County's action with respect to Multimedia's rate filing was inconsistent with Commission regulations. We believe that the issue is properly addressed in that context, and that revocation of the County's certification prior to any determination in the appeal case would be premature and unwarranted. We note that Multimedia's petition for revocation is based on the allegation that the local rate order, rather than any local regulation, is inconsistent with the Commission's rules. Section 76.944 of our rules provides a remedy for such claims in the form of a right to appeal rate decisions issued by local franchising authorities to the Commission. Multimedia is pursuing this remedy. If, in its appellate review, the Commission finds that the County has not properly applied federal cable rate regulatory rules in considering Multimedia's rate filing, the Commission will remand matters to the local franchising authority to allow it to correct the rate order on which Multimedia bases its revocation claims in this proceeding. This is the appropriate procedure set forth in our rules. If we should determine that the County's rate order is inconsistent with Commission regulations, the County must be given an opportunity to cure this defect, under Section 76.914(a)(2) of our rules. 5.Given the extensive overlap between Multimedia's rate appeal and its petition for revocation, we believe that it is appropriate that we dismiss Multimedia's decertification request at this time, without prejudice to its being refiled should circumstances warrant. In the interim, specific issues, if any, relating to rate setting by the County may continue to be brought to the Commission's attention through the rate appeal process set forth in our rules. ORDERING CLAUSES 6.Accordingly, IT IS ORDERED that the Petition for Revocation filed by Multimedia Cablevision, Inc., against Lenoir County, North Carolina IS DISMISSED WITHOUT PREJUDICE. 7.This action is taken by the Chief, Cable Services Bureau, pursuant to authority delegated by Section 0.321 of the Commission's rules. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau