$/ FOR FCC RECORD ONLY /$ $// MO&O, Cable Act of 1992, DA 94-1569//$ $/ 300.623 Regulation of Rates /$ $/ 1.106 Petitions for Reconsideration /$ $/ 76.906 Presumption of no effective competition /$ $/ 76.910 Franchising authority certification /$ $/ 76.911 Petition for reconsideration of certification /$ Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of: ) DA 94-1569 ) LARIBAY CABLEVISION OF AURORA, ) COLORADO ) ) Petition for Revocation ) of the Certification of ) Vernon Parish, Louisiana ) to Regulate Basic Cable Service Rates ) (LA0514) ) MEMORANDUM OPINION AND ORDER Adopted: December 27, 1994 Released: December 28, 1994 By the Chief, Cable Services Bureau: I. INTRODUCTION 1. On January 24, 1994, Laribay Cablevision of Aurora, Colorado ("Laribay") filed a petition challenging the certification of Vernon Parish, Louisiana ("Parish") to regulate rates for basic cable service and associated equipment. On August 19, 1994, Laribay submitted supplemental information in support of its petition pursuant to a recent Commission order. In addition, Laribay submitted a response to a Bureau request for clarifying information regarding Laribay's authorized area of service. The Parish did not file an opposition to Laribay's petition. 2. Section 623(a)(4) of the Communications Act of 1934, as amended, allows franchising authorities to become certified to regulate basic cable service rates of cable operators that are not subject to effective competition. For purposes of the initial request for certification, local franchising authorities may rely on a presumption that cable operators within their jurisdiction are not subject to effective competition, unless they have actual knowledge to the contrary. 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 of the date such certification becomes effective. Rate regulation is automatically stayed pending review of a timely-filed petition for reconsideration alleging the presence of effective competition. Once the 30-day deadline for filing petitions for reconsideration has elapsed, cable operators may challenge the franchising authority's certification by filing a petition for revocation. Regardless of its grounds, however, a petition for revocation does not authomatically trigger a stay of a franchising authority's power to regulate basic rates. II. DISCUSSION 2. Laribay states that its system serving a ward within Vernon Parish ("Ward 5"), its franchise area, is subject to effective competition because the system serves fewer than 30 percent of the households within the franchise area. Laribay states that it serves 92 of the approximately 1,224 occupied housing units in its franchise area, or approximately 7.5 percent of the occupied housing units in the franchise area. As supporting documentation, Laribay submits "household" data derived from the 1990 census information for Vernon Parish, provided by Kisatchie-Delta Regional Planning and Development District, Inc., which demonstrates that there are a total of 21,622 housing units (occupied and vacant), including 19,111 occupied housing units in the Parish. In addition, Laribay submits a letter from the Assessor for Vernon Parish which states that Ward 5 of the Parish has a total of 1,091 "rural improvements" and 294 mobile homes. The addition of these two figures yields a total 1,385 housing units. Explaining that the Parish does not have an occupied housing unit figure for Ward 5, Laribay states that it determined the approximate number of occupied housing units by deducting an 11.6 percent vacancy rate from the total number of housing units. Laribay states that this vacancy rate was determined by dividing the total number of occupied housing units in the Parish (19,111) by the total number of housing units in the Parish (21,622). By deducting the 11.6 percent vacancy rate from the total number of housing units in Ward 5, Laribay explains, that it arrived at an approximate number of 1,224 occupied housing units from its franchise area. In addition to its housing data, Laribay submits a computer printout with sufficient information to demonstrate that Laribay's serves a total of 96 subscribers, including four subscribers who receive "free" service. Finally, Laribay submits a declaration under penalty of perjury from a company official. 3. In the absence of a demonstration to the contrary, cable systems are presumed not to be subject to effective competition. The cable operator bears the burden of rebutting the presumption that effective competition does not exist with evidence that effective competition, as defined by Section 76.905 of the Commission's rules, exists in the franchise area. We find that Laribay has met this burden. In light of Laribay's claim that it was unable to acquire an occupied housing unit number with respect to Ward 5, we will accept Laribay's use of a vacancy rate for the Parish, as sufficient evidence of the approximate number of households in Laribay's franchise area in this case. Relying on this data, Laribay has submitted sufficient evidence demonstrating that it serves 96 of the approximate 1,224 households in in franchise area, or 7.8 percent of the total number of households. Thus, we find that Laribay's system serving Ward 5 of the Parish, is subject to effective competition. Accordingly, its petition is granted. III. ORDERING CLAUSES 4. Accordingly, IT IS ORDERED that the petition for revocation filed by Laribay Cablevision challenging the certification of the Parish, Louisiana to regulate Laribay's basic cable service rates IS GRANTED. 5. IT IS FURTHER ORDERED that the certification granted to the Parish, Louisiana to regulate Laribay Cablevision's basic cable rates IS REVOKED. 6. This action is taken pursuant to delegated authority under Section 0.321 of the Commission's rules, as amended, 47 C.F.R.  0.321. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau