$/ FOR FCC RECORD ONLY /$ $// MO&O, Cable Act of 1992, DA 95-30//$ $/ 300.623 Regulation of Rates /$ $/ 1.106 Petitions for Reconsideration /$ $/ 76.906 Presumption of no effective competition /$ $/ 76.910 Franchising authority certification /$ $/ 76.911 Petition for reconsideration of certification /$ Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of: ) DA 95-30 ) RIGEL CSSF JOINT VENTURE ) ) Petition for Revocation ) ) of the Certification of ) the City of Port Wentworth, Georgia,) to Regulate Basic Cable Service Rates ) (GA0736) ) MEMORANDUM OPINION AND ORDER Adopted: January 10, 1995 Released: January 11, 1995 By the Chief, Cable Services Bureau: II. INTRODUCTION 1. Rigel CSSF Joint Venture, ("Rigel") filed a petition for revocation challenging the certification of the City of Port Wentworth, Georgia, ("the City") to regulate rates for basic cable service and associated equipment. The City filed a response, indicating that they did not desire to challenge Rigel's petition at this time. 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 which 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 the franchise authority has actual knowledge to the contrary. Such certification becomes effective 30 days from the date of filing unless the Commission finds that the 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. However, regardless of its grounds, a petition for revocation does not automatically trigger a stay of the franchising authority's power to regulate basic rates. II. DISCUSSION 3. Rigel argues that its cable system is subject to effective competition because the system serves fewer than 30 percent of the "homes" in the City of Port Wentworth, its franchise area. Rigel claims that it serves only 179 of the 1,370 "homes" in its franchise area or 13 percent of the total number of "homes". As support, Rigel submits a declaration under penalty of perjury from a responsible company official who, relying on a specific cite in the 1990 Census, states that there are 1,370 "homes" in the City. In addition, the declaration states that the cable system serves 179 subscribers. 4. 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, is present within its franchise area. Based on all of the evidence before us, we find that Rigel has met this burden. 5. Contrary to Rigel's assertion, the Census data it cites does not indicate that there are 1,370 "homes" in the franchise area. Rather it indicates that there are 1,647 housing units and 1,500 occupied housing units in Port Wentworth. Our rules require the use of data reflecting the number of households in the franchise area. See Third Order on Reconsideration, MM Docket Nos. 92-266 and 92-262, 9 FCC Rcd 4316, 4324 (1994). Relying on the data for occupied housing units, a comparison of the number of subscribers Rigel claims to have (179) in relation to the number of occupied housing units yields a penetration level of 11.9 percent. Thus, we find that Rigel's cable system serving Port Wentworth, Georgia is subject to effective competition. Accordingly, its petition is granted. III. ORDERING CLAUSES 6. Accordingly, IT IS ORDERED that the petition for revocation filed by Rigel CSSF Joint Venture, challenging the certification of Port Wentworth, Georgia, to regulate Insight's basic cable rates IS GRANTED. 7. IT IS FURTHER ORDERED that the certification filed by Port Wentworth, Georgia, to regulate Rigel CSSF Joint Venture's basic cable rates IS RESCINDED. 8. 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