FOR FCC RECORD ONLY
$//Service Electric, New Jersey, Pennsylvania, MO&O, DA-95-312//$
$/76.922 Rates for Cable Programming Service tiers/$
$/benchmark cable rates/$

                                Before the
                     Federal Communications Commission
                             Washington, D.C.

                                                                 DA 95-312


In the matter of                        )
                                   )
Service Electric Company                )    CUID Nos. NJ0057, NJ0058,          
Service Electric Cablevision, Inc.           )    NJ0059, NJ0538, PA0215,       
Service Electric Cable T.V., Inc.            )    PA0478, PA0479, PA0484,       
Service Electric Cable T.V. of New Jersey, Inc.   )    PA0846, PA0921
                                   )           
Order Denying Jurisdiction                   )


                       Memorandum Opinion and Order


Adopted:  February 21, 1995             Released:  February 22, 1995

By the Deputy Chief, Cable Services Bureau:

     1.   In this Order we dismiss complaints against the prices Service Electric
Company, Service Electric Cablevision, Inc., Service Electric Cable T.V., Inc., and Service
Electric Cable T.V. of New Jersey, Inc. (collectively "Service Electric") were charging for
their cable programming service ("CPS") tiers in the communities listed in the attached
Appendix (the "subject communities").  The complaints must be dismissed because they
concern rates that are outside the jurisdiction and authority of this Commission.  As
explained below, the Commission regulates rates for CPS only, and then only upon filing of
a valid complaint.  Our review reveals that the complaints filed against Service Electric,
while asserting that they challenge CPS rates, challenge only rates for basic service, not for
CPS.  The complaints therefore do not trigger the Commission's jurisdiction, and they are
accordingly dismissed.

     2.   The  Cable Television Consumer Protection and Competition Act of 1992
("Cable Act of 1992") distinguishes among basic cable service, premium cable service, and
cable programming service.  The basic service tier is the minimum package of cable service
that a consumer can buy.  Except in limited circumstances, the Commission does not have
jurisdiction over rates for the basic service tier, and cannot act upon complaints concerning
rates for that tier.  Premium cable service consists of channels that are paid for individually
(per-channel) or per-program.  By statute, these channels are not subject to rate regulation. 
CPS includes all video programming that is not on the basic service tier which the operator
offers as a package of channels.  Rates for CPS tiers are subject to regulation by the
Commission in response to a valid complaint.   

     3.   Service Electric filed motions to dismiss the complaints on the ground that it 
offers only a single, basic tier of service in each of the subject communities.  In support of
this assertion, Service Electric submitted channel line-up cards and declarations under penalty
of perjury from system managers and other responsible officials.
  
     4.   The complaints under consideration here were filed with the Commission on 
FCC Form 329.  FCC Form 329 is used by subscribers or local franchising authorities
wishing to lodge with the Commission a complaint about an operator's CPS rates.  The form 
is entitled "Cable Programming Service Rate Complaint."  While the form is designed for
use in challenging CPS tier rates, the definition of CPS tier rates is not made clear on the
face of the form and it is possible that someone might complete the form without
understanding the difference between basic tier rates, premium service rates, and CPS tier
rates.  

     5.   We have examined the complaints and Service Electric's responses, and we
conclude that the complaints challenge only basic rates, not CPS rates.  Although the
complainants indicate that the rates challenged violate the Commission's rules, the specific
information provided by the complainants indicates that only basic rates are at issue.  When
only basic rates are being challenged, the complaint should properly be brought to the
attention of the local franchising authority in the first instance, and not filed with this
Commission.  If the complaints do in fact challenge CPS rates, the complainants may file a
petition for reconsideration providing information adequate to support their challenge.
     
     6.    Accordingly, IT IS ORDERED, pursuant to Section 623(a)(2)(A) and (B) of
the Communications Act of 1934, as amended, 47 U.S.C.  543(a)(2)(A) and (B), that the
complaints filed against the cable programming service prices charged by Service Electric
Company, Service Electric Cablevision, Inc., Service Electric Cable T.V., Inc., and Service
Electric Cable T.V. of New Jersey, Inc. in the communities listed in the attached Appendix
ARE DISMISSED. 

     7.   This action is taken pursuant to delegated authority under Section 0.321 of the
Commission's Rules, 47 C.F.R.  0.321. 
     
          
                         FEDERAL COMMUNICATIONS COMMISSION





                         Gregory J. Vogt
                         Deputy Chief,  Cable Services Bureau

                                 APPENDIX



     CUID No.                      Community

     NJ0057                   Byram Township, New Jersey

     NJ0058                   Franklin, New Jersey

     NJ0059                   Hamburg, New Jersey

     NJ0538                   Branchville, New Jersey

     PA0215                   Exeter Township, Pennsylvania

     PA0478                   Allentown, Pennsylvania

     PA0479                   Bethlehem, Pennsylvania

     PA0484                   Tamaqua, Pennsylvania

     PA0846                   Hanover Township, Pennsylvania

     PA0921                   Penn Argyl, Pennsylvania