NOTICE


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                         NOTICE


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FOR FCC RECORD ONLY
$\\Letter, Engle Broadcasting, DA 95-2466\\$
$\76.922 Rates for Basic and Cable Programming Service Tier/$


                           December 12, 1995       DA 95-2466
                                              Released:  December 14, 1995


Paul V. Engle
Engle Broadcasting
Winslow Professional Center
339 S RT. 73, Suite B
Winslow TWP, NJ 08009

Dear Mr. Engle:

     In your letter of April 19, 1995, you asked whether a cable operator can use the
channel adjustment methodology and license fee reserve that the Commission adopted in its
Sixth Order on Reconsideration, Fifth Report and Order and Seventh Notice of Proposed
Rulemaking in MM Docket No. 92-266 for the purpose of adding a channel that carries a
low-power television (LPTV) station that has not been afforded must carry status.  This
channel adjustment methodology and license fee reserve can be used for the purpose of
adding new channels that carry any services that cable operators decide to offer on their
cable programming service tiers (CPST) or, for those operators that have only one regulated
tier, the basic service tier (BST).  See 47 C.F.R.  76.922(g)(3).  

     Therefore, if an operator adds an LPTV signal to a CPST or to a BST (if the operator
has only one regulated tier), the operator can take the 20 cents per channel adjustment and
use a portion of the 30 cents license fee reserve to pay for programming costs.  However, if
the operator has a BST and CPST and adds the LPTV to the BST, the operator is not
permitted to adjust rates on the BST by using the new channel adjustment methodology and
license fee reserve.  In this case, the operator would only be permitted to adjust its rates by
using the initial going forward rules.  See 47 C.F.R.  76.922(g)(2).

     I hope this answers your question.  If you have any further questions, please do not
hesitate to contact Nancy Stevenson at (202) 416-0800.



                              Sincerely,



                              Meredith J. Jones
                              Chief, Cable Services Bureau