PUBLIC NOTICE
FEDERAL COMMUNICATIONS COMMISSION
1919 M STREET, N.W.
WASHINGTON, D.C. 20554

News media information 202/418-0500. Recorded listing of releases and texts 202/632-0002.


           DA 95-1893
Report No. CS 95-16                    CABLE SERVICES ACTION         September 19, 1995


             Cable Services Bureau Develops System Upgrade Form

     The Cable Services Bureau, on delegated authority pursuant to Commission Order
94-39, has developed an abbreviated cost-of-service form (FCC Form 1235) that permits
cable operators to recover the costs of significant upgrades that provide benefits to
subscribers of regulated cable services.  Under FCC Form 1235, cable operators seeking
to raise rates to cover the costs of an upgrade would submit only the costs of the upgrade
instead of all current costs.  The upgrade costs would then be added to the rates permitted
under the benchmark and price cap approach to the extent they would otherwise be
unrecoverable.  

     For a cable operator to receive such rate increases, the Commission requires:  (1)
that the upgrade be "significant" and require added capital investment, such as expansion
of bandwidth capacity, conversion to fiber optics or system rebuilds; (2) that the upgrade
actually benefit subscribers through improvements in the regulated services subject to the
rate increase; (3) that the upgrade rate increase not be assessed until the upgrade is
complete and providing benefits to subscribers of regulated services; (4) that the operator
demonstrate its net increase in costs, taking into account current depreciation expense,
projected changes in maintenance and other expenses, and changes in other revenues;
and (5) that the operator allocate its costs to ensure that only costs allocable to
subscribers of regulated services are imposed upon them.  FCC Form 1235 permits cable
operators to show that they have met these requirements.

     The Commission, as part of its continuing effort to reduce paperwork burden, invites
the general public and other Federal agencies to take this opportunity to comment on the
proposed FCC Form 1235.  Comments concerning the Commission's need for this
information, the accuracy of the provided burden estimates, and any suggested methods
for minimizing respondent burden, including the use of automated information techniques,
are requested.  Direct all comments to Dorothy Conway, Federal Communications
Commission, Room 234, 1919 M St., N.W., Washington, DC  20554 or via internet to
dconway@fcc.gov.  For copies of the information collections contact Dorothy Conway at
202-418-0217 or via internet to dconway@fcc.gov.  Copies may also be obtained via the
Commission's Fax on Demand System.  To obtain fax copies, call 202-418-0177 from the
handset on your fax machine, and enter the document retrieval number 601235, when
prompted.
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     For further information about this Public Notice contact Rick Chessen or Jerome
Fowlkes of the Cable Services Bureau at (202) 416-0800.  Media contact: Morgan Broman
(202) 416-0852.

     --FCC--