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                           Before the
                Federal Communications Commission
                     Washington, D.C. 20554

In the Matter of                )
                                )
Livermore Cable, Inc.           )    File No. EB-02-TS-308
                                )
Operator of Cable System in:    )
                                )    
Livermore, Iowa                 )
                                )
Request for Waiver of Section 11.11(a) of the     )    
Commission's Rules              )    
                                        
                              ORDER 

Adopted:  January 31, 2003              Released:   February   5, 
2003

By the Chief, Technical  and Public Safety Division,  Enforcement 
Bureau:

1.        In  this  Order,   we  grant   Livermore  Cable,   Inc. 
  (``Livermore'')  a   temporary,  36-month  waiver  of   Section 
  11.11(a) of the  Commission's Rules (``Rules'') for the  above-
  captioned cable  television system.  Section 11.11(a)  requires 
  cable  systems serving  fewer  than 5,000  subscribers  from  a 
  headend  to  either  provide  national  level  Emergency  Alert 
  System  (``EAS'')  messages  on  all  programmed  channels   or 
  install EAS equipment  and provide a video interrupt and  audio 
  alert  on all  programmed  channels  and EAS  audio  and  video 
  messages  on at  least one  programmed  channel by  October  1, 
  2002.1

2.        The Cable Act of 1992  added new Section 624(g) to  the 
  Communications  Act  of 1934  (``Act''),  which  requires  that 
  cable  systems be  capable of  providing  EAS alerts  to  their 
  subscribers.2  In 1994, the Commission adopted rules  requiring 
  cable systems to participate in EAS.3  In 1997, the  Commission 
  amended the  EAS rules  to provide financial  relief for  small 
  cable systems.4  The Commission declined to exempt small  cable 
  systems  from the  EAS requirements,  concluding that  such  an 
  exemption would be  inconsistent with the statutory mandate  of 
  Section  624(g).5    However,  the   Commission  extended   the 
  deadline   for  cable   systems  serving   fewer  than   10,000 
  subscribers to  begin complying with the  EAS rules to  October 
  1, 2002,  and provided cable systems  serving fewer than  5,000 
  subscribers the option  of either providing national level  EAS 
  messages  on   all  programmed  channels   or  installing   EAS 
  equipment and  providing a video interrupt  and audio alert  on 
  all programmed channels and EAS audio and video messages on  at 
  least  one programmed  channel.6  In  addition, the  Commission 
  stated that  it would grant waivers of  the EAS rules to  small 
  cable  systems  on  a case-by-case  basis  upon  a  showing  of 
  financial  hardship.7   The Commission  indicated  that  waiver 
  requests must contain at least the following information:   (1) 
  justification for the waiver, with reference to the  particular 
  rule sections  for which  a waiver is  sought; (2)  information 
  about the financial status of the requesting entity, such as  a 
  balance sheet and  income statement for the two previous  years 
  (audited, if possible);  (3) the number of other entities  that 
  serve the  requesting entity's coverage area  and that have  or 
  are expected to  install EAS equipment; and (4) the  likelihood 
  (such  as proximity  or frequency)  of hazardous  risks to  the 
  requesting entity's audience.8

3.        Livermore filed a request for a permanent or  five-year 
  waiver of  Section 11.11(a) for the  captioned cable system  on 
  July 15,  2002.  In  support of its  waiver request,  Livermore 
  states that  the cable system serves  a small, rural  community 
  and has  149 subscribers.   Based on price  quotes provided  by 
  EAS equipment manufactures,  Livermore estimates that it  would 
  cost  approximately $8,000  to install  EAS equipment  at  this 
  cable system.   Livermore asserts that  the cost of  installing 
  EAS  equipment  at   the  system  will  impose  a   substantial 
  financial hardship on it and provides financial statements  for 
  2000  and 2001  in support  of  this assertion.   In  addition, 
  Livermore submits  that its subscribers  will continue to  have 
  ready access  to national EAS  information from other  sources, 
  including its cable  systems.  Livermore also asserts that  its 
  subscribers will have  access to EAS information through  over-
  the-air reception of broadcast television and radio stations.

4.        Based upon our review of  the financial data and  other 
  information submitted  by Livermore, we  find that a  permanent 
  or five-year  waiver of Section  11.11(a) of the  Rules is  not 
  warranted.   However, we  conclude that  a temporary,  36-month 
  waiver  of  Section  11.11(a)  for  the  captioned  system   is 
  warranted.9  In particular,  we find that the estimated  $8,000 
  cost of EAS equipment for this small cable system could  impose 
  financial hardship on Livermore. 

5.        We note that  the Commission recently  amended the  EAS 
  rules  to  permit  cable  systems  serving  fewer  than   5,000 
  subscribers  to   install  FCC-certified  decoder-only   units, 
  rather  than both  encoders  and  decoders, if  such  a  device 
  becomes  available.10    Based  on   comments  from   equipment 
  manufacturers, we  anticipate that such  a decoder-only  system 
  could  result  in  significant  cost  savings  to  small  cable 
  systems.11  

6.        Accordingly, IT IS ORDERED  that, pursuant to  Sections 
  0.111,  0.204(b) and  0.311 of  the Rules,12  Livermore  Cable, 
  Inc.  IS GRANTED  a waiver  of Section  11.11(a) of  the  Rules 
  until October 1, 2005 for the captioned cable system.

7.        IT IS FURTHER ORDERED that Livermore Cable, Inc.  place 
  a copy of this waiver in its system file.

8.        IT IS FURTHER ORDERED that  a copy of this Order  shall 
  be  sent by  Certified Mail  Return Receipt  Requested to  Matt 
  Plagman,  President, Livermore  Cable,  Inc., Post  Office  Box 
  163, 806 Okoboji Avenue, Milford, Iowa 51351-0163.

                         FEDERAL COMMUNICATIONS COMMISSION
                         


                         Joseph P. Casey
                         Chief, Technical and Public Safety 
Division
                         Enforcement Bureau
_________________________

  1 47 C.F.R.  11.11(a).

  2 Cable Television  Consumer Protection and Competition Act  of 
1992, Pub. L. No. 102-385,  16(b), 106 Stat. 1460, 1490  (1992).  
Section 624(g) provides that  ``each cable operator shall  comply 
with such standards as the  Commission shall prescribe to  ensure 
that viewers of video programming  on cable systems are  afforded 
the same emergency  information as is  afforded by the  emergency 
broadcasting system pursuant to Commission regulations ....''  47 
U.S.C.  544(g).  

  3 Amendment  of Part 73, Subpart  G, of the Commission's  Rules 
Regarding the Emergency  Broadcast System, Report  and Order  and 
Further Notice of Proposed Rule Making, FO Docket Nos. 91-171/91-
301, 10  FCC  Rcd  1786  (1994)  (``First  Report  and  Order''), 
reconsideration granted in part, denied in part, 10 FCC Rcd 11494 
(1995).

  4 Amendment  of Part 73, Subpart  G, of the Commission's  Rules 
Regarding the  Emergency  Broadcast  System,  Second  Report  and 
Order, FO  Docket Nos.  91-171/91-301, 12  FCC Rcd  15503  (1997) 
(``Second Report and Order'').

  5 Id. at 15512-13.

  6 Id. at 15516-15518.

  7 Id. at 15513.

  8 Id. at 15513, n. 59.

  9 The  waiver will extend from  October 1, 2002, until  October 
1, 2005.   Additionally,  we  clarify  that  the  waiver  we  are 
granting  also  encompasses  the   EAS  testing  and   monitoring 
requirements.  

  10 Amendment  of Part  11 of the  Commission's Rules  Regarding 
the Emergency Alert System,  EB Docket 01-66, FCC  02-64 at   71 
(released February 26, 2002).

  11 One manufacturer  estimated that an EAS decoder-only  system 
can reduce the cost by 64% over what a cable operator would spend 
for an encoder/decoder unit.  Id. at  70.

  12 47 C.F.R.  0.111, 0.204(b) and 0.311.