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DE0025, DE0059, DE0060,  S(OF DELMARVA, INC.)ppXDE0062, DE0070, DE0088, DE0089,  Sh()ppXDE0090, DE0091, and DE0092 ) Petition for Recertification of the) Delaware Public Service Commission) to Regulate Basic Cable Service Rates )  S ( G MEMORANDUM OPINION AND ORDER ă  Sj( Adopted: July 19, 1999 hh ppX Released: July 20, 1999  S( By the Chief, Cable Services Bureau:  S(I. INTRODUCTION  Sk(  S8( ` ~1.` ` The Delaware Public Service Commission ("DPSC") pursuant to Section 76.916 of the  S( xjCommission's rules> yOm(ԍ47 C.F.R.  76.916.> filed a petition for recertification to regulate the basic cable service rates of Comcast  S(Cablevision of Delmarva, Inc. ("Comcast").X yO( xVԍThe cable system at issue in this proceeding was operated by Marcus Cable of Delaware and Maryland, L.P.  {O( xBat the time the system was determined to be subject to effective competition. Marcus Cable of Delaware and  {O\( xdMaryland, L.P., 11 FCC Rcd 21051 (CSB 1996) ("Marcus"). The franchise area at issue in Marcus and the instant  xproceeding encompasses the unincorporated areas of Kent County, southern New Castle County, and northern Sussex  {O(County, Delaware. DPSC Petition at 2; Marcus, 11 FCC Rcd at 21053. The DPSC's petition is unopposed.  Sl( ` V2.` ` Section 623(a)(4) of the Communications Act of 1934, as amended, allows franchising  xVauthorities to become certified to regulate basic cable service rates of cable operators that are not subject  S( x`to effective competition. yO (ԍ#X\  P6G;QwP#Communications Act  623(a)(4), 47 U.S.C.  543(a)(4). For purposes of the initial request for certification, local franchising authorities  xmay rely on a presumption that cable operators within their jurisdiction are not subject to effective  S( xcompetition, unless the franchising authority has actual knowledge to the contrary.w yO#(ԍ#X\  P6G;QwP#47 C.F.R.  76.906, 76.910(b)(4).w Certification becomes  xeffective 30 days from the date of filing unless the Commission finds that the franchising authority does  S:( x.not meet the statutory certification requirements.X":.  yO'( xԍ47 C.F.R.  76.910(e). Certification becomes effective unless the Commission determines that: (1) the  xfranchising authority will not adopt and administer rate regulations that are consistent with the Commission's  x~regulations; (2) the franchising authority lacks the legal authority to adopt, and the personnel to administer, rate"(, * *("  xregulations; (3) procedural laws and regulations applicable to rate regulation proceedings by the franchising authority  xdo not provide a reasonable opportunity for consideration of the views of interested parties; or (4) the cable system  {O ( xin question is subject to effective competition. 47 C.F.R.  76.910(b). See also Communications Act  623(a)(4), 47 U.S.C.  543(a)(4). Cable operators may file petitions for reconsideration":, * *,,"  xbof the franchising authority's certification within 30 days from the date such certification becomes  S( x^effective.^z {O( xԍ#X\  P6G;QwP#47 C.F.R.  1.106, 76.911; Implementation of Sections of the Cable Television Consumer Protection and  {O( xCompetition Act of 1992: Rate Regulation, Report and Order and Further Notice of Proposed Rulemaking, 8 FCC  {O(Rcd 5631, 5693 (1993) ("Rate Order"). Rate regulation is automatically stayed pending review of a timelyfiled petition for  S( xreconsideration alleging the presence of effective competition.hz yO (ԍ#X\  P6G;QwP#47 C.F.R.  76.911(c).h After the 30day deadline for filing  xvpetitions for reconsideration has elapsed, cable operators may challenge the franchising authority's  S4( x:certification by filing a petition for revocation.>4h z yO<(ԍ47 C.F.R.  76.914.> However, regardless of its grounds, a petition for  xrevocation does not automatically trigger a stay of the franchising authority's power to regulate basic  S( xrates.A  z yOf(ԍ47 C.F.R.  76.914(d).A Following the denial or revocation of its certification, a local franchising authority may file a  xpetition for recertification which states that: (1) the local franchising authority meets the requirements set  Sh( xforth in Section 623(a)(3) of the Communications Act; zh z yO( xԍCommunications Act  623(a)(3), 47 U.S.C.  543(a)(3). Section 623(a)(3) of the Communications Act  xprovides that a franchising authority that seeks to exercise the regulatory jurisdiction shall file with the Commission  x a written certification that: (1) the franchising authority will adopt and administer regulations with respect to the  xxrates subject to regulation under this section that are consistent with the regulations prescribed by the Commission  xnunder subsection (b); (2) the franchising authority has the legal authority to adopt, and the personnel to administer,  xsuch regulations; and (3) procedural laws and regulations applicable to rate regulation proceedings by such authority  {O@(provide a reasonable opportunity for consideration of the views of interested parties. Id. (2) the cable system is not subject to effective  xcompetition; and (3) contains a clear showing, supported by either objectively verifiable data such as a  S(state statute, or by affidavit, that the reasons for the earlier denial or revocation no longer pertain.H z {Ol(ԍSee 47 C.F.R.  76.916.H  S ( II.DISCUSSION  S6 ( `   3.` ` On December 5, 1996, the Cable Services Bureau (the "Bureau") issued a Memorandum  S ( xOpinion and Order ("Order") revoking the certification of the DPSC to regulate the basic cable service  xXrates of Marcus Cable of Delaware and Maryland, L.P. ("Marcus"), the predecessor in interest to  S ( xComcast. \ \z {O#( xԍMarcus., 11 FCC Rcd at 2105859. On March 24, 1998, the DPSC approved the transfer of the cable television  xZfranchise held by Marcus to Comcast. DPSC Petition at 3, citing DPSC Order No. 4748 (March 24, 1998). Since  {O-%(early 1998, Comcast has provided service using the former Marcus system. Id.Ď After rejecting the DPSC's franchise area redefinition arguments, the Bureau determined that"  ,l(l(,, "  S( xjMarcus was subject to low penetration effective competition. z {Oh( x<ԍId. at 2105759. The 1992 Cable Act and the Commission's rules provide that only the rates of cable systems  xthat are not subject to effective competition may be regulated. Communications Act  623(a)(2), 47 U.S.C.   x543(a)(2); 47 C.F.R.  76.905(a). One of the bases by which a cable system will be deemed subject to effective  xcompetition is if fewer than 30% of the households in the system's franchise area subscribe to the system's service. Communications Act  623(l)(1)(A), 47 U.S.C.  543(l)(1)(A); 47 C.F.R.  76.905(b)(1). The Bureau found that Marcus provided  S( xcable service to 10,790 of the 37,405 households-zz yO( xԍAs the Commission has stated, "we presume that Congress did not intend 'households' to have a different  {O( xmeaning than in the 1990 Census that would include vacant units." Implementation of Sections of the Cable  {Oy ( xTelevision Consumer Protection and Competition Act of 1992: Rate Regulation, Third Order on Reconsideration,  {OC ( x9 FCC Rcd 4316, 4324 (1994) ("Third Order on Reconsideration"). The count of "households" in the 1990 Census  {O ( xreflects only occupied housing units. See Bureau of Census, U.S. Dept. of Commerce, 1990 Census of Population,  yO (CP11B, Appendix B at B8. ` h(#- in its franchise area, or 28.8 percent of the households  S( xin the franchise area.M z {O4(ԍMarcus, 11 FCC Rcd at 2105859.M Because Marcus' franchise area penetration rate was below the 30 percent  Sg(threshold established by Congress, the Bureau revoked the DPSC's certification.1g z {O(ԍId.1  S( `  4.` ` In its petition for recertification, the DPSC argues that changed circumstances occurring  S( xsince the release of the Order permit its recertification to regulate Comcast's basic cable service rates.=z yO(ԍDPSC Petition at 12.=  xSpecifically, the DPSC asserts that the number of subscribers in the franchise area currently served by  Si( x8Comcast exceeds the 30 percent low penetration effective competition threshold.1iz {O(ԍId.1 The DPSC provides  xevidence that Comcast serves 11,311 households in the franchise area and, based on information provided  S( x`by Comcast, predicts that subscribership totals will increase to 11,559 by the end of 1999.@z {O( x~ԍId. at 3, citing Comcast Cablevision of Delmarva, Inc., FCC Form 1240, filed in Delaware PSC Docket No. 98356. In addition,  xthe DPSC asserts that Comcast has represented to the DPSC that over the next year it will reconfigure its  x.systems and intends to deactivate the Harrington headend which now serves the cable system that is the  Sj ( xsubject of this proceeding.7j z {O(ԍId. at 4.7 Subscribers in Sussex County currently served by the Harrington headend  S7 ( xwill be served from Comcast's Georgetown headend.17 ,z {O"(ԍId.1 The remaining Harrington headend subscribers  xlocated in Kent County will be served from Comcast's Dover headend. The DPSC regulates the basic  S ( xcable service rates of Comcast subscribers served by the Georgetown and Dover headends.1 z {O/%(ԍId.1 Finally, the" P,l(l(,, "  xDPSC asserts that Comcast has represented to it that Comcast does not oppose the instant request for  S(recertification.z yO5( xԍDPSC Petition at 2. The DPSC states that Comcast has filed FCC Forms 1240 and 1205 to justify basic service  {O(and equipment rates for the system served by the Harrington headend. Id., n.1.  Sg( ` 5.` ` In the absence of a demonstration to the contrary, cable systems are presumed not to be  S4( x~subject to effective competition.e4"z yO(ԍ#X\  P6G;QwP#47 C.F.R.  76.906.e The cable operator bears the burden of rebutting the presumption that  xeffective competition does not exist with evidence that effective competition, as defined by Section 76.905  S( xof the Commission's rules, is present within its franchise area.kz yO (ԍ#X\  P6G;QwP#47 C.F.R.  76.911(b)(1).k Following the denial or revocation of  xcertification, a local franchising authority asserting a right of recertification must make a clear showing,  xsupported by either objectively verifiable data such as state statute, or by affidavit, that the reasons for  S5(the earlier denial or revocation no longer pertain.>5Bz yO(ԍ47 C.F.R.  76.916.> The DPSC has made this showing.  S( ` 6.` ` Consistent with our earlier Order, the DPSC relied on Census data reflecting the number  S ( xof households as required by our regulations. z {O(ԍ#X\  P6G;QwP#See Third Order on Reconsideration, 9 FCC Rcd at 4324. The DPSC has submitted sufficient information  xdemonstrating that Comcast's cable system serves at least 11,311 of the 37,405 households in the franchise  xBarea, or 30.2% of the total number of households. In addition, as evidenced by its ongoing regulation of  xVthe basic cable service rates of Comcast's other Delaware cable systems, the DPSC fulfills the qualifying  S ( xcriteria set forth in Section 623(a)(3) of the Communications Act.{ d z yO(ԍCommunications Act  623(a)(3), 47 U.S.C.  543(a)(3); 47 C.F.R.  76.916.{ Therefore, we find that Comcast's  xBsystem is no longer subject to low penetration effective competition and that recertification of the DPSC is warranted.  S( " ,l(l(,,T"  S(III.  ORDERING CLAUSES   S( ` n7. ` ` According ly, IT IS ORDERED that the petition for recertification to regulate basic cable  Sg(service rates filed by the Delaware Public Service Commission IS GRANTED .  S( ` 8.` ` IT IS FURTHER ORDERED that the Delaware Public Service Commission IS  S( x~RECERTIFIED to regulate Comcast Cablevision of Delmarva, Inc.'s basic cable service rates in CUID  S(Nos. DE0025, DE0059, DE0060, DE0062, DE0070, DE0088, DE0089, DE0090, DE0091, and DE0092 .   S5( ` 9.` ` This action is taken pursuant to delegated authority pursuant to Section 0.321 of the  S(Commission's rules.=z yOj (ԍ47 C.F.R.  0.321.=  S ( ` `  ,hhh FEDERAL COMMUNICATIONS COMMISSION  &"X   &"X  ` `  ,hhhDeborah A. Lathen ` `  ,hhhChief, Cable Services Bureau