Conn. DPUC Rejects Reduced Franchises
By Linda Haugsted -- Multichannel News, 2/13/2003 12:38:00 PM
Connecticut regulators have rebuffed a petition from a group of state senators calling for reductions in franchise-renewal spans for cable operators that raise rates in excess of the cost-of-living index and fail to support community programming.
Operators called the petition an attempt at "backdoor rate-making" by the frustrated legislators and praised the Department of Public Utility Control for rejecting it.
Last June, a group of state senators petitioned the DPUC to open a docket on cable regulation.
The DPUC handles refranchising in Connecticut.
New franchises can run in length from five to 15 years, but the legislators said 10 years had become the norm.
The DPUC said in a draft earlier this week that it would take no action on the legislators' petition.
The agency said a formula suggested by lawmakers that compared prices and system productivity was pre-empted by federal law. And regulators disagreed that the ability to offer mini-tiers or à la carte offerings would save operators money, thereby cutting consumer rates.
The draft also dismissed claims that rate hikes can be linked to operators' financial investments in the programmers they carry.
"We're pretty pleased with the draft decision," New England Cable and Telecommunications Association executive vice president Bill Durand said.
Legislators have one more shot at swaying the DPUC board, which will accept written arguments through Feb. 25.
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