The Federal Communications Commission Wednesday rejected a stay requested by
Adelphia Communications Corp. of a rate rollback and refund order by the city of
Los Angeles involving the operator’s four franchises there.
The order boosts the city’s efforts to obtain $5 million in refunds, plus
reimposition of July 2002-level rates for 200,000 city customers.
The city ordered the rollback in May when Adelphia’s new management said it
could not in good faith verify the rate forms submitted by the company in the
The FCC sided with the city, denying the stay request by stating that it was
unlikely that Adelphia’s appeal could prevail on its merits. The commission
added that subscribers bear no responsibility for the company’s current
financial difficulties and should not suffer losses due to Adelphia and its
Officials for the Southern California division issued a statement expressing
their disappointment in the FCC ruling. Adelphia is "working diligently to
develop a cooperative course of action" regarding the rebates, it said.
A spokesman said Adelphia will meet with city officials to provide a plan on
how it intends to deal with the local rate order.