Technologie i telekomunikacja · 08/03/1996

Cable Television Rate Regulation; Cost of Service Rules

The Commission adopted the Second Report and Order and First Order on Reconsideration in MM Docket 93-215 to refine existing cost of service rules and to create final rules governing standard cost of service showings filed by cable operators seeking to justify rates for regulated cable services. In a Further Notice of Proposed Rulemaking (``FNPRM''), the Commission proposes use of an operator's actual debt cost and capital structure to determine the final cost of capital (or rate of return). The FNPRM requests comment regarding the method to determine the value of equity and debt, including the use of a market valuation of equity to establish the proportion of equity in an operator's capital structure.