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f <br /> 5 <br /> Franchise Related Costs <br /> The operator reported no franchise related costs. Such costs typically include Public, Education <br /> and Government access programming expenses. <br /> Subscribers <br /> The operator reported 760 and 747 subscribers on the basic and expanded tiers, respectively, as of <br /> May 1995. These figures contrast with 629 basic and 621 expanded-tier subscribers for the <br /> previous year. <br /> U.S. Congress <br /> Telecommunications Reform <br /> This month the U.S. Senate approved passage of the Pressler telecommunications bill, S.652, <br /> which would allow cable and telephone companies to compete with one another. The bill also <br /> promises to dismantle cable rate regulation for the upper tiers of cable service and remove <br /> regulations for small cable systems - among other measures. But local government <br /> regulation of basic cable rates and services is maintained. <br /> The House of Representatives' counterpart telecommunications bill, H.R. 1555, also proposes to <br /> deregulate upper tiers of cable service. However, it would keep intact basic cable rate and service <br /> regulation by local governments. If H.R. 1555 is passed by the House in July, it will go to a <br /> conference committee, where it will be combined with the Pressler Bill. Some changes in both <br /> bills are expected to take place in this committee before a final bill emerges and is sent onward to <br /> the White House for signature. But The President has threatened to veto any telecommunications <br /> bill that does not adequately protect cable subscribers. Currently, local regulation of basic <br /> rates and services by communities is not threatened by either the Pressler Bill or <br /> H.R. 1555. <br /> 3 <br />