Agenda - 05-03-2005-5j - Laserfiche WebLink

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13 -10- Irr its original 1993 Cost of Service Notice of Proposed Rulemaking, the Commission stated: We also solicit comment on whether we could establish an abbreviated cost of service showing for significant prospective capital expenditures [upgrades] used to improve the quality of service or to provide additional services..,.'I'he recovery of these costs would also need to comply with our cost allocation requirements, particulazly to ensure that only the costs allocable to regulated services are imposed on subscribers ~~ In its 1994 Cost of Service Report and Order, the Commission repeats this standard: Our cost of service requirements seek to exclude from rates any costs that exceed what would have been incurred in a competitive environment or that are not related to regulated services.17 ,..In the Notice, we sought comment on establishing an abbreviated cost ofservice alternative for [upgrades]....Westated that any cost recovery must comply with our cost allocation requirements, to ensure that only the costs allocated to regulated services are imposed on subscribers to those services.'s In its 1994 Report and Order, the FCC then established cost allocation categories which separated regulated and unregulated services: .,we aze requiring that....cable operators shall allocate costs among the equipment basket and the following service cost categories: basic service, cable programing service, non-regulated cable programming services, other cable activities and non-cable activities.t9 16In re: Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992: Rate Regulation ,Notice of Proposed R.ulemaking, MM Docket 92-215, Released .Tuly 16, 1993 at ¶75. [1993 Cost of Service NPRNT] 171994 Cost of Service Order at ¶18 1 eId at ¶280 19Id at ¶36 (During the time of this Rulemaldng, all services except basic and CPST were considered nonregulated services)