SIMI VALLEY : New Contract Lowers Cable Service Rates

Simi Valley will take control of local cable television rates under a contract approved Monday by the City Council that also lowers the cost of basic service by 12 cents and offers greater cuts for other services.

Acting to regulate rates for the first time in 10 years, the council voted unanimously in favor of the contract with Comcast Cablevision, a move that cuts basic cable television rates to $23.59 a month for the city’s 26,472 subscribers.

At a public hearing before the vote, Comcast Vice President Jeffrey Carlson said, “Before this is done, the average consumer--across the board here--may see an overall reduction of 23% in rates.”

However, resident Ralph Abruscato protested that the rates are much higher than those in some other cities. “I see other communities around the country getting the same quality of service for a cheaper rate,” Abruscato said, citing rates of $18 per month down to $11 per month in some cities.

Councilwoman Sandi Webb said she was approving the contract under protest. “People don’t have a right to TV,” she said. “It is a commodity just like anything else, and I just have real problems with us regulating the price and how many channels . . . I think the government should just keep its nose out.”

The rate decrease, coupled with larger reductions dictated last year by the Federal Communications Commission, has reduced the monthly cost of basic cable service in Simi Valley by 16% since Sept. 1--from $27.99 per month to $23.59, said Joe Hreha, the city’s deputy director of environmental services.

Equipment rental rates also have dropped 30% under the new contract, Hreha said.

The new contract also reduces hookup costs by about 29%. Homes that are not wired for cable will cost $33.76 to hook up, down from $47.31; and homes already wired will cost $25.82 to hook up, a decrease from the $36.18 fee charged previously.

The FCC deregulated the cable television industry in 1984, allowing cable providers to set their own rates. Congress reversed that decision in October, 1992, by enacting the Cable Television Consumer Protection and Competition Act, allowing franchising authorities such as cities to regulate cable rates.

The City Council will re-examine cable television rates every December to adjust them for inflation and other factors, Hreha said.