OJAI : Cable TV Firm Told to Reduce Rates

The Ojai City Council ordered its local cable company Tuesday to lower its basic monthly rates by 18 cents and refund money to customers who the city says have been overcharged since September.

But the parent company of Ventura County Cablevision, Western Communications, said it will appeal the council’s ruling with the Federal Communications Commission, which can reverse the council’s decision.

Ojai officials and Cablevision representatives disagree over the amount that cable rates should have been lowered to comply with new FCC regulations implemented last September. Ojai officials say the current monthly rate of $10.62 for basic cable service should have been lowered to $10.44, but Cablevision officials say the rate is correct.

The refund would amount to about $7,000 divided among about 3,000 subscribers.

Ojai City Manager Andrew Belknap said FCC regulations change frequently, leading to differing interpretations of how the regulations affect billing.

Laurie DeVarney, a consultant hired by Ojai and principal of Laurel Communications Group, said her firm and Western Communications disagree on the method for calculating one part of the overall equation for arriving at the cable rate.

DeVarney said her firm concluded that the portion of the rate formula in question is correct. But Johnnie Giles, director of government affairs for Western Communications, said his company believes that part of the formula is wrong.

“We felt that it was a basic flaw in the form,” Giles said. “Many operators filed clarifications on this very item.”

Also Tuesday, the council voted to raise the franchise fee on cable bills for Ojai residents from 3% to 5%, amounting to a monthly increase that would amount to no more than 40 cents. Belknap said DeVarney suggested the hike because the city was not recouping costs it incurred implementing FCC regulations.

On Friday, a new round of cable rates will take effect, further lowering the monthly rate to $10.05.