LOS ALAMITOS : City Freezes Paragon Cable Basic Rates Pending Federal Ruling

Subscribers to Paragon Cable are not likely to see lower cable television bills until mid-1995.

The City Council on Monday decided to freeze basic rates until July while awaiting a ruling from the Federal Communications Commission on whether Paragon violated federal regulations by charging customers for a channel that was previously part of its basic service package.

A ruling Tuesday by the FCC ordering refunds to cable subscribers in some Orange County cities does not include Paragon, officials said.

“We put Paragon on notice that we reserved the right to roll back (the rates) or order a refund later,” said Assistant City Manager Gerard Goedhart. He added that the FCC is expected to make the ruling “in a couple of weeks.”

In September, 1993, Paragon restructured its services and began charging $1 a month for the Turner Broadcasting System, which has now become part of its more expensive premium package. City officials protested to the FCC and argued that it was an attempt by the cable company to avoid rate regulation.

A 1992 federal law that allows cities to regulate cable television rates exempts premium packages from rate control.

On Monday, council members directed Paragon to keep a separate account for money earned from TBS, which could be refunded to customers later, Goedhart said.

Paragon provides service to more than 2,000 households, charging $20.86 monthly for the 67-channel basic cable service.

In July, Paragon lowered basic cable rates by 39 cents after the FCC ordered a second round of rate reductions when it was found out that cable television rates nationwide were still too high despite a rollback in September.

Goedhart said the city has until Dec. 13 to review the new rates.