GARDEN GROVE : Paragon Cable Rate Hike Gets City’s OK

Subscribers to Paragon Cable will pay more for cable television beginning Feb. 14.

Basic cable service will go up 48 cents to $21.34 a month. A second option that offers 11 more channels will now cost $25.34 monthly, up $4.

The City Council on Tuesday issued a so-called accounting order that allowed Paragon to impose the new rates. But city officials have the ability to order a refund if the rates are later determined to be too high.

Kathy Moore, the city administrative services manager, said the order requires Paragon to keep track of subscriber payments after the increase so that if a refund is ordered, the cable company is able to comply.

In the meantime, Moore said that city officials and a consultant will review Paragon’s rates based on new guidelines issued by the Federal Communications Commission in December.

When the review is completed, the council may then decide whether to order a refund or maintain the rates, including the new increase, Moore said. A decision is expected by next month, she said.

Under FCC guidelines, cable companies may increase rates because of inflation or higher expenses for transmission, programming or franchise fees. Paragon’s application for higher rates meets the criteria, Moore said.

The rate increase is the first in two years, said Don Weddle, the company’s public affairs director. He said that Paragon, which serves about 100,000 customers in eight cities and communities, has “very competitive” rates.

“Eventually, the rates will be approved,” Weddle said, adding that the company has the option of appealing to the FCC if the council denies the rate increase.

Under a 1992 federal law, the city has the authority to regulate rates for basic cable services as well as charges for equipment rental, installation and additional outlets.

There are about 19,000 subscribers to Paragon Cable in Garden Grove, Weddle said.