LOS ALAMITOS : Council Delays Action on Cable Rate Increase

The City Council has postponed until March consideration of Paragon Cable’s request to increase rates for basic cable services.

The cable company, which serves 2,248 subscribers in the city, wants to boost basic cable service by 48 cents to $21.34. In addition, it is seeking a $1.19 increase to $25.34 for a second basic option, which offers 12 more channels.

But council members said last week that they cannot approve the proposed rates until after the Federal Communications Commission issues a ruling on Paragon’s decision two years ago to withdraw the Turner Broadcasting System from the basic cable package and offer it as part of the premium service.

A 1992 federal law authorizes local governments certified by the FCC to regulate basic cable rates, but not premium rates. Under the same law, cable companies may seek rate adjustments to basic cable services every three months.

A city consultant hired to review Paragon’s rates and compliance with FCC regulations said that the company tried to avoid rate regulation by placing more channels--including TBS--on the unregulated premium package.

Don Weddle, Paragon’s public affairs director, said the company is seeking the higher rates because of inflation and increasing programming expenses.

He insisted that pulling TBS from the basic cable package and offering it as a premium channel at $1 a month is legal. City officials contend that it is not, and, in effect, has made Paragon’s basic cable rates higher than the FCC would allow.

The council last week had the option to approve the rate increase and order a refund later if the FCC rules in the city’s favor.

“I don’t like an increase now, and then a rebate later,” said Councilwoman Marilynn Poe, a sentiment shared by other council members. “I think it’s going backward. I’d rather we wait.”