SPECIAL UTILITY COMMITTEE

A Special Utility Committee meeting was held on October 22, 2002, at 6:00 p.m. with Chairman Ruane presiding. Members present were Mr. Lambert and Mr. Snaman. Councilmen Ritter and Speed were absent. Others present were Council President Carey, Councilman Pitts, and Mrs. Mitchell.

AGENDA ADDITIONS/DELETIONS

Mr. Snaman moved for approval of the agenda, seconded by Mr. Lambert and unanimously carried.

PUBLIC HEARING ON RATE FILING BY COMCAST CABLEVISION, INC.

On July 31, 2002, Comcast Cablevision filed Federal Communications Commission (FCC) Form 1240, Updating Maximum Permitted Rates for Regulated Cable Services, and Form 1205, Determining Regulated Equipment and Installation Costs with the City of Dover. The City has ninety (90) days to act on the forms, which were provided to members.

Comcast noted that, since the last increase in the Limited Basic Service occurred on July 2, 2002, the earliest date that another increase may occur is July 1, 2003. Since the maximum permitted rates are greater than their current rates, they may choose to increase the rates at a later date.

Comcast has indicated that they will be adjusting the rates on regulated home viewing equipment effective November 1, 2002, as follows:

Equipment                                    Current Rate            New Rate                Change

Addressable converter                        $1.72                     $2.23                     $0.51

Non-addressable converter                    0.43                       0.34                     (0.90)

Remote control                                   0.22                       0.28                       0.06

Digital equipment                                1.94                       2.51                       0.57

Mr. R. Thomas Worley, Area Director of Government Relations and Public Affairs, stated that the changes conform to the FCC Form 1205 filing and are based on the amortized value of equipment inventory as of November 1, 2002 and reflect Comcast’s continuing efforts to introduce new equipment for the convenience of their customers.

Mr. Ruane noted that the Public Service Commission, at the request of Mrs. Mitchell, reviewed the filing and is satisfied with the accuracy of the calculations of the Maximum Permitted Rates for both the Basic (B-1) Rate and the associated Equipment and Installations Rates.

Responding to Mr. Ruane, Mr. Worley stated that, since the Consumer Price Index (CPI) measures cost of living expenses and does not include the cost of cable, their programming cost vastly exceeds the CPI.

Council President Carey declared the Public Hearing Open.

Mr. John Cuomo, 514 Westwood Drive, questioned why the franchise fees were passed on to the customers instead of being absorbed by the City or Comcast. Mrs. Mitchell stated that the government regulation allows Comcast to pass on the 5% franchise fee to the customer. She noted that the fee is for managing the franchise and maintaining the rights-of-way.

Mr. Lambert moved to recommend acceptance of Form 1240 - Basic Cable Service Rate and Form 1205 - Equipment Installation and Service Charge, as presented by Comcast. The motion was seconded by Mr. Snaman and unanimously carried.

Mr. Lambert moved for adjournment, seconded by Mr. Snaman and unanimously carried.

Meeting Adjourned at 6:28 P.M.

Respectfully submitted,

Eugene B. Ruane

Chairman

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