2014_0616_CCpacket - Laserfiche WebLink

Home

PUBLIC DOCUMENT-TRADE SECRET DATA HAS BEEN EXCISED Comcast of Minnesota Page 6 Current PEG fees are too high. Today, all customers are paying $4.15 per month for services that customers do not want. This high cost hits Standard Basic customers hardest. Those customers pay only $13.78 per month for cable service, but the PEG fee tacks on $4.15 to the 5% franchise fee (which costs approximately $0.90). The combined amount for PEG support and franchise fees for a Standard Basic customer is over 26% of their total bill in 2013 and it will be in excess of 41 % by 2017 based on the RFRP's demands. Despite all customers having to pay these fees, PEG channels have low viewership and the NSACs report shows that only 3.5% of respondents had ever been involved in appearing on a PEG program.s The NSCC and NSAC are sitting on $2.1 million in cash reserves. Few people are aware that the NSAC and NSCC are in fact storing $2.1 million in cash reserves. This extraordinary reserve could be used by the NSCC and NSAC for PEG expenses or capital costs.6 Yet, the NSCC Staff Report demands additional PEG funding, without ever mentioning these reserves and despite the fact that the NSCC has been unable to spend all the money it currently receives. What makes the PEG-funding demands even more remarkable is that most of the NSCC's funding is spent on professional and consultant fees.� The RFRP seeks $14m in PEG capital fees plus $13 million for operating support from Comcast customers without justification. In violation of the Cable Act, the Staff Report and the RFRP demand $1.3 million in operating support per year, with a 2% increase per year. Also violating the limitation on LFA demands to no more than "adequate" PEG capital funding, the Staff Report and RFRP seek nearly $14 million in capital grants over a ten-year franchise.8 These demands far exceed historical expenditures9 and the previous franchise's allowance of just under $100,000 in capital grants per year. They are not substantiated in the Staff Report: exhibits to the Report grading the NSCC and cities' equipment shows most equipment in excellent or good condition. The NSCC Staff's demand is significant and disproportionate in its relation to what is received in other markets. Comcast proposes lawful PEG capital funding. In this Proposal, Comcast offers to provide lawful PEG capital funding but will not provide operating 5. Group W Report at 21. 6. Ex. 2 (E-Consulting Report). 7. Id. 8. NSCC Staff Report Ex. G. 9. Historical expenditures over the last three years by the NSCC and NSAC would result in a PEG capital fee of $.44 per customer per month.