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Cable Television Consumer Information

If you’re one of more than 130,000 Vermont who subscribe to cable, you may be interested in the answers to some of the most common questions about cable television service in Vermont.

 

Cable TV Hot Topics

Rates & Programming

 

Who decides what my cable rates and programming choices are?
Cable television rates have come under increasing scrutiny by the Federal Communications Commission (FCC), as nationwide, consumers have expressed their concern over rates that have risen several times the rate of inflation.
The programming you receive is determined, in part, by how much cable companies are charged by the broadcaster who sells the programs. Cable service providers argue that they must pay skyrocketing fees for the rights to air popular programs, and then have to choose whether to carry these programs and pass the costs on to
their customers. However, the continued climb in cable television rates has brought congressional attention to the fact that the largest cable providers also own the very programming service companies they blame for these charges.

Limited State Authority. The Vermont Department of Public Service (DPS), too, is concerned about cable rates and programming. However, cable services are subject to federal regulation, and there are federally-imposed limits to state regulation of cable television. In general, one can presume the state has no practical authority over the rate and programming decisions of your cable television service provider.

Under state and federal law, the Vermont Public Service Board (PSB) may regulate cable rates for the basic, or lowest, tier or cable service, and to regulate fees used to pay for the operation of channels providing public, governmental, and educational access. The PSB may not regulate rates for cable programming services above the
basic service tier.

Even in regulating the basic rates, the PSB’s authority is limited, and in certain areas, completely preempted (see "Effective Competition" below). The FCC has established benchmark rates using standardized formulas. The state must use these formulas when reviewing proposed rate increases. Further, while the PSB and the DPS may perform a “desk audit” of these formulas when evaluating proposed rate increases, neither may order a reduction in rates if the company applied the correct federal formula.

The PSB has jurisdiction over the rates for installation, equipment charges, and miscellaneous charges associated with providing the basic cable service tier.

Effective Competition means less rate regulation. The PSB may no longer regulate rates for basic level service, nor associated equipment and installation charges for both Adelphia and Charter cable television services. This is because the FCC has ruled that these companies met the standards for "Effective Competition." What this means is, that in response to applications filed by each company, the FCC has determined there are sufficient competitive services, such as satellite dish providers, throughout the two companies’ service territories to warrant further deregulation.

The Board still has authority to regulate customer service issues, including service quality, reliability, and signal quality, as well as rates for items such as late fees, returned check charges, deposits, and disconnections.

 

Billing & Charges


Why am I billed for service a month in advance?
Much like going to the movies, where you know what the show will cost before you see it, the cost of providing cable service to your home or business is predictable. Further, cable companies can adjust your bill to reflect changes in service that take place during the month you have paid for. The PSB has traditionally recognized this
billing practice through approval of advance billing in each company’s tariff, the document containing each company’s rules, regulations, and rate schedules.

You may be subject to a late fee for paying late. Because of the predictable cost of a month’s service, cable operators are allowed to impose a late fee. However, late fees may not be applied to a bill until at least 30 days have elapsed after the bill’s mailing or due date. Late fees must be tariffed and approved by the PSB.

 

Can cable companies charge a fee for dropping to a lower tier of service?
Yes. A company may do this because of costs associated with making a trip to change the level of service. However, for 30 days after a notice of a rate increase or a change in channel line-up, customers may switch to a lower tier without paying the fee.

 

Can cable companies charge fees on additional outlets?
Yes. A customer that has multiple active outlets in their home may legitimately be charged a monthly additional outlet fee in areas where the cable company is properly tariffed for same. Several reasons for the fee include:

1) The outlet is serviced without a service charge if there is any reception or service problem.

2) A cable service provider is liable for any leakage that may be caused by the connection to the cable system, and is held accountable by the FCC for system leakage.

Many customers simply do not activate outlets until such time as they wish to use them. They may have their electrician run the wires. These wires are then left unconnected to the cable system at a junction point until such time as that outlet is needed. They might then contact the cable service provider when they wish to have the outlet activated. At that time, there is normally a trip charge to go to the customers home and perform the work requested.

You may have to limit the number of additional outlets. A company may require you to disconnect one or more outlets if your service has been divided among enough other outlets to cause a degradation of the signal down the line. This protects the quality of the signal for your neighbors and others "downstream."

 

Do I need more than just the basic tier to purchase a premium or pay–per–view channel?
No. Unless there is effective competition in your area, a cable system operator may not require you to subscribe to any tier above basic service as a condition to receiving programming offered on a per–program or per–channel basis. There are, however, service areas where for technical reasons, consumers may need to subscribe to a higher tier in order to receive these channels. The DPS is currently working with these cable operators to see that their systems are upgraded to meet the federal standards.

 

How much does it cost to get service to my home?

For some consumers, getting service is a simple matter of having a line, or drop, strung from the pole at the street down to the house. If its under 300 feet, its free to the consumer. For others, however, getting service may mean an expensive investment in poles and lines.

There is a specific formula used to determine whether someone's location falls within the density requirements under which a line extension would be built without any customer contribution in aid of construction (“CIAC”). If your location falls within this standard, then the cable service provider will build whatever lines, poles, etc. are needed to bring service to your location at no CIAC cost to you.

In a recent settlement between Adelphia and the Public Service Board, Adelphia is required to build 1,262 miles of line extensions that were found to meet the density requirement of 14 homes per mile set when their license was renewed. These extensions are to be built without any customer contribution in aid of construction (“CIAC”).

Unfortunately many locations do not meet the density criteria, and because all ratepayers can not be asked to bear the costs through rates for bringing service to lower density locations, the consumers requesting the service need to contribute towards the construction. Please note that if others in your neighborhood commit to also subscribing to service made available by this line extension, the cost would be shared.

We recognize that the cost may make it financially unfeasible for some consumers to go through with the construction. The State of Vermont is committed to doing all it can to ensure Vermonters have access to the services that meet their recreation and communication needs. Contact your cable service provider and ask for a preliminary estimate. The company will advise you whether or not CIAC will be required, and will give you an estimate for that cost.

 

 

Public, Educational,and Governmental (PEG) Access

 

What is PEG?
Public, Educational,and Governmental Access or "PEG" Access is the one or more channels on every cable system's basic tier that must be made available for programming originating with local goverment, educational institutions, or members of the public.

Cable operators must provide funding for channel capacity, services, facilities and equipment as partial compensation to communities for their use of public rights-of-way to run their cable. In return, PEG access provides a means for community groups, schools and local governments to ensure coverage of local events, public meetings and other programming of interest to the community.

Federal law allows the local franchising authorities for cable television service to create the rules and regulations governing PEG access. In Vermont, the Public Service Board (“Board”) is the franchise authority.

The Public Service Board rules include PEG access as one of the criteria a cable service provider must meet in order to be certified to provide service in Vermont, and establish detailed minimum standards for PEG access. These rules place several obligations on the cable company, including:

  • the obligation to provide one or more PEG channels, depending on system capacity and amount of programming available;
  • the obligation to include PEG channels in basic service;
  • the obligation to develop an outreach plan to inform the public about the opportunity for PEG access and to encourage the formation of an access entity if one does not already exist.

Cable operators must also provide operating and capital funding to PEG access administrative entities so that they can provide PEG programming to benefit the communities they serve.

How are PEG services are funded. The PEG fees are calculated based on gross revenues that Adelphia receives from all sources including your monthly fees and other revenues, except high speed internet service. The amount that Adelphia collects in PEG operating fees is also considered a gross revenue. Monies associated with the PEG fees are paid to the PEG Access entities which administer the PEG channels.

The FCC permits Adelphia to pass through to subscribers the entire amount of the PEG Access Fee. Previously, Adelphia had been passing through only a portion of the costs required to support PEG Access Organizations. Adelphia has recently decided to pass along all operating and capital expenses associated with PEG funding. Because of the way gross revenues are calculated, this has resulted in a 0.5 - 1.5% increase in the percentage of PEG funding above the previous 5% cap.

 

What do I do if I have a problem with a PEG group, or with something I saw on a PEG program?

PEG Access Organizations are independent entities and not under the jurisdiction of the Department. If you have a question or complaint about a PEG group's policy or action, contact the group directly. Each PEG group has a grievance process and a Board to address community issues. A listing of most PEG groups can be found here.

After you have gone through the entire grievance process with the PEG group, and you believe you are being treated unfairly, you can discuss your concern with Adelphia's Community Affairs Manager (CAM). The CAM maintains regular contact with PEG Access entities to stay aware of any ongoing issues; is familiar with all Vermont PEGs and the details of their agreements; is authorized to execute details of agreements and make most Adelphia operational and administrative decisions regarding PEG Access throughout the state; is responsible for answering PEG requests for assistance and information. The CAM is not a "court of appeals," but rather may be a helpful resource for determining whether the PEG group is correctly interpreting its mission.

Community Affairs Manager

Laura Bowe
106 Kimball Ave., South Burlington, VT 05403
(802) 419-6664
(800) 347-5003, ext. 8636
laura.bowe@adelphia.com
vtpegaccess@adelphia.net

 

If you feel neither the PEG group nor the CAM are being responsive, contact DPS Consumer Affairs, and we can see whether there is anything we can do to facilitate a resolution.

 

Cable Complaints


What do I do if I have a cable television complaint?
The DPS encourages consumers to first contact their cable service provider. Often, one-on-one contact with the utility will yield answers to your questions, and a resolution of any problems you may be having with your cable service. However, if you have an unresolved complaint or question, please contact the DPS for consumer assistance. In addition to the regulated issues noted earlier, The Consumer Affairs and Public Information Division of the DPS also investigates complaints relating to service quality, including consumer service and protection, service reliability, and signal quality.


Who else handles Cable TV complaints?
The Federal Communications Commission (FCC) is charged with regulating interstate and international communications by radio, television, wire, satellite and cable.

In addition, you can contact Vermont’s Congressional delegation. Congress sets broad federal policy on the cable television industry, and has been closely monitoring the recent rise in cable rates.

Check here for information about how to contact the FCC and Congress.

 

Alternatives

Are there any alternatives to cable television in my area?
Consumers in many areas have access to alternatives such as Direct Broadcast Satellite (DBS) or wireless cable services. With rates for installation and programming becoming more competitive with cable television, "wireless" services have become an increasingly popular alternative. Recent congressional actions have allowed for satellite companies to offer local broadcast stations, making that service more attractive to consumers. Be aware that satellite dish broadcast companies are not regulated by the State of Vermont. Ask lots of questions and check for any "hidden" costs.

 

Can the Department help me get cable broadband service?

Vermont government is strongly commited to expanding broadband availability to the entire state. Some good progress has been made recently and more will be made in the coming months, but challenges remain.

State regulators do not have the authority to order a cable or phone company to provide a given service, particularly broadband service, where the Federal Communications Commission has greatly limited the state's authority. The way these services will reach throughout the state will be a combination of economic viability, incentives and creative funding of collaborative efforts in communities, as we are seeing happen in the Northeast Kingdom.

Contact your cable service provider and ask whether high speeed internet service is or will be available. The more the company hears from interested customers, the more likely it is the company will consider making this service available.

Finally, you may want to register at www.vtruralbroadband.org. If you click on the "State Registry" link, you can add your name to this aggregation site that collects consumer interest in new broadband service. immediate access to broadband.

112 State Street, Drawer 20, Montpelier, VT 05620-2601
Phone: 802-828-2811  |  Fax: 802-828-2342  |  Consumer Hot Line: 800-622-4496