FCC Form 1200, Setting Maximum Initial Permitted Rates for Regulated Cable Services ("First Time Filers Form")
Pursuant to Rules Adopted February 22, 1994, the FCC Form 1200 is used to justify the reasonableness of basic service tier cable rates in effect as of May 15, 1994 by setting a benchmark maximum permitted rate. Under the "Benchmark" method a cable operator establishes its rates on the basis of an analysis done by the FCC comparing the differences between cable operators subject to competition and those that are not. In using this method the cable operator calculates a permitted per channel rate, removes the portion of the rate related to equipment (see FCC Form 1205), and multiplies the remainder by the number of channels on the basic service tier. This form also allows cable operators to adjust for increases in external costs (see question 5) from the beginning of rate regulation to March 15, 1994.
FCC Form 1210, Updating Maximum Permitted Rates for Regulated Cable Services and Equipment ("Update Form")
This form is used to update the maximum permissible rate by accounting for inflation, the addition and/or deletion of channels, federal regulatory fees, and external costs, i.e. programming and equipment costs including the markup existing channels 7.5% subject to a cap, retransmission consent fees, certain cable taxes, franchise related costs and franchise fees.
FCC Form 1205, Determining Regulated Equipment and Installation Costs ("Equipment Form")
This form calculates allowable equipment and maintenance rates pertaining to converters, remotes, installations and home wiring. Generally, this form is submitted with a Form 1200 and then on an annual basis.
FCC Form 1220, Cost of Service Filing for Regulated Cable Services ("Cost of Service Form")
This Cost of Service form is used by operators to justify the rates on the basis of the actual cost of providing cable service. Therefore, operators of regulated cable systems who believe their costs exceed the rates they would be permitted to charge under the benchmark methodology may elect cost of service. Regulated cable systems that do not wish to use the benchmark approach when justifying rates to a local franchising authority or to the Division may submit a cost-of-service showing using an FCC Form 1220.
FCC Form 1230 Establishing Maximum Permitted Rates for Regulated Cable Services on Small Cable Systems. ("Small System Form")
Pursuant to FCC rules adopted May 5, 1995, qualifying small cable systems owned by a small cable company may use this streamlined cost-of-service procedure to set maximum permitted rates
FCC Form 1235, Abbreviated Cost of Service filing for Network Upgrades
This form allows operators to recover for the costs associated with "significant" network upgrades without having to submit a full Cost of Service filing. A significant upgrade is when the cable system is upgraded to at least 550 MHz with the capability of 750 MHz. In addition no more than 1,500 homes can be served off any node.
FCC Form 1240, Annual Updating of Maximum Permitted Rates for Regulated Cable Services
This form allows operators to adjust rates once per year to reflect reasonably certain and reasonably quantifiable changes in external costs, inflation, and the number of regulated channels that are projected for the 12 months following the rate change. The operator is then allowed to True-up on the subsequent Form 1240 for any overestimates and/or underestimates for the period projected.