STATE OF NEW JERSEY
Division of The Ratepayer Advocate
31 Clinton Street, 11th Fl
P. O. Box 46005
Newark, New Jersey 07101
Press Release
For Immediate Release Thursday, June 26, 2003 |
For
Further Information |
Newark, NJ –
Seema M. Singh, Ratepayer Advocate, today praised the settlement agreement
approved by the Board of Public Utilities (BPU) resulting from the review
process of the system wide 1205 filing made by Comcast Cable Communications,
Inc., (Comcast) and the1240 filing of Comcast Cablevision of Avalon, Inc.
(Avalon). The stipulated settlement
made substantial reductions in equipment and installation rates.
For example, the hourly service rate was set at $31.25 instead of
Comcast’s proposed rate of $36.13.
Ms.
Singh, Ratepayer Advocate, stated, “My office is committed to ensuring that
cable rates remain just, fair, and reasonable for the basic service tier.
Since the Federal Communications Commission no longer regulates the upper
tier service rates and does not permit state regulation of that tier,
ratepayer’s interests are very affected.
This agreement will ensure fair and reasonable cable rates for
customers.”
In
2002, the Ratepayer Advocate actively participated in the system wide 1205
filing made by Comcast and in the1240 filing of Comcast Cablevision of Avalon,
Inc. Comcast sought to increase its installation charge to $51.30 by increasing
the hourly service rate to $36.22 and by increasing installation times.
In addition, Comcast asked for an increase in basic service tier rates to
reflect increases in inflation and programming costs.
Both
filings were referred to the Office of Administrative Law for a hearing, and
subsequently, the 1240 filing was consolidated with the 1205 proceeding.
The 1205 filing affects rates in all areas in New Jersey served by
Comcast. The 1240 filing affects
Comcast’s customers in Avalon.
During
the proceeding, the Ratepayer Advocate proposed an hourly service charge rate of
$30.34, a reduction in installation work times, and a reduction in remote
charges. The Ratepayer Advocate
further questioned Comcast’ claimed increases in programming costs.
The Ratepayer Advocate’s goal was to bring specific financial benefits
to ratepayers and to protect the interest of consumers in the affected areas of
New Jersey.
Chief
among the benefits for consumers is that this agreement ensures reasonable cable
rates. The effective dates of the costs for equipment and installation services
for Comcast vary according to the systems.
Comcast has six effective dates for its 1205 rates that are outlined
below:
June
1, 2002
Comcast of Wildwood (Maple Shade/Gloucester systems)
August
1, 2002
Comcast Long Beach Island and Comcast Cablevision of New Jersey, LLC
(Toms River, Cedar Bonnet Island, and Crestwood Village)
November
1, 2002 Comcast (Jersey
City, Meadowlands, Mercer County, Hopewell Valley, Lawrence, Union Verona, East
Orange/Woodbridge (Comcast Cablevision of New Jersey, Inc.)
January
1, 2003 Comcast
of Burlington County, Central New Jersey (East Brunswick, East Windsor, and West
Windsor), Garden State (Garden State and Carney=s Point systems), Gloucester
County, Monmouth County, Northwest New Jersey, Ocean County and Plainfield.
February
1, 2003 Comcast
Hopewell/Lambertville, South Jersey (Pleasantville includes Atlantic
City/Brigantine, Downbeach, East 1 & 2, West, Vineland systems which
includes Franklinville N & S , Franklinville 6 Towns, Salem, Turnersville
and Vineland and Wildwood.
June
1, 2003
Comcast of Avalon.
The
Division of the Ratepayer Advocate represents the interests of utility consumers
and serves as an active participant in every case where New Jersey utilities
seek changes in their rates or services. The
Ratepayer Advocate also gives consumers a voice in setting long-range energy,
water, and telecommunications policy that will affect the delivery of utility
services well into the future.
Additional information on this and other matters can be found at the Division of Ratepayer Advocate’s website at http://www.rpa.state.nj.us