Ratepayer Advocate Seema M. Singh Praises Comcast Cablevision of Avalon, Inc. Agreement

Customer Receive Reduced Hourly Service Rate of $31.25

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

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