Executive Summary Direct Testimony of Andrea Crane

Executive Summary
Direct Testimony of Andrea C. Crane
on behalf of the Division of the Ratepayer Advocate
I/M/O Comcast Cablevision of Long Beach Island Form 1240,
Comcast Cablevision of Toms River (Cedar Bonne) Form 1240, and
Comcast Cablevision Consolidated Form 1205

Andrea C. Crane provided testimony on behalf of the Ratepayer Advocate rejecting certain proposed rate increases by Comcast. Ms. Crane is Vice President of The Columbia Group, Inc., a financial consulting firm that specializes in utility regulation. In addition to her other qualifications, Ms. Crane has testified in over 120 regulatory proceedings in various jurisdictions involving cable television and telecommunications issues among others.

On or about February 28, 2001, Comcast Cablevision of Long Beach Island^[1] filed a Federal Communication Commission (“FCC”) Form 1240 with the State of New Jersey, Board of Public Utilities (“BPU”) to change the basic service rate for cable television service in the Long Beach Island (“LBI”) system. In addition, the Company filed an FCC Form 1205 to implement new equipment and installation rates in the LBI system. On April 30, 2001, Comcast filed a revised Form 1205 that covered equipment and installation rates in the majority of Comcast’s systems, including LBI. Finally, on April 30, 2001, Comcast filed an FCC Form 1240 for its Cedar Bonnet system.

Upon review of Comcast’s filings and discovery responses, the Ratepayer Advocate filed testimony objecting to certain rates and increases reported by the Company. The Ratepayer Advocate’s findings are summarized below:

· Comcast should be required to support all claims for programming costs, including actual costs incurred in the True-up Period and programming costs estimated for the Projected Period. In the absence of such documentation, cost increases relating to programming should be disallowed. To date, Comcast has not provided the requisite documentation.

· Comcast should be required to provide all programming contracts for review by Staff and the Ratepayer Advocate in order to support its claim for programming costs. Comcast has not provided any programming contracts for review in this proceeding.

· With regard to programming that is owned in whole or in part by Comcast, the Company should demonstrate that it does not discriminate in its treatment of third parties relative to its treatment of affiliates. Absent review of Comcast’s programming contracts, the BPU lacks the information sufficient upon which to base a reasoned decision on the issue of discriminatory treatment.

· Comcast’s rates in its LBI system should be revised to eliminate the franchise-related costs that have not been supported by the Company.

· All adjustments in the Company’s filings that relate to channel count changes, including those relating to the caps method, the mark-up method, or the channel movement / deletion method should be eliminated from the Company’s filings.

· The BPU should approve a Maximum Permitted Rate of $31.14 for LBI and of $28.18 for Cedar Bonnet.

· The Company should demonstrate the need for the substantial increases in the number of converters added during 2000.

· The Company should be required to identify its deferred income taxes and to modify its Form 1205 to reflect such taxes.

· The Company should demonstrate that it is in compliance with FCC requirements regarding basic-only equipment.

· As a matter of public policy, Comcast’s fees for a downgrade in service should be rejected.

The Ratepayer Advocate believes that New Jersey consumers are entitled to fair and reasonable cable rates that are the product of an informed decision-making process. To that end, the Ratepayer Advocate remains vigilant in ensuring that Comcast provides the documentation necessary for the Board to accomplish its review of Comcast’s proposed rates.

^[1] Comcast has various corporate entities for its cable systems, including Comcast Cable of Long Beach Island, LLC and Comcast Cable Communications, Inc. These corporate entities will be collectively referred to as “Comcast” or “Company”.