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 Before  The  FEDERAL  COMMUNICATIONS  COMMISSION 
 Washington,  D.  C.  20554 
 DA  95-  2473 
 In  the  Matter  of  )  Petition  for  Relief  of  ) 
 )  R.  K.  PRODUCTION  COMPANY,  ANDREW  ) 
 RAYNOVICH,  AND  FRANK  KIRKWOOD,  )  Petitioners,  ) 
 )  vs.  )  CSR  4491-  L 
 )  ADELPHIA  CABLE  COMMUNICATIONS,  ) 
 Respondent,  )  ) 
 For  Leased  Access  Channels  ) 


 MEMORANDUM  OPINION  AND  ORDER 
 Adopted:  December  12,  1995  Released:  January  19,  1996 
 By  the  Chief,  Cable  Services  Bureau 
 I.  Introduction 
 1.  R.  K.  Production  Company,  Andrew  Raynovich,  and  Frank  Kirkwood  filed  with  the  Federal  Communications  Commission  on  March  23,  1995  a  petition  for  relief  pursuant  to 
 Section  76.975  of  the  Commission's  rules  alleging  violations  by  Adelphia  Cable  Communications  of  statutory  and  regulatory  provisions  applicable  to  commercial  leased  access 
 channels  on  cable  systems.  On  April  24,  1995,  Adelphia  Cable  Communications  filed  a  response  asserting  that  it  has  fully  complied  with  its  obligations  under  the  rules  applicable  to  leased  access 
 and  has  provided  rates  and  other  information  necessary  to  facilitate  programming  on  its  systems. 
 II.  Background 
 2.  In  1984,  Congress  amended  the  Communications  Act  of  1934  by  adding  among  other  things  a  commercial  leased  access  requirement,  pursuant  to  which  cable  operators  with  36  or 
 more  activated  channels  must  set  aside  part  of  their  channel  capacity  for  use  by  programmers 
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 that  are  not  affiliated  with  them.  1  The  Cable  Television  Consumer  Protection  and  Competition  Act  of  1992  (the  "1992  Cable  Act")  revisited  the  leased  access  requirement  and  directed  the 
 Commission  to  establish,  among  other  things,  rules  for  determining  maximum  reasonable  rates  for  commercial  leased  access.  2  Pursuant  to  that  Congressional  directive,  the  Commission 
 established  regulations,  including  rate  regulations  and  other  terms  and  conditions  applicable  to  leased  access  channels,  in  its  proceedings  in  Implementation  of  Sections  of  the  Cable  Television 
 Consumer  Protection  and  Competition  Act  of  1992;  Rate  Regulation,  MM  Docket  92-  266,  (the  Rate  Order),  8  FCC  Rcd  5631  (1993),  at  ¶¶  531-  538.  The  new  leased  access  regulations  relevant 
 to  this  case  are  found  at  47  C.  F.  R.  §§  76.970,  76.971  and  76.975. 
 III.  The  Pleadings 
 3.  The  petitioners  are  R.  K.  Production  Company,  a  Pennsylvania  corporation,  and  its  owners  Andrew  Raynovich,  and  Frank  Kirkwood,  residents  of  Allegheny  County,  Pennsylvania 
 (herein,  collectively,  "petitioners"),  who  propose  to  cablecast  programs  advertising  residential  real  estate  properties  for  sale.  The  petition  asserts  that,  although  several  written  and  oral  requests 
 have  been  made  to  Adelphia  Cable  Communications  ("  Adelphia")  between  August  1,  1994  and  January  31,  1995,  Adelphia  has  refused  to  respond  to  petitioners'  requests  for  access  to 
 Adelphia's  cable  system  by  means  of  leased  access,  has  failed  to  designate  channel  capacity  and  has  failed  to  provide  petitioners  with  commercial  leased  access.  It  asserts  that  Adelphia's  refusal 
 to  respond  and  failure  to  designate  channel  capacity  and  to  provide  petitioners  with  commercial  leased  access  constitute  a  continuing  and  ongoing  violation  of  47  U.  S.  C.  §  532  et  seq.  and 
 Section  76.970  of  the  Commission's  rules.  It  asks  the  Commission  to  require  Adelphia  to  provide  leased  access  to  petitioners  at  rates  determined  by  the  Commission  and  to  execute  a 
 lease  agreement  in  the  form  of  one  attached  to  the  petition.  It  also  requests  an  order  requiring  Adelphia  to  compensate  petitioners  for  out-  of-  pocket  expenses  not  to  exceed  $10,000.  Copies  of 
 correspondence  in  which  the  petitioners'  written  requests  were  made  are  submitted  with  the  petition. 


 4.  Adelphia  in  its  response  states  that  it  operates  two  cable  systems  that  serve  municipalities  in  the  Pittsburgh  region.  The  two  systems  are  managed  by  two  local  operations 
 managers.  Adelphia  states  that  it  is  obligated  pursuant  to  Section  612(  b)  of  the  Communications  Act  to  make  channel  space  available  for  lease  on  both  systems. 


 1  See  Section  612  of  the  Communications  Act  of  1934,  as  amended.,  47  U.  S.  C.  §  532.  The 
 amount  of  channel  capacity  an  operator  must  set  aside  is  based  on  a  system's  activated  channel  capacity.  See  47  U.  S.  C.  §  532(  b). 


 2  See  Pub.  L.  No.  102-  385,  §§  9,  10(  a)  and  10(  b),  106  Stat.  1460,  Oct.  5,  1992.  See  47  U.  S.  C. 
 §  532(  c)(  4)(  A)  &  (B)  (1992). 
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 5.  Adelphia  asserts  that  it  has  responded  to  petitioners'  requests,  has  made  leased  access  capacity  available,  and  has  been  and  remains  willing  to  make  leased  access  capacity  available  to 
 petitioners.  In  support,  it  submitted  copies  of  correspondence  to  show  that  its  staff  attorney  had  advised  petitioners  during  August  and  September  of  1994  to  contact  its  local  operations 
 managers  to  obtain  specific  information  for  the  respective  systems,  and  that  those  local  managers  had  concurrently  provided  petitioners  with  leased  access  rates  and  other  information.  3  Adelphia 
 asserts  further  that  petitioners  were  also  informed  through  a  phone  conversation  with  its  staff  attorney  that  petitioners  needed  to  contact  the  local  managers  in  order  to  obtain  leased  access 
 programming  on  Adelphia's  individual  systems.  It  asserts,  however,  that  petitioners  had  not  contacted  those  local  managers  further  to  pursue  leased  access  to  its  systems  prior  to  filing  their 
 petition. 
 IV.  Discussion 
 6.  This  case  presents  the  question  of  whether  Adelphia  has  responded  to  the  requests  of  petitioners  for  leased  access  capacity  in  a  manner  that  is  consistent  with  the  requirements  of  the 
 statutory  and  regulatory  provisions  applicable  to  leased  access.  The  petition  also  raises  the  issue  of  whether  the  Commission  has  statutory  authority  to  order  payment  of  expenses  of  litigation. 


 A.  Cable  Operator  Responses  to  Requests  for  Leased  Access  Capacity 
 7.  The  record  before  us  shows  that  by  letter  to  Adelphia's  staff  attorney  dated  August  1,  1994,  petitioner  Raynovich  asked  for  a  response  to  his  July  14,  1994  letter  "requesting  various 
 information  on  the  leased  access  programming  of  Adelphia  Cable  Communications,"  and  for  "a  copy  of  your  lease  agreement  for  access  to  your  cable  system."  4  Adelphia's  staff  attorney 
 responded  by  letter  dated  August  22,  1994,  stating,  among  other  things,  that  "The  Operations  Manager  of  the  local  system  will  work  out  specific  rates  for  your  programming."  She  also 
 provided  the  name  of  the  local  operations  manager.  5  By  letter  to  petitioner  Kirkwood,  dated  August  15,  1994,  the  named  operations  manager  provided  rates  for  the  "home  shopper"  and  "all 
 other"  leased  access  categories,  and  offered  to  be  available  for  further  assistance.  6  By  letter  to  petitioner  Kirkwood,  dated  September  30,  1994,  Adelphia's  staff  attorney  provided  the  names  of 
 the  operation  managers  for  both  of  Adelphia's  systems  and  indicated  that  those  managers  would 


 3  See  Response,  Attachments  B  through  E. 
 4  See  Petition,  Exhibit  A.  No  copy  of  the  mentioned  July  14,  1994  letter  was  provided  for  the 
 record. 
 5  See  Petition,  Exhibit  B. 


 6  See  Response,  Exhibit  B. 
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 be  asked  to  respond  to  petitioners'  requests  by  providing  information  on  their  respective  areas.  7  By  letters  dated  October  13,  and  31,  1994,  the  two  named  operations  managers  provided  rates 
 and  other  information  relevant  to  their  respective  systems  to  petitioner  Kirkwood.  The  record  shows  that  all  of  petitioners'  subsequent  requests  for  lease  agreements  and  other  information 
 concerning  leased  access  were  addressed  to  Adelphia's  staff  attorney,  and  none  of  those  requests  were  directed  to  either  of  the  local  operations  managers  with  whom  petitioners  had  been  asked 
 by  Adelphia  to  work.  8 
 8.  Section  612(  b)  of  the  Communications  Act  requires  cable  operators  to  designate  channel  capacity  for  commercial  use  by  programmers  unaffiliated  with  the  cable  operator.  9  In 
 language  that  parallels  Section  612(  b)  of  the  Act,  the  Commission  has  incorporated  this  channel  designation  requirement  into  Section  76.970(  a)  of  its  rules.  That  requirement  is  supplemented 
 by  Section  76.970(  e)  of  the  rules,  which  requires  that  a  cable  operator,  "Upon  request,"  shall  provide  a  schedule  of  leased  access  rates  to  prospective  leased  access  programmers.  This  record 
 shows  that,  on  at  least  three  occasions,  Adelphia  has  provided  leased  access  rates  and  other  information  to  petitioners.  10  That  correspondence  also  shows  that  Adelphia  has  designated  its 
 Channel  20  on  some  of  its  systems  and  channels  18  or  23  other  systems  for  leased  access  programming.  11  On  this  record,  we  do  not  find  that  Adelphia  has  refused  to  respond  to  the 
 requests  of  petitioners  for  leased  access  channel  capacity,  has  failed  to  designate  channel  capacity,  or  has  denied  petitioners  access  to  it  cable  system,  in  violation  of  Section  612(  b)(  1)  of 
 the  Communications  Act,  or  of  Section  76.970(  a)  of  the  Commission's  rules,  as  petitioners  have  alleged. 


 9.  To  the  extent  that  the  petition  may  be  construed  as  a  complaint  that  Adelphia  has  not  responded  to  petitioners'  follow-  up  requests  made  to  Adelphia's  staff  attorney  for  a  commercial 
 leased  access  agreement,  12  the  petition  is  also  without  merit.  In  this  regard,  the  record  shows  that  Adelphia's  staff  attorney,  on  at  least  two  occasions,  13  requested  petitioners  to  contact  the  local 
 operations  managers  for  arrangements  for  leased  access.  The  record  contains  no  showing  that  petitioners  made  any  effort  prior  to  filing  the  petition  to  contact  those  operations  managers  with 


 7  See  Response,  Exhibit  C. 
 8  See  Petition,  p.  4-  6. 
 9  See  n.  1  above. 
 10  See  Response,  Exhibits  B,  D,  and  E. 
 11  See  Response,  Exhibits  D  and  E. 
 12  See  Petition,  p.  4  -  6  and  Exhibit  D. 
 13  See  Response,  Exhibit  C,  and  Petition,  Exhibit  B. 
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 regard  to  obtaining  a  leased  access  agreement  or  other  information  about  leased  access  programming  on  Adelphia's  cable  system. 
 10.  On  this  record,  we  cannot  find  that  Adelphia  has  violated  the  statutory  or  regulatory  provisions  applicable  to  leased  access  in  respect  to  the  requests  for  a  leased  access  agreement, 
 for  two  reasons.  First,  as  noted  above,  petitioners  never  directed  their  request  for  a  leased  access  agreement  to  the  persons  identified  to  them  as  responsible  in  the  first  instance  for  leased  access 
 matters,  as  they  had  been  requested  to  do.  Although  Section  612(  b)  of  the  Communications  Act  requires  cable  operators  to  designate  channels  for  leased  access  and  Section  76.970(  e)  of  the 
 Commission's  rules  requires  them  to  provide  rates  "[  u]  pon  request,"  those  provisions  do  not  mandate  that  a  cable  operator  must  respond  to  a  leased  access  programmer's  requests  through 
 any  particular  office,  officer  or  employee.  Those  provisions  also  do  not  preclude  a  cable  operator  from  designating  a  particular  office,  officer  or  employee  for  handling  leased  access 
 matters.  We  note  that  cable  operators  must  assure  that  misdirected  requests  from  leased  access  programmers  are  directed  to  those  having  authority  to  handle  them  and  to  respond  to  them 
 promptly.  We  note  here  that  Adelphia's  staff  attorney  not  only  redirected  petitioners'  requests,  but  she  also  requested  the  local  managers  to  handle  petitioners'  requests,  which  were  then  never 
 made. 
 B.  Timeliness  of  Petition 
 11.  Section  76.975(  d)  of  the  rules  requires  that  a  petition  for  relief  be  filed  within  sixty  days  from  the  alleged  violation.  The  record  shows  that  petitioners  last  made  a  written  request  of 
 Adelphia's  staff  attorney  on  October  31,  1994,  and  had  a  telephone  conversation  with  her  as  recently  as  December  19,  1994  about  leased  access  matters.  However,  the  petition  was  not  filed 
 until  March  23,  1995,  more  that  sixty  days  after  that  last  event.  On  these  facts,  we  conclude  that  the  petition  was  not  timely  filed  and  must  be  dismissed  for  noncompliance  with  Section 
 76.975(  d)  of  the  rules.  The  unverified  petition  describes  further  efforts  that  were  made  to  reach  Adelphia's  staff  attorney  by  telephone  as  recently  as  January  31,  1995  that  were  unsuccessful. 
 However,  we  decline  to  conclude  on  this  record  that  the  alleged  failure  to  return  these  telephone  calls  constitutes  a  violation  of  Section  612  of  the  Communications  Act  or  Section  76.970  of  the 
 Commission's  rules. 
 C.  Payment  of  Expanses  of  Litigation 
 14.  Petitioners  request  that  the  Commission  order  Adelphia  to  pay  them  a  sum  not  to  exceed  $10,000  to  compensate  them  for  out-  of-  pocket  expenses  .  Neither  the  Communications 
 Act  of  1934,  as  amended,  the  1984  Act,  nor  the  1992  Act  provides  for  recovery  of  costs  associated  with  the  filing  of  a  petition  for  relief  with  the  Commission  for  alleged  violations  of 
 the  statutory  provisions  or  of  the  Commission's  regulations  applicable  to  leased  access  channels.  Accordingly,  petitioner's  request  for  compensation  for  out-  of  pocket  expenses  of  litigation  will 
 be  denied. 
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 IV.  Ordering  Clauses 
 15.  For  the  foregoing  reasons,  IT  IS  ORDERED  that  the  petition  for  relief  of  R.  K.  Production  Company,  Andrew  Raynovich  and  Frank  Kirkwood  in  File  Number  CSR  4491-  L  IS 
 DISMISSED  as  untimely  filed. 
 16.  This  action  is  taken  pursuant  to  authority  delegated  by  Section  0.321  of  the  Commission's  rules,  47  C.  F.  R.  §  0.321. 


 FEDERAL  COMMUNICATIONS  COMMISSION 
 Meredith  J.  Jones  Chief,  Cable  Service  Bureau 
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