§ 76.925   Costs of franchise requirements.

   (a) Franchise requirement costs may include cost increases required by the
   franchising authority in the following categories:

   (1) Costs of providing PEG access channels;

   (2) Costs of PEG access programming;

   (3) Costs of technical and customer service standards to the extent that
   they exceed federal standards;

   (4) Costs of institutional networks and the provision of video services,
   voice  transmissions  and  data  transmissions to or from governmental
   institutions and educational institutions, including private schools, to the
   extent such services are required by the franchise agreement; and

   (5) When the operator is not already in the process of upgrading the system,
   costs  of removing cable from utility poles and placing the same cable
   underground.

   (b)  The costs of satisfying franchise requirements to support public,
   educational, and governmental channels shall consist of the sum of:

   (1) All per channel costs for the number of channels used to meet franchise
   requirements for public, educational, and governmental channels;

   (2) Any direct costs of meeting such franchise requirements; and

   (3) A reasonable allocation of general and administrative overhead.

   (c) The costs of satisfying any requirements under the franchise other than
   PEG access costs shall consist of the direct and indirect costs including a
   reasonable allocation of general and administrative overhead.

   [ 58 FR 29753 , May 21, 1993, as amended at  60 FR 52119 , Oct. 5, 1995]

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