§  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]