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Palo Alto, AT&T Spar Over Cable Bill.(Palo Alto, California, City Council questions charge on AT and T Broadband L.L.C.'s customer bills)(Brief Article)

Multichannel News, November, 2000 by HAUGSTED, LINDA

The honeymoon appears to be over between Palo Alto, Calif., and AT&T Broadband, the new owner of its cable system. Palo Alto's City Council wants a formal explanation of an 88-cent charge that appeared on consumer's bills in October, a levy that violates the terms of AT&T's purchase agreement, according to some in the city.

When AT&T Broadband bought the 28,000-subscriber system -- formerly the user-owned Cable Co-Op of Palo Alto -- it promised, as part of the deal, not to raise rates for one year after the purchase. The acquisition closed four months ago. AT&T Broadband said the charge was a pass-through of expenses to upgrade and support the system's public, educational and government channel production facilities. PEG improvements were also...

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