Adelphia Agrees To Rate Refund In L.A

Cable World,  Sept 8, 2003  

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Byline: ANDREA FIGLER

Adelphia Communications threw in the towel in Southern California last week and agreed to refund more than $5 million to 220,000 Los Angeles subscribers as demanded by the city earlier this year as part of a rate rollback.

In May, the city required the cable operator to certify its data used to justify rate increases in 2002 because of the questionable financial dealings of the cable operator's former management, the Rigas family. In June 2002, Adelphia filed for bankruptcy protection.

The bankrupt cable operator's new management, however, could not readily comply with the city's request and decided to withdraw its appeal to the Federal Communications Commission on this subject. It agreed to the rate rollback as a way to mend frayed ties with city officials.

"With the new management team in place, we're out to change Adelphia's reputation with its constituents," said Tom Carlock, regional VP of law and public policy for the Southern California division, in a prepared statement. "Although we strongly disagree with the city's rate order, our goal is to put this dispute...behind us."

Starting next month, consumers will receive credits for the rate hike discrepancy of the past year as well as the difference between the 2001 and 2002 rates.

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