r H A V E B E'E N' ASK EDT 0 B R IN G MY ~... :

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1 .. ~ COMMENT S BY ~.COMMSSONER JAMES H. QUELLO BEFORE T HE NDANA", LLNOS CAB'LE ASSOCATON ' NDAN?\POLS, NDANA JA1-:U:,AR}" 16, 1977.' r H A V E B E'E N' ASK EDT 0 B R N G MY ~... : C R Y.:S't ALB A i t A,N n :; 'C l V E YOU ARE A DN G T HS : j' ' MOR NNG OF WHA-T ' WLL BE HAPPE NNG AT FCC N 1977 AirFE ~CT:i:N~f'l'" HECABLE NDUSTRY. T H N K ~:;...." \.-r. Wd L-L'. BE 0 N S AF ERG R 0 U N'D F T'ALK ABOUT: WHA' T <" MGHT 'HAPPEN AT THE - \.:,~. - CD-MMSSON DURT)iq T'RK NEXT YEAR. THE,ONLY,bNEWHO KNOWS: W'HA'T ";WLL HAPPEN S TFE GOb'n ( LO R D--AND 1HE '.SN!.'T (TAL K NG. SO, LE T' S' } U S T., S PE C U LA '' E,;,~c: ')' AN,D.' SEE WHA T..._...,. 9' COMES 0 F T.. J.: l BE 'F.l.:O; ~ '~, T :U:KN,NG TO CABLE SPECF.<CALLY, AM-.sURE ~' T:l:tEfR~,' lq:;ic; ONSDERABLE SPEC'ULA'TON AMON'C YOU 1' As,:~ -r:. O;,CHA'NGES N THE.COMMtS[SbN

2 -.""1 F z'f E R JAN U A R Y 2 0 F ANY OF YOU HAS A GOOD HOT RUMOR, PLEASE LET ME KNOW. MY PERSONAL (~ UESS S THAT PRESDENT CARTER WLL, NO DOUBT, APPONT A NEW CHARMAN SOMETME N YOU CAN BE SURE THAT THE CHARMAN WLL BE BLACK OR WHTE, MALE OR FEMALE OR PERHAPS A COMB 1- NATON OF ANY OF THESE. THE PER SO N W L L H AV E GOOD CREDENTALS AND BACKNG AND WLL N NO WAY THREATEN MY ALL-TME RECORD OF EGHT DAYS OF CONFRMATON HEARNGS. T. HAS ALSO BEEN PUBLSHED THAT DCK WLEY PLANS TO REMAN AS A COMMSSONER FOR THE BALANCE OF HS TERM UNTL JUNE 30 OF THS YEAR WHCH S FNE WTH ME AND ASSUME FNE WTH MOST OF YOU. REALLY DON'T KNOW OF CHANGES N THE MMEDATE FUTURE AFFECTNG THE COMMSSON MAKEUP. NOR

3 --""""?--~ DO FORESEE ANY CHANGES THAT WLL BE DELETEROUS TO THE CABLE NDUSTRY FROM THE COMMSSON STANDPONT. HOWEVER, WLL BE READNG THE VAROUS TRADE PUBLCATONS AND NEWSPAPER COLUMNS AND SPECULATNG JUST AS YOU WLL. ONE THNG THAT WLL NOT HAPPEN N 1977 S THE MARCH. 21, 1977 DEADLNE. ON FRANCHSE COMPLANCE. BY A NOTCE OF PROPOSED RULE MAKNG WE ARE NOW NQURNG AS TO WHETHER TO CONTNUE THE PRESENT FRANCHSE STANDARDS, TO MODFY THEM, OR TO ELMNATE THEM ENTRELY. N MY OWN MND HAVE UNRESOLVED QUESTONS AS TO THE NEED FOR THE PRESENT FRANCHSE STANDARDS FROM THS TME FORWARD. MY OWN FEELNG S THAT THE FRANCHSNG PROCESS S A MATTER OF LOCAL CONCERN AND THE FEDERAL

4 - 4- J N T ERE S T S H 0 U L D BEL MT ED TO THO S E FEW ARE AS WHERE WE HAVE CONCLUDED A FEDERAL ROLE S N E C E S S A R Y - - FOR E X AMP L E, PRO H BT N G E X C L U S ON ARY PROVSONS AGANST PAY CABLE OPERATONS, FRAN- CHSE FEE LMTATONS, ETC. HOPEFULLY WE WLL RECEVE DETALED COMMENTS N RESPONSE TO THE NOTCE OF PROPOSED RULE MAKNG N THS MATTER AND WLL BE N A BETTER POSTON TO JUDGE WHETHER TO CHANGE SOME OF OUR PRESENT REQUREMENTS. OUR PRESENT REQUREMENTS REPRESENT QUTE A CHANGE FROM THE FCC REQUREMENTS TWO YEARS AGO. COMMENCNG N THE LATTER PART OF 1974 THE COMMSSON STARTED NUMEROUS ACTONS TO ALLEVATE MANY OF THE CABLE NDUSTRY~S REGULATORY PROBLEMS. JUST TO NAME A FEW:

5 OUR PREEMPTON N THE FELD OF TECHNCAL REQUREMENTS NCONSSTENT WTH THE COMMSSON'S POLCES; DELETON OF MANDATORY ORGNATON; ALLEVATON OF THE PAY CABLE RESTRCTONS; LESS RESTRCTVE NETWORK NON-DUPLCATON REQUREMENTS; CANCELLATON OF THE 1977 REBULD REQUREMENT; ELMNATON OF THE SAME-DAY NON-DUPLCATON PROTECTON N THE MOUNTAN TME ZONE; PROVSON FOR LESS BURDENSOME AND LESS EXPENSVE SGNFCANT-VEWNG SURVEYS BY COUNTY RATHERTHANNDVDUAL COMMUNTES; AMENDMENT OF THE LEAPFROGGNG RESTRCTONS; AND RELAXATON OF TECHNCAL STANDARDS. HOPEFULLY THERE WLL BE MORE ACTONS N THE RE-REGULATON FELD N 1977.

6 b- ONE OF OUR MAJOR STEPS LAST MONTH WAS OUR APPROVAL OF EARTH-STATON ANTENNAS SMALLER THAN NNE METERS N DAMETER. WE HAVE NOW DETERMNED THAT APPLCATONS FOR PARA- BOLC ANTENNAS AS SMALL AS 4.5 METERS FOR R E C E V E - 0 N L Y CAB LEO PER A T ON S W L L BE ROUT NEL Y PRO C E SSE D F A C COM PAN led B Y C E R T A NS UP P L EME NT AL TECHNCAL DATA. THS FURTHER OPENS THE DOOR TO THE CABLE NDUSTRY FOR ENTRY NTO THE RECEPTON OF SATELLTE SGNALS AND S MOST ASSUREDLY A TREMENDOUS STEP FORWARD N THE DE VEL 0 P MEN T 0 F PAY CAB L E PRO G RAM DS T RB U TON. ANOTHER COMMSSON ACTON N THS AREA WAS OUR RECENT APPROVAL OF THE USE OF A NEW TYPE OF COMMON CARRER DOMESTC SATELLTE VDEO SERVCE. WE APPROVED UTLZATON OF A SATELLTE

7 - - TRANSPONDER AS THE VEHCLE TO DSTRBUTE THE SGNALS OF AN ATLANTA NDEPENDENT TELEVSON STATON TO BE RECEVED BY ELGBLE CABLE SYSTEMS. THUS, CABLE HAS TAKEN ANOTHER STEP TOWARD SOME OF TS HBLUE SKYll POTENTAL. N MY OPNON THESE TWO ACTONS WLL STAND AS LANDMARKS N THE CONTNUNG EVOLUTON OF THE CABLE NDUSTRY MAY WELL SEE THE DEVELOPMENT OF DRAFT LEGSLATON WHCH WLL NCLUDE, FOR THE FRST TME, CABLE TELEVSON. HOWEVER, THNK THAT LEGSLATON ENCOMPASSNG CABLE WLL EVENTUALLY COME ABOUT THROUGH A COMPRE- HENSVE REWRTE OF THE ENTRE COMMUNCATONS ACT, RATHER THAN FROM SPECFC LEGSLATON

8 - - ~ - - DEALNG SOLELY WTH CABLE TELEVSON. DO NOT ANTCPATE A COMPLETE AMENDED COMMUNCATONS ACT N 1977 OR 1978 FOR THAT MATTER. REWRTNG THE COMMUNCATONS ACT S A COMPLEX TASK, AT BE S T, AND C E R T A N L Y THE DE VEL 0 PM E NT 0 FAN E W PORTON OF THE ACT TO ENCOMPASS CABLE TELEV- SON WLL ADD TO THE COMPLEXTY OF THE TASK. FRANKLY, HAVE SOME RESERVATONS AS TO ANY DETALED LEGSLATVE PROVSON FOR THE CABLE NDUSTRY AT THS TME. BELEVE THE NDUSTRY NEEDS MORE TME N WHCH TO DEVELOP N AREAS OTHER THAN SGNAL CARRAGE BEFORE SPECFC LEGSLATVE CONTROLS ARE DETERMNED. FOR EXAMPLE, AM CONCERNED THAT LEGSLATON MAY PROVDE FOR A SEPARATON POLCY, THUS ESTAB- LSHNG ARTFCAL RESTRCTONS BETWEEN, i

9 PROGRAMMNG ON THE ONE HAND AND HARDWARE CONTROL AND OPERATON ON THE OTHER. THNK T WOULD BE UNFORTUNATE FOR CABLE SYSTEMS TO BECOME SADDLED WTH A COMMON CARRER OR PSUEDO-COMMON CARRER LABEL BEFORE THE NEED HAS BEEN DEMONSTRATED. WOULD PREFER TO SEE LEGSLATON THAT S ABBREVATED AND GENERAL N NATURE, ESTABLSHNG BASC JURSDC- TON, LCENSNG AUTHORTY AND FORFETURE PROVSONS. HAVNG MENTONED THE FGHTNG WORD "FORFETURE," THNK HAD BETTER DWELL ON T HS ASP E C T FOR A MOM E NT. EVE N THO UGH MAY RASE SOME HACKLES, T S MY HONEST BELEF THAT THE COMMSSON SHOULD HAVE AUTHORTY TO LEVY FORFETURES AGANST CABLE SYSTEMS AS AN ENFORCEMENT TOOL. AM FAMLAR WTH THE

10 --~. -.-~--~~~ ,- ~ \..,W - HORROR STORES AND THE SCARE ARTCLES CON- CERNNG THE MATTER, AND FRANKLY, AM NOT MPRESSED BY THEM. FROM THE COMMSSON'S S TAN D PO N T WE ARE SEE KN G FO R FE T U REA U THO R T Y AS AN ENFORCEMENT TOOL FOR EGREGOUS STUATONS, SUCH AS THE CABLE SYSTEM WHCH REFUSES TO COM- PLY WTH THE CARRAGE RULES OR TO PROVDE R E QU RED NON - D U P L CAT ON PRO T E C T ON. C E R T A N L Y THE COMMSSON NEEDS SOME DRECT MEANS OF ASSJRNG THAT THE VERY FEW "BAD APPLE" OPERATORS COMPLY WTH THE RULES AS DO THE GREAT MAJORTY OF THE NDUSTRY. CANNOT ACCEPT THE RED-HERRNG ARGUMENT OF FORFETURE OPPONENTS THAT NO FOR- FETURE SHOULD BE LEVED ON ANY CABLE RULE OF "THS COMMSSON UNTL T HAS BEEN TESTED AND AFFRMED N COURT. MUCH DUST HAS BEEN RASED

11 OVER THE THREAT OF FORFETURE F A CABLE SYSTEM DOES NOT MEET TECHNCAL STANDARDS. DO NOT FORESEE ANY NTENT OF THE COMMSSON TO UTLZE FORFETURE AS A CLUB TO BEAT EACH CABLE SYSTEM NTO TECHNCAL COMPLANCE. F AN OPERATOR CREATED NTERFERENCE AND DD NOT REMEDY THE STUATON OR ENTERED NTO SOME OTHER TECHNCAL VOLATON WHCH WAS EGREGOUS, THEN THNK FORFETURE SHOULD APPLY, AND SHOULD BE SUPPORTED BY THE RESPONSBLE ME M B E R S 0 F YOU RND US TRY. T MAY WE L L BE THAT MANY OF THE CABLE OPERATORS FEEL THAT OUR TECHNCAL REQUREMENTS ARE STLL TOO DEMANDNG. F YOU HAVE VALD CONCERNS, LET US HEAR FROM YOU SO THAT WE MAY CONSDER

12 THE MOST REASONABLE AND PRACTCAL APPROACH TO THE MATTER. NONE OF US FAVORS REGULATON JUST FOR REGULATON'S SAKE. F THE CABLE NDUSTRY S TO FUNCTON T MUST BE N AN ORDERLY FASHON AND N HARMONY WTH OTHER COMMUNCATONS MEDA WTH WHCH T RELATES. THS REQURES A DEGREE OF REGULATON, AND SUCH REGULATON MUST BE ENFORCEABLE. OUR SOLE MEANS OF ENFORCEMENT AT PRESENT S THE PAPER EXERCSE OF A CEASE & DESST ORDER, WHCH, AS YOU KNOW, S LESS THAN EFFECTVE. THE POWER TO ASSESS A FORFETURE S FASTER AND MORE DRECT AND SHOULD BE OF LTTLE CONCERN TO THE RESPON- SBLE CABLE OPERATOR.

13 HAVE BEEN MPRESSED OF LATE BY THE PRESENTATONS OF A NUMBER OF CABLE OPERATORS EXPRESSNG CONCERN OVER TRANS- LATORS. AM CONVNCED THAT THE COMMSSON SHOULD EXAMNE THE FUTURE POTENTAL OF TRANSLATORS AND THER RELATONSHP TO THE CABLE NDUSTRY. F TRANSLATORS ARE TO BE PERMTTED TO MPORT DSTANT SGNALS VA MCROWAVE OR OTHER MEANS, THEN FORESEE POTENTAL MPACT ON SMALL MARKET STATONS AND THE NEED TO CONSDER NON-DUPLCATON AND EXCLUSVTY PROTECTON. AM ALSO CONCERNED WTH RESPECT TO THE RKMFCATONS OF TRANSLATORS ENGAGNG N ADDTONAL COMMERCAL SUBSTTUTON.

14 ~/t.f- \. THNK THE COMMSSON SHOULD GVE MUCH CONSDERATON TO NTERFERENCE PROBLEMS RESULTNG FROM TRANSLATOR OUTPUT SGNALS BENG ADJACENT OR CO-CHANNEL TO NCOMNG S G N A L S TO A CAB L E HE AD END. C E R T A N L Y THE R E S POTENTAL FOR ABUSE HERE AND THE MATTER SHOULD BE EXAMNED CAREFULLY. AT LEAST SOME DEGREE OF PROTECTON MGHT BE AFFORDED FROM POTENTAL NTERFERENCE PROBLEMS F TRANS- LATORS WERE TO GVE NOTCE TO CABLE SYSTEMS OF THER TECHNCAL PROPOSALS. THESE ARE MATTERS OF CONCERN TO ME AND THNK THEY WLL BE OF CONCERN TO THE COMMSSON GENERALLY. HOPE THAT N 1977 WE WLL TAKE AN OVERALL LOOK AT THESE PROBLEMS AND SEEK TO ARRVE AT AN EQUTABLE SOLUTON.

15 - 1 :> - N LGHT OF THE POTENTAL FOR DSTRBUTON VA SATELLTE, FORESEE AN EXPANDNG MARKET FOR FLM PRODUCTS. THS N TURN MAY RESULT N EFFORTS TO OBTAN ADDTONAL EASNG OF THE RESTRCTONS ON AVALABLTY OF PRODUCTS. WTH RESPECT TO ANY LMTATONS ON AVALABLT Y OF F LM PRODUCT FOR CABLE PRESENTATON, 'M BEGNNNG TO FEEL MORE AND MORE THAT WE ARE DEALNG WTH NOTHNG MORE THAN AN ORDERNG OF PRORTES N THE MATTER OF OBTANNG FLM PRODUCTS AS BETWEEN PAY CABLE AND TELEVSON BROAD- CASTNG. WONDER F PUBLC N' EREST REQURES THS COMMSSON TO DETERMNE THE ORDER OF PRORTY N THE SHOWNG OF FLM PRODUCTS

16 TO THE VEWNG PUBLC WHETHER THROUGH THE ATE R S,T V 0 RCA B L E. THE COM MS S 10 N' S PRMARY CONCERN N THS AREA PROBABLY SHOULD BE TO GUARD AGANST EXCLUSVTY PROVSONS THAT ARE UNREASONABLE AND WHCH WOULD RETAN CONTROL OF EXHBTON RGHTS FOR AN NORDNATE TME. PERHAPS THE NEW COMMSSON SHOULD AGAN EXAMNE THE MATTER OF EXCLUSVTY PROVSONS N FLM CONTRACTS DURNG 1977 EVEN THOUGH THS MAY THREATEN THE CURRENT ESTABLSHED PRACTCE. SHOULD BREFLY MENTON THAT THE FCC HAS SUSPENDED COLLECTON OF ALL FEES EFFECTVE JANUARY 1ST AS THE RESULT OF FOUR DECSONS BY THE U.S. COURT OF APPEALS.

17 AS YOU KNOW, THE CABLE FEE WAS SUCCESSFULLY FOUGHT BY THE NCTA--N 1974 WHEN WAS A BRAND NEW COMMSSONER, THE NCTA RECEVED A FAVORABLE RULNG FROM THE SUPREME COURT THAT ANNUAL FEES PAD BY CABLE NDUSTRY WERE LLEGAL--ALL ANNUAL FEES PAD FROM 1970 TO 1973 WERE REFUNDED. WT H THE R E C E NT SUS PEN S ON, F L N G FEE SAL S 0 WLL NO LONGER BE REQURED. THE FCC STAFF S ANALYZNG THE DECSON AND WLL RECOMMEND A FURTHER COURSE OF ACTON. BELEVE WE MUST SEEK CONGRESSONAL LEGSLATVE GUDANCE OR ASSSTANCE.. AM NOT PERSONALLY A STAUNCH PROPONENT OF FEES, BUT MUS TAD MT T HAT ARE A SON A B L E FEE S C H E D U L E COULDBE.AN EFFECTVE WAY OF HAVNG THE GOVERN- ~ 1

18 MENT PAY TS OWN WAY. N THE MEANTME, DON'T BELEVE ANY RUMORS THAT THE FCC S GONG OUT OF BUSNESS BECAUSE OF NO FEE COLLECTON. NO SUCH LUCK! THE FCC DDN'T RECEVE THE FEES-- ALL FEES WERE FORWARDED TO THE TREASURY DEPT. ANOTHER TEM DOWN THE ROAD N 1977, OR POSSBLY LATER, WLL BE CONSDERATON OF CABLE CARRAGE OF RADO BROADCAST SGNALS. FRANKLY, BELEVE WE MUST CAREFULLY REVEW ALL FACETS OF THS SSUE--A SUBSTANTAL NEED FOR REMEDAL ACTON SHOULD BE DEMONSTRATED BEFORE WE EMBARK ON ADDTONAL OR NEW RE- GULATON. HOWEVER, 'VE HAD A PERSONAL EX- PERENCE WTH A CABLE-RADO STUATON N MY OLD HOME TOWN OF CALUMET, MCHGAN. 'LL

19 RELATE T TO you BECAUSE T CONTANS BOTH A POSTVE AND NEGATVE CABLE STORY--AND THEN - ASK YOU TO SUGGEST AN EQUTABLE AND REASONABLE SOLUTON. (RELATE RADO-BASEBALL CARRAGE BY CABLE BY COMPETNG SPONSOR.) POLE ATTACHMENTS ARE ANOTHER MATTER OF SUBSTANTAL CONCERN TO THE COMMSSON AND MOST CERTANLY TO YOUR NDUSTRY. WOULD PRESUME THERE WLL ACAN BE EFFORTS TO SEEK LEGSLATVE HELP N THE HALLS OF THE CONGRESS. M Y PER SON A LOP NO N 1ST HAT LEG S LA T ON 1ST HE ONLY PRACTCABLE SOLUTON TO THE PROBLEM. 1FT HE COM MS S ON MUS T A C COM MOD ATE REG U LA T ONS, ADJUDCATONS AND EXPERTSE N THS FELD, THEN CONGRESS CERTANLY WLL HAVE TO BTE THE

20 BULLET AND PROVDE THE FUNDNG FOR ADDTONAL PERSONNEL, FRANKLY, DO NOT BELEVE THAT WE CAN EXPECT UNFORM OR CONSSTENT STANDARDS N POLE ATTACHMENT REGULATON FROM ALL OF THE VAROUS STATE REGULATORY COMMSSONS, THAT'S WHY FAVOR FEDERAL LEGSLATVE APPROACH, THE FCC S CONTNUNG TO DELBERATE THE CABLE BUREAU'S PROPOSAL FOR RE-DEFNNG CABLE SYSTEMS FOR REGULATORY PURPOSES, THE TWO MAN SSUES ARE(l) DEFNNG A SYSTEM ON A HEADEND OR ON A COMMUNTY BASS--A REAL PROBLEM WHEN THE LOGCAL POPULATON AREA EXTENDS BEYOND THE FRANCHSE AREA, AND(2) THE MATV-MDS CABLE PARTY PROBLEM,

21 ~~----~ C-l - HAVE BEEN WDELY QUOTED (AND T'S TRUE) THAT DO NOT FAVOR CLASSFYNG MATV SYSTEMS AS CABLE SYSTEMS FOR REGULATORY PURPOSES. BELEVE CONDOMNUM AND APART- MENT DWELLERS HAVE A CONSTTUTONAL RGHT TOE R E C T THE ROW NAN TEN N A SN COM P L AN C E WTH ZONNG OR BULDNG CODES TO ENHANCE THER OWN TV RECEPTON. WOULD CONSDER T UNCON- SCONABLE BUREAUCRATC OPPRESSON AND LEGALLY QUESTONABLE TO MPOSE CABLE SYSTEMS REQUREMENTS ON SUCH MATV'S. HOWEVER, DO BELEVE THAT CABLE SYSTEMS OPERATED FOR PROFT BY CORPORATONS, BULDERS OR PEOPLE OTHER THAN OWNERS AND RENTERS, SHOULD BE CLASSFED AS A CABLE SYSTEM. ALSO, OPPOSE EXCLUSVE CONTRACTS OR CABLE LOCK-OUTS BY BULDERS.!!

22 - G G - WOULD LKE TO COMPLMENT THE CABLE NDUSTRY GENERALLY ON TS VGOROUS EFFORTS N ADVANCNG TS VEWS CONCERNNG, MPENDNG CABLE ACTONS HERE N THE COMMSSON-- AND AM SURE THE SAME SENTMENT WOULD RE- SOUND ON THE HLL. SO FAR AS AM CONCERNED, HAVE LSTENED WTH NTEREST TO VAROUS CABLE GROUPS WHO HAVE COME TO MY OFFCE TO PRESENT THER VEWS AND ARGUMENTS. OBVOUSLY NONE OF THEM HAS RECEVED ANY COMMTMENTS OTHER THAN FULL CONSDERATON OF ALL THE EQUTES NVOLVED. BUT CAN ASSURE YOU THAT ALL OF THESE GROUPS HAVE BEEN LSTENED TO AND THER COMMENTS ANALYZED N DETAL. THNK THE CABLE NTERESTS HAVE SOUGHT AND RECEVED MANY DEREGULATORY CHANGES N THE RULES, HOWEVER, WOULD AGAN

23 - l j - SUGGEST--AND THNK THS MGHT BE ECHOED BY OTHER COMMSSONERS--THAT SOME CONSDERATON BEG V E N TOT HEM ANN E R N W H C H CAB LE NT E RESS EXERT THER EFFORTS N SUPPORTNG OR OPPOSNG ANY G V E N PO ST ON. W 0 U L D M U C H RAT HER R E C EVE TWO OR THREE REPRESENTATVE GROUPS ADVANCNG DETALED VEWS SUPPORTED BY FACTS AND FGURES THAN A NUMBER OF NDVDUALS COMNG N WTH EMOTONAL PLEAS AND LTTLE FACTUAL DATA. SO, WHEN YOU COME TO SEE US, ORGANZE WELL, PLAN YOUR CAMPAGN, AND ASSEMBLE YOUR SUPPORTNG MATERAL WTH CARE., FOR ONE, WLL BE HAPPY TO RECEVE YOU AND TO LSTEN TO YOUR ARGUMENTS. MY DOOR S ALWAYS OPEN TO YOU. N MY COMMENTS TO YOU THS MORNNG, HAVE EXPRESSED A FEW PERSONAL VEWS OF

24 -=24- MPENDNG MATTERS NVOLVNG THE CABLE NDUSTRY. DO NOT NTEND THAT ANY OF MY COMMENTS BE TREATED AS FNAL COMMTMENTS OR PRE-JUDGMENTS OF ANY SSUES. OBVOUSLY, HAVE TO KEEP MY OPTONS OPEN. MY FNAL DETERMNATONS WLL REST UPON COMPLETE PRE- SENTATONS MADE BEFORE THE COMMSSON AND WLL VOTE THESE ACCORDNGLY. TO THE EXTENT POSSBLE WANT TO PRECLUDE DRAWNG ANY LNES FOR A BOTTOM FGURE UNTL WE HAVE THE NECESSARY FGURES ABOVE THE LNE FRST. N SHORT, WANT TO DETERMNE THE PROBLEMS BEFORE COME UP WTH THE SOLUTONS. N THS WAY WE MNMZE BUREAUCRATC TEMPTATON TO ENACT REGULATORY SOLUTONS THAT MUST GO

25 SEARCHNG FOR PROBLEMS TO JUSTFY THER EXSTENCE... AND WE CAN ALL HAVE A HAPPER PRODUCTVE 1977 AND BEST SERVE PUBLC NTEREST.

include a comment explaining the reason and the portions of the pending application that are being

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