Los Angeles County sued Time Warner Cable in federal court, claiming the
cable company owes the city nearly $700, 000. The county is alleging that
Time Warner Cable has violated the law by not paying its PEG fees from
approximately 2007 to 2011.
What Are PEG Fees?
“PEG” stands for public, educational, and government access
and all cable companies should have paid these fees, according to the
laws in 2006. The laws were revised in 2006, with the Digital Infrastructure
and Video Competition Act. This meant that all local cable companies would
transition to statewide video service provider franchises. Los Angeles
County then issued a law that all state-franchised video service providers
must pay a fee of up to five percent of its revenue, including PEG fees.
As the defendants in the 2012 lawsuit, Time Warner Cable believed that
they had been “grandfathered,” and able to retain their former
rights and obligations. They, they believed they were exempt from these
fees. In 2008, TWC did pay about $690, 000 in 2011, but neglected to pay
the state franchise fee, which totaled nearly $840, 000.
Los Angeles County contends that at the very least, the state franchise
fees will cover the privilege of providing its city streets, power lines,
telephone poles, and cable wires under the city.
28+ Years of Legal Support
Franchise Legal Support is led by Los Angeles franchise attorney, David
Levaton. He has been helping franchisees through the area for
more than 28 years, and continuing over 45 years in his family’s footsteps. Rich experience
as the owner and operator of a
franchise in the 1990’s gives him the tools and the perspective necessary
to help franchisees and knows what to anticipate.
Stay on the road to success with Franchise Legal Support. Call today for a