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.
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