PUBLIC SERVICE COM'N OF NEV. v. Community Cable TV

530 P.2d 1392, 91 Nev. 32, 32 Rad. Reg. 2d (P & F) 1187, 1975 Nev. LEXIS 537
CourtNevada Supreme Court
DecidedJanuary 29, 1975
Docket7415
StatusPublished
Cited by7 cases

This text of 530 P.2d 1392 (PUBLIC SERVICE COM'N OF NEV. v. Community Cable TV) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PUBLIC SERVICE COM'N OF NEV. v. Community Cable TV, 530 P.2d 1392, 91 Nev. 32, 32 Rad. Reg. 2d (P & F) 1187, 1975 Nev. LEXIS 537 (Neb. 1975).

Opinion

*35 OPINION

By the Court,

Zenoff, J.:

Community Cable TV and Nevada Cablevision Company were the successful applicants before the Nevada Public Service Commission to construct and operate a community antenna television system (CATV) in the greater Las Vegas, Nevada, area. 1

On May 5, 1969, the Public Service Commission issued an opinion and order which concluded that the public convenience and necessity would be best served by granting the application *36 of Community Cable and Nevada Cablevision and “no reasonable basis exists for awarding preference to either Nevada Cablevision or Community Cable TV as the applicant best suited to provide CATV service in Clark County; . . . Nevada Cablevision and Community Cable TV are both equally qualified to provide such service...

The effect of the May 5, 1969, order was to authorize both companies to provide CATV service within Clark County, their respective service areas to each including approximately 50% of the population of Clark County but the order further provided that the respective applications were granted “subject to the terms and conditions set forth hereinafter.” The terms and conditions were that preliminary conferences were to be held for the purpose of establishing and defining appropriate service areas after which each applicant was to be issued a compliance order specifying the conditions to be met (including the obtaining of all necessary licensing from the Federal Communications Commission) prior to the issuance of a certificate of public *37 convenience and necessity. See TV Pix, Inc. v. Taylor, 304 F.Supp. 459 (1968).

On May 8, 1970, the PSC entered an order establishing the final boundaries of the respective service areas in Community and Nevada Cablevision. On May 29, 1969, Community petitioned the PSC for a clarification of its May 5 order asking the PSC to make it clear that in the event one of the two successful applicants should be unable to perform the remaining applicant’s service area would be enlarged to include the entire greater Las Vegas area.

On June 10, 1969, the PSC notified all parties that the substance of the requested clarification was implicit in the May 5, 1969, order granting the application.

After the foregoing took place the event that gives rise to this litigation occurred. Effective August 10, 1970, the FCC added Section 74.1131 to its rules and regulations (now 76.501 as amended). That section provides:

“(a) Cross-ownership. No CATV system (including all parties under common control) shall carry the signal of any TV *38 broadcast station if such system directly or indirectly owns, operates, controls or has an interest in: . ..
“(2) A television broadcast station whose predicted Grade B contour, computed in accordance with Section 73.684 of this chapter, overlooks in whole or in part the service area of such system (i.e., the area in which the system is serving subscribers).
“. . . Note 1: The word ‘control’ as used herein is not limited to majority stock ownership but includes actual working control in whatever manner exercised.
“Note 2: The word ‘interest’ as used herein includes, in the case of corporations common officers or directors and partial (as well as total) ownership interests represented by ownership of voting stock.
“(d) Effective date: Provisions of Paragraph (a) of this section are not effective until August 10, 1973, as to ownership interests proscribed herein if such interests were in existence on or before July 1, 1970 (e.g., if a franchise were in existence on or before July 1, 1970); provided, however, that the provisions of Paragraph (a) of this section are effective on August 10, 1970, as to such interests acquired after July 1, 1970.”

The deadline for divestiture of cross-ownership interests existing prior to July 1, 1970, was exténded by the Commission to August 10, 1975.

This rule prohibits cross-ownership interests between cable TV systems and co-located TV broadcast stations but allows cable system operators who acquired their state or local government grant of operation authority on or before July 1, 1970, a grace period for divestiture of one or the other ownership interests until August 10, 1975. Eighty percent of Nevada Cable-vision is owned by Donald Reynolds who also owns TV broadcast station KORK-TV in Las Vegas, thus the provisions with respect to cross-ownership interests of Mr. Reynolds in station KORK-TV and Nevada Cablevision apply.

This dispute concerns the significance or effect of Reynolds’ interest of the grant of CATV by the PSC.

On August 12, 1970, the PSC issued its compliance order setting forth the requirements to be met by Community and Nevada Cablevision before issuance of their respective certificates of public convenience and necessity. This order established a time limit for compliance and stated that:

“This compliance order does not constitute operating authority; . . . provisions of the CATV service contemplated by this compliance order may not be instituted prior to the issuance of the certificate of public convenience and necessity.. . .”

*39 On October 13, 1970, following submission of requested documentation by both applicants, the PSC issued certificates of public convenience and necessity to Community Cable and Nevada Cablevision. The order accompanying the issuance of the certificates informed the applicants, however, that construction of their respective CATV systems could not commence until all necessary licensing had been obtained from the FCC. The deadline for obtaining this license, October 13, 1973, has been extended by the PSC for both certificates to October 13, 1975.

On November 12, 1970, Community by petition directed the attention of the PSC to the enactment of Section 74.1131 (now Section 76.501 as amended) of the FCC rules which had not been in existence at the time of the PSC’s May 5, 1969, order granting the application of Community and Nevada Cable-vision. The PSC denied the petition on November 27, 1970, for the asserted reason that the PSC did not have jurisdiction to interpret Section 74.1131 (now Section 76.501) of the rules and regulations of the FCC.

Thereupon Community sought review of the October 13, 1970, order before the district court and moved the matter be remanded to the PSC for additional hearings pursuant to the provisions of NRS 704.560 2 upon the ground that the evidence that has been introduced by Community was different from the evidence previously being considered by the PSC, specifically Section 74.1131 of the FCC rules. The district court granted the petition and remanded the matter to the PSC for the stated purpose and its effect on Nevada Cablevision’s “ability ...

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Cite This Page — Counsel Stack

Bluebook (online)
530 P.2d 1392, 91 Nev. 32, 32 Rad. Reg. 2d (P & F) 1187, 1975 Nev. LEXIS 537, Counsel Stack Legal Research, https://law.counselstack.com/opinion/public-service-comn-of-nev-v-community-cable-tv-nev-1975.