BUFFALO, N.Y. – Three months after the New York State Public Service Commission (PSC), in an unusual move, voted to revoke its approval for Charter’s merger with Time Warner Cable, the two sides are still hashing out how Charter (operating as Charter-Spectrum in New York) will exit the state as also ordered by the PSC.
The PSC took the action after it claimed Charter had failed in its commitments as part of that merger in 2016, to provide better service in underserved areas lacking for high speed internet.
Charter has denied this contention by the PSC, which continues to get flooded with comments on the matter.
We wanted to speak with PSC Chair John Rhodes for this story, but a spokesperson for New York State Department of Public Service said neither he nor any of the PSC Board members would talk to us.
In an e-mail, James Denn wrote: “We are going to decline the interview request due to ongoing litigation and settlement discussions.”
However, that did not stop PSC board members – including Rhodes – from speaking publicly, and at length, about Charter-Spectrum at its most recent meeting.
Deadline Extended
“Charter owes New York,” said Rhodes during a PSC meeting on October 19 where the issue was discussed for 45 minutes before commissioners approved yet another extension of their original 60 day deadline for Charter-Spectrum to either come up with an exit plan, or to file for a "re-hearing" of the PSC order in July, essentially kicking them out of New York.
Rhodes voted in favor after a PSC lawyer claimed there were productive talks between the PSC and Charter-Spectrum's lawyers behind the scenes.
"I find that this is a step that makes sense...and if this step and process is what it takes for them to deliver, then that's going to be a good outcome,” Rhodes said.
Two other commissioners agreed.
One did not.
“This is a broken process and the way it was done is broken and continues to be done is broken," said Commissioner Diane Burman noted this is the third time a deadline has been set. “That is deeply troubling to me,” Burman said.
Interest Beyond Albany
300 miles to the west of Albany where the PSC is based, a city of Buffalo lawmaker is watching the process with interest.
“We’ve been watching this from day one,” said Buffalo Common Council President Darius Pridgen, who says the council has written to the PSC in support of its hard line stance against Charter- Spectrum.
“We’ve been disappointed with this company on several things. One is this (recently announced) rate increase. Right now, people have almost no choice…Charter Spectrum is the only player in the game. They own all of the infrastructure, they own all of the lines.”
But the PSC isn't lowering the boom on Charter Spectrum because of rate increases.
It's claiming the company failed in an obligation to build out high speed internet in underserved, sparsely populated, often rural areas. None of which Pridgen serves.
“This is still about a company and building trust with that company,” insisted Pridgen. “A company that has such a stronghold on an area…whether it’s rural or not. If you’re not responding to the state and you’re not responding to the city's needs there's a concern. So, at the end of the day, this is a huge deal even for the city.”
What Happens Next, And When?
Meantime, Charter continues to provide cable television, broadband, and telephone service to more than two million subscribers in roughly 1,150 communities in New York and must continue to do so, without interruption, under the July order which also forces it to essentially come up with a plan to find a successor company in order to ensure a smooth transition to a replacement provider.
As for who would take over its network if Charter is eventually forced to leave, that remains a question for which there are no answers, and may take some time to get some, especially if the matter ends up in court.
Governor Andrew Cuomo has stated his belief that any one of several companies would be interested in replacing Charter due to the value of the franchise agreement.
However, if Charter could not- or would not, as alleged- expend millions of dollars to serve relatively few customers in outlying areas in a timely fashion as dictated by the PSC, the question remains which- if any company - would?
Publicly, the PSC would only point back to its original order....which has again been delayed in its implementation, much to the consternation of one of its commissioners.
“Whether we lead to productive settlement discussions that end in resolution, or we lead to a petition for a re-hearing because we weren't able to resolve it, we actually stopped the clock and so we're that much further away from deciding how we're handling things,” said Burman. “And I just don't get that."
Follow this link to view documents filed in the ongoing dispute and to file a comment. You can also read the comments filed by customers, and post one of your own to the PSC regarding this case.