L.A. to Examine Rate Increase by Adelphia

Responding to Adelphia cable subscribers who have complained about a recent rate increase, the Los Angeles City Council directed its cable regulators to study whether the increase was justified.

Last month, reeling after its Bankruptcy Court filing and the arrest of its founder and two of his sons on fraud charges, Adelphia Communications Corp. notified Southern California customers that it was raising rates for its basic cable and premium services.

Although the Coudersport, Pa.-based company notified the city’s Information Technology Agency in March--before it filed for bankruptcy protection--that it planned to raise rates in one of its service areas, that increase and increases announced to regulators in June for three other areas surprised and angered customers and officials.