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Council takes first reading of Comcast franchise agreement; PEG fee reduced to 2.55%
Summary
City staff presented a 10‑year cable franchise agreement with Comcast of Oregon on first reading. The agreement standardizes reporting rules and reduces the public educational and government (PEG) access fee from 3% to 2.55% per a recent FCC order; a second reading is scheduled later.
The Portland City Council heard and referred to second reading a proposed 10‑year franchise agreement with Comcast of Oregon on June 18, 2025. Staff said the ordinance updates reporting standards, aligns gross revenue reporting with generally accepted accounting principles and implements Federal Communications Commission guidance that permits cable providers to recover certain costs, which results in a reduced PEG (public, educational and government) access fee from 3% to 2.55%.
Council staff and the Mount Hood Cable Regulatory Commission briefed the council that the revised agreement also removes references to INET (an earlier technical network) and modernizes notice provisions to allow official communications by email. Staff said the MHCRC budget that funds PEG and capital grants to community media centers is accounted for in the city’s FY 2025–26 budget; the council took no final vote on the franchise at this meeting and scheduled the ordinance for a subsequent reading.
Councilors asked staff to ensure transparency about how PEG fee changes affect community media centers and to monitor long‑term trends as cable subscription revenues decline. Staff said the commission will conduct longer‑term planning to address changing revenue streams and capital needs for community access media.
