MUSCATINE, Iowa — MPW officials said Tuesday the utility will raise its cable TV rates to help cover the expense of converting to digital cable early next year. In addition, the municipal utility has also announced that it will convert all of its channels to digital, rather than just the basic channels as the current mandate requires.

“The price adjustment is necessary because of the continual price increase in programming, debt-service requirements and inflation in general,” said Gary Wieskamp, director of utility relations.

He added that programming costs alone have risen 4.2 percent per year, per subscriber and the company had to figure that into the decision.

During Tuesday evening’s Board of Water, Electric and Communications Trustees meeting, the Board voted unanimously to approve the first MPW Digital TV rate increase since September 2007, along with some other changes.

The increases and changes, which will go into effect Jan. 12, 2009, include the following:

n Basic cable will increase 5.71 percent, from $17.50 per month to $18.50. CNN Headline News and Univision will no longer be available with this package and QVC home shopping will be added.

n Expanded basic cable will increase 5.81 percent, from $49.89 to $52.79. This package will become Select Service and add six new channels to the lineup including SOAPNEt, Versus, Speed Channel, Women’s Entertainment, Discovery Kids and Discovery Science.

No other packages will be affected at this time.

“It’s not uncommon to have annual price adjustments whether you’re satellite or cable,” Wieskamp said.

The adjustments this time are partly the result of the federal requirement that all full-power broadcast television stations in the United States stop broadcasting on analog airwaves on Feb. 17, 2009, and begin broadcasting digital signals.

Under the federal mandate, any person with a television set that uses an antennae for reception, unless they have a digital TV, will need to get a digital converter box.

For more information on acquiring the box and rebates for purchase, go to www.dtv2009.gov.

MPW Digital plans to take the digital signal from its providers and convert it back to analog so that subscribers will still be able to watch their programming.

“This is a conscious decision to provide our customers with analog basic service. We will do that until we run out of bandwidth or the government mandates the company to go all digital,” Wieskamp said.

However, at the end of 2009, subscribers with analog basic and expanded basic cable will have to make changes in order to receive any cable service above basic. The options will be to rent a digital converter box for $4 per month, purchase their own box or purchase a TV with two-way cable card compatibility. Subscribers can rent a two-way compatibility card from MPW for $1 per month.

Customers who have multiple TVs will need to rent a $4 box for each television in the home on which they wish to receive any service beyond basic.

The move to all-digital cable is a response to changing times in which everything from phones to alarm clocks are being converted to digital. It’s also a response to customers’ requests for high-definition programming.

Wieskamp said no one has to switch to a higher-tiered program lineup but that MPW is encouraging it because of all the advantages that going digital offers.

Those advantages include access to better picture quality, high-definition programming, video on demand and pay per view, premium channels, digital video recording and 48 music channels.

In other action

n The Board approved a resolution for a loan agreement between Muscatine Power and Water and Central State Bank, First National Bank of Muscatine and Community Bank. The agreement provides for the borrowing of up to $4.8 million to allow the Communications Utility to draw down on the loan as necessary to cover project capital expenditures for digital transition over a two year period of time.

n The Board approved the 2009 operating budgets for the Electric, Water and Communications Utilities.

n The Board approved the Strategic Plan Update, which includes critical issues that will be assigned to teams for further development.

n The Board approved authorizing the General Manger to enter into required contracts with Midwest Independent System Operator to provide services.

Reporter contact information

Melissa Regennitter, 563-262-0526

mregennitter@muscatinejournal.com