A 2016 merger between Spectrum, which provides cable and broadband services to many St. Lawrence County residents, and Time Warner Cable Inc., was revoked by the state Friday, July 27.

The New York State Public Service Commission revoked the approval of the agreement between Charter Communications, Inc. and Time Warner Cable, Inc. because Charter, doing business as Spectrum, has — “through word and deed” — made clear that it has no intention of providing the public benefits upon which the commission's earlier approval was conditioned, said a press release from the PSC.

In addition, the commission directed counsel to bring an enforcement action in State Supreme Court to seek additional penalties for Charter's past failures and ongoing non-compliance, the press release said.

That enforcement action was to be filed July 27 in State Supreme Court in Albany.

With its decision, the CPSC determined that Charter failed to deliver the benefits to North Country residents and other New Yorkers that were at the core of the merger approval.

The various instances of misconduct include, according to the PSC,

• the company’s repeated failures to meet deadlines

• Charter’s attempts to skirt obligations to serve rural communities

• unsafe practices in the field

• its failure to fully commit to its obligations under the 2016 merger agreement; and

• the company’s purposeful obfuscation of its performance and compliance obligations to the commission and its customers.

These recurring failures led the Commission to the broader conclusion that the company was not interested in being a good corporate citizen and that the Commission could no longer in good faith and conscience allow it to operate in New York,” the press release said.

“Today’s actions are meant to address Charter’s failings and to ensure New York has a partner interested in the public good, not just lining its pockets,” the press release said.

“Charter's repeated failures to serve New Yorkers and honor its commitments are well documented and are only getting worse. After more than a year of administrative enforcement efforts to bring Charter into compliance with the Commission’s merger order, the time has come for stronger actions to protect New Yorkers and the public interest,” said Commission Chair John B. Rhodes. “Charter’s non-compliance and brazenly disrespectful behavior toward New York State and its customers necessitates the actions taken today seeking court-ordered penalties for its failures, and revoking the Charter merger approval.”

On Jan. 8, 2016, the PSC approved Charter’s acquisition of Time Warner.

To obtain approval, Charter agreed to conditions to advance the public interest, including delivering broadband speed upgrades to 100 Mbps across northern New York and statewide by the end of 2018, and 300 Mbps by the end of 2019, and building out its network to pass an additional 145,000 unserved or under-served homes and businesses in the state's less densely populated areas within four years of the closing of the transaction.

In approving the transaction, the PSC stated that the merger “must yield positive net benefits, after balancing the expected benefits properly attributable to the transaction offset by any risks or detriments that would remain after applying reasonable mitigation measures. Since that time, however, not only has Charter’s performance been wholly deficient and its behavior before the Commission contrary to the laws of New York State and regulations of the Commission, but it has also repeatedly claimed not to be bound by the terms of the Commission's approval. Such egregious conduct cannot be condoned and the only reasonable remedy that remains is for the Commission to revoke the 2016 merger approval and order Charter to plan for an orderly transition to a successor provider(s) to serve its New York State customers.”

The PSC said since the merger, Charter has repeatedly failed to meet its commitments to the state, including its obligation to timely extend its high-speed broadband network to 145,000 unserved and underserved homes and businesses in less densely populated areas of the state, the press release said.

As a result of Charter's “adamant refusal” to abide by the conditions of the merger approval, the commission ordered Charter to develop a transition plan.

To ensure that Charter's customers are not negatively affected during that process, the PSC ordered the company to maintain service to the company’s more than 2 million customers in New York until an orderly transition occurs.

“By its own admission, Charter has failed to meet its commitment to expand its service network that was specifically called for as part of the Commission’s decision to approve the merger between Charter and Time Warner Cable,” the commission said.

The company’s failure to meet its June 18, 2018 target by more than 40 percent is only the most recent example, the press release said. “Rather than accept responsibility Charter has tried to pass the blame for its failure on other companies, such as utility pole owners, which have processed tens of thousands of pole applications submitted by Charter.”

The commission also directed that Charter pay $1 million to the state treasury for missing the June milestone, bringing the total amount of payments ordered by the commission to $3 million, and directed the counsel to bring an enforcement action in state Supreme Court to seek additional penalties for Charter's past failures and ongoing noncompliance.

Charter is ordered to file within 60 days a plan with the commission to ensure an orderly transition to a successor provider(s).

During the transition process, Charter must continue to comply with all local franchises it holds in northern New York and across the state and all obligations under the Public Service Law and commission regulations.

Charter must ensure no interruption in service is experienced by customers, and, in the event that Charter does not do so, the commission will take further steps, including seeking injunctive relief in Supreme Court in order to protect New York consumers.

Charter is the largest cable provider in the state. It provides digital cable television, broadband internet and VoIP telephone service to more than two million subscribers in New York State in more than 1,150 communities, many of them in St. Lawrence County, with a potential customer base of five million households in its franchise areas.