FOR FCC RECORD ONLY $//Century Cable TV, MO&O, DA-1627//$ $/76.922 Rates for Cable Programming Service tiers/$ $/benchmark cable rates/$ Before the Federal Communications Commission Washington, D.C. DA 94-1627 In the matter of ) ) Century Cable TV ) ) Benchmark Filings To Support ) Cable Programming Service Prices ) Memorandum Opinion and Order Adopted: December 30, 1994 Released: January 3, 1995 By the Chief, Cable Services Bureau: Introduction 1. Here we consider complaints about the prices Century Cable TV ("Century") charges for its cable programming service ("CPS") tiers in numerous communities around the country (the "subject communities"). See Appendix for a list of the subject communities and the number of basic and CPS channels Century offered in each community both before and after September 1, 1993. Rather than attempting to justify its prices through a benchmark or cost of service showing, Century responded to the complaints by stating that it has no CPS tier in those systems. On December 21, 1994, Century submitted rate cards and channel line- up cards in support of its claim that CPS tiers no longer exist in any of the subject communities. 2. Under the Cable Television Consumer Protection and Competition Act of 1992, and our rules implementing it, 47 C.F.R. Part 76, Subpart N, the Commission must review CPS prices upon the filing of a valid complaint. The filing of a valid complaint triggers an obligation on behalf of the cable operator to file a justification of its CPS prices. Under our rules, an operator may attempt to justify its prices through either a benchmark showing or a cost-of-service showing. In either case, the operator has the burden of demonstrating that its CPS prices are not unreasonable. 3. The Commission's original rate regulations took effect on September 1, 1993. The Commission subsequently revised its rate regulations effective May 15, 1994. Operators with valid CPS complaints filed against them prior to May 15, 1994 must demonstrate that their CPS prices were in compliance with the Commission's initial rules from the time the complaint was filed through May 14, 1994, and that their prices were in compliance with the revised rules from May 15, 1994 forward. Operators attempting to justify their prices for the period prior to May 15, 1994 through a benchmark showing must complete and file FCC Form 393. Generally, to justify their prices for the period beginning May 15, 1994 through a benchmark showing, operators must use the FCC Form 1200 series. Background 4. The Cable Services Bureau has released orders resolving letters of inquiry ("LOIs") regarding Century's systems in Huntington, West Virginia; Morgantown, West Virginia; Muncie, Indiana; Owensboro, Kentucky; Yuma, Arizona; Brunswick, Georgia; and San Juan, Puerto Rico. Relying on the Commission's Going Forward Order, the Bureau's orders addressed the restructured service offerings implemented in these communities beginning September 1, 1993, in which Century eliminated its CPS tiers and offered instead only a basic service tier and a few a la carte channels. In each of these orders, the Bureau found that Century's restructured service offerings do not constitute a clear evasion of our rate rules. Specifically, the Bureau found that Century did not avoid rate regulation of most of its previous CPS channels because it moved those channels into a rate-regulated basic tier. With regard to the other channels, the orders permit Century to treat its a la carte packages as new product tiers that may be priced at market levels under the Going Forward Order. 5. Since the LOI orders found that the elimination of Century's CPS tiers does not constitute a clear evasion of rate regulation and those channels not placed on the basic service tier could be treated as a new product tier, there were no CPS tiers in those communities, as of September 1, 1993, that were subject to rate regulation pursuant to Section 76.922 of our rules. Therefore, the Bureau dismissed all FCC Form 329 complaints filed against Century in each of those seven communities. Discussion 6. The rate cards and channel line-up cards submitted by Century for each of the subject communities indicate that Century restructured its service offerings in the subject communities on September 1, 1993 in essentially the same way that it did for the seven areas mentioned above where LOI orders have been issued. Specifically, Century discontinued its CPS offerings and placed all of its channels into a single basic service tier, except for a few channels which it offered on an a la carte basis. In the subject communities, Century offered three to six a la carte channels. Likewise, Century's a la carte offerings consisted of three to six channels in the above-mentioned areas where LOI orders have been issued. 7. We feel that we have sufficient information regarding Century's restructured offerings in the subject communities to conclude, in accord with the Going Forward Order, that they should be treated the same way that we treated Century's restructured offerings in the seven communities where we issued LOI orders. As in these latter communities, although the instant restructuring resulted in the elimination of Century's CPS tiers, the small number of channels that were offered in the a la carte packages did not constitute an evasion of our then existing rules. Therefore, consistent with the action taken in the LOI orders, we will allow Century to treat its a la carte packages in the subject communities as new product tiers even though they would not qualify as new product tiers under the Going Forward Order because one of the conditions for a new product tier is that channels may not be removed from a basic service tier or a CPS tier. Since there are no longer any CPS rates subject to regulation, we need not rule on the FCC Form 329 complaints pending against Century in these communities. Conclusion 8. Accordingly, IT IS ORDERED that the a la carte packages created by Century Cable TV in the communities listed in the attached Appendix may be treated as new product tiers under our Going Forward Order. 9. IT IS FURTHER ORDERED that all FCC Form 329 complaints pending against the CPS rates of Century Cable TV in each of the communities listed in the attached Appendix are DISMISSED. 10. This action is taken pursuant to delegated authority under Section 0.321 of the Commission's Rules, 47 C.F.R.  0.321. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau APPENDIX 8/31/93 9/1/93 Pre-Regulation Post Regulation CUID Community Basic Tiers Basic Tiers A la Carte AL0025 City of Enterprise 11 22 29 0 3 AZ0019 City of Yuma 14 17 28 0 3 CA0117 Town of Yucca Valley 14 18 29 0 3 CA0018 City of La Habra 24 14 32 0 6 CA0016 City of Brea 27 14 38 0 6 CA0579 City of Redondo Beach 14 17 32 0 4 CT0110 Town of Old Lyme 17 16 29 0 4 CT0039 Town of Norwich 19 13 29 0 3 GA0119 County of Glynn 24 32 50 0 6 MS0024 City of Indianola 13 19 29 0 3 MS0021 City of Greenwood 13 22 32 0 3 NC0020 City of Laurinburg 14 16 27 0 3 NM0093 Village of Hatch 10 11 17 0 4 NM0085 County of Los Alamos 12 19 30 0 3 NM0013 City of Lovington 18 19 34 0 3 NM0022 City of Tucumcari 13 19 30 0 3 OH0100 City of Portsmouth 17 17 31 0 3 OH0400 Township of Brookfield 14 20 29 0 5 PA1439 City of Farrell 14 20 29 0 5 PA0485 City of Hermitage 14 20 29 0 5 PA0486 City of Sharon 14 20 29 0 5 PA0487 Borough of Sharpsville 14 20 29 0 5 PA2507 Township of Shenango 14 20 29 0 5 SC0010 City of Hartsville 14 19 30 0 3 WI0142 City of Waukesha 21 20 38 0 4 WI0350 Town of Pewaukee 21 20 38 0 4 WI0352 City of Port Washington 21 19 37 0 4 WI0131 City of Wauwatosa 21 20 38 0 4 WV0126 County of Cabell 15 18 30 0 3