FOR FCC RECORD ONLY $//King Videocable Company, Los Angeles, CA, MO&O, DA 95-127//$ $/76.922 Rates for Cable Programming Service tiers/$ $/benchmark cable rates/$ Before the Federal Communications Commission Washington, D.C. DA 95-127 In the matter of ) ) King Videocable Company) CUID No. CA0219 Los Angeles, California) ) Benchmark Filing To Support ) Cable Programming Service Price ) Memorandum Opinion and Order Adopted: January 31, 1995 Released: February 1, 1995 By the Chief, Cable Services Bureau: Introduction 1. Here we consider complaints about the price King Videocable Company ("King") was charging for its cable programming service ("CPS") tier in Los Angeles, California, CUID No. CA0219. King has attempted to justify its price through a benchmark showing on FCC Form 393. This order addresses the reasonableness of King's price only through May 14, 1994. At a later time we will issue a separate order addressing the reasonableness of the price after that date. 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. Procedural Matters 4. The first valid CPS complaint was completed and served on King on November 4, 1993. The Commission received the complaint on November 9, 1993. 5. King attempted to justify its CPS price through an FCC Form 393 filed on December 6, 1993. King amended its justification on June 30, 1994 in response to a Cable Services Bureau Order citing common deficiencies observed in benchmark filings generally, and on December 16, 1994 and December 20, 1994 in response to inquiries by the Commission. Discussion 6. King asserts that its monthly CPS tier price of $7.37 per subscriber is justified by its benchmark filing because its price is equal to the maximum permitted charge of $7.37 as calculated in the filing. Upon review of King's Form 393, we have found no apparent errors that would require a recalculation of King's maximum permitted CPS price. Conclusions 7. Upon review of the record herein, we conclude that King has demonstrated that $7.37 per month (plus franchise fee) was the maximum reasonable CPS tier price for the period November 9, 1993 to May 14, 1994. 8. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's Rules, 47 C.F.R.  0.321, that the November 4, 1993 complaint against the cable programming service price charged by King in Los Angeles, California, CUID No. CA0219, and all other complaints relating to the same price, ARE DENIED TO THE EXTENT INDICATED HEREIN. 9. IT IS FURTHER ORDERED, that the benchmark filing submitted by King with respect to Los Angeles, California, CUID No. CA0219, for the period of November 9, 1993 to May 14, 1994, justifies a maximum price of $7.37 per month (plus franchise fee) for King's cable programming service tier. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau