FOR FCC RECORD ONLY $//New Channels Corporation, Oneonta, New York, MO&O, DA 95-205//$ $/ 76.922 Rates for the basic service tier and cable programming services tier/$ $/benchmark cable rates/$ Before the Federal Communications Commission Washington, D.C. DA 95-205 In the matter of ) ) CUID Nos. NY0230, NY0231, NY0232 NewChannels Corporation ) NY0233, NY0243, NY0567 Oneonta, New York ) NY0626, NY0649, NY0809 ) and NY1374 ) Benchmark Filing To Support ) Cable Programming Service Price ) Memorandum Opinion and Order Adopted: February 8, 1995 Released: February 10, 1995 By the Chief, Cable Services Bureau: Introduction 1. Here we consider complaints about the price NewChannels Corporation ("NewChannels") was charging for its cable programming service ("CPS") tier in CUID Nos. NY0230, NY0231, NY0232, NY0233, NY0243, NY0567, NY0626, NY0649, NY0809, and NY1374. NewChannels has chosen to attempt to justify its price through a benchmark showing on FCC Form 393. This order addresses the reasonableness of NewChannels's price only through May 14, 1994. At a later date 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 CPS complaint was completed and served on NewChannels on September 30, 1993. The Commission received the complaint on October 4, 1993. 5. Newchannels attempted to justify its CPS price through FCC Form 393's filed on November 15, l993 for CUID No. NY0626 and February 10, 1994 for CUID Nos. NY0567, NY0649 and NY0809 and February 14, 1994 for CUID Nos. NY0230, NY0231, NY0232, NY0233, NY0243 and NY1374. NewChannels amended its justifications on July 5, 1994, in response to a Cable Services Bureau Order citing common deficiencies observed in benchmark filings generally, Discussion 6. NewChannels asserts that its monthly CPS tier price of $10.18 per subscriber is justified by its benchmark filing because its price is equal to the maximum permitted charge of $10.18 as calculated in the filing. Upon review of NewChannels's Form 393, we have found no apparent errors that would require a recalculation of NewChannels's maximum permitted CPS price. Conclusions 7. Upon review of the record herein, we conclude that NewChannels has demonstrated that $10.18 per month (plus franchise fee) was the maximum reasonable CPS tier price for the period January 4, 1994 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 complaints against the cable programming service price charged by NewChannels Corporation in Oneonta, New York, CUID Nos. NY0230, NY0231, NY0232, NY0233, NY0243, NY0567, NY0626, NY0649, NY0809, and NY1374, 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 NewChannels Corporation in Oneonta, New York, with respect to CUID Nos. NY0230, NY0231, NY0232, NY0233, NY0243, NY0567, NY0626, NY0649, NY0809, NY1374 for the period of January 4, 1994 to May 14, 1994, justifies a maximum price of $10.18 per month (plus franchise fee) for NewChannels Corporation's cable programming service tier. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau