FOR FCC RECORD ONLY $//Cablevision Industries, Liberty, New York, MO&O, DA-95-225//$ $/76.922 Rates for Cable Programming Service Tiers/$ $/benchmark cable rates/$ Before the Federal Communications Commission Washington, D.C. DA 95-225 In the Matter of ) ) CUID Nos. NY0268, NY0356 ) NY0397, NY0440, NY0492, Cablevision Industries ) NY0502, NY0503, NY0514, Orange County, et al. ) NY0515, NY0600, NY0717, New York ) NY0721, NY0782, NY0788, ) NY0928, NY1088, NY1394 Benchmark Filings to Support ) Cable Programming Service Prices ) Memorandum Opinion and Order Adopted: February 13, 1995 Released: February 14, 1995 By the Deputy Chief, Cable Services Bureau: Introduction 1. Here we consider complaints about the prices Cablevision Industries ("CVI") was charging for cable service in Orange County, New York, CUID Nos. NY0492, NY0502, NY0503, NY0514, NY0717, NY1088, Tioga County, CUID No. NY0268, Wayne County, CUID Nos. NY0347, NY0788, Madison County, CUID No. NY0356, Saratoga County, CUID Nos. NY0397, NY0928, Sullivan County, CUID Nos. NY0440, NY0721, Ulster County, CUID Nos. NY0515, NY0600, Onondaga County, CUID No. NY0782, and Niagara County, CUID No. NY1394. CVI has chosen to attempt to justify its prices through benchmark showings on FCC Form 393. 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 a cable operator's prices for its cable programming service ("CPS") tier 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. Discussion 4. The complaints against CVI for the communities designated by the above-listed CUID numbers state that they are being filed to object to a rate increase for the CPS tier offered by CVI. Under the Commission's rules, a complaint regarding a rate change for the CPS tier may be filed within 45 days from the date the complainant first receives a bill reflecting the rate change. However, after reviewing the records in these cases, we have determined that these complaints do not relate to changes in CVI's regulated CPS rates. Rather, the complaints object to changes in CVI's rates for basic tier service, associated equipment charges for receiving basic tier service, and a la carte packages that are not subject to rate regulation. The Commission is responsible for, and its jurisdiction is limited to, regulating rates for cable programming services. Accordingly, we find that we are without jurisdiction to consider the complaints discussed herein and shall dismiss them. 5. As of September 1, 1993, CVI offered subscribers a basic service tier, a CPS tier, and an a la carte package in each of the communities addressed herein. Prior to September 1, 1993, CVI, in each community listed above, removed three channels from previously regulated tiers into an a la carte package. At the same time, CVI replaced these channels on the regulated tiers with new channels. In early 1994, CVI raised its rates for the a la carte channels by approximately $1.35 in each community. However, CVI did not change its price for the preexisting CPS tier. Therefore, there was no change in the rate charged for the CPS tier that could constitute the basis for a valid complaint. 6. To the extent that these complaints object to changes in the rate charged for the basic tier and associated equipment, we lack jurisdiction to consider those complaints. Except in limited circumstances, the Commission does not have jurisdiction over rates for the basic service tier, and cannot act upon complaints concerning rates for that tier. When only basic rates are being challenged, the complaint should properly be brought to the attention of the local franchising authority in the first instance, and not filed with this Commission. 7. As for CVI's a la carte packages, we conclude that those packages are not subject to rate regulation. The a la carte packages at issue in the instant cases involve 3 channels which were moved from previously regulated tiers of service and replaced by other channels. In our earlier orders resolving letters of inquiry, we have determined that similarly constituted packages, created at a time when our rules did not provide clear guidance regarding the regulatory status of a la carte packages, could be treated as new product tiers that may be priced at market levels. We will apply the principles developed in those decisions to this case and permit CVI to treat its a la carte packages in the subject communities as new product tiers. Ordering Clauses 8. Accordingly, IT IS ORDERED that the complaints set forth in Appendix A ARE DISMISSED. 9. 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 Gregory J. Vogt Deputy Bureau Chief Cable Services Bureau Appendix A CUID No. Date Complaint Filed with FCC NY0268 03/28/94 NY0356 03/10/94 NY0397 03/25/94 NY0440 03/10/94 NY0492 05/09/94 NY0502 03/16/94 NY0503 03/21/94 NY0514 03/03/94 NY0515 03/15/94 NY0600 03/01/94 NY0717 03/28/94 NY0721 03/14/94 NY0782 03/01/94 NY0788 03/21/94 NY0928 03/28/94 NY1088 03/04/94 NY1394 03/03/94