$//Dismissal of Cable Rate Complaints, MO&O, DA 95-256//$ $/47 C.F.R. 543(a) Dismissal of Rate Complaints/$ $/Part 76 Subpart N Cable Rate Regulation/$ FOR RECORD ONLY Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 DA 95-256 In the Matter of ) ) Multimedia Cablevision, Inc. ) IL0538 Lisle, Ill. ) King Videocable Co. ) MN0394 South Washington County, MN ) MN0396 ) MN0399 ) MN0400 ) MN0401 ) Vantage Cable Assoc., L.P. ) WY0088, Big Piney, WY ) Multi-Cablevision ) MI0704, Whitmore Lake, MI ) Community TV Corp. ) NH0009 Gilford, NH ) NH0073 Meredith, NH ) NH0158 New Durham, NH ) Sonic Cable Television of Northern ) California ) CA0090 Portola, CA ) Service Electric Cable TV, Inc. ) PA0479 Bethlehem, PA ) PA0478 Allentown, PA Motions to Dismiss Complaints ) Concerning Cable Services Rates ) ORDER Adopted: February 16, 1995 Released: February 21, 1995 By the Deputy Chief, Cable Services Bureau: 1. In this Order we grant several motions to dismiss complaints on the grounds that the complaints concern rates that are outside the jurisdiction and authority of this Commission. As explained below, the Commission regulates rates for cable programming services (CPS) only, and then only upon filing of a valid complaint. Our review reveals that the complaints listed at Attachment A below, while asserting that they challenge CPS rates, challenge only rates for basic services, not for CPS. These complaints therefore do not trigger the Commission's jurisdiction, and they are accordingly dismissed. 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 Cable Act distinguishes among basic cable service, premium cable service, and cable programming service; this Commission regulates only cable programming service. CPS includes all video programming distributed over the system that is not on the basic service tier and for which the operator does not charge on a per-channel or per-program basis. The filing of a valid complaint against CPS rates triggers an obligation for 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. In each case captioned above, the operator did file either an FCC Form 393 benchmark rate justification submission, or a cost of service rate justification submission. In each case, the operator also filed a Motion to Dismiss the complaint on the grounds that it challenged rates for service(s) outside this Commission's jurisdiction. The operators argue that challenges against rates for basic service should be submitted to the appropriate local franchising authority rather than to the Commission. 4. Each of the complaints under consideration here was filed with this Commission on an FCC Form 329. FCC Form 329 is used by subscribers or local franchising authorities wishing to lodge with the Commission a complaint about an operator's CPS rates. The form is entitled "Cable Programming Services Rate Complaint." While it is designed for use in challenging upper tier rates, the form itself does not explain or define basic tier, premium, or cable programming services tier, but simply uses the term 'cable programming services' or 'CPS.' It is thus possible that a complainant might complete such a complaint form, and might check the box which states that "this complaint challenges the operator's CPS rates," without actually having distinguished or understood the difference between basic tier rates, premium service rates, and CPS tier rates. 5. We have examined the complaints listed in Attachment A, and the motions to dismiss filed against them, and we conclude that each complaint challenges only basic rates, not CPS rates. Although in most cases the complainant has checked the box indicating that the rates challenged are CPS rates, and that these rates violate the Commission's rules, the specific information provided by the complainant indicates that only basic rates are actually at issue. When only basic rates are being challenged, the complaint should properly be brought to the attention of the local franchise authority in the first instance, and not filed with this Commission. If one of these complaints does in fact challenge CPS rates, the complainant should file a petition for reconsideration providing information adequate to support its challenge. 6. Accordingly, IT IS ORDERED, that the motions to dismiss considered herein ARE GRANTED to the extent discussed above. 7. IT IS FURTHER ORDERED, pursuant to Section 623(a)(2)(A) and (B), 47 U.S.C. 543(a)(2)(A) and (B), that the complaints listed in Appendix A hereto ARE DISMISSED. FEDERAL COMMUNICATIONS COMMISSION Gregory J. Vogt Deputy Chief, Cable Services Bureau Attachment A Complaints Dismissed by this Order Cable Operator CUID No., Community Complainant Multimedia Cablevision, IL0538 Lisle, Ill. Bernadine Clark Inc. King Videocable Co. MN0394 So. Washington County Cable MN0396 Commission MN0399 MN0400 MN0401 Vantage Cable Assoc.,WY0088, Big Piney, WY Town of Big Piney, WY L.P. Multi-Cablevision MI0704, Whitmore Harry Post Lake, MI Community TV Corp. NH0009 Gilford, NH Town of Gilford NH0073 Meredith, NH Town of Meredith NH0158 New Durham, NH Town of New Durham Sonic Cable Television CA0090 Portola, CA City of Portola of Northern California Service Electric Cable TV, PA0479 Bethlehem, PAStanley J. Wynman Inc. PA0478 Allentown, PA Lynn B. Snyder, Charlotte R. Snyder