FOR FCC RECORD ONLY $//Sammons Communications, Inc., Benbrook, Texas, MO&O, DA-95-307//$ $/76.922 Rates for Cable Programming Service tiers/$ $/benchmark cable rates/$ Before the Federal Communications Commission Washington, D.C. DA 95-307 In the matter of ) ) Sammons Communications, Inc.) Benbrook, Texas ) CUID No. TX0647 ) Benchmark Filing To Support ) Cable Programming Service Price ) Memorandum Opinion and Order Adopted: February 23, 1995 Released: February 24, 1995 By the Chief, Cable Services Bureau: Introduction 1. Here we consider a complaint about the price Sammons Communications, Inc. ("Sammons") was charging for its cable programming service ("CPS") tier in Benbrook, Texas, CUID No. TX0647. Sammons has chosen to attempt to justify its price through a benchmark showing on FCC Form 393. This Order addresses the reasonableness of Sammons' 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 complaint was served on Sammons on January 17, 1994. The Commission received the complaint on January 21, 1994. 5. Sammons attempted to justify its CPS price through an FCC Form 393 filed on February 25, 1994 in response to the complaint. Sammons amended its justification on June 24, 1994 in response to a Cable Services Bureau Order citing common deficiencies observed in benchmark filings generally. On December 27, 1994, Sammons responded to a Commission letter, which requested further clarification of Sammons' showing. Sammons also submitted information on February 6, 1995 in response to a Cable Services Bureau Public Notice offering operators the opportunity to make optional supplemental filings. Discussion 6. In its amended benchmark filing of June 24, 1994, Sammons calculated a maximum permitted rate for the CPS tier of $7.85 per month (plus franchise fee). Upon review of this filing, we have found no apparent errors that would require a recalculation of this maximum permitted rate. However, Sammons' actual monthly charge for its CPS tier was $8.00 (plus franchise fee). Thus, Sammons has failed to demonstrate that the actual charge for its CPS tier was at or below the maximum permitted rate. Conclusions 7. Upon review of the record herein, we conclude that Sammons' showing supports a maximum reasonable CPS tier price of $7.85 per month (plus franchise fee) for the period January 21, 1994 to May 14, 1994. We further determine that we will order an appropriate refund pursuant to Section 76.957 of the Commission's Rules, 47 C.F.R.  76.957, in order to reimburse subscribers for the amount they paid in excess of a reasonable price. 8. We further conclude that Sammons must reflect in its Form 1200 rate filing for the period after May 14, 1994 the fact that Sammons' price during the earlier period was unreasonable. We reserve the right to make further adjustments to Sammons' price for the period after May 14, 1994, upon completion of our review of Sammons' FCC Form 1200 rate filing. 9. We further conclude that Sammons has submitted in good faith a timely optional supplemental filing in response to our December 29, 1994 Public Notice. As provided in the Public Notice, we will relieve Sammons of its obligation to obtain advance Commission approval of adjustments to its CPS price for one year following the release of this Order. 10. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's Rules, 47 C.F.R.  0.321, that the January 17, 1994 complaint against the cable programming service price charged by Sammons Communications, Inc. in Benbrook, Texas, CUID No. TX0647, IS GRANTED TO THE EXTENT INDICATED HEREIN. 11. IT IS FURTHER ORDERED that the benchmark filing submitted by Sammons Communications, Inc. with respect to Benbrook, Texas, CUID No. TX0647, for the period of January 21, 1994 to May 14, 1994, justifies a maximum price of $7.85 per month (plus franchise fee) for Sammons Communications, Inc.'s cable programming service tier. 12. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's Rules, 47 C.F.R.  76.961, that Sammons Communications, Inc. shall refund to subscribers that portion of the amounts paid for cable programming service from January 21, 1994 to May 14, 1994, that exceeded $7.85 (plus franchise fee) per month and was thus unreasonable, plus interest to the date of the refund. 13. IT IS FURTHER ORDERED that Sammons Communications, Inc. shall promptly determine the overcharges to CPS subscribers for the stated period, and shall within 30 days of the release of this Order file a report with the Chief, Cable Services Bureau, stating the cumulative refund amount so determined (including franchise fees and interest), describing the calculation thereof, and describing its plan to implement the refund within 60 days of Commission approval thereof. 14. IT IS FURTHER ORDERED, pursuant to Section 76.922(b)(4)(C) of the Commission's Rules, 47 C.F.R.  76.922(b)(4)(C), that Sammons Communications, Inc. shall, within 30 days of the release of this Order, revise its Form 1200 filing with respect to its Benbrook, Texas franchise area, CUID No. TX0647, for the period beginning May 15, 1994, to reduce the monthly charge per tier as of March 31, 1994 for Tier 2 (Line A6b) to equal the maximum price for that franchise area (plus franchise fee). 15. IT IS FURTHER ORDERED that Sammons Communications, Inc. shall place into effect, within 30 days after its submission of the revised Form 1200 filing required above, a CPS tier price for its Benbrook, Texas franchise area, CUID No. TX0647, that reflects the reduction in the CPS rate determined in this Order. 16. IT IS FURTHER ORDERED, pursuant to Section 76.960 of the Commission's Rules, 47 C.F.R.  76.960, that Sammons Communications, Inc. shall not be required to obtain advance Commission approval of adjustments to its CPS price for one year following the release of this Order. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau