FOR FCC RECORD ONLY $//Copley/Colony Harbor Cablevision, Inc., MO&O, DA 95-337//$ $/76.922 Rates for Cable Programming Service tiers/$ $/benchmark cable rates/$ Before the Federal Communications Commission Washington, D.C. DA 95-337 In the matter of ) ) Copley/Colony Harbor Cablevision, Inc.) CUID No. CA1102 Area M, Wilmington, California ) ) Benchmark Filing To Support ) Cable Programming Service Price ) Memorandum Opinion and Order Adopted: February 22, 1995 Released: February 24, 1995 By the Deputy Chief, Cable Services Bureau: Introduction 1. Here we consider a complaint about the price Copley/Colony Harbor Cablevision, Inc. ("Colony") was charging for its cable programming service ("CPS") tier in Area M, Wilmington, California, CUID No. CA1102. Colony has attempted to justify its price through a benchmark showing on FCC Form 393. This Order addresses the reasonableness of Colony'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 Colony on January 24, 1994. The Commission received the complaint on January 31, 1994. 5. Colony attempted to justify its CPS price through an FCC Form 393 filed on March 16, 1994. Colony amended its justification on June 24, 1994 in response to a Cable Services Bureau Order citing common deficiencies observed in benchmark filings generally, and on January 24, 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 January 24, 1995, Colony calculated a maximum permitted price for the CPS tier of $6.80 per month. Upon review of Colony's filing, we have found no apparent errors that would require a recalculation of Colony's maximum permitted CPS price. However, Colony's actual price for the CPS tier was $6.86 per month. Thus, Colony has failed to demonstrate that its price for the CPS tier was not unreasonable. Conclusions 7. Upon review of the record herein, we conclude that Colony's showing supports a maximum reasonable CPS tier price of $6.80 per month (plus franchise fee) for the period January 31, 1994 to May 14, 1994. However, we further determine that the refund at issue is such a de minimis amount that it would not serve the public interest to order a refund. 8. We further conclude that Colony must reflect in its FCC Form 1200 rate filing for the period after May 14, 1994 the fact that Colony's price during the earlier period was unreasonable. We reserve the right to make further adjustments to Colony's price for the period after May 14, 1994 upon completion of our review of Colony's FCC Form 1200 rate filing. 9. We further conclude that Colony 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 Colony 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 24, 1994 complaint against the cable programming service price charged by Copley/Colony Harbor Cablevision, Inc. in Area M, Wilmington, California, CUID No. CA1102, and all other complaints in this franchise area relating to the same price, ARE GRANTED TO THE EXTENT INDICATED HEREIN AND DENIED TO THE EXTENT INDICATED HEREIN. 11. IT IS FURTHER ORDERED that the benchmark filing submitted by Copley/Colony Harbor Cablevision, Inc. with respect to Area M, Wilmington, California, CUID No. CA1102, for the period of January 31, 1994 to May 14, 1994, justifies a maximum price of $6.80 per month (plus franchise fee) for the cable programming service tier. 12. 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 Copley/Colony Harbor Cablevision, Inc. shall, within 30 days of the release of this Order, revise its Form 1200 filing with respect to Area M, Wilmington, California, CUID No. CA1102, 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 permitted rate (plus franchise fee). 13. IT IS FURTHER ORDERED that Copley/Colony Harbor Cablevision, Inc. shall place into effect, within 30 days after its submission of the revised Form 1200 filing required above, a CPS tier price that reflects the reduction in the CPS rate determined in this Order. 14. IT IS FURTHER ORDERED, pursuant to Section 76.960 of the Commission's rules, 47 C.F.R.  76.960, that Copley/Colony Harbor Cablevision, 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 Gregory J. Vogt Deputy Chief, Cable Services Bureau