FOR FCC RECORD ONLY $//U.S. Cablevision Corporation, NY, MO&O, DA 95-357//$ $/76.922 Rates for Cable Programming Service tiers/$ $/benchmark cable rates/$ Before the Federal Communications Commission Washington, D.C. DA 95-357 In the matter of ) ) U.S. Cablevision Corporation) CUID Nos. NY0047, NY0048, NY0271, ) NY0272, NY0273, NY0276, NY0274 ) NY0305, NY0306, NY0307, NY1209 Benchmark Filing To Support ) NY0308, NY0309, NY0375, NY0726, Cable Programming Service Price ) NY1116, NY1208 Memorandum Opinion and Order Adopted: February 24, 1995 Released: February 24, 1995 By the Chief, Cable Services Bureau: Introduction 1. Here we consider complaints about the price U.S. Cablevision Corporation ("U.S. Cablevision") was charging for its cable programming service ("CPS") tier in the communities designated by the CUID numbers referenced above and on Appendix A. U.S. Cablevision has attempted to justify its price through identical benchmark showings on FCC Forms 393. This Order addresses the reasonableness of U.S. Cablevision'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 complete and timely CPS complaint in each of the franchise areas was completed and served on U.S. Cablevision and filed with the Commission as set forth on Appendix A. 5. U.S. Cablevision attempted to justify its CPS price through FCC Forms 393 filed on January 24, 25 and 26, 1994. U.S. Cablevision amended its justification on June 23, 1994 in response to a Cable Services Bureau Order citing common deficiencies observed in benchmark filings generally, and on January 25, 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 filings of January 25, 1995, U.S. Cablevision calculated a maximum permitted price for the CPS tier of $9.66 per month. Upon review of U.S. Cablevision's filing, we have found no apparent errors that would require a recalculation of U.S. Cablevision's maximum permitted CPS price of $9.66. However, U.S. Cablevision's actual price for the CPS tier was $9.69 per month. Thus, U.S. Cablevision 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 U.S. Cablevision's showing supports a maximum reasonable CPS tier price of $9.66 per month (plus franchise fee) for the period from the filing of the earliest complaint in each franchise area (as shown on Appendix A) 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 U.S. Cablevision must reflect in its FCC Form 1200 rate filing for the period after May 14, 1994 the fact that U.S. Cablevision's price during the earlier period was unreasonable. We reserve the right to make further adjustments to U.S. Cablevision's prices for the period after May 14, 1994 upon completion of our review of U.S. Cablevision's FCC Form 1200 rate filing. 9. We further conclude that U.S. Cablevision 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 U.S. Cablevision 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 complaints referenced on Appendix A against the cable programming service price charged by U.S. Cablevision Corporation, and all other complaints in these franchise areas 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 U.S. Cablevision Corporation for the period from the filing of the earliest complaint in each franchise area (as shown on Appendix A) to May 14, 1994, justifies a maximum price of $9.65 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 U.S. Cablevision Corporation shall, within 30 days of the release of this Order, revise its Form 1200 filing with respect to the franchise areas set forth on Appendix A 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 U.S. Cablevision Corporation 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 U.S. Cablevision Corporation 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 APPENDIX A CUID No. Date First Complaint Date Complaint Filed with FCC Served on U.S. Cablevision NY0047 12/29/93 12/23/93 Blooming Grove NY0048 12/28/93 12/22/93 Monroe NY0271 12/21/93 12/17/93 Beacon NY0272 12/22/93 12/20/93 Fishkill Village NY0273 12/30/93 12/27/93 Fishkill Town NY0274 12/27/93 12/20/93 Hyde Park NY0276 12/30/93 12/27/93 Lloyd NY0305 12/28/93 12/23/93 Monroe Village NY0306 1/3/94 12/29/93 Marlborough NY0307 12/29/93 12/23/93 Plattekill NY0308 12/27/93 12/20/93 Wappinger NY0309 12/21/93 12/17/93 Poughkeepsie NY0375 12/21/93 12/17/93 Lagrange NY0726 1/3/94 12/29/93 Harriman NY1116 12/30/93 12/27/93 Cold Springs NY1208 1/5/94 12/28/93 Philipstown NY1209 1/5/94 12/28/93 Nelsonville