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A. a.(1)(a) i) a)Documentg21+e/ 00PleadingHeader for Numbered Pleading PaperE!n    X X` hp x (#%'0*,.8135@8:D1X1K3(6CG TimesCG Times BoldTimes New RomanTimes New Roman ItalicCG Times Italic8wC;,Xw PE37XPD7zC;, c!Xz_ pi7XV"G($,hG PE37hP7jC:,Xj\  P6G;XPd|DdpL|Dd~4ddC$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddzHxxHvppDXd<"dxtldpxxd"i~'^:DPddDDDdp4D48dddddddddd88pppX|pDL|pp||D8D\dDXdXdXDdd88d8ddddDL8ddddX`(`lD4l\DDD4DDDDDDDDd8XXXXXX|X|X|X|XD8D8D8D8ddddddddddXdbdddpdXXXXXlX~|X|X|X|XdddldldD8DdDDDdplld|8|P|D|D|8dvddddDDDpLpLpLpl|T|8|\ddddddl|X|X|Xd|DdpL|Dd~4ddC$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddzHxxHvppDXd<"dxtldpxxd"i~'K2^$(8<><q*"xxxxWWxxxWWkkxxxKIQ"i~'^:DTddDDDd4D48ddddddddddDDd||||DXp||dp||ppL8LTdDddXdX8dd88X8ddddLL8dXXXLP8PlD4lTDDD4DDDDDDdDd8|d|d|d|d|dX|X|X|X|XD8D8D8D8dddddddddpX|ddddpXd|d|d|d|dXXlXx|X|X|X|XdddldldD8DdDDDddllXp8pHpDp@p8dtdddd|L|L|LdLdLdLllpHp8pTddddddplpLpLpLdpDddLpDpdx4ddC,CWddddddddddddddddddddddddddddddddddddddddNHxxHhdLdddddd8@d<@d<DDppdDDxddzHxxHkddDpd<"dxtldxxd",tB^ f ^;C]ddCCCdCCCCddddddddddCCdxN`xoCCCddCdoYoYFdo8Co8odooYNCodddYdddd4dddddCddddddddo8dddddYYYYYN8N8N8N8oddddooooddpddddxodddXXddXddXdddddooL8doddNorddo8PdN8ppoddXXdpLoNpLodPDdopoopodXYXodoodddCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCdUUddddddFddddFCCssd44ddzzddd~ooCsdF"dsd9dCCzCddoddCdYds`zUvdddCCCCzozoYNYYYN8YooYdYzzdzddYYzozzzNdzYzzzzCCdddddddzCzdYC\   pxtll\tll@\@\`L"i~'^#)0<?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[ X- FOR FCC RECORD ONLY    Y-$//Time Warner Cable of Reston, Virgina, MO&O, DA95434//$ $/76.922 Rates for Cable Programming Service tier/$ $/benchmark cable rates/$  X- (2Before the  Federal Communications Commission  X_-Washington, D.C. ă  X1-x` `  hh@ DA 95434  Y -In the matter of hh@)  Y -x` `  hh@)h  Y -Time Warner Cable of Restonhh@)  Y -Reston, Virginia  hh@)hCUID No. VA0046   xx 0(#(#X Y -x` `  hh@)hpp  x` `  hh@)  Yy-Benchmark Filing To Supporthh@)  Yb-Cable Programming Service Pricehh@)  Y- Memorandum Opinion and Order ă  Y-Adopted: March 8, 1995 @hReleased: March 9, 1995 By the Chief, Cable Services Bureau:  X}- Introduction   YO-x1.` ` Here we consider complaints about the price Time Warner Cable of Reston ("Warner Cable") was charging for its cable programming service ("CPS") tier in the community of Reston, Virginia, CUID No. VA0046. Warner Cable has attempted to justify its price through a benchmark showing on FCC Form 393. This Order addresses the reasonableness of Warner Cable's price only through May 14, 1994. At a later time we will  Y-issue a separate order addressing the reasonableness of the price after that date.GQȝ YU"-#Xw PE37XP#э #Xj\  P6G;XP#The findings in this Order do not in any way prejudge the reasonableness of the price for CPS service after May 14, 1994 under our new rate regulations. However, to the extent  X($-Warner Cable has sought to take advantage of the refund deferral period under the Second  V%-Order on Reconsideration, Fourth Report and Order, and Fifth Notice of Proposed  X%-Rulemaking, MM Docket No. 92266, FCC 9438, 9 FCC Rcd 4119 (1994) ("Second Order  X&-on Reconsideration"), the maximum permitted CPS price determined herein might also apply from May 15, 1994 until the date on which Warner Cable implemented its CPS price under  X(-the new regulations. See para. 3, infra. Furthermore, to the extent that the price as of March"(0*0*0*(" 31, 1994 is found to be excessive, reductions in Warner Cable's price for the period after May 14, 1994 may be required to reflect the fact that Warner Cable's price during the earlier period, which is used as the starting point to calculate its price for the prospective period, was  XK-unreasonable. See 47 C.F.R.  76.922(b)(4)(C).G"60*0*0* "Ԍ iB "8 0*0*0*"Ԍ Y- iB x2.` ` Under the Cable Television Consumer Protection and Competition Act of  Y-1992,|M Yb-#Xw PE37}XP##Xw PE37}XP#э#Xw PE37}XP# #Xj\  P6G;yoXP#Pub. L. No. 102385, 106 Stat. 1460 (1992); Communications Act,  623(c), as  XN-amended, 47 U.S.C.  543(c) (1993).#Xw PE37}XP#| 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  Y-triggers an obligation on behalf of the cable operator to file a justification of its CPS prices.gM Y-#Xw PE37}XP##Xw PE37}XP#э#Xw PE37}XP# #Xj\  P6G;yoXP#47 C.F.R.  76.956.#Xw PE37}XP# Under our rules, an operator may attempt to justify its prices through either a benchmark  Y-showing or a costofservice showing.M YW -#Xw PE37}XP#э#Xj\  P6G;yoXP# #Xj\  P6G;yoXP#47 C.F.R.  76.956(b).#Xw PE37}XP# In either case, the operator has the burden of  Yv-demonstrating that its CPS prices are not unreasonable.vM Y -#Xw PE37}XP##Xw PE37}XP#э#Xw PE37}XP# #Xj\  P6G;yoXP#Id.#Xw PE37}XP#  YH-x3.` ` The Commission's original rate regulations took effect on September 1, 1993.aHM Yx-#Xj\  P6G;yoXP#э#Xw PE37}XP#xOrder in MM Docket No. 92266, Implementation of Sections of the Cable Television  Yc-Consumer Protection and Competition Act of 1992: Rate Regulation, FCC 93372, 58 Fed. Reg. 41042 (Aug. 2, 1993).a  Y1-The Commission subsequently revised its rate regulations effective May 15, 1994.1 M Y-#Xj\  P6G;yoXP#э#Xw PE37}XP#x47 C.F.R.  76.922(b). 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  Y -compliance with the revised rules from May 15, 1994 forward. M Y>-#Xj\  P6G;yoXP#э#Xw PE37}XP#xSee Second Order on Reconsideration, 9 FCC Rcd at 4190, paras. 150152. Operators attempting to justify their prices for the period prior to May 15, 1994 through a benchmark showing must  Y -complete and file FCC Form 393. kM X-#Xj\  P6G;yoXP#э#Xw PE37}XP#xId.Ĉ Generally, to justify their prices for the period beginning May 15, 1994 through a benchmark showing, operators must use the FCC Form 1200  Yy-series. yM YG"-#Xj\  P6G;yoXP#э#Xw PE37}XP#x47 C.F.R.  76.922(b)(6); see also Second Order on Reconsideration, 9 FCC Rcd at 4189 n.195.  XK- Procedural Matters   Y-x4.` ` The first valid CPS complaint was completed and served on Warner Cable by the County of Fairfax on October 1, 1993. The Commission received the complaint on October 5, 1993." 0*0*0*"Ԍx" 0*0*0*"Ԍ Y1-x5.` ` Warner Cable attempted to justify its CPS price through an FCC Form 393 filed on November 15, 1993.  X - Discussion   Y -x6.` ` Warner Cable claims that its monthly CPS tier price of $11.49 per subscriber is justified by its benchmark filing, which shows a maximum permitted charge of $11.49. However, upon review we have determined that Warner Cable has not correctly calculated its maximum permitted price, and it is appropriate to make the following adjustments to Warner Cable's calculations in the Form 393:  Y4- xa.` ` Warner Cable's calculations for its rateregulated package as of the initial date Xxof regulation (Form 393, Part I, and Form 393, Part II, Worksheet 1) reflect 55 regulated channels and 31 satellite channels. Our examination of the channel lineup that Warner provided with its November 15, 1993 filing, however, reveals only 55 regulated channels and 29 satellite channels. Warner Cable apparently counted 2 additional satellite channels that should have been counted as either payperview or premium channels. Payperview and premium channels, however, may not be counted as regulated channels or as satellite channels when calculating the benchmark  Y|-rates.Y |{M Y-ԍxSee Instructions for Worksheet 1, Line 121 ("For purposes of using the benchmark tables, a 'satellitedelivered signal' is any cable program service or 'super station' delivered on a communications satellite that is not a premium sevice (pay channel or payperview channel)"). Y Accordingly, we reduce the number of satellite channels by two.(#  YN-Xxb.` ` In its Form 393 filing, Warner Cable calculated the Inflation Adjustment Factor (Line 127, Worksheet 1, Part II) as of the end of October 1993. However, the figures Warner Cable used are not consistent with data on which it should have relied in calculating the Inflation Adjustment Factor. Warner Cable used the Gross National Product Price Index ("GNPPI") data released by the U.S. Department of Commerce on August 31, 1993 to complete Lines 122 and 125, but used an outdated GNPPI of 121.8 for the third quarter of 1992 in calculating Line 123. The GNPPI figure for the third quarter of 1992 released on August 31, 1993 was 122.5. Warner Cable's"! 0*0*0*"" calculation of the Inflation Adjustment Factor is thus incorrect. (#  Y-Xxc.` ` We must therefore recalculate the Inflation Adjustment Factor on the basis of  Y-the most accurate data currently available for the date for which Warner Cable filed.m M Y4-#Xw PE37}XP#э#Xw PE37}XP#x#Xw PE37}XP#See 47 C.F.R. 76.922(b)(9)(iii) (if a cable operator fails to justify its rates, rates must be adjusted in accordance with the most accurate data available at the time of analysis). m On July 29, 1994, the U.S. Department of Commerce released corrected inflation data including GNPPI figures of 122.3 for the third quarter of 1992 and 125.7 for the third quarter of 1993. Using these GNPPI figures, we calculate 1.030 as the Inflation Adjustment Factor through October 1993, the base date Warner Cable used in justifying its rates.(#  Y -x7.` ` These adjustments have the cummulative effect of reducing the maximum permitted monthly price for the CPS tier from $11.49 to $11.23.  Y - Conclusions   Y -x8.` ` Upon review of the record herein, we conclude that Warner Cable's showing supports a maximum reasonable CPS tier price of $11.23 per month (plus franchise fee) for  Yz-the period of October 5, 1993 to May 14, 1994 for CUID No. VA0046.c azMM Yx-#Xw PE37}XP##Xw PE37}XP#э  This finding is based solely on the representations of Warner Cable listed in  Ya-paragraph 5, supra, and the modifications described in paragraph 6, supra. Should information come to our attention that these representations (including representations as to  Y5-data regarding installations and customer equipment) were materially inaccurate, we reserve the right to take appropriate action. This Order is not to be construed as a finding that we have accepted as correct any specific entry, explanation or argument made by any party to  Y-this proceeding not specifically addressed herein.#Xw PE37}XP#c We further determine that we will order appropriate refunds 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.  Y-x9.` ` We further conclude that Warner Cable must reflect in its Form 1200 rate filing for the period after May 14, 1994 the fact that Warner Cable's price during the earlier  Y-period was unreasonable.v M Y#-ԍ We reviewed Warner Cable's Form 1200 rate filing and confirmed that Warner Cable's calculated its rates for the period after May 14, 1994 using the rate that we find in this Order to be unreasonable. We reserve the right to make further adjustments to Warner Cable's price for the period after May 14, 1994, upon completion of our review of Warner Cable's FCC Form 1200 rate filing.  Y}-x10.` ` Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the"}0*0*0*m" Commission's Rules, 47 C.F.R.  0.321, that the October 1, 1993 complaint against the cable programming service price charged by Time Warner Cable of Reston in Reston, Virginia, CUID No. VA0046, and all other complaints relating to the same price, ARE  Y- GRANTED TO THE EXTENT INDICATED HEREIN.  Y-x11.` ` IT IS FURTHER ORDERED that the benchmark filing submitted by Time Warner Cable of Reston with respect to Reston,Virginia, CUID No. VA0046, for the period of October 5, 1993 to May 14, 1994, justifies a maximum price of $11.23 per month (plus franchise fee) for Warner Cable's cable programming service tier. x  Y -x12.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's Rules, 47 C.F.R.  76.961, that Time Warner Cable of Reston shall refund to subscribers  Y -that portion of the amounts paid for cable programming service from October 5, 1993P M Ye -#Xw PE37}XP##Xw PE37}XP##Xw PE37}XP#э#Xw PE37}XP# Our jurisdiction to order a refund dates from the earliest date a valid complaint is filed with the Commission. 47 C.F.R.  76.961(b).P to May 14, 1994 in Reston, Virginia, CUID No. VA0046, that exceeded $11.23 per month (plus franchise fee) and was thus unreasonable, plus interest to the date of the refund.  Y-x13.` ` IT IS FURTHER ORDERED that Time Warner Cable of Reston 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 refunds within 60 days of Commission approval thereof. x  Y-x14.` ` 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 Time Warner Cable of Reston shall, within 30 days of the release of this Order, revise its Form 1200 filing with respect to Reston, Virginia, CUID No. VA0046 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).  YN-x15.` ` IT IS FURTHER ORDERED that Time Warner Cable of Reston shall place into effect, within 30 days after its submission of the revised Form 1200 filing required above, a CPS tier price for Reston, Virginia, CUID No. VA0046, that reflects the reduction in the CPS rate determined in this Order. x` `  Y"-x` ` #Xw PE37}XP# hhFEDERAL COMMUNICATIONS COMMISSION "Q%b0*0*0*&"Ԍx` `  hhMeredith J. Jones x` `  hhChief, Cable Services Bureau