FOR FCC RECORD ONLY $//Sammons Communications, Inc., Virginia, MO&O, DA-95-449//$ $/76.922 Rates for Cable Programming Service tiers/$ $/benchmark cable rates/$ Before the Federal Communications Commission Washington, D.C. DA 95-449 In the matter of ) ) Sammons Communications, Inc. ) Colonial Heights, Virginia ) CUID Nos. VA0052, VA0054 Petersburg, Virginia ) ) Benchmark Filings To Support ) Cable Programming Service Price ) Memorandum Opinion and Order Adopted: March 8, 1995 Released: March 9, 1995 By the Deputy Chief, Cable Services Bureau: Introduction 1. Here we consider complaints about the price Sammons Communications, Inc. ("Sammons") was charging for its cable programming service ("CPS") tier in Colonial Heights, Virginia, CUID No. VA0052, and in Petersburg, Virginia, CUID No. VA0054. Sammons has chosen to attempt to justify its price through benchmark showings 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 filed against Sammons' CPS price in Colonial Heights was served on Sammons on March 29, 1994 and was received by the Commission on April 5, 1994. The complaint filed against Sammons' CPS price in Petersburg was served on Sammons, and was received by the Commission, on April 13, 1994. 5. In response to the complaints, Sammons attempted to justify its CPS price through an FCC Form 393 filed on May 10, 1994 for Colonial Heights and on May 23, 1994 for Petersburg. Sammons amended both of its justifications on June 24, 1994 in response to a Cable Services Bureau Order citing common deficiencies observed in benchmark filings generally. 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 filings of June 24, 1994, Sammons calculated a maximum permitted rate of $11.65 per month (plus franchise fee) for the CPS tier in both Colonial Heights and Petersburg. Upon review of these filings, 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 in both Colonial Heights and Petersburg was $11.82 (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' showings support a maximum reasonable CPS tier price of $11.65 per month (plus franchise fee) for the period April 5, 1994 to May 14, 1994 in Colonial Heights and for the period April 13, 1994 to May 14, 1994 in Petersburg. However, we further determine that the total overcharge per subscriber is such a de minimis amount that it would not serve the public interest to order a refund. 8. We further conclude that Sammons has submitted in good faith timely optional supplemental filings 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 in either Colonial Heights, Virginia or Petersburg, Virginia for one year following the release of this Order. 9. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's Rules, 47 C.F.R.  0.321, that the March 29, 1994 complaint against the cable programming service price charged by Sammons Communications, Inc. in Colonial Heights, Virginia, CUID No. VA0052, and the April 13, 1994 complaint against the cable programming service price charged by Sammons Communications, Inc. in Petersburg, Virginia, CUID No. VA0054, ARE GRANTED TO THE EXTENT INDICATED HEREIN. 10. IT IS FURTHER ORDERED that the benchmark filings submitted by Sammons Communications, Inc. with respect to Colonial Heights, Virginia, CUID No. VA0052, for the period of April 5, 1994 to May 14, 1994, and with respect to Petersburg, Virginia, CUID No. VA0054, for the period of April 13, 1994 to May 14, 1994, justify a maximum price of $11.65 per month (plus franchise fee) for Sammons Communications, Inc.'s cable programming service tiers. 11. 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 in either Colonial Heights, Virginia or Petersburg, Virginia for one year following the release of this Order. FEDERAL COMMUNICATIONS COMMISSION Gregory J. Vogt Deputy Chief, Cable Services Bureau