FOR FCC RECORD ONLY $//Copley/Colony Cablevision of Cypress, Inc., Cypress, CA, MO&O, DA 95-457//$ $/76.922 Rates for Cable Programming Service tiers/$ $/benchmark cable rates/$ Before the Federal Communications Commission Washington, D.C. DA 95-457 In the Matter of ) ) Copley/Colony Cablevision ) of Cypress, Inc. ) CUID No. CA1203 Cypress, California ) ) Benchmark Filing To Support ) Cable Programming Service Price ) Memorandum Opinion and Order Adopted: March 9, 1995 Released: March 10, 1995 By the Chief, Cable Services Bureau: Introduction 1. Here we consider a complaint about the price Copley/Colony Cablevision of Cypress, Inc. ("Colony") was charging for its cable programming service ("CPS") tier in Cypress, California, CUID No. CA1203. Colony has chosen to attempt 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 complete and timely complaint. The filing of a complete and timely 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 complete and timely 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 Cypress, California, CUID No. CA1203, was completed and served on Colony on January 4, 1994 and received by the Commission on January 7, 1994. 5. Colony attempted to justify its CPS price through an FCC Form 393 filed on February 14, 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, on January 24, 1995, in response to a Cable Services Bureau Public Notice offering operators the opportunity to make optional supplemental filings, and on February 14, 1995, in response to an inquiry by Commission staff. Discussion 6. In its amended benchmark filings of June 24, 1994 and January 24, 1995, Colony calculated a maximum permitted price for the CPS tier of $7.11 per month. Upon review of Colony's filing, as amended, 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 $7.56 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 $7.11 per month (plus franchise fee) for the period Janaury 7, 1994 to May 14, 1994. 8. We further conclude that Colony must reflect in its 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 4, 1994 complaint against the cable programming service price charged by Copley/Colony Cablevision of Cypress, Inc. in Cypress, California, CUID No. CA1203, IS GRANTED TO THE EXTENT INDICATED HEREIN. 11. IT IS FURTHER ORDERED that the benchmark filing submitted by Copley/Colony Cablevision of Cypress, Inc. with respect to Cypress, California, CUID No. CA1203, for the period of January 7, 1994 to May 14, 1994, justifies a maximum price of $7.11 per month (plus franchise fee) for the 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 Copley/Colony Cablevision of Cypress, Inc. shall refund to subscribers that portion of the amounts paid for cable programming service from January 7, 1994 to May 14, 1994, that exceeded $7.11 (plus franchise fee) per month and was thus unreasonable, plus interest to the date of the refund. 13. IT IS FURTHER ORDERED that Copley/Colony Cablevision of Cypress, Inc. shall promptly determine the overcharges to CPS subscribers for the same 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 Copley/Colony Cablevision of Cypress, Inc. shall, within 30 days of the release of this Order, revise its Form 1200 filing for Cypress, California, CUID No. CA1203, 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 Copley/Colony Cablevision of Cypress, Inc. shall place into effect, within 30 days after submission of the revised Form 1200 filing required above, a CPS tier price for Cypress, California, CUID No. CA1203, 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 Copley/Colony Cablevision of Cypress, 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 Service Bureau