FOR FCC RECORD ONLY $//NewChannels Cable Rate Complaint Withdrawals, MO&O, DA 95-477//$ $/Part 76 Subpart N Cable Rate Regulation/$ Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 DA 95-477 In the matter of ) ) CUID Nos. NY0132, NY0134, NY0135, Withdrawal of FCC Form 329 ) NY0137, NY0138, NY0140, NY0251, NY0260, Rate Complaints Against ) NY0403, NY0983 NewChannels Corporation ) MEMORANDUM OPINION AND ORDER Adopted: March 14, 1995 Released: March 15, 1995 By the Deputy Chief, Cable Services Bureau: 1. In each of the communities noted above, at least one complainant has filed with the Commission a letter withdrawing his or her previously filed complaint alleging that the prices charged by NewChannels Corporation ("NewChannels") for cable programming service tier (CPS) services in its community were unreasonably high. Our jurisdiction to regulate CPS rates arises with the filing of a valid complaint against those rates. In some cases, no complaint remains against the operator in that community; these cases are listed at Attachment A. We will allow the withdrawal of these complaints, and our review of these filings will therefore be terminated. In other of the cases listed above, at least one valid complaint remains; these cases are listed at Attachment B. Although we will allow withdrawal of these complaints, our review of the filings will proceed. 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. In each case captioned above, the operator did file either an FCC Form 393 benchmark rate justification submission, or a cost of service rate justification submission. 4. This Commission has now received from at least one complainant in each of the captioned communities a letter stating that he or she wishes to withdraw his or her CPS rate complaint. Under our rules, this Commission's authority to regulate CPS cable rates arises when a valid complaint against those rates is filed. 5. In every case noted at Attachment A, the complainant withdrawing his or her complaint was the only complainant against this operator in this community. Our mandate is to "protect subscribers of any cable system that is not subject to effective competition from rates that exceed the rates that would be charged if such a system were subject to effective competition." We have no reason to believe that any coersion or collusion underlies these withdrawals. Each complainant states that he or she is now satisfied that NewChannels is charging a reasonable rate for CPS service. We will accordingly allow these complainants to withdraw their complaints. Because our review of the rate justification showings is predicated on the existence of a rate complaint, and because in every case listed at Attachment A, the operator no longer faces a rate complaint, we are terminating our review of those filings. 6. In every case listed at Attachment B, we have also received a letter withdrawing a complaint. Although we are allowing withdrawal of the complaint as requested, in each of these cases, at least one valid complaint remains, so our analysis of the rate justification filings in those areas will proceed. 7. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that permission to withdraw the FCC Form 329 rate complaints against cable programming service rates in the above-noted communities IS GRANTED. 8. IT IS FURTHER ORDERED that the review of the rate justification filings listed at Attachment A IS TERMINATED. FEDERAL COMMUNICATIONS COMMISSION Gregory J. Vogt Deputy Chief, Cable Services Bureau Attachment A NewChannels CPS Complaint Withdrawals (no valid complaints remain) CUID Number Local Franchising Authority number of complaints withdrawn NY0132Town of Binghamton 1 NY0134Town of Chenango 1 NY0135Town of Conklin 2 NY0137Town of Fenton 1 NY0138Village of Johnson City1 NY0251Town of Maine, NY1 NY0403Town of Owego 1 NY0983Town of Nanticoke1 Attachment B NewChannels CPS Complaint Withdrawals (valid complaints remain) CUID Number Local Franchising Authority date complaint(s) filed NY0140Village of Port Dickinson 1/11/94 NY0260Town of Vestal 12/14/93, 7/7/94