FOR FCC RECORD ONLY $//Paragon Communications, Ilion, NY, MO&O, DA 95-512//$ $/76.922 Rates for Cable Programming Service tiers/$ $/benchmark cable rates/$ Before the Federal Communications Commission Washington, D.C. DA 95-512 In the matter of ) ) Paragon Communications ) CUID No. NY1068 ) Ilion, New York ) ) Benchmark Filing To Support ) Cable Programming Service Price ) Memorandum Opinion and Order Adopted: March 16, 1995 Released: March 17, 1995 By the Deputy Chief, Cable Services Bureau: Introduction 1. Here we consider a complaint about the price Paragon Communications d/b/a Paragon Cable ("Paragon") was charging for its cable programming service ("CPS") tier in Ilion, New York, CUID No. NY1068. Paragon has attempted to justify its price through a benchmark showing on FCC Form 393. This Order addresses the reasonableness of Paragon'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 valid CPS complaint in Ilion, New York, CUID No. NY1068 was completed and served on Paragon on September 22, 1993 and received by the Commission on October 12, 1993. 5. Paragon attempted to justify its CPS price through an FCC Form 393 filed on November 15, 1993. Paragon amended its justification on June 22, 1994 in response to a Cable Services Bureau Order citing common deficiencies observed in benchmark filings generally. Discussion 6. In its amended benchmark filing of June 22, 1994, Paragon calculated a maximum permitted rate of $14.42 per month (plus franchise fee) for the CPS tier in Ilion, New York, CUID No. NY1068. Upon review of this filing, we have found no apparent errors that would require a recalculation of this maximum permitted rate. However, Paragon's actual monthly charge for its CPS tier was $14.44 (plus franchise fee). Thus, Paragon 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 Paragon's showing supports a maximum reasonable CPS tier price of $14.42 per month (plus franchise fee) for the period October 12, 1993 to May 14, 1994. 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 Paragon must reflect in its FCC Form 1200 rate filing for the period after May 14, 1994 the fact that Paragon's price during the earlier period was unreasonable. We reserve the right to make further adjustments to Paragon's price for the period after May 14, 1994 upon completion of our review of Paragon's FCC Form 1200 rate filing. 9. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's Rules, 47 C.F.R.  0.321, that the September 22, 1993 complaint against the cable programming service price charged by Paragon Communications d/b/a Paragon Cable in Ilion, New York, CUID No. NY1068, IS GRANTED TO THE EXTENT INDICATED HEREIN AND DENIED TO THE EXTENT INDICATED HEREIN. 10. IT IS FURTHER ORDERED that the benchmark filing submitted by Paragon Communications d/b/a Paragon Cable with respect to Ilion, New York, CUID No. NY1068, for the period of October 12, 1993 to May 14, 1994, justifies a maximum price of $14.42 per month (plus franchise fee) for the cable programming service tier. 11. 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 Paragon Communications d/b/a Paragon Cable shall, within 30 days of the release of this Order, revise its Form 1200 filing with respect to Ilion, New York, CUID No. NY1068, 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). 12. IT IS FURTHER ORDERED that Paragon Communications d/b/a Paragon Cable 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. FEDERAL COMMUNICATIONS COMMISSION Gregory J. Vogt Deputy Chief, Cable Services Bureau