FOR FCC RECORD ONLY $//Sammons Communications, Inc., Randolph, New Jersey, MO&O, DA-95-527//$ $/76.922 Rates for Cable Programming Service tiers/$ $/benchmark cable rates/$ Before the Federal Communications Commission Washington, D.C. DA 95-527 In the Matter of ) ) Sammons Communications, Inc.) Randolph, New Jersey ) CUID No. NJ0270 ) Benchmark Filing to Support ) Cable Programming Service Price ) Memorandum Opinion and Order Adopted: March 17, 1995 Released: March 20, 1995 By the Deputy Chief, Cable Services Bureau: 1. Here we consider a complaint about the price Sammons Communications, Inc. ("Sammons") was charging for its cable programming service ("CPS") tier in Randolph, New Jersey, CUID No. NJ0270. Sammons has chosen to attempt to justify its price through a benchmark showing 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 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. 4. Sammons calculated a maximum permitted rate for the CPS tier of $10.43 per month (plus franchise fee). Upon review of Sammons' filing, 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 was $10.47 (plus franchise fee). Thus, Sammons failed to demonstrate that the actual charge for its CPS tier was at or below the maximum permitted rate. However, the overcharge is such a de minimis amount that it would not serve the public interest to order a refund. 5. Nonetheless, Sammons must reflect in its FCC Form 1200 rate filing for the period after May 14, 1994 the fact that its prices during the earlier period were unreasonable. We reserve the right to make further adjustments to Sammons' prices for the period after May 14, 1994, upon completion of our review of its FCC Form 1200 rate filing. 6. Sammons 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 Sammons of its obligation to obtain advance Commission approval of adjustments to its CPS price for one year following the release of this Order. 7. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's Rules, 47 C.F.R.  0.321, that the complaint against the cable programming service price charged by Sammons Communications, Inc. in Randolph, New Jersey, CUID No. NJ0270, IS GRANTED TO THE EXTENT INDICATED HEREIN. 8. IT IS FURTHER ORDERED that the benchmark filing submitted by Sammons Communications, Inc. with respect to Randolph, New Jersey, CUID No. NJ0270, justifies a maximum price of $10.43 per month (plus franchise fee) for Sammons Communications, Inc.'s cable programming service tier. 9. 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 Sammons Communications, Inc. shall, within 30 days after the release of this Order, revise its Form 1200 filing with respect to Randolph, New Jersey, CUID No. NJ0270, 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). 10. IT IS FURTHER ORDERED that Sammons Communications, Inc. 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. 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 for one year following the release of this Order. FEDERAL COMMUNICATIONS COMMISSION Gregory J. Vogt Deputy Chief, Cable Services Bureau