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A. a.(1)(a) i) a)Documentg2& e$ %%PleadingHeader for Numbered Pleading PaperE!n    X X` hp x (#%'0*,.8135@8:NXH&f 1Z=f B<?xxx,2x6X@`7X@8wC;,Xw PE37XPD7zC;,c!Xz_ pi7XDPG, PE37P"i~'K2^$(8<><q*"xxxxWWxxxWWkkxxxxxxxxPxxxxxxxxxCkkkkkkkkkkPCPCPCPCxxxxxxxxxxkxxxxxxjxjjjxxjxxjxxxxxxxPCxxxxPxxxxCVxHCxxxxxVVx[[[xVCxxxxxxxxjjjxxxxxxPxxPPPWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNxxxPkbbxxxxxxTxxxxTPP||x>>xxxxxP|x!T"x}xExPPPxxxxPxkxofxkkPPPPk]kxkPCkkxkxxxkkPxkPPxxxxxxxPxkP8D%nZZB 3nMnMn..s[22]f pN\YI'",tB^ f ^GPoxxPPPxPPPPxxxxxxxxxxPPx]sPPPxxPxkkTxCPCxk]Pxxxkxxxx>xxxxxPxxxxxxxxCxxxxxkkkkk]C]C]C]Cxxxxxxxxxxxxxjjxxjxxjxxxxx[Cxxx]xxC`x]Cxxjjx[][x`RxxjkjxxxxPxxPPPWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNxxxPxffxxxxxxTxxxxTPPx>>xxxxxPxT"xxExPPPxxxxPxkxsfxxxPPPPk]kkk]Ckkxkxxxkk]xkPPxxxxxxxPxkP8D%nZZB 3nMnMn..s[<?xxx,2x6X@`7X@8wC;,Xw PE37XPD7zC;,c!Xz_ pi7XDPG, PE37PDBPG,q_ pi7V"G($,hG PE37hP<R&HHH,,H6X@`7h@6uC;,cXu&_ x7XX<R&HHH,,H6X@`7h@6uC;,cXu&_ x7XX2f d]Fh",tB^ f ^;C`ddCCCdCCCCddddddddddCCdxxxsCYoxxdoxxooCCCddCddYdY8dd88Y8ddddLL8dYYYLYdYd4dddddCddddddddd8xdxdxdxdxdYxYxYxYxYC8C8C8C8dddddddddoYxddddoYdxdxdxdxdXXddxxXxdxdxXdddddddD8ddddCdddddp8pHodp8p8dxddddxLxLxddLdLdLddpHp8odddddddodpLpLpLdoddddododxCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCd]]ddddddFddddFCCddd88ddzzdddkddCddF"ddd9dCCzCdzdoddCdYds]zUvdYYCCCCzzzozoYzNoYdYC8YooYdYzzdzddoYoYzzozzzzzCdoozYzzzzCCddddzdddooozCsdYC\   pxtll\tll@\@\`LFOR FCC RECORD ONLY $//Sammons Communications, Inc., New Jersey, MO&O, DA95577//$ $/76.922 Rates for Cable Programming Service tiers/$  Y-$/benchmark cable rates/$ Ċ  c<EBefore the 8 Federal Communications Commission  e< Washington, D.C. 20554  X-` `  hh,Vpp   DA 95577 Đ  Y -In the Matter of hh,V)pp  Y -` `  hh,V) pp  Yw -Sammons Communications, Inc.hh,V)CUID Nos. NJ0001, Absecon; NJ0005,(#(# Y` -` `  hh,V)Somers Point; NJ0030, Ocean City  YI-Benchmark Filings to Supporthh,V)  Y2-Cable Programming Service Priceshh,V)  c<  Memorandum Opinion and Order ă  Y-Adopted: March 22, 1995 hh,V ppReleased: March 24, 1995 By the Chief, Cable Services Bureau:  Yt- I. A. 1. a.(1)(a) i) a) I. 1. 1. a.(1)(a) i) a)  1. Here we consider complaints about the prices that the abovecaptioned operator ("Operator") was charging for its cable programming service ("CPS") tier in the communities designated above. Operator has chosen to attempt to justify its prices through benchmark showings on FCC Form 393. This Order addresses the reasonableness of Operator's prices only through May 14, 1994. At a later date we will issue a separate order addressing the  Y-reasonableness of the prices after that date.n N Yz<ԍ#XR  P7jQXP# The findings in this Order do not in any way prejudge the reasonableness of the prices for CPS service after May 14, 1994 under our new rate regulations. However, to the extent Operator has sought to take advantage of the refund deferral period under the Second Order on Reconsideration, Fourth Report and Order, and Fifth Notice of Proposed  Y#-Rulemaking, MM Docket No. 92266, FCC 9438, 9 FCC Rcd 4119 (1994) ("Second Order  Y $-on Reconsideration"), the maximum permitted CPS prices determined herein might also  Y$-apply from May 15, 1994 until the date on which Opeartor #XR  P7jQXP#implemented its CPS prices under  Y%<the new regulations. See para. 3, infra.#x6X@`72X@# #XR  P7jQXP#Further, to the extent that the prices as of March 31, 1994 are found to be excessive, reductions in Operator's prices for the period after May 14, 1994 may be required to reflect the fact that Operator's prices during the earlier period, which are used as the starting point to calculate its prices for the prospective period, were"(0*0*0*("  Y-unreasonable. See 47 C.F.R.  76.922(b)(4)(C).n"{0*0*0*"Ԍ Y-ԙ  2. Under the Cable Television Consumer Protection and Competition Act of 1992,{ Y,<ԍ#XR  P7jQXP# Pub. L. No. 102385, 106 Stat. 1460 (1992); Communications Act,  623(c), as  Y-amended, 47 U.S.C.  543(c) (1993). 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  Y-obligation on behalf of the cable operator to file a justification of its CPS prices.ffZ Y<ԍ#Xw PE37}XP# 47 C.F.R.  76.956.f Under our rules, an operator may attempt to justify its prices through either a benchmark showing or a  Y-costofservice showing.iZ YU <ԍ#Xw PE37}XP# 47 C.F.R.  76.956(b).i In either case, the operator has the burden of demonstrating that its  Yv-CPS prices are not unreasonable.YvZ Y <ԍ#Xw PE37}XP# Id.Y  YH-3. The Commission's original rate regulations took effect on September 1, 1993.H{Z Yt<ԍ#Xw PE37}XP# Order in MM Docket No. 92266, Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992: Rate Regulation, FCC 93372, 58 Fed. Reg. 41042 (Aug. 2, 1993).  Y1-The Commission subsequently revised its rate regulations effective May 15, 1994.{1 Z Y<ԍ#Xw PE37}XP# 47 C.F.R.  76.922(b).{ 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  Y -compliance with the revised rules from May 15, 1994 forward. Z Y5<ԍ#Xw PE37}XP# See Second Order on Reconsideration, 9 FCC Rcd at 4190, paras. 150152. Operators attempting to justify their prices for the period prior to May 15, 1994 through a benchmark showing must  Y -complete and file FCC Form 393.Y bZ Y<ԍ#Xw PE37}XP# Id.Y Generally, to justify their prices for the period beginning May 15, 1994 through a benchmark showing, operators must use the FCC Form 1200  Yy-series. yZ Y?"< #Xw PE37}XP# 47 C.F.R.  76.922(b)(6); see also Second Order on Reconsideration, 9 FCC Rcd at 4189 n.195.  YK- 4. The first valid CPS complaints in each of the franchise areas which are the subject of this Order were completed and served on Operator and received by the Commission on the dates set forth on Appendix A. Operator filed FCC Form 393 in response; Operator also" 0*((7" filed amended FCC Forms 393 on June 24, 1994 and supplemental filings on February 6,  Y-1995.b 3Z Yb<ԍ#Xw PE37}XP# Operator filed amended FCC Forms 393 in response to a Cable Services Bureau Order citing common deficiencies observed in benchmark filings generally. Cable Operators' Rate Justification Filings, 9 FCC Rcd 7752 (Cab. Serv. Bur. 1994). Operator submitted additional information in response to a Cable Services Bureau Public Notice offering operators the opportunity to make optional supplemental filings. Public Notice: Cable Services Bureau Announces Optional Procedures with Respect to Pending PreMay 15 Benchmark Cases, DA 941556 (Dec. 29, 1994) and Public Notice: Cable Services Bureau Announces Extension of Time to File Under Optional Procedures with Respect to Pending  Y -PreMay 15 Benchmark Cases, DA 9587 (Jan. 20, 1995) (together, Public Notice).b  Yv-  5. For each of the franchise areas, Operator calculated a maximum permitted CPS rate that was lower than what Operator was actually charging for its CPS tier. Thus, Operator has failed to show that its rates for the CPS tier were not unreasonable. Furthermore, upon review of Operator's Form 393 filings, we have found that it has not correctly calculated its maximum permitted prices, and it is therefore appropriate to make the following adjustments to Operator's calculations in Form 393:  Y - Xa. On Worksheet 2, Line 202, Operator claimed that it provided a total of 36 rate Y -regulated channels on September 30, 1992.  Z Y2<ԍ#Xw PE37}XP# At that time, all of Operator's rateregulated channels were on the basic service tier. In response to our December 29, 1994 Public Notice, Operator submitted additional information stating that it provided only 35 channels on September 30, 1992. Operator's 1992 channel lineup cards verify a total channel count of 35. Therefore, we adjusted Line 202 to reflect 35 channels, which in turn affected Line 206. The benchmark calculation reported on Line 220 was also recomputed on the basis of 35 rateregulated channels. This adjustment increased the benchmark channel rate entered on Line 220 of Worksheet 2.(# XX` hp x (#%'0*,.8135@8: