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A. a.(1)(a) i) a)DocumentgPleadingHeader for Numbered Pleading PaperE!n    X X` hp x (#%'0*,.8135@8:xxxxxPxxxxxxxxxCkkkkkkkkkkPCPCPCPCxxxxxxxxxxkxxxxxxjxjjjxxjxxjxxxxxxxPCxxxxPxxxxCVxHCxxxxxVVx[[[xVCxxxxxxxxjjjxxxxxxPxxPPPWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNxxxPkbbxxxxxxTxxxxTPP||x>>xxxxxP|x!T"x}xExPPPxxxxPxkxofxkkPPPPk]kxkPCkkxkxxxkkPxkPPxxxxxxxPxkP8D%nZZB 3nMnMn..s["i~'K2^$(8<><q*"xxxxWWxxxWWkkxxxxxxxxPxxxxxxxxCxxxxxkkkkk]C]C]C]Cxxxxxxxxxxxxxjjxxjxxjxxxxx[Cxxx]xxC`x]Cxxjjx[][x`RxxjkjxxxxPxxPPPWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNxxxPxffxxxxxxTxxxxTPPx>>xxxxxPxT"xxExPPPxxxxPxkxsfxxxPPPPk]kkk]Ckkxkxxxkk]xkPPxxxxxxxPxkP8D%nZZB 3nMnMn..s[2f h0t",tB^ f ^;C`ddCCCdCCCCddddddddddCCdxxxsCYoxxdoxxooCCCddCddYdY8dd88Y8ddddLL8dYYYLYdYd4dddddCddddddddd8xdxdxdxdxdYxYxYxYxYC8C8C8C8dddddddddoYxddddoYdxdxdxdxdXXddxxXxdxdxXdddddddD8ddddCdddddp8pHodp8p8dxddddxLxLxddLdLdLddpHp8odddddddodpLpLpLdoddddododxCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCd]]ddddddFddddFCCddd88ddzzdddkddCddF"ddd9dCCzCdzdoddCdYds]zUvdYYCCCCzzzozoYzNoYdYC8YooYdYzzdzddoYoYzzozzzzzCdoozYzzzzCCddddzdddooozCsdYC\   pxtll\tll@\@\`L X- FOR FCC RECORD ONLY $//Sammons Communications, Inc., Indiana, MO&O, DA95659//$ $/76.922 Rates for Cable Programming Service tiers/$  X-$/benchmark cable rates/$  c<Ԋ E Before the 8 Federal Communications Commission  c< Washington, D.C. 20554 ă X-: DA 95659 Đ(#U  Y{ -In the Matter of hh,V)pp  Yd -` `  hh,V)CUID Nos. IN0001, Columbus; IN0002, (#(#  YM -` `  hh,V)Bartholomew County; IN0686, Garden  Y6 -Sammons Communications, Inc.hh,V)City; IN0687, Newbern; IN0688,  Y-` `  hh,V)Ogilville; IN0689, Petersville; IN0690,  Y-` `  hh,V)Rosstown; IN0691, Taylorsville; IN0692,  Y-Benchmark Filings to Supporthh,V)Walesboro; IN0693, Waynesville; IN0194,  Y-Cable Programming Service Priceshh,V)New Albany  Y- Memorandum Opinion and Order ă  Yh-` ` Adopted: March 30, 1995 Released: April 4, 1995 By the Chief, Cable Services Bureau:  Y - 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.p N Y <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 Operator #XR  P7jQXP#implemented its CPS prices under  Yu&<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"2)0*0*0*)"  Y-unreasonable. See 47 C.F.R.  76.922(b)(4)(C).p"{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.Z bZ Y<ԍ#Xw PE37}XP# Id.Z 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. IyZ Y?"-w#Xw PE37}XP# #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 Forms 393 in response; Operator"& 0*((7" also filed amended Form 393 filings on June 24, 1994 and supplemental filings on February  Y-6, 1995.c 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).c On March 8, 1995, Operator responded to a Commission letter which requested  Y-further clarification of Operator's showings.  Z YF <ԍ #Xw PE37}XP#Letter from Julia Buchanan, FCC, to Cody Colquitt, Sammons xx-Communications, Inc. (February 24, 1995).  Y-  5. In its supplemental filings of February 6, 1995, Operator calculated maximum permitted rates per month (plus franchise fee) for the CPS tier as set forth in Appendix B. Upon review of these filings, we have found no apparent errors that would require a recalculation of these maximum permitted rates. However, Operator's actual monthly  YH-charges for its CPS tier were higher than the maximum permitted rates (see Appendix B). Thus, Operator has failed to demonstrate that the actual charges for its CPS tier were at or below the maximum permitted rates.  Y -    Y -  6. Upon review of the record herein, we conclude that Operator has failed to justify the rates it was charging during the periods in question. Operator's showings justify the maximum reasonable CPS tier prices shown on Appendix B (plus franchise fee) for the period from the filing of the earliest complaint in each franchise area (as set forth in  Y-Appendix A) to May 14, 1994.( ] Z Y<ԍ#XR  P7jQ}XP# This finding is based solely on the representations of Operator. Should  Y-information come to our attention that these representations were materially inaccurate, we reserve the right to take appropriate action. This Order is not to be construed as a finding that we have accepted as correct any specific entry, explanation or argument made by any  YD -party to this proceeding not specifically addressed herein.(  Yd-7. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the complaints referred to in Appendix A against the cable programming service prices charged by Operator in the areas referenced in the caption and at Appendix A ARE GRANTED TO THE EXTENT INDICATED HEREIN.  Y-8. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47 C.F.R.  76.961, that Operator shall refund to subscribers in the communities" 0*((" shown in Appendix B that portion of the amounts paid for cable programming service for the period from the filing of the first valid complaint in each franchise area (as set forth on  Y-Appendix A)Z YK<ԍ#Xw PE37}XP# Our jurisdiction to order a refund dates from the earliest date a valid complaint is filed with the Commission. 47 C.F.R.  76.961(b). to May 14, 1994 which exceeded the maximum price for each franchise area set forth in Appendix B (plus franchise fee) per month, plus interest to the date of the refund.  Yv-9. IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges to CPS subscribers for the stated periods, 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 of the plan.l  Y - 10. 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 Operator shall, within 30 days of the release of this Order, revise its Form 1200 filings with respect to the communities listed herein, 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 in each franchise area set  Yb-forth in Appendix B (plus franchise fee).bbZ Yu<ԍ#Xw PE37}XP# We reserve the right to make further adjustments to Operator's prices for the period after May 14, 1994, upon completion of our review of Operator's Form 1200 filings.  Y4- 11. IT IS FURTHER ORDERED that Operator shall place into effect, within 30 days after its submission of the revised Form 1200 filings required above, prices that reflect the reductions in the CPS rates determined in this Order.  Y- 12. IT IS FURTHER ORDERED, pursuant to Section 76.960 of the Commission's rules, 47 C.F.R.  76.960, that Operator shall not be required to obtain advance approval of adjustments to its CPS prices in the franchise areas addressed herein for one year following the release of this Order, due to Operator's having submitted in good faith optional  Y|-supplemental filings in response to our Public Notice. ` `  hh,FEDERAL COMMUNICATIONS COMMISSION ` `  hh,Meredith J. Jones ` `  hh,Chief, Cable Services Bureau " 0*((!"  Y-D Appendix A ă  Y-` `  Date First ComplaintppDate Complaint xx-  Y-CUID No.` `  Filed with FCCVppServed  xx-  YI-IN0001` `  2/10/94hh,Vpp2/8/94  Y -IN0002` `  2/10/94hh,Vpp2/8/94  Y -IN0686` `  2/10/94hh,Vpp2/8/94  Y -IN0687` `  2/10/94hh,Vpp2/8/94  Y-IN0688` `  2/10/94hh,Vpp2/8/94  Yc-IN0689` `  2/10/94hh,Vpp2/8/94  Y5-IN0690` `  2/10/94hh,Vpp2/8/94  Y-IN0691` `  2/10/94hh,Vpp2/8/94  Y-IN0692` `  2/10/94hh,Vpp2/8/94  Y-IN0693` `  2/10/94hh,Vpp2/8/94  Y}-IN0194` `  2/28/94hh,Vpp2/26/94"}0*0*0*@"  Y-E Appendix B ă l  Y-CUID No.` `  Actual RatesVMaximum Permitted Rates  Y`-IN0001` `  $10.47Vpp$10.13  Y2-IN0002` `  $10.47Vpp$10.15  Y -IN0686` `  $10.47Vpp$10.15  Y -IN0687` `  $10.47Vpp$10.15  Y -IN0688` `  $10.47Vpp$10.15  Yz-IN0689` `  $10.47Vpp$10.15  YL-IN0690` `  $10.47Vpp$10.15  Y-IN0691` `  $10.47Vpp$10.15  Y-IN0692` `  $10.47Vpp$10.15   Y-IN0693` `  $10.47Vpp$10.15  Y-IN0194` `  $11.55Vpp$10.87