$//Letter to Cox Cable Hampton Roads, DA 95-702//$ $/Part 76 Subpart N, Cable Rate Regulation/$ $/FCC Form 1210 Rate Increase/$ FOR RECORD ONLY Federal Communications Commission Washington, DC 20554 March 31, 1995 VIA FACSIMILE AND FIRST CLASS U.S. MAIL DA 95-702 Peter H. Feinberg, Esq. Dow, Lohnes & Albertson 1255 23rd Street, NW Washington, DC 20037-1194 Re: FCC Form 1210 rate increases for Cox Cable Hampton Roads, Inc., CUID No. VA0166 Dear Mr. Feinberg: On March 8, 1995, Cox Cable Hampton Roads, Inc. ("Cox") filed with the Cable Services Bureau a request for approval, on an expedited basis, of a proposed rate increase to its cable programming service (CPS) tier as computed on FCC Form 1210. In this request, Cox states that the increase is necessary to allow Cox to provide its subscribers with new programming. Because we found Cox's rates to be unreasonable, obligating it to pay refunds to its CPS subscribers, Cox must obtain the Bureau's approval before it may increase its CPS tier rate. See FCC Form 1210, page 2. This requirement allows us to monitor subsequent rate increases, once we have found rates unreasonable. Cox states that the proposed programming and external cost increases are not dependent on the issues involved in the Bureau's Order imposing refund liabilities, and that approval should not be delayed on that account. To date, we have undertaken a full review of Cox's rates only for the period prior to May 15, 1994, and have found those rates unreasonable. Our review of the reasonableness of Cox's rates from May 15, 1994 to the present is currently underway. With respect to rates charged for the period beginning May 15, 1994, Cox has filed FCC Forms 1200 and1205. Cox's current request for approval of FCC Form 1210 is for expenses incurred in the fourth quarter of 1994, and programming expenses to be accrued upon our approval. We have reviewed the Form 1210 filings before us, and find no patent defects. We believe that the impetus behind Cox's request is to provide its subscribers with new programming in the above-noted communities, and that approval of Cox's instant request will encourage this development. Our permitting the requested increases is on an interim basis only, and is subject to our determination of the reasonableness of Cox's CPS rates for the period beginning May 15, 1994, including subsequent changes to the rates filed on Cox's FCC Form 1200. Thus, although we allow the requested increase for new programming, the increased rate which Cox may charge is potentially subject to refund if our review of Cox's FCC Form 1200 and Form 1210 filings finds that Cox's underlying CPS rate is unreasonable. Sincerely, Meredith J. Jones Chief, Cable Services Bureau