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Y The Board filed an Opposition to  Y"-Suburban's Appeal on July 26, 1994. "D Y&-ԍ The Board's Opposition was latefiled with the Commission on July 26, 1994. Because Suburban's Appeal was not served on the Board within the time designated for filing an opposition, we will accept this latefiled response.  Suburban submitted a Reply to the Board's""r 0*0*0*" Opposition on July 29, 1994. On July 15, 1994, Suburban also filed a Request for Emergency Stay of the local rate order, which the Commission denied in an Order released  Y-on August 10, 1994.F YK-#Xw PE37=9XP#э See In the Matter of Suburban Cablevision, 9 FCC Rcd 4073 (1994) ("Suburban  Y6-Cablevision")." Subsequent to the release of the Commission's Order denying Suburban's stay request, Suburban filed a Motion to File Additional Pleading, along with a Supplement to Appeal, which was designed to explain Suburban's use of inconsistent data.  Y-The Board opposed this request in an opposition filed on October 7, 1994.J_fF Y -ԍ Under the Commission's rules, additional pleadings may be filed only if specifically requested or authorized by the Commission. 47 C.F.R. 1.45(c). We did not request an additional filing from Suburban, nor has Suburban provided us with a compelling reason to authorize the filing of its additional pleading. Therefore, Suburban's Motion to File Additional Pleading is denied. We note, however, that the arguments contained in Suburban's Supplement to Appeal would not have changed the Commission's decision as set forth in this Order. J  Y_-x2.` ` In its local rate order, the Board established rates for Suburban's basic service tier and associated equipment, and required Suburban to issue subscriber refunds, dating back to September 1, 1993, for charges in excess of its newly established maximum permitted  Y -rates. F YX-ԍ Under the Cable Television Consumer Protection and Competition Act of 1992, and the Commission's implementing regulations, local franchising authorities may regulate rates  Y*-for basic cable service, associated equipment and installations. See Cable Television Consumer Protection and Competition Act, Pub. L. No. 102385, 106 Stat. 1460 (1992);  Y-Communications Act, 623(b), 47 U.S.C. 543(b).  In its Appeal, Suburban challenges only that portion of the local rate order in which the Board modified the inflation adjustment figure used by Suburban in the calculation of its  Y -maximum permitted basic tier rate. 5 F Y-ԍ As part of the rate review process, Suburban submitted an FCC Form 393 ("Determination of Maximum Initial Permitted Rates for Regulated Cable Programming Services and Equipment") to the Board on November 12, 1993. Suburban subsequently filed several updates to its FCC Form 393 as late as May 3, 1994. Local franchising authorities review the information contained in the FCC Form 393, or its successor forms, in order to determine cable operators' maximum permitted rates for basic service, associated equipment,  Y!-and installations under the Commission's rate regulations. See, Report and Order and Further Notice of Proposed Rulemaking in MM Docket 92266, 8 FCC Rcd 5631, 5770  Y#-(1993) ("Rate Order").  Based upon this modification, the Board ordered Suburban to issue a refund to its subscribers of $.06 per month for the period of time beginning on September 1, 1993.  X- "0*((<"  X-II.xStandard of Review  Y-x3.` ` Under the Commission's rules, appeals of franchising authorities' local rate  Y-orders are reviewed by the Commission.fF Y4-#Xw PE37=9XP#э 47 C.F.R. 76.944.f In ruling on an appeal of a local rate order, the  Y-Commission will not conduct a de novo review, but instead will sustain the franchising  Y-authority's decision as long as there is a reasonable basis for that decision.yF Y-#Xw PE37=9XP#э See Rate Order, 8 FCC Rcd at 5731; In the Matter of Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992, Rate Regulation, Third Order on Reconsideration in MM Docket 92266, 9 FCC Rcd 4316, 4346 (1994)  Yv -("Third Order on Reconsideration").  Therefore, the Commission will reverse a franchising authority's decision only if it determines that the franchising authority acted unreasonably in applying the Commission's rules in rendering a  YJ-local rate order.\ JF Y-#Xw PE37=9XP#э Id. \ If the Commission reverses a franchising authority's decision, it will not substitute its own decision but instead will remand the issue to the franchising authority with  Y -instructions to resolve the case consistent with the Commission's decision on appeal.Z  F Yi-#Xw PE37=9XP#э Id.Z  Y - III.xDiscussion  Y -x4. ` ` The sole issue raised in Suburban's Appeal involves the inflation adjustment figure used by Suburban in Worksheet 1 of its FCC Form 393. FCC Form 393 is the official form used by regulators to determine whether an operator's regulated rates for programming, equipment and installations were reasonable during the time period from  Ye-September 1, 1993 until May 14, 1994.K veO F Ye-ԍ#Xw PE37=9XP# To the extent that an operator has sought to take advantage of the refund deferral  YN-period available under the Second Order on Reconsideration, Fourth Report an Order, and Fifth Notice of Proposed Rulemaking in MM Docket 92266, 9 FCC Rcd 4119, 41834185  Y -(1994), the maximum permitted rates determined under FCC Form 393 may also apply from May 15, 1994 until the date that the operator implemented its new rates, as determined under the Form 1200 series.K FCC Form 393 is divided into three separate, but interrelated parts. In Part II, the operator calculates its maximum permitted programming rates, while in Part III, the operator calculates its equipment and installation costs and maximum permitted equipment and installation rates. Part I is a cover sheet that lists the various programming, equipment and installation rates that have been calculated in Parts II and III and compares them to the rates the operator has actually charged during the period of review. " 0*(("Ԍ Y-x5.` ` The operator's maximum permitted rates are derived by completing Parts II and III of FCC Form 393, pursuant to which the operator calculates the actual aggregate revenues collected by the operator for regulated programming, equipment and installation, as  Y-of the initial date of regulation ("current rate") or as of September 30, 1992.. F Y4-ԍ An operator must calculate its rate in effect on September 30, 1992 only if its current rate is above the benchmark rate. If an operator's current rate is at or below the benchmark rate, it is not required to calculate its September 30, 1992 perchannel rate.. After calculating actual aggregate revenues, the operator converts those revenues to a perchannel rate, and then compares the perchannel figures to the applicable benchmark rate. If an operator's current perchannel rate level is below the applicable benchmark rate, then the operator's rate level is deemed reasonable, but it must remain at its current level. If its current perchannel rate level exceeds the benchmark rate, the operator must then compare its September 30, 1992 perchannel rate level to the applicable benchmark rate. If its September 30, 1992 perchannel rate level is above the benchmark rate, it must reduce this rate level to the benchmark rate or by 10%, whichever reduction is less. After computing the permitted rate level in this manner (whether based on current rates or September, 1992 rates), monthly equipment and installation costs are removed to derive the maximum permitted programming rates. Maximum permitted rates for equipment and installation are based on actual cost and are separately calculated in Part III of FCC Form 393. x  Yy-x6.` ` FCC Form 393 allows operators to adjust their benchmark rates forward in order to account for inflation since September 30, 1992. Operators arrive at their adjusted benchmark rate by employing an inflation adjustment factor, which takes into account the inflation which has occurred between September 30, 1992, and the date on which an operator files its FCC Form 393. Operators calculate their inflation adjustment factor on Lines 122128 of FCC Form 393. As part of this calculation, operators are instructed to enter the  Y-GNPPI for the most recent quarter in Line 122 of FCC Form 393.( xKF X-#o\  PC+XP#э The GNPPI, which is the Gross National Product fixed weight price index, is published by the Department of Commerce and measures changes in overall inflation and the effects of price changes in the economy. On occasion, the Department of Commerce issues revised GNPPI figures based upon the most recent available data. These revisions are set  X-forth in the Survey of Current Business, which is published monthly by the Department of Commerce.( Operators then determine the appropriate inflation factor on Line 123 by (1) dividing the current GNPPI  Y-from Line 122 by the GNPPI for the third quarter of 1992;y| F X"-#o\  PC+XP#э The instructions incorporated in FCC Form 393 state that the GNPPI for the third  X#-quarter of 1992 is 121.8. However, in a November 10, 1993 Public Notice, the Commission stated that operators should use the Department of Commerce's updated GNPPI figure of  X%-122.5 for the third quarter of 1992. See Public Notice "Questions and Answers on Completion of FCC Form 393 and Associated Filing Requirements," Question 9 (November  X'-10, 1993) ("November 10, 1993 Public Notice"). y and (2) subtracting one from"0*((" this total. Operators then compute their inflation adjustment factor by (1) multiplying the inflation factor from Line 123 by the time factor from Line 126; and (2) adding one to this sum. Finally, the operator would compute its adjusted benchmark rate by multiplying its inflation adjustment factor by the benchmark per channel rate from Line 121. Operators then compare their current rates with their adjusted benchmark rate in order to determine their  Y-maximum permitted rates for regulated services, as described in paragraph 5, supra.  Ya- x7.` ` The Board asserts that Suburban used an incorrect inflation adjustment when calculating its maximum permitted perchannel rate in its FCC Form 393. On Line 123 of its FCC Form 393, Suburban used an inflation figure of 121.8 for the third quarter of 1992 to determine its inflation factor, in accordance with the directions on the FCC Form 393. However, the Board contends that Suburban should have used 122.5, which was the updated inflation figure issued by the Department of Commerce on August 31, 1993, which is prior to the time Suburban's rates were effective. In addition, the Board notes that, two days prior to Suburban's submission of its FCC Form 393 to the Board, the Commission issued the  Y -November 10, 1993 Public Notice stating that operators should use the updated inflation figure of 122.5, rather than the 121.8 figure printed in the FCC Form 393. The Board contends that Suburban's rates were calculated using inflation data that was not accurate at the time of the calculation. Therefore, it is the Board's position that it correctly ordered Suburban to adjust its inflation adjustment figure for the third quarter of 1992 to 122.5, which resulted in a reduction in Suburban's maximum permitted monthly basic rate from $10.49 to $10.39.  Y-x8.` ` Suburban states that it restructured its rates prior to the Commission's rate regulations becoming effective on September 1, 1993. Suburban's restructured rates, which were calculated in July and processed in August, were reflected in subscribers' September bills. Suburban states that at the time it restructured its rates, it used the latest available  Y-inflation figure for the third quarter of 1992, which was 121.8. Although this preliminary figure was subsequently revised upward to 122.5 by the Department of Commerce, Suburban contends that the Board erred in adjusting Suburban's inflation figure for the third quarter of 1992. It is Suburban's position that the relevant inflation figure is the one available at the time at which the operator finalizes its benchmark rate calculations and advises its  Y$-subscribers of any rate changes.5$F Y-ԍ Reply at 2.5 Suburban further contends that the fact that inflation figures may be revised before the operator submits its rate justification form or before the franchising authority acts on the submission does not mean the operator, who otherwise  Y-accurately set its rates, must revise those rates.7yF Y $-ԍ Reply at 23.7 Finally, Suburban claims that the  Y -Commission, in its Third Order on Reconsideration, allowed cable operators to rely on the  Y!-original 121.8 inflation number.i!*F Y'-ԍ See Third Order on Reconsideration, 9 FCC Rcd at 434950.i "!0*((""Ԍ  Y-x9.` ` The Commission has indicated previously that an operator should use for its inflation adjustment calculation the most recent publicly available data applicable to the  Y-period in which the operator submits its FCC Form 393 to the local franchising authority.F Y4-ԍ Public Notice, "Cable Television Rate Regulation: Questions and Answers Relating to FCC Form 393," Question 10 (July 30, 1993). However, we have also stated that, where an operator accurately justifies its rates using data which were current at the time it restructured its rates (i.e., "thencurrent" data), we will not  Yv-require that operator to change its rates to reflect the most recently available data.vdF Y -ԍ Third Order on Reconsideration, 9 FCC Rcd at 434950. The Commission also stated  Yv -in a Public Notice that "[r]ates set in accordance with thencurrent inflation and other data  Ya -will not be deemed unreasonable solely on account of subsequent changes in that data." See  YL -Public Notice, "Questions and Answers on Cable Television Rate Regulation," Question No. 5 (June 1, 1994).  This exception cannot be used, however, if the local authority requires recalculation of an operator's rates for reasons other than the use of thencurrent data. In such a case, the operator must make the recalculations required by the local authority, and must use the most recent publicly available data applicable to the period in which it submitted its FCC Form  Y -393.e F Yu-ԍ Third Order on Reconsideration, 9 FCC Rcd at 434950.e  Y -x10.` ` As both parties have acknowledged, the U.S. Department of Commerce published an updated GNPPI of 122.5 for the third quarter of 1992 on August 31, 1993,  Y -which replaced the Department's earlier GNPPI estimate of 121.8 for that period. t F Y-ԍ See U.S. Dept. of Commerce, Survey of Current Business, 101 (Table 7.3) (August 31, 1993). A review of Suburban's FCC Form 393 indicates that Suburban entered this 121.8 figure for the third quarter 1992 GNPPI on Line 123. Suburban claims that this was a valid use of thencurrent data. However, Suburban also used figures on Lines 122 and 124 (125.6 and 13 months, respectively), which reflected data which were more recently available than the then Y4-current data which it used on Line 123.4 F Y -ԍ See FCC Form 393 filed by Suburban Cablevision, Part II, Lines 122124 (November  Y!-12, 1994); See also Suburban Cablevision, 9 FCC Rcd at 4073.   Y-x11.` ` We are unpersuaded by Suburban's argument that its use of the thencurrent inflation figure of 121.8 for the third quarter of 1992 is justified by the Commission's policy that the use of thencurrent inflation and other data will not be deemed unreasonable solely on account of subsequent changes in that data. That policy is not determinative in this case because the data which Suburban used in Lines 122127 were not consistent. The Line 122"0*((" GNPPI figure of 125.6 which Suburban used did not become available until midSeptember 1993. That figure was the most recently available figure at the time Suburban submitted its FCC Form 393. On the other hand, the Line 123 GNPPI figure which Suburban used was not the most recently available, for it had been revised to 125.6 on August 31, 1993. It was a thencurrent figure at the time Suburban restructured its rates. Since Suburban used the most recently available number of 125.6 on Line 122, it should have used the most recently available 122.5 figure for Line 123, for both numbers were published together in the August  Y_-1993 Survey of Current Business. Suburban is not permitted to rely partially upon then YJ-current data and partially upon most recently available data.JF Y -ԍ See In the Matter of Masada Cable Partners II, L.P., DA 95266 (Cab. Serv. Bur., released February 21, 1995). In computing its inflation adjustment factor, Suburban should have used either thencurrent data on each of Lines 122127, or the most recently available data for each line; it cannot use a combination of both. Accordingly, we find that the Board acted reasonably in adjusting Suburban's inflation calculations.  X - IV.xOrdering Clause  Y -  Y-x12.` ` Accordingly, IT IS ORDERED that the Appeal filed by Suburban Cablevision  Y|-is DENIED .  YO-x13.` ` This action is taken by the Chief, Cable Services Bureau, pursuant to authority delegated by Section 0.321 of the Commission's rules. 47 C.F.R. 0.321.    x` `  hhFEDERAL COMMUNICATIONS COMMISSION x` `  hhMeredith J. Jones x` `  hhChief, Cable Services Bureau