WPCu 2a BKf Z CG Times3|w=Xw PE37XP",tB^ f ^;C]ddCCCdCCCCddddddddddCCY~~vCN~sk~CCCddCYdYdYCdd88d8ddddJN8ddddYYdYd4dddddCddddddddd8YYYYYY~Y~Y~Y~YC8C8C8C8ddddddddddYdddddsdXdXXXddx|X~d~d|XdddddddC8ddddCdoddd|8|H~d<|8dtddddHHdlLlLlLkd|H|8~ddddddddXXXd~ddkd~ddxCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCYQQddddddFddddFCChhd44ddzzdddvooChdF"dhd9dCCzCddoddCdYds]zUvdYYCCCCz~ozoY~NYdYC8YooYdYzsdzdd~YYzozzz~CdzYzzzzCCdddddddzCsdYC\   pxtll\tll@\@\`LHP4M; Local Printer; LPT1tional)HL4MPCAD.PRSXw PE37\΅XP2 E E Z w  Y-#Xw PE37=XP# Y-#XR  P7jQXP#HP4M; Local Printer; LPT1tional)HL4MPCAD.PRSx  @\΅X@3|w2C> f v]pCourierCG TimesCG Times BoldCG Times ItalicCourier Italic",tB^ f ^;C]ddCCCdCCCCddddddddddCCY~~vCN~sk~CCCddCYdYdYCdd88d8ddddJN8ddddYYdYd4dddddCddddddddd8YYYYYY~Y~Y~Y~YC8C8C8C8ddddddddddYdddddsdXdXXXddx|X~d~d|XdddddddC8ddddCdoddd|8|H~d<|8dtddddHHdlLlLlLkd|H|8~ddddddddXXXd~ddkd~ddxCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCYQQddddddFddddFCChhd44ddzzdddvooChdF"dhd9dCCzCddoddCdYds]zUvdYYCCCCz~ozoY~NYdYC8YooYdYzsdzdd~YYzozzz~CdzYzzzzCCdddddddzCsdYC\   pxtll\tll@\@\`La8DocumentgDocument Style StyleXX` `  ` a4DocumentgDocument Style Style . 2fkukKva6DocumentgDocument Style Style GX  a5DocumentgDocument Style Style }X(# a2DocumentgDocument Style Style<o   ?  A.  a7DocumentgDocument Style StyleyXX` ` (#` 2t   IBibliogrphyBibliography:X (# a1Right ParRight-Aligned Paragraph Numbers:`S@ I.  X(# a2Right ParRight-Aligned Paragraph Numbers C @` A. ` ` (#` a3DocumentgDocument Style Style B b  ?  1.  2 " "   B!a3Right ParRight-Aligned Paragraph Numbers L! ` ` @P 1. ` `  (# a4Right ParRight-Aligned Paragraph Numbers Uj` `  @ a. ` (# a5Right ParRight-Aligned Paragraph Numbers _o` `  @h(1)  hh#(#h a6Right ParRight-Aligned Paragraph Numbersh` `  hh#@$(a) hh#((# 2%<" ##$a7Right ParRight-Aligned Paragraph NumberspfJ` `  hh#(@*i) (h-(# a8Right ParRight-Aligned Paragraph NumbersyW"3!` `  hh#(-@p/a) -pp2(#p Tech InitInitialize Technical Style. k I. A. 1. a.(1)(a) i) a) 1 .1 .1 .1 .1 .1 .1 .1 Technicala1DocumentgDocument Style Style\s0  zN8F I. ׃  2J(%n&&'a5TechnicalTechnical Document Style)WD (1) . a6TechnicalTechnical Document Style)D (a) . a2TechnicalTechnical Document Style<6  ?  A.   a3TechnicalTechnical Document Style9Wg  2  1.   2*|("))j*a4TechnicalTechnical Document Style8bv{ 2  a.   a1TechnicalTechnical Document StyleF!<  ?  I.   a7TechnicalTechnical Document Style(@D i) . a8TechnicalTechnical Document Style(D a) . 2>13"+U,eY00Doc InitInitialize Document Stylez   0*0*0*  I. A. 1. a.(1)(a) i) a) I. 1. 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[",tB^ f ^GPoxxPPPxPPPPxxxxxxxxxxPPx]sPPPxxPxkkTxCPCxk]Pxxxkxxxx>xxxxxPxxxxxxxxCxxxxxkkkkk]C]C]C]Cxxxxxxxxxxxxxjjxxjxxjxxxxx[Cxxx]xxC`x]Cxxjjx[][x`RxxjkjxxxxPxxPPPWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNxxxPxffxxxxxxTxxxxTPPx>>xxxxxPxT"xxExPPPxxxxPxkxsfxxxPPPPk]kkk]Ckkxkxxxkk]xkPPxxxxxxxPxkP8D%nZZB 3nMnMn..s[2Ku]Tf !Zf e^p"i~'K2^$(8<><q*"xxxxWWxxxWWkkxxxK,H6X@`7h@6uC;,QXu&_ x7XXD@NE,-_ pi7 ?xxx,/x6Nhez7XH R&HHH,/N,H6Nhez7hH-6CourierCG TimesCG Times BoldCG Times ItalicCourier Italic 4CG Times37XPCG TimesCG Times BoldTimes N2}u Y FOR THE FCC RECORD ONLY $//Warner Cable of Greater Cincinnati, OH, MO&O, DA 95929//$ $/76.922 Rates for Cable Programming Service Tier/$ $/Benchmark cable rates/$  c< E#Xz_ pi7mX#Before the FEDERAL COMMUNICATIONS COMMISSION  Washington, D.C. 20554  a</#_ pi7-#DA 95929(#U  Y -#Xw PE37XP#In the Matter of hh,V)pp  Y -` `  hh,V) CUID Nos. OH0708 (Blue Ash)  X  Y -Warner Cable of Greater CincinnatiV)pp OH0710 (Sycamore Township)  Y -` `  hh,V)pp OH0712 (Village of Greenhills)  Yx -Benchmark Filings to Supporthh,V)pp OH0715 (Symmes Township)  Ya-Cable Programming Service Pricehh,V)pp OH0720 (Village of Harrison)  YJ-` `  hh,V)pp OH0726 (Mason)  Y3-` `  hh,V) pp OH0731 (City of Springdale)  Y- ` `  hh,V)pp OH0743 (City of Reading)  Y-` `  hh,V)pp OH0790 (Village of Evendale)  Y-` `  hh,V)pp OH0793 (Springfield Township)  Y-` `  hh,V)pp OH0796 (City of Milford)  Y-` `  hh,V)pp OH0865 (City of Lebanon)  Y-` `  hh,V)pp OH0866 (City of Cincinnati)  Y{-}  MEMORANDUM OPINION AND ORDER ă  YN-` ` Adopted: April 25, 1995 VppReleased: May 1, 1995 By the Chief, Financial Analysis and Compliance Division, 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 price 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 price through benchmark showings on FCC Form 393. This Order addresses the reasonableness of Operator's price only through May 14, 1994. At a later date we will issue a separate order addressing the  Y!-reasonableness of the price after that date.Rzz!^ Y#<ԍ#XR  P7jQXP# The findings in this Order do not in any way prejudge the reasonableness of the price 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"(0*0*0*(" apply from May 15, 1994 until the date on which Operator #XR  P7jQXP#implemented its CPS price under  Yy<the new regulations. See para. 3, infra.#x6X@`7iX@# #XR  P7jQXP#Further, to the extent that the price as of March 31, 1994 is found to be excessive, reductions in Operator's price for the period after May 14, 1994 may be required to reflect the fact that Operator's price during the earlier period, which is used as the starting point to calculate its price for the prospective period, was  Y-unreasonable. See 47 C.F.R.  76.922(b)(4)(C).R"! 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.f Y <ԍ#Xw PE37XP# 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.i Y <ԍ#Xw PE37XP# 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.Yv{ Y<ԍ#Xw PE37XP# Id.Y  YH-3. The Commission's original rate regulations took effect on September 1, 1993.H.  Y'<ԍ#Xw PE37XP# 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  Y<ԍ#Xw PE37XP# 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. b Y<ԍ#Xw PE37XP# 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  Ym <ԍ#Xw PE37XP# 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. Iy Y#-w#Xw PE37XP# #Xw PE37XP#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"K 0*((W" 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 has also filed amended and supplemental Form 393 filings for some franchise areas, most recently on December 20, 1993 for CUID No. OH0710, December 22, 1993 for CUID No.  YH-OH0731, and March 4, 1994 for CUID No. OH0866.E H Y <ԍ#Xw PE37XP# Operator also filed supplemental information 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). E  Y -  5. Operator asserts that its monthly CPS tier price is justified by its benchmark filings because its price is equal to the maximum permitted charges as calculated in the filings. 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: ` ` a. In its most recent Form 393 filings, Operator calculated the Inflation Adjustment Factor (Line 127, Worksheet 1, Part II) as of the end of January 1994 for CUID Nos. OH0708 and OH0866, and as of the end of November 1993 for all other franchise areas which are the subject of this Order. With respect to CUID Nos. OH0712, OH0715, OH0720, OH0726, OH0790, OH0793, OH0796, and OH0866, Operator's use of these base dates as the dates through which it calculated the inflation adjustment is impermissible. Operator was required to file justifications of its CPS price for CUID Nos. OH0712, OH0715, OH0720, OH0726, OH0790, OH0793, OH0796 and OH0866 no later than the end of November 1993. Since Operator filed its initial justifications in a timely fashion, the instructions to Form 393  Y-required it to calculate the inflation adjustment only through the end of October (#(# Y-1993. \ Y!<ԍ #Xw PE37XP#FCC Form 393, page 11, instructions for line 124 (Inflation Adjustment Factor is calculated using "the number of whole months from September 30, 1992 to the date you will submit this form"). Moreover, for all franchise areas which are the subject of this Order, the (#(# Y|-figures Operator used are not consistent with data on which it should have relied in (#(# Ye-calculating the Inflation Adjustment Factor. Operator used the Gross National (#(#Product Price Index ("GNPPI") data released by the U.S. Department of Commerce on August 31, 1993 to complete Lines 122 and 125, but used an outdated GNPPI of"7 0*((="  Y-121.8 for the third quarter of 1992 in calculating Line 123. The GNPPI figure for (#(# Y-the third quarter of 1992 released on August 31, 1993 was 122.5. Operator's (#(#calculation of the Inflation Adjustment Factor is thus incorrect. ` ` b. We must therefore recalculate the Inflation Adjustment Factor on the basis of the most accurate data currently available for the date for which Operator filed or  Yv-should have filed for each franchise area. v Y<ԍ #Xw PE37XP#See  47 C.F.R.  76.922(b)(9)(iii) (if a cable operator fails to justify its rates, rates must be adjusted in accordance with the most accurate data available at the time of analysis). On July 29, 1994, the U.S. Department of Commerce released corrected inflation data including GNPPI figures of 122.3 for  YH- the third quarter of 1992, 125.7 for the third quarter of 1993, and 126.5 for the  Y1-fourth quarter of 1993. Using these GNPPI figures, we calculate the Inflation (#(#Adjustment Factors for the base dates Operator used or should have used in justifying its rates of 1.037 through January 1994 for CUID No. OH0708; 1.032 through November 1993 for CUID Nos. OH0710, OH0731, OH0743 and OH0865; and 1.030 through October 1993 for CUID Nos. OH0712, OH0715, OH0720, OH0726, OH0790, OH0793, OH0796, and OH0866.  Y-6. Upon review of the record herein, and having incorporated the adjustments discussed above, we conclude that Operator has failed to justify the rate it was charging during the period in question. Operator's showing justifies the maximum reasonable CPS tier prices shown on Appendix B (plus franchise fee) for the period from the filing of the earliest  Y4-complaint in each franchise area (as set forth in Appendix A) to May 14, 1994.Ov4M Y2<ԍ#XR  P7jQXP# This finding is based solely on the representations of Operator and the modifications described herein. Should information come to our attention that these  Y-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 party to this proceeding not specifically  Y-addressed herein.O However,  Y-we further determine that the total overcharge per subscriber in each franchise area is de  Y-minimis.  Therefore, it would not serve the public interest to order a refund.  Y-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 price charged by Operator in the areas referenced in the caption and at Appendix A herein, and all other complaints in these franchise areas related to the same price, ARE GRANTED TO THE EXTENT INDICATED HEREIN.  YR-8. 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"; 0*((." 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  Y-forth in Appendix B (plus franchise fee). Y4<#Xw PE37XP##x6Nhez7 XH#э# Xw PE37XP# We reserve the right to make further adjustments to Operator's price for the period  Y-after May 14, 1994, upon completion of our review of Operator's Form 1200 filings.#x6Nhez7 XH#р  Y-9. 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 rate determined in this Order.  ` `  hh,FEDERAL COMMUNICATIONS COMMISSION ` `  hh,JoAnn Lucanik ` `  hh,Chief, Financial Analysis and Compliance Division ` `  hh,Cable Services Bureau "yb0*(("   Y-D Appendix A ă  Y-CUID No.` `  Date First ComplaintppDate Complaint xx-  Yw-` `  Filed with FCCVppServed  xx-  YI-OH0708` `  2/28/94hh,Vpp2/25/94  Y2-OH0710` `  11/24/93hh,Vpp11/24/93  Y -OH0712` `  11/2/93hh,Vpp10/28/93  Y -OH0715` `  10/15/93hh,Vpp10/6/93  Y -OH0720` `  9/29/93hh,Vpp9/24/93  Y -OH0726` `  10/18/93hh,Vpp10/14/93  Y -OH0731` `  11/29/93hh,Vpp11/26/93  Y -OH0743` `  12/14/93hh,Vpp12/9/93  Y-OH0790` `  10/15/93hh,Vpp10/11/93  Yz-OH0793` `  11/1/93hh,Vpp10/28/93  Yc-OH0796` `  10/26/93hh,Vpp10/22/93  YL-OH0865` `  11/4/93hh,Vpp11/1/93  Y5-OH0866` `  10/15/93hh,Vpp10/10/93 "0*0*0*"     Y-E Appendix B ă l  Y-CUID No.` `  Actual RatesVMaximum Permitted Rates  Yw-OH0708` `  $2.89hh,V$2.86  Y`-OH0710` `  $2.89hh,V$2.84  YI-OH0712` `  $2.89hh,V$2.84  Y2-OH0715` `  $2.89hh,V$2.84  Y -OH0720` `  $2.89hh,V$2.84  Y -OH0726` `  $2.89hh,V$2.84  Y -OH0731` `  $2.89hh,V$2.84  Y -OH0743` `  $2.89hh,V$2.84  Y -OH0790` `  $2.89hh,V$2.84  Y -OH0793` `  $2.89hh,V$2.84  Y-OH0796` `  $2.89hh,V$2.84  Yz-OH0865` `  $2.89hh,V$2.84  Yc-OH0866` `  $2.89hh,V$2.84