WPCh 2BJ Z Courier3|xCG Times BoldX@`7X@HP LaserJet 4_230_1HPLAS4.PRS 4x  @\oeX@2Q 6f  , CourierCG TimesCG Times BoldCourier 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@\@\`L3|xCourierCG TimesCG Times BoldCourier BoldD.PRSx  @\eX@2 v pksa8DocumentgDocument Style StyleXX` `  ` a4DocumentgDocument Style Style . a6DocumentgDocument Style Style GX  2 k{v ta5DocumentgDocument Style Style }X(# a2DocumentgDocument Style Style<o   ?  A.  a7DocumentgDocument Style StyleyXX` ` (#` BibliogrphyBibliography:X (# 2<  y  a1Right ParRight-Aligned Paragraph Numbers:`S@ I.  X(# a2Right ParRight-Aligned Paragraph Numbers C @` A. ` ` (#` a3DocumentgDocument Style Style B b  ?  1.  a3Right ParRight-Aligned Paragraph Numbers L! ` ` @P 1. ` `  (# 2   r: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#((# a7Right ParRight-Aligned Paragraph NumberspfJ` `  hh#(@*i) (h-(# 2l<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. ׃  a5TechnicalTechnical Document Style)WD (1) . 2 %za6TechnicalTechnical Document Style)D (a) . a2TechnicalTechnical Document Style<6  ?  A.   a3TechnicalTechnical Document Style9Wg  2  1.   a4TechnicalTechnical Document Style8bv{ 2  a.   2S R3 a1TechnicalTechnical Document StyleF!<  ?  I.   a7TechnicalTechnical Document Style(@D i) . a8TechnicalTechnical Document Style(D a) . Doc InitInitialize Document Stylez   0*0*0*  I. A. 1. a.(1)(a) i) a) I. 1. A. a.(1)(a) i) a)Documentg2% e$$n%PleadingHeader for Numbered Pleading PaperE!n    X X` hp x (#%'0*,.8135@8:?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\2]Kf Q:G '"i~'K2^$(8<><q*"xxxxWWxxxWWkkxxx <ԍ#Xw PE37XP# 47 C.F.R.  76.956.#x6X@`7iX@#э Under our rules, an operator may attempt to justify its prices through  Yv-either a benchmark showing or a costofservice showing.v^ Y<ԍ#Xw PE37XP# 47 C.F.R.  76.956(b)#x6X@`7iX@#. In either case, the operator has  Y_-the burden of demonstrating that its CPS prices are not unreasonable._b ^ Wr<ԍ#Xw PE37XP# Id.#x6X@`7iX@#р  Y1-x3. The Commission's original rate regulations took effect on September 1, 1993.b1 ^ Y<ԍ#Xw PE37XP# Order in MM Docket No. 92266, Implementation of Sections of the Cable  Y-Consumer Protection and Competition Act of 1992: Rate Regulation, FCC 93372, 58 Fed.  Y-Reg. 41042 (Aug. 2, 1993).#x6X@`7iX@#b  Y -The Commission subsequently revised its rate regulations effective May 15, 1994. ^ Ye<ԍ#Xw PE37XP# 47 C.F.R.  76.922(b)#x6X@`7iX@#. Operators with complete and timely 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  Y -prices were in compliance with the revised rules from May 15, 1994 forward. K^ Y<ԍ#Xw PE37XP# See Second Order on Reconsideration, 9 FCC Rcd at 4190, paras. 150152.#x6X@`7iX@# Operators attempting to justify their prices for the period prior to May 15, 1994 through a benchmark  Y-showing must complete and file FCC Form 393. ^ W?"<ԍ#Xw PE37XP# Id.#x6X@`7iX@#р Generally, to justify their prices for the period beginning May 15, 1994 through a benchmark showing, operators must use the FCC  Yb-Form 1200 series. b^ Y%<ԍ#Xw PE37XP# 47 C.F.R.  76.922(b)(6); see also Second Order on Reconsideration, 9 FCC Rcd  Y&-at 4189 n.195.#x6X@`7iX@#  X4- "4K 0*0*0*G"Ԍ X-Procedural Matters x4. The first complete and timely CPS complaints in each of the franchise areas addressed in this Order were completed and served on the respective Operators and received  Y_-by the Commission on the dates set forth in Appendix A.Q _d Yt <ԍ#Xw PE37XP# Operators have not complied with 47 C.F.R.  76.956(a), which requires Operators to state when the complaints were served upon them. Under these circumstances, we will consider the mailing dates indicated by the complainants as the service dates. Q x5. Operators filed Forms 393 on the dates set forth in Appendix B. x6. Operators filed Motions to Dismiss the complaints identified on Appendix A. In their Motions, Operators request that the Commission dismiss the complaints on the ground that the complaints are about specific requirements of the Cable Act that are not subject to regulation by the Commission, such as equipment charges and basic service tier rate charges. We note that attached to several of the FCC Forms 329 filed by the complainants are comments that raise issues in addition to the CPS tier rate. However, we are not persuaded that the complaints are invalid or should be dismissed. In general, we will find valid any complaint that states a claim on which relief can be granted and provides adequate information to allow us to process the complaint, despite minor flaws or inaccuracies. We believe this approach best implements the mandate of the 1992 Cable Act. Because the rates listed on the Forms 329 and on the attached bills indicate that the complainants received the CPS tier, we find it reasonable to conclude that the complainants objected to the CPS tier  Y-rate. We therefore find the complaints valid and deny Operators' Motions to Dismiss.  Y<ԍ#Xw PE37XP#Operators have also filed motions to dismiss complaints that were filed later than the complaints listed on Appendix A. Because we have accepted the earliest complaints as properly filed, we find it unnecessary to rule on Operators' objections to the later filed  YB -complaints.#x6X@`7iX@#ѝ  X- Discussion x7. Operators assert that their monthly CPS prices are justified by their benchmark filings because their prices are less than the maximum permitted charges as calculated in their most recent filings. However, upon review, we have determined that Operators have not correctly calculated their maximum permitted prices, and it is therefore appropriate to make the following adjustments to Operators' calculations in Forms 393: "7S 0*((="Ԍ Y-ԙxa. ` ` On September 1, 1993, Operators restructured their rates. As part of this restructuring, Telecable of Bloomington/Normal changed its basic tier price to $13.34 and its CPS tier price to $10.56; and Telecable of Lexington changed its basic tier price to $8.36 and its CPS price to $10.21. These changes, however, are not reflected on Line 101 of Worksheet 1 of Part II of Operators' FCC Form 393 filings. Instead of entering their currently effective tier prices, as required by the directions for Line 101, Operators entered their previously effective tier prices. We therefore substitute Operators' restructured tier prices on Part II, Worksheet 1, Line 101.(#`  Y -xb. ` ` Since Operators restructured their rates, including their equipment rates, on September 1, 1993, the current monthly equipment revenue figures they entered on Part II, Worksheet 1, Line 104 should have been close or identical  Y -to their equipment cost figures on Part III, Step G, Line 34.   WN<ԍ#Xw PE37XP# See Questions and Answers on Completion of FCC Form 393 and Associated Filing  Y7-Requirements, Question and Answer No. 7 (released Nov. 10, 1993) ("Where operators have restructured equipment rates as of September 1, 1993 in accordance with our regulations...operator will enter on Line 104 the same, or nearly the same, number as on  Y-Line 301.").#x6X@`7iX@# However, Operators' entries on these two lines varied substantially. Accordingly, on Line 104 we enter $292,642 for Telecable of Lexington and $104,272 for Telecable of Bloomington/Normal, which are the identical figures that appear on Part III, Step G, Line 34 of the respective Form 393 filings. (#`  YK-xc.` ` Because of these errors, we will set prices for these tiers, incorporating the adjustments discussed above. In doing so, we must also recalculate the Inflation Adjustment Factor in Form 393, Part II, Worksheet 1. On its amended Forms 393 Operators apparently calculated the Inflation Adjustment Factors using data they relied on when they set their restructured CPS prices. If based on this data the Forms 393 indicated that Operators' prices were reasonable, then Operators would have successfully justified their prices under  Y-paragraph 94 of the Third Order on Reconsideration. Yz<ԍ #Xw PE37XP#Third Order on Reconsideration, MM Docket Nos. 92266 and 92262, FCC 94 Ye -40, 9 FCC Rcd 4316, 4348 (1994).#x6X@`7iX@# However, Operators have not shown that their prices were reasonable, so we must recalculate the Inflation Adjustment Factor on the basis of the most accurate data available for  Yg-the date that Operators timely filed FCC Form 393.Jg Y$<ԍ#Xw PE37XP# See 47 C.F.R. 76.922(b)(9)(iii) (if a cable operator fails to justify its rates, rates  Y%-must be adjusted in accordance with the most accurate data available at the time of analysis).#x6X@`7iX@#J On July 29, 1994, the U.S. Department of Commerce released corrected data including Gross National Product Price Index ("GNPPI") figures of 122.3 for the third quarter"9W 0*((=" of 1992 and 125.7 for the third quarter of 1993. Using these GNPPI figures  Y-we calculate an Inflation Adjustment Factor through October 1993# Yb<ԍ#Xw PE37XP# The Inflation Adjustment Factor is calculated using the number of whole months  YK-between September 30, 1992, and the date of filing. See FCC Form 393, page 11, instructions for Line 124.# of 1.030 for both franchise areas covered by this Order.(#`  X- Conclusions x8. Upon review of the record herein, and having incorporated the adjustments discussed above, we conclude that Operators' showings support the maximum reasonable prices shown in Appendix C (plus franchise fee) for the period from the filing of the earliest  Y1-complaint in each franchise area (as set forth in Appendix A) to May 14, 1994.x1M Y/<ԍ#Xw PE37XP#These findings are based solely on the representations of Operators listed in  Y-paragraph 5, supra, and the modifications described in paragraph 7, supra. Should 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  Y-party to this proceeding not specifically addressed herein.#x6X@`7iX@#љ x9. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's Rules, 47 C.F.R.  0.321, that Operators' motions to dismiss the complaints listed in Appendix A ARE DENIED. x10. IT IS FURTHER ORDERED that the complaints referenced in Appendix A against the cable programming service prices charged by Telecable of Bloomington/Normal, Inc., in Normal, Illinois, CUID No. IL0147; and Telecable of Lexington, Inc., in Lexington, Kentucky, CUID No. KY0469, and all other complaints in these franchise areas relating to the same prices, ARE GRANTED TO THE EXTENT INDICATED HEREIN. x11. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's Rules, 47 C.F.R.  76.961, that Operators shall refund to subscribers in those communities shown at Appendix C hereto 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  Y-in Appendix A),  Y"<ԍ#Xw PE37XP#Our jurisdiction to order a refund dates from the earliest date a complete and timely  Y#-complaint is filed with the Commission. See 47 C.F.R.  76.961(b).#x6X@`7iX@#, to May 14, 1994, which exceeded the maximum price for each franchise area set forth in Appendix C (plus franchise fee) per month and was thus unreasonable, plus interest to the date of the refund. x12. IT IS FURTHER ORDERED that Operators shall promptly determine the"e) 0*((]" overcharges to their CPS subscribers for the same periods, and shall within 30 days of the release of this Order file reports with the Chief, Cable Services Bureau, stating the cumulative refund amounts so determined (including franchise fees and interest), describing the calculation thereof, and describing their plans to implement the refunds within 60 days of Commission approval of the plans. x13. 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 Operators shall, within 30 days of the release of this Order, revise their Form 1200 filings with respect to the communities listed herein, for the period beginning May 15, 1994, to reduce the monthly charges per tier as of March 31, 1994 for Tier 2 (Line A6b), to equal the maximum prices for those  Y -franchise areas covered by this Order (plus franchise fee).1  Y| <ԍ#Xw PE37XP#We reserve the right to make further adjustments to Operators' prices for the period  Ye -after May 14, 1994, upon completion of our review of Operators' Form 1200 filings.#x6X@`7iX@#1 x14. IT IS FURTHER ORDERED that Operators shall place into effect, within 30 days after submission of the revised Form 1200 filings required above, prices that reflect the reductions in the CPS rates determined in this Order. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau "#b0*(($"Ԍ  Y-& APPENDIX A  Yw- CUID No.` `  Date First Complaint hppDate Complaint  Y`-x` `  Filed with FCC ppServed on Telecable  Y -IL0147` `  10/26/93hh@hpp10/21/93  Y -KY0469` `  10/15/93hh@hpp10/13/93  Y -' APPENDIX B ă  Y{-CUID No. ` `  Date First Form@hppDate Amended Form  Yd-x` `  393 Filedhh@hpp393 Filed  Y6-IL0147` `  11/15/93hh@hpp06/24/94  Y-KY0469` `  11/15/93hh@hpp06/24/94  Y-& APPENDIX C ă  Y-CUID No.` `  Actual Rateshh@hppMaximum Reasonable Rates  Yh-IL0147` `  $10.56hh@hpp$10.42  YQ-KY0469` `  $10.21hh@hpp$10.11