WPCލ 2a BKf Z CG Times3|w=9Xw 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@\@\`LHP4Si; Rm. 700_1; LPT2onal)HPLA4SAD.PRSXw PE37\\xXP2u   f  -#Xw PE37=XP#3|wCG TimesCG Times BoldCG Times Italic",tB^ f ^;C]ddCCCdCCCCddddddddddCCdxN`xoCCCddCdoYoYFdo8Co8odooYNCodddYdddd4dddddCddddddddo8dddddYYYYYN8N8N8N8oddddooooddpddddxodddXXddXddXdddddooL8doddNorddo8PdN8ppoddXXdpLoNpLodPDdopoopodXYXodoodddCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCdUUddddddFddddFCCssd44ddzzddd~ooCsdF"dsd9dCCzCddoddCdYds`zUvdddCCCCzozoYNYYYN8YooYdYzzdzddYYzozzzNdzYzzzzCCdddddddzCzdYC\   pxtll\tll@\@\`L2Z v pHP LaserJet 4Si RM 804 (LPT2)HPLAS4SI.PRSXw PE37\5LNXPa8DocumentgDocument Style StyleXX` `  ` a4DocumentgDocument Style Style . 2k#kva6DocumentgDocument Style Style GX  a5DocumentgDocument Style Style }X(# a2DocumentgDocument Style Style<o   ?  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A. a.(1)(a) i) a)DocumentgPleadingHeader for Numbered Pleading PaperE!n    X X` hp x (#%'0*,.8135@8:.@Right Par 3Right Par 3+` hp x (#X` P hp x (#X` P hp x (#` hp x (#Right Par 4Right Par 4,` hp x (#X` hp x (#0X` hp x (#0` hp x (#Right Par 5Right Par 5-` hp x (#X` hp x (#X` hp x (#` hp x (#Right Par 6Right Par 6.` hp x (#X` hp x (#0X` hp x (#0` hp x (#2|K/B0E1(0G2$XIRight Par 7Right Par 7/` hp x (#X` hp x (#X` hp x (#` hp x (#Right Par 8Right Par 80` hp x (#X` hp x (#0X` hp x (#0` hp x (#Document 1Document 11` hp x (#X` hp x (#X` hp x (#` hp x (#Technical 5Technical 52` hp x (#X` hp x (# X` hp x (#` hp x (#2P3$K4lM5l>N6$NTechnical 6Technical 63` hp x (#X` hp x (# X` hp x (#` hp x (#Technical 2Technical 24 Technical 3Technical 35 Technical 4Technical 46` hp x (#X` hp x (# X` hp x (#` hp x (#2W7lQ8$lQ9$S:UTechnical 1Technical 17 Technical 7Technical 78` hp x (#X` hp x (# X` hp x (#` hp x (#Technical 8Technical 89` hp x (#X` hp x (# X` hp x (#` hp x (#toc 1toc 1:` hp x (#!(#B!(#B` hp x (#2|`;X<"Z=@\>^^toc 2toc 2;` hp x (#` !(#B` !(#B` hp x (#toc 3toc 3<` hp x (#` !(# ` !(# ` hp x (#toc 4toc 4=` hp x (# !(#  !(# ` hp x (#toc 5toc 5>` hp x (#h!(# h!(# ` hp x (#2~g?`@vbABcB`etoc 6toc 6?` hp x (#!(#!(#` hp x (#toc 7toc 7@ toc 8toc 8A` hp x (#!(#!(#` hp x (#toc 9toc 9B` hp x (#!(#B!(#B` hp x (#2nCgDiEkFv nindex 1index 1C` hp x (#` !(# ` !(# ` hp x (#index 2index 2D` hp x (#` !(#B` !(#B` hp x (#toatoaE` hp x (#!(# !(# ` hp x (#captioncaptionF 2N|GlnHroXoXz_Equation Caption_Equation CaptionG endnote referenceendnote referenceH 8wC;,=9Xw PE37XPD7zC;, BXz_ pi7XV"G($,hG PE37hP#  Document 6ddddooooddpddddxodddXXddXddXdddddooL8doddNorddo8PdN8ppoddXXdpLoNpLodPDdopoopodXYXodoodddCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCdUUddddddFddddFCCssd44ddzzddd~ooCsdF"dsd9dCCzCddoddCdYds`zUvdddCCCCzozoYNYYYN8YooYdYzzdzddYYzozzzNdzYzzzzCCdddddddzCzdYC\   pxtll\tll@\@\`LJ8wC;,}Xw PE37XPDM7zC;, EXz_ pi7XNV"G($,}hG PE37hP6uC;,E:Xu&_ x7XX2|f D;  "i~'K2^$(8<><q*"xxxxWWxxxWWkkxxx"  Y-reasonable, as required by the 1992 Cable Act.k 4 Yy-ԍ See Communications Act, 623(b), 47 U.S.C. 543(b).k Requiring cable operators to set all or some of their rates for programming, equipment or installation below their maximum permitted levels would force them to charge rates at levels below those specifically allowed  Y-under our rules. {4 Y-ԍ If a franchising authority required an operator to set its rates for equipment and installations below their maximum permitted levels, the operator could, in effect, be forced to provide equipment and installations at levels below actual cost.   X-x B . Franchise Fees x5. Dimension first contends that the Cities improperly excluded a portion of its franchise fees ($33,703 in each City) from Dimension's rate justification calculations. Dimension included the franchise fees as part of its equipment revenue on Line 204 of Worksheet 2, in Part II of Dimension's Form 393. Dimension argues that the Commission's benchmark rates were calculated by excluding the franchise fee expense on programming service revenues, but not the franchise fee expense on equipment revenues. Dimension claims the Cities's exclusion of franchise fees from its equipment revenue resulted in a substantial understatement of its base perchannel rate. The Cities, however, concluded that allowing Dimension to include within Line 204 equipment revenues allocable to franchise fees would yield a double recovery, once for the amount that effectively becomes embedded in Line 204 and again as franchise fees are added as a passthrough to the maximum permitted rates. x6. The franchise fee issue raised in Dimension's appeals has been addressed in cable  Y-programming service (CPS) rate orders issued for each City. m4 Y-ԍ Times Mirror Cable Television of Orange County, Inc. (Dana Point, California), DA  Y-941337, 10 FCC Rcd 817 (Cab. Serv. Bur. 1995); Times Mirror Cable Television of Orange  Y-County, Inc. (Laguna Niguel, California), DA 941336, 10 FCC Rcd 808 (Cab. Serv. Bur.  Y-1995); Times Mirror Cable Television of Orange County, Inc. (Lake Forest, California), DA  Yx-941338, 10 FCC Rcd 826 (Cab. Serv. Bur. 1995); Times Mirror Cable Television of Orange  Yc-County, Inc. (Mission Viejo, California), DA 941339, 10 FCC Rcd 836 (Cab. Serv. Bur.  YN -1995) ("Times Mirror CPS Orders"). In the Times Mirror CPS  Y-Orders, we stated that, if franchise fees are both included in the base from which maximum permitted rates are calculated and permitted as an addition to maximum permitted rates (as a  Y-passthrough), the operator would recover these costs twice. 3 4 Y$-ԍxSee, for example, Times Mirror Dana Point, 10 FCC Rcd at 822. We find that, in accordance  Y-with the Times Mirror CPS Orders, Dimension should not be allowed to include $33,703 of its franchise fees, as part of its equipment revenue on Line 204 of Worksheet 2, in Part II of Dimension's Form 393, in justifying its rates for basic cable service, equipment and" 0*((" installations. The Cities' decisions in this regard were therefore reasonable and Dimension's appeals of this issue are denied.  X-x C. Reserved Authority x7. Dimension next contends that, in both their 393 and 1200 based rate orders, the Cities exceeded their authority by reserving the right to order additional rate reductions and refunds based on any future Commission action. Dimension has not alleged, however, that the Cities have taken or have attempted to take any such actions. Until, if ever, the Cities attempt to revisit their 393 or 1200 based rate orders, however, there is no controversy to resolve. This issue is therefore dismissed.  X - III.xORDERING CLAUSES  Y -  Y -x8. Accordingly, IT IS ORDERED that Dimension's appeals, with respect to the  Y -issue of including franchise fees as a part of equipment revenue on Form 393, ARE  Y-DENIED .  Ye-x9. IT IS FURTHER ORDERED that Dimension's appeals, with respect to the issue  YO-of reserved authority, ARE DISMISSED . x10. 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` `  FEDERAL COMMUNICATIONS COMMISSION x` `  Meredith J. Jones  Y<-x` `  Chief, Cable Services Bureau