NOTICE ********************************************************* NOTICE ********************************************************* This document was originally prepared in Word Perfect. If the original document contained-- * Footnotes * Boldface & Italics --this information is missing in this version The document format (spacing, margins, tabs, etc.) is changed too. If you need the complete document, download the Word Perfect version. For information about downloading documents (FTP) see file pnmc5021. File pnmc5021 (.txt & .wp) is in directory \pub\Public_Notices\Miscellaneous. ***************************************************************** ******** FOR FCC RECORD ONLY $//Suburban Cable TV Co., Inc., MO&O, DA 95-1230//$ $/ 76.922 Rates for the basic service tier and cable programming services tier/$ $/benchmark cable rates/$ Before the Federal Communications Commission Washington, D.C. DA 95-1230 In the matter of: ) ) Suburban Cable TV Co., Inc. ) CUID No. PA1947 Town of New Britain, Pennsylvania) ) Benchmark Filing to Support ) Cable Programming Service Price ) Memorandum Opinion and Order Adopted: June 5, 1995 Released: June 12, 1995 By the Chief, Cable Services Bureau: Introduction 1. Here we consider complaints about the price Suburban Cable TV Co., Inc., ("Suburban") was charging for its cable programming service ("CPS") tier in the Town of New Britain, Pennsylvania ("New Britain"), community unit identification ("CUID") number PA1947. Suburban has chosen to attempt to justify its price through a benchmark showing on FCC Form 393. This Order addresses the reasonableness of Suburban's CPS tier price only through May 14, 1994. At a later time we will issue a separate order addressing the reasonableness of the price after that date. 2. Under the Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act"), 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 obligation on behalf of the cable operator to file a justification of its CPS prices. Under our rules, an operator may attempt to justify its rates through either a benchmark showing or a cost-of-service showing. In either case, the operator has the burden of demonstrating that its CPS prices are not unreasonable. 3. The Commission's original rate regulations took effect on September 1, 1993. The Commission subsequently revised its rate regulations effective May 15, 1994. 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 compliance with the revised rules from May 15, 1994 forward. Operators attempting to justify their prices for the period prior to May 15, 1994 through a benchmark showing must complete and file FCC Form 393. Generally, to justify their prices for the period beginning May 15, 1994 through a benchmark showing, operators must use the FCC Form 1200 series. Procedural Matters 4. The first valid CPS complaint in the New Britain franchise area was completed and served on Suburban on December 28, 1993. The Commission received the complaint on January 6, 1994. 5. Suburban initially attempted to justify its CPS price through an FCC Form 393 filed on May 6, 1994. It amended its justification on June 24, 1994 in response to a Cable Services Bureau order citing common deficiencies observed in benchmark filings generally. On June 30, 1994 it filed to revise the cover sheet (Part I of the filing) to correct the June 24 revision. Discussion 6. In its amended benchmark filing of June 24, 1994, Suburban calculated a maximum permitted price for the CPS tier of $11.74 per month. Upon review of this filing, we have found no apparent errors that would require a recalculation of the maximum permitted rate. However, Suburban's actual price for the CPS tier was $12.15 per month. Thus, Suburban has failed to demonstrate that its price for the CPS tier was not unreasonable. Conclusions 7. Upon review of the record herein, we conclude that Suburban's showing for the franchise area serving the Town of New Britain, Pennsylvania CUID No. PA1947, supports a maximum permitted CPS tier price of $11.74 per month (plus franchise fee) for the period from January 6, 1994 to May 14, 1994. We further determine that with respect to this franchise area we will order appropriate refunds pursuant to Section 76.957 of the Commission's Rules, 47 C.F.R.  76.957, in order to reimburse subscribers for the amount they paid in excess of a reasonable price. 8. We further conclude that for the period after May 14, 1994, Suburban must reflect in its Form 1200 rate filing for the franchise area addressed in this Order the fact that Suburban's price during the earlier period was unreasonable. We reserve the right to make further adjustments to Suburban's price for the period after May 14, 1994, upon completion of our review of Suburban's FCC Form 1200 rate filing. 9. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's Rules, 47 C.F.R.  0.321, that the complaints against the cable programming service price charged by Suburban Cable TV Co., Inc., in the Town of New Britain, Pennsylvania, CUID No. PA1947, ARE GRANTED TO THE EXTENT INDICATED HEREIN. 10. IT IS FURTHER ORDERED that the benchmark filing submitted by Suburban Cable TV Co., Inc., with respect to the Town of New Britain, Pennsylvania, CUID No. PA1947, for the period beginning with the filing of the first valid complaint on January 6, 1994, and ending on May 14, 1994, justifies a maximum price of $11.74 per month (plus franchise fee) for its cable programming service tier. 11. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's Rules, 47 C.F.R. 76.961, that Suburban Cable TV Co., Inc., shall refund to subscribers in the franchise area serving the Town of New Britain, Pennsylvania, CUID No. PA1947, that portion of the amounts paid for cable programming service for the period from January 6, 1994, to May 14, 1994, that exceeded $11.74 (plus franchise fee) per month and was thus unreasonable, plus interest to the date of the refund. 12. IT IS FURTHER ORDERED that Suburban Cable TV Co., Inc., shall promptly determine the overcharges to CPS subscribers in the franchise area serving the Town of New Britain, Pennsylvania for the stated period, and shall within 30 days of the release of this Order file a report with the Chief, Cable Services Bureau, stating the cumulative refund amount so determined (including franchise fees and interest), describing the calculation thereof, and describing its plan to implement the refunds within 60 days of Commission approval thereof. 13. 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 Suburban Cable TV Co., Inc., shall, within 30 days of the release of this Order, revise its Form 1200 filing with respect to its franchise area serving the Town of New Britain, Pennsylvania, CUID No. PA1947, 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 for that franchise area (plus franchise fee). 14. IT IS FURTHER ORDERED that Suburban Cable TV Co., Inc., shall place into effect, within 30 days after its submission of the revised Form 1200 filing required above, a CPS tier price that reflects the reduction in the CPS rate determined in this Order for its franchise area serving the Town of New Britain, Pennsylvania, CUID No. PA1947. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau