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 how2ftp. File how2ftp (.txt & .wp) is in directory \pub\Public_Notices\Miscellaneous. ***************************************************************** ******** $//Scripps Howard Cable Company, State of Georgia, MO&O, DA 95-1636//$ $/76.922 Rates for Cable Programming Service tiers/$ $/benchmark cable rates/$ Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 DA 95-1636 In the Matter of) CUID Nos. GA0064 (City of Calhoun) ) GA0167 (City of Montezuma) Scripps Howard Cable Company ) GA0189 (City of Tallapoosa) ) GA0241 (City of Chamblee) Withdrawal of FCC Form 329 ) GA0304 (City of Dallas) Rate Complaints ) GA0311 (City of Social Circle) ) GA0342 (City of Louisville) MEMORANDUM OPINION AND ORDER Adopted: July 21, 1995 Released: August 1, 1995 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. Complaints with this Commission were filed by local franchising authorities ("LFAs") in the above-referenced Georgia communities alleging that the prices charged by Scripps Howard Cable Company ("Scripps Howard") for cable programming service tier ("CPS") services in those communities were unreasonably high. In June and July of 1995, the LFAs wrote to the Commission stating that they wished to withdraw their complaints in these communities. In each of the communities, the LFA was the only complainant that filed a valid complaint with this Commission. Our jurisdiction to regulate CPS rates arises with the filing of a valid complaint against those rates. The withdrawal of the only complaint against an operator's CPS rates in a community constitutes the termination of our jurisdiction to regulate those rates. We will allow the withdrawal of these complaints, and our review of these filings will therefore be terminated. 2. Under the Cable Television Consumer Protection and Competition Act of 1992, 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 prices 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. 4. This Commission has now received from the LFA in each community a letter stating that it wishes to withdraw its CPS rate complaint against Scripps Howard. Under our rules, this Commission's authority to regulate CPS rates arises when a valid complaint against those rates is filed. In every community referenced above, the LFA is the only complainant. Our mandate is to "protect subscribers of any cable system that is not subject to effective competition from rates that exceed the rates that would be charged if such a system were subject to effective competition." While our rules forbid collusive agreements between operators and local franchising authorities regarding forebearance from rate regulation, there is no evidence of any such agreements here. We will accordingly allow the LFAs to withdraw their complaints. Because our review of the rate justification showings is predicated on the existence of a rate complaint, we are terminating our review of Scripps Howard's filings in the above-referenced communities. 5. Accordingly, IT IS ORDERED that permission to withdraw the FCC Form 329 rate complaints against cable programming service rates in the above-noted communities IS GRANTED, and the review of the resulting rate justification filings IS TERMINATED to the extent discussed herein. FEDERAL COMMUNICATIONS COMMISSION JoAnn Lucanik Chief, Financial Analysis and Compliance Division Cable Services Bureau