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. ***************************************************************** ******** $//Horizon Cablevision, Inc.., MO&O, DA 95-2152//$ $76.922 Rates for Cable Programming Service tiers/$ $/benchmark cable rates/$ Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 DA 95-2152 In the Matter of) ) Horizon Cablevision, Inc. ) CUID No. MI0478 (Concord, MI) Withdrawal of FCC Form 329 ) Rate Complaint ) MEMORANDUM OPINION AND ORDER Adopted: October 12, 1995 Released: October 24, 1995 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. A complaint with this Commission was filed by the local franchising authority ("LFA") in the above-referenced community alleging that the price charged by Horizon Cablevision, Inc. ("Horizon") for cable programming service tier ("CPS") services in the Township of Concord, Michigan was unreasonably high. In March of 1994, the LFA wrote to the Commission stating that they wished to withdraw the complaint . 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 the complaint, and our review of the filing 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 a letter stating that it wishes to withdraw its CPS rate complaint against Horizon. Under our rules, this Commission's authority to regulate CPS rates arises when a valid complaint against those rates is filed. 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 LFA to withdraw the complaint. Because our review of the rate justification showings is predicated on the existence of a rate complaint, we are terminating our review of Vantage Cables's filings in the above-referenced community. 5. Accordingly, IT IS ORDERED that permission to withdraw the FCC Form 329 rate complaints against cable programming service rates in the above-noted community IS GRANTED, and the review of the resulting rate justification filing IS TERMINATED to the extent discussed herein. FEDERAL COMMUNICATIONS COMMISSION JoAnn Lucanik Chief, Financial Analysis and Compliance Division Cable Services Bureau