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File how2ftp (.txt & .wp) is in directory \pub\Public_Notices\Miscellaneous. ***************************************************************** ******** FOR THE FCC RECORD ONLY $//Order, Comcast Cable Communications, DA 95-353//$ $/76.922 Rates for Basic Service and CPS tier//$ $/76.950 Complaints regarding cable programming service tier/$ FCC 95-353 Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of ) ) ) Comcast Cable ) Communications, Inc. ) ) Rate Complaints ) ORDER Adopted: August 10, 1995 Released: August 11, 1995 By the Commission: 1. Pursuant to 47 C.F.R.  1.1204(b)(7), the Cable Services Bureau staff met with Comcast Cable Communications, Inc. to discuss the resolution of issues relating to complaints regarding the rates charged for cable programming services offerings. The staff of the Cable Services Bureau has received from Comcast the attached proposal to resolve the rate complaints. On initial review the Commission believes that the proposal is a reasonable approach to resolve these matters. The Commission directs the Cable Services Bureau to serve all complainants with this proposal to ensure that the complainants are fully apprised of this proposal and have an opportunity to provide comments. Parties wishing to comment on the proposal should do so by filing with the Secretary within thirty days of the date of this Order. Because it would be unduly burdensome to require that each complainant be served with every comment, pursuant to our Rate Order we will not require the parties to serve their comments on all parties. However, all comments will be publicly available. 2. Accordingly, it is ORDERED that the staff shall serve the complainants with this proposal agreement and provide thirty days for comment. FEDERAL COMMUNICATIONS COMMISSION William F. Caton Acting Secretary TERMS OF PROPOSED RESOLUTION I. Introduction 1. These terms constitute a resolution of certain cable programming service complaints pending against Comcast Cable Communications, Inc. and its affiliates and subsidiaries (collectively, "Comcast"). II. Background 2. Complaints have been filed with the Federal Communications Commission ("Commission") pursuant to Section 76.950 of the Commission's regulations, 47 C.F.R.  76.950, concerning the cable programming service ("CPS") rates charged by Comcast in the communities listed in Exhibit 1 and Exhibit 2. Comcast filed cost-of-service rate justifications for CPS rates charged in the communities listed on Exhibit 1 and benchmark rate justifications on FCC Forms 393 for CPS rates charged in the communities listed on Exhibit 2. 3. The Commission's Cable Services Bureau ("Bureau"), under delegated authority, has reviewed these cost-of-service rate justifications and benchmark rate justifications on FCC Forms 393 pursuant to the Cable Television Consumer Protection and Competition Act of 1992, Pub. L. No. 102-385, 106 Stat. 1460 (1992) ("1992 Cable Act"). As a result of that review, the Bureau determined that certain refunds were owed to subscribers. 4. Comcast maintains that it has followed the letter and spirit of the Commission's rate regulations and the 1992 Cable Act in its cost-of-service and benchmark rate justification filings and that no refunds are owed to subscribers. 5. Comcast desires to resolve the outstanding CPS benchmark and cost-of-service rate complaints. III. Definitions 6. As used herein, the following definitions will apply: (a) "Benchmark Franchises" are those cable franchises in which Comcast filed benchmark rate justifications, as listed on Exhibit 2. (b) "Cost-of-Service Franchises" are the cable franchises in which Comcast filed cost-of-service rate justifications, as listed on Exhibit 1. (c) "CPS" means cable programming service. (d) "Current Rates" means the CPS rates that are in effect as of the Effective Date in each of the cost-of-service franchises. (e) "Effective Date" means the date on which the Commission issues an order approving this Agreement. (f) "Eligible Subscribers" means CPS subscribers of record in those Comcast cable franchises listed on Exhibits 1 and 2 on the first day of each monthly billing cycle. (g) "Going-Forward rules" means the Commission's rules adopted in the Sixth Order on Reconsideration, 10 FCC Rcd 1226 (1994), including all subsequent clarifications and amendments thereto. (h) "Interest" means the Internal Revenue Service rate of interest for tax overpayments. (i) "March 31, 1994 channel counts" means the number of regulated and non- broadcast channels entered on Modules A and C of the FCC Forms 1200 which Comcast filed with the Commission. (j) "March 31, 1994 Rates" means the rates entered on Module A of the FCC Forms 1200 which Comcast filed with the Commission. (k) "Migrated Product Tier" or "MPT" means a tier consisting of up to four (4) services moved from existing tiers and to which other services may be added, as described below in paragraph 12. (l) "Refunds" means credits on subscriber bills. (m) "Resolution Order" means an order issued by the Commission approving the terms of this Proposed Resolution. (n) "September 1, 1993 channel counts" means the number of regulated and satellite channels entered on Module H, Line H5 and H7 of the FCC Forms 1200 which Comcast filed with the Commission. IV. Terms 7. Comcast accepts the jurisdiction of the Commission over it and the subject matter of these rate resolutions for purposes of the Resolution Order approving these terms. 8. All Comcast's Form 393 benchmark CPS rate cases for the period through July 14, 1994, and cost of service CPS rate cases for the period through the Effective Date are finally resolved under the terms provided herein. 9. Comcast agrees that these terms shall be incorporated by reference in the order formally adopting these terms. After the Resolution Order is adopted, Comcast and the Commission will each actively defend the Resolution Order against any appeal of, or other legal challenge, to the Resolution Order by any third party. Comcast and the Commission will reasonably cooperate with the other in any such defense of these terms. 10. Comcast agrees that any violation of the Resolution Order shall constitute a violation of a Commission order, entitling the Commission to exercise any rights and remedies attendant to the enforcement of a Commission Order. 11. These terms are for purposes of settlement only, and do not constitute an admission by Comcast of any violation, or failure to conform to, the 1992 Cable Act, the Commission's rules, or any other law, rule, or policy. 12. In consideration for the resolution of Comcast's Form 393 benchmark CPS cases for the period through July 14, 1994, and Cost-of-Service CPS cases for the period through the Effective Date, Comcast hereby agrees to the following terms, conditions and procedures, which Comcast believes will facilitate a fair and expeditious resolution of those matters in a manner that would serve the public interest: (a) Comcast will issue Refunds to the Eligible Subscribers served by Comcast's Cost-of-Service Franchises in the amounts listed on Exhibit 3. Refunds will be reflected as monthly credits of a maximum of $1.00 and a minimum of $.50 on subscriber bills over a period until full payment is made, except that the last payment may be credited in an amount less than $0.50 on subscriber bills; but in all cases such payment period shall not exceed 12 months. The total Refund over all Cost-of-Service Franchises, as specified on Exhibit 3, includes Interest for the period from the respective initial dates on which Forms 329 were filed through the last date Refunds will be issued; (b) Comcast will issue Refunds to Eligible Subscribers served by Benchmark Franchises in the amounts specified on Exhibit 4. Refunds will be reflected as monthly credits of a maximum of $1.00 (with the exception of the Danbury, Connecticut franchise where monthly Refunds may exceed $1.00) and a minimum of $.50 on subscriber bills over a period until full payment is made, except that the last payment may be credited in an amount less than $0.50 on subscriber bills, but in all cases such payment period shall not exceed 12 months. The total Refund over all Benchmark Franchises, as specified on Exhibit 4, includes Interest for the period through the last date Refunds will be issued; (c) Comcast will provide initial Refunds to Eligible Subscribers within 90 days from the Effective Date; (d) The Commission will issue an Order as of the Effective Date finding that the Current Rates, as specified on Exhibit 3, in Comcast's Cost-of-Service Franchises are not unreasonable; (e) Comcast will set rates in its Cost-of-Service Franchises as of the Effective Date as specified on Exhibit 3, and may adjust rates for inflation incurred subsequent to June 30, 1994, and programming cost increases incurred subsequent to December 30, 1994 pursuant to the Commission's regulations. The Current Rates are hereby deemed not unreasonable. Comcast will permanently forego adjustments for inflation for the period September 1, 1993 through June 30, 1994 which could have been passed through as early as October 1, 1994. Comcast will permanently forego all adjustments for programming cost increases for which it was entitled for the period prior to January 1, 1995 which could have been passed-through during the first calendar quarter of 1995. (f) Pursuant to the Commission's regulations, Comcast may adjust CPS rates in its Benchmark Franchises as specified on Exhibit 2. The September 1, 1993 channel counts and March 31, 1994 channel counts for Comcast's Benchmark Franchises are hereby deemed proper. (g) Comcast, at any time at its discretion, may move a maximum of any four (4) regulated services to a single "Migrated Product Tier" on each of its Cost-of- Service Franchises as identified on Exhibit 1. Comcast may not require the subscription to any other tier, other than the Basic service tier, as a condition for subscribing to the MPT and may not require subscription to the MPT as a condition for subscription to any other tier. The Commission acknowledges that the migration of these services is permitted under Section 76.981(b) of the Commission's rules, does not constitute a negative option, and when the MPT is offered, Comcast will not be required to re-market that MPT to existing subscribers who previously received the services which were migrated. (h) Comcast will set the initial rate for a Cost-of-Service Franchise's MPT at the same level, on a per channel basis, as is set for that franchise's regulated tiers under subparagraph (e) above. Comcast may add any number of new services to an MPT and may increase the price for the MPT by up to $0.20 plus the amount of the license fee, for each new service added. Comcast may increase the price of an MPT for inflation and external costs consistent with the Commission's rate regulations governing CPS tiers, and these new services shall not be considered new services added for purposes of the limit on rate increases under the Going-Forward rules. (i) On or after March 1, 1997, Comcast may reclassify the MPT in each Cost-of- Service Franchise as a New Product Tier ("NPT"), as defined in 47 C.F.R.  76.987, including subsequent clarifications or amendments, which will be treated as all other NPTs. This reclassification is consistent with Section 76.981(b) of the Commission's rules, will not constitute a negative option and Comcast will not be required to re-market the reclassified NPT to existing subscribers to the MPT. Nothing in this Proposed Resolution shall be construed to prevent Comcast from creating other NPTs and/or offering a la carte channels pursuant to the Commission's rules. (j) Comcast will add two new services to the CPS tier of its New Haven, Connecticut franchise, within 60 days from the Effective Date. These services will be added without any increase in rates attributed to the addition of these two services except that Comcast may adjust rates to reflect prospective external cost increases. The addition of these two services shall not be considered new services for purposes of the limit on rate increases under the Going-Forward rules. (k) As of the Effective Date, the Proposed Resolution vacates two Bureau orders, Comcast Cablevision of Maryland, Inc., DA 94-1153 (rel. Nov. 9, 1994), and Comcast Cablevision of Tallahassee, Inc., DA 94-1480 (rel. Dec. 13, 1994), which concern the CPS rates charged in community units MD0080 through MD0100 and FL0033, respectively. This Proposed Resolution supersedes the Bureau Orders described in this paragraph. Comcast will be permitted to adjust CPS rates in the communities served by its Tallahassee and Baltimore systems at any time after the Effective Date without prior Commission approval, subject to the terms of this Proposed Resolution and any future review by the Commission of a new CPS complaint. (l) As of the Effective Date, Comcast will withdraw (i) the Applications for Review filed on January 12, 1995 and December 9, 1994, respectively, and (ii) the Petitions for Stay filed on January 31, 1995 and December 22, 1994, respectively, with the Commission concerning the Bureau's orders for Comcast's Tallahassee and Baltimore franchises. (m) The terms of this Proposed Resolution shall be provided to each complainant that filed FCC Form 329 pursuant to Section 76.950 of the Commission's rules, 47 C.F.R. 76.950 for their comment. (n) Except as provided in paragraph (o) hereof, these terms may not be terminated or modified without the mutual written agreement of Comcast and the Commission. The Commission's consent to any such modification shall be demonstrated by an order issued by the Bureau or, at the Commission's option, by the Commission itself. (o) Notwithstanding the terms hereof, Comcast may avail itself of any applicable modifications of any law or regulation governing the CPS rates charged in any Comcast franchise area listed on Exhibits 1 and 2, including the adoption by the Commission of any regulation governing rates as applied to the cable industry generally. These terms shall be superseded upon the effective date of such law or regulation, except that Comcast shall provide Refunds to Eligible Subscribers pursuant to these terms. 13. The Resolution Order shall affirmatively state that any and all waivers of the Commission's rules, and any modifications to Commission forms, necessary to effectuate these terms are deemed to be granted. The Commission will not assert in any proceeding that Comcast's compliance with these terms of the Agreement violates any Commission rule or order, and, in any proceeding before the Commission brought by a third party, a showing by Comcast that it has complied with these terms shall constitute a defense to any claim that Comcast's actions in meeting the terms constitute a violation of any applicable Commission rule or order. 14. These terms shall become effective when the Commission issues the Resolution Order approving these terms. 15. If any provision, clause, or part of this Proposed Resolution is invalidated, the remainder of this Proposed Resolution shall not be affected thereby and shall remain in effect; provided, however, that if such invalidation is material to this Proposed Resolution, Comcast and the Commission shall attempt in good faith to reconstitute the Proposed Resolution in a form that is, to the maximum extent possible, consistent with the original intent of the Proposed Resolution.