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$//Small Cities Cable TV, Shelburne, VT, MO&O, DA 96-330//$
$/76.922 Rates for cable programming service tiers/$
$/76.934 Small systems/$
$/small system cable rates/$


Before the 
Federal Communications Commission 
Washington, D.C. 

	DA 96-330

In the Matter of			 )        ( CUID No. VT 0152 Shelburne ) 
Small Cities Cable Television	 )	 
 					 ) 	 
					 )	  
Small System Filing to Support	 )	 
Cable Programming Service Price	 )	 
						 
						 

Memorandum Opinion and Order 

	Adopted:   March 11, 1996			Released: March 22, 1996

By the Chief, Cable Services Bureau:

	1. Here we consider a complaint about the rate that Small Cities Cable Television ("Small Cities") was charging for its cable programming service ("CPS") in the franchise area shown above.  On February 1, 1996, Small Cities filed FCC Form 1230 seeking to justify its rate through the simplified small system cost of service procedures under the Commission's Small System Order.  In this Order we grant Small Cities' request for small system relief under the Small System Order and, based on our review of Small Cities' Form 1230 filing, deny the pending CPS complaints.
 
	2.  Under the Cable Television Consumer Protection and Competition Act of 1992, and the Commission's rules implementing it, 47 C.F.R. Part 76, Subpart N, the Commission must review a cable operator's rates for its CPS tier 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 rates.  Under the Commission's rules, an operator may attempt to justify its rates through a benchmark showing, a cost-of-service showing, or a small system cost of service showing.  In any case, the operator has the burden of demonstrating that its CPS rates 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.  In a further effort to offer small cable companies administrative relief from rate regulation, the Commission amended the definition of small cable companies and small systems and introduced a simplified form of small system rate relief in the Small System Order.  Cable systems serving 15,000 or fewer subscribers, and owned by a company having 400,000 or fewer subscribers, may elect to use the new small cable system rate mechanism in lieu of other Commission rate processes, provided the Commission has not reached a final resolution on the rate complaint[s] filed against the system.  Operators attempting to justify their rates through small system relief must file FCC Form 1230.  If the maximum rate established on Form 1230 does not exceed $1.24 per channel, the rate shall be presumed reasonable.

	4.  We find that Small Cities is a company with fewer than 400,000 total subscribers and that the system in question serves fewer than 15,000 subscribers, making it eligible for small system relief. Upon review of Small Cities' Form 1230 filing, we find that Small Cities has justified its CPS rate.  Small Cities' CPS rate is less than $1.24 per channel and, therefore, is presumed reasonable.  There is nothing in the pleading that refutes this presumption; therefore, we find the rate to be not unreasonable.

	5.  Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's Rules, 47 C.F.R.  0.321, that Small Cities request for small system relief is GRANTED.

	6.  IT IS FURTHER ORDERED that the CPS rate charged by Small Cities with respect to the above-referenced CUID number, IS JUSTIFIED.
		
	7. IT IS FURTHER ORDERED that the complaint against the CPS rate charged by   Small Cities with respect to the above-referenced CUID number, IS DENIED.

					

					FEDERAL COMMUNICATIONS COMMISSION



					JoAnn Lucanik
					Chief, Financial Analysis and Compliance Division 
					Cable Services Bureau