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/Bureaus/Miscellaneous/Public_Notices/ ***************************************************************** ******** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of) ) Cable Equities of the Virginias, ) VA0055 (City of Rocky Mount) LTD ) VA0345 (City of Bedford) ) Small System Filing to Support ) Cable Programming Service Price ) MEMORANDUM OPINION AND ORDER Adopted: April 26, 1996 Released: May 8, 1996 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. Here we consider complaints about the rate that Cable Equities of the Virginias, LTD ("Cable Equities") was charging for its cable programming service ("CPS") tier in the franchise areas referenced above. On September 25, 1995, Cable Equities filed FCC Form 1230 for each of the franchise areas 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 Cable Equities' request for small system relief for each franchise area under the Small System Order and, based on our review of Cable Equities' Form 1230 filings, deny the pending CPS tier rate 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 tier 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 tier 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 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 Cable Equities is a company with fewer than 400,000 total subscribers and that the systems in question serve fewer than 15,000 subscribers, making both systems eligible for small system relief. Upon review of Cable Equities' Form 1230 filings, we find that Cable Equities has justified its CPS tier rate in both franchise areas. Cable Equities' CPS tier rate is less than $1.24 per channel and, therefore, is presumed reasonable. There is nothing in the record 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 Cable Equities' request for small system relief with respect to the above- referenced CUID numbers is GRANTED. 6. IT IS FURTHER ORDERED that the CPS tier rate charged by Cable Equities with respect to the above-referenced CUID numbers, IS JUSTIFIED. 7. IT IS FURTHER ORDERED that the complaints against the CPS tier rate charged by Cable Equities with respect to the above-referenced CUID numbers, ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION JoAnn Lucanik Chief, Financial Analysis and Compliance Division Cable Services Bureau