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 pnmc5021. File pnmc5021 (.txt & .wp) is in directory \pub\Public_Notices\Miscellaneous. ************************************************************************* Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of) Booth American Company d/b/a ) CUID Nos. VA0014 (Town of Blacksburg) Blacksburg Cable TV ) VA0175 (Montgomery) ) Small System Filing to Support ) Cable Programming Services Tier Rate ) ) ORDER Adopted: August 19, 1996 Released: August 28, 1996 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints filed with the Federal Communications Commission ("Commission") regarding the rate that Booth American Company ("Booth") was charging for its cable programming services tier ("CPST") in the franchise areas referenced above. On November 7, 1995, Booth filed with the Commission FCC Form 1230, seeking to justify its CPST rate through the simplified small system cost of service procedures under the Commission's Small System Order. In this Order we grant Booth's request for small system relief under the Small System Order and, based on our review of Booth's FCC Form 1230 filing, deny the pending CPST complaints and find the CPST rate to be not unreasonable. 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 CPST 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 CPST 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 CPST 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 complaints filed against the system. Operators attempting to justify their rates through small system relief must file FCC Form 1230. FCC Form 1230 requires that the Operator Selected Per Subscriber Monthly Programming Rate Per Channel (FCC Form 1230, Line A11) not exceed the Per Subscriber, Per Channel Monthly Programming Costs (FCC Form 1230, Line A6). If the maximum rate established on FCC Form 1230 does not exceed $1.24 per channel, the rate shall be presumed reasonable. 4. On November 7, 1995, Booth filed FCC Form 1230s seeking to justify its CPST rates in the above-referenced communities through the simplifed small system cost of service procedures under the Commission's Small System Order. We find that Booth is a company with fewer than 400,000 total subscribers and that the systems in question serve fewer than 15,000 subscribers, making them eligible for small system relief. Further, Booth's filings show that its actual rate per channel for regulated cable service (FCC Form 1230, Line A11) in each of the franchise areas does not exceed its per subscriber, per channel monthly programming costs (FCC Form 1230, Line A6) and the Maximum Permitted Rate (FCC Form 1230, Line A10) in each franchise area does not exceed $1.24. We, therefore, find the rates in the above-referenced communities 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 Booth's request for small system relief IS GRANTED. 6. IT IS FURTHER ORDERED that the CPST rate charged by Booth in each of the above-referenced CUID numbers during the period under review IS JUSTIFIED. 7. IT IS FURTHER ORDERED that the complaints against the CPST rate charged by Booth during the period under review with respect to the above-referenced CUID numbers ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau