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XP# Federal Communications Commission`(# DA 9759 ă  yxdddy ( *"R v3 #C\  P6QpP#Before the Federal Communications Commission  Washington, D.C. 20554  yOX- X01Í ÍX01Í Í X01Í ÍX01Í Í  yO-T#Xj\  P6G; XP#у  X-In the Matter of hh@)  X- x` `  hh@)  X-TCI Cablevision of Oakland County @)hCUID Nos. MI0987 and MI0988  Xk- x` `  hh@)h(Village of Lake Orion and xx 0  XT-Complaint Regarding hh@)h Orion Township)  X= -Cable Programming Services Tierhh@) pp  X& -Rate Increase` `  hh@)  X -b9 ORDER ă  X- xAdopted: January 9, 1997 @hppReleased: January 14, 1997 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau:  XW- ` #X` hp x (#%'0*,.8135@8:- xTCI Cablevision of Greater Michigan 10 FCC Rcd 7263 (1995); see also In the Matter of TCI Communications, Inc., FCC 96187 (released April 26, 1996).l We conclude for  xthe reasons stated below that the CPST rate increase of $2.37 TCI began charging on June 1, 1996 is not unreasonable.  X-  X- ` Rx2.` ` Under the Communications Act,} {O<-ԍ Communications Act, Section 623(c), as amended, 47 U.S.C. Section 543(c)(3) (1996). the Federal Communications Commission  x("Commission") is authorized to review the CPST rates of cable systems not subject to effective  Xq- xcompetition to ensure that rates charged are not unreasonable. If the Commission finds the rate  XZ- x$unreasonable, it shall determine the correct rate and any refund liability.TZ~} {O#-ԍ See 47 U.S.C. Section 543(c) (1993).T The  XC- xTelecommunications Act of 1996SC} yO&-ԍ Pub. L. No. 104104, 110 Stat. 56 (1996).S ("1996 Act") and our rules implementing the new legislation,C} {O'- xԍ See Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996, 11 FCC Rcd  {O^(-5937 ("Interim Rules")."C ,))ZZ"  xrequire that complaints against the CPST rates be filed with the Commission by a local  X-franchising authority ("LFA") that has received subscriber complaints.  X- ` x3.` ` The Village of Orion and Orion Township filed valid complaintsG^I {O4- Interim Rules at 5946.G on November1,  x1996 regarding the June 1, 1996 increase in TCI's CPST rate in the abovereferenced  X- xcommunities. The valid complaints from the LFA trigger an obligation on behalf of the cable  Xv- xoperator to file a justification of its CPST rates with the LFA.5vZ^I {O -ԍ Id. 5 As required by our rules, TCI filed FCC Forms 1240 with the franchising authorities as justification for this rate increase. x  X1- ` `x4.` ` To justify rates for the period beginning May 15, 1994 through a benchmark or  xcost of service showing, operators must use the FCC Form 1200 series. Operators may justify  xadjustments to their rates on an annual basis using FCC Form 1240 to reflect reasonably certain  xand quantifiable changes in external costs, inflation, and the number of regulated channels that  X - xare projected for the twelve months following the rate change.`\ ^I {Or- xЍ  See In the Matter of Sections of the Cable Television Consumer Protection and Competition Act of 1992: Rate  {O<- xRegulation, MM Docket No. 92266, Thirteenth Order on Reconsideration ("Thirteenth Reconsideration Order"), 11 FCC Rcd 388, 391 (1996).` Any incurred cost that is not  X - xprojected may be accrued with interest and added to rates at a later time.F ^I {O-Ѝ  Id. at 392.F If actual and projected  x.costs are different during the rate year a "trueup" mechanism is available to correct estimated  X- xcosts with actual cost changes.= ^I {O-Ѝ Id.= The "trueup" requires operators to decrease their rates or  Xy- x{alternatively permits them to increase their rates to make an adjustment for over or under  Xb-estimations of these cost changes.k b4 ^I {OG- xZԍ Id. The Commission granted TCI a waiver to allow TCI, in its initial filing of FCC Form 1240, to include  xcost adjustments over the period of time between the last date for which actual cost data is available and the effective  x,date of TCI's new rates. The cost adjustments included for this period are subject to a trueup at the same time that  {O- xthe required trueup is performed on TCI's initial Form 1240 Projected Period Rates. See In the Matter of Annual  xwRate Adjustment System for Cable Services Rates Request for Waiver of Requirements Contained in the Thirteenth  {O3 -Order on Reconsideration, DA 96220, released February 22, 1996. #X\  P6G;pP#k  XK-x   X4- ` x5.` ` Upon review of TCI's FCC Forms 1210 and FCC Forms 1240, we find no apparent  X- xyerrors in TCI's calculation of its June 1, 1996 rate increase. ^I yO$- xԍ This finding is based solely on the representations of TCI. Should information come to our attention that these  xrepresentations were materially inaccurate, we reserve the right to take appropriate action. This Order is not to be  xiconstrued as a finding that we have accepted as correct any specific entry, explanation or argument made by any party to this proceeding not specifically addressed herein. We conclude, therefore, that TCI's" ,N(N(ZZ)" CPST rate increase of $2.37 is justified.  X- ` 3x6.` ` Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's  xrules, 47 C.F.R.  0.321, that TCI Cablevision of Oakland County, Inc.'s June 1, 1996 CPST rate  x{increase of $2.37 in the Village of Lake Orion and Orion Township, Michigan, CUID Nos. MI0987 and MI0988, IS NOT UNREASONABLE.  X_- ` x7.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's  x=rules, 47 C.F.R.  0.321, that the complaint against the June 1, 1996 CPST rate increase charged  xby TCI Cablevision of Oakland County, Inc. in CUID Nos. MI0987 and MI0988, in the Village of Lake Orion and Orion Township, Michigan, ARE DENIED. x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@Elizabeth W. Beaty x` `  hh@Chief, Financial Analysis and Compliance Division x` `  hh@Cable Services Bureau