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X-R#Xj\  P6G; XP#) In the Matter ofR) R)  X-TCI Cablevision of Georgiahh@hR)hCUID No. GA0011 (Valdosta) R) X` hp x (#%'0*,.8135@8:of Georgia ("TCI") for its cable programming services tier ("CPST") in Valdosta, GA, CUID  xNo. GA0011. TCI has chosen to attempt to justify its CPST rates through benchmark showings  x}on FCC Form 1200, FCC Forms 1210 and FCC Form 1240. This Order addresses the  xreasonableness of TCI's rates for the period February 28, 1995 to the present. We conclude, for  x/the reasons discussed below, that the rate charged by TCI for the period February 28, 1995  xthrough March 31, 1995 is unreasonable and the rates charged from April 1, 1995 to the present are reasonable.  X- ` x2.` ` The Communications ActE {O"-ԍ Communications Act, Section 623(c), as amended, 47 U.S.C. Section 543(c)(3) (1996). authorizes the Federal Communications Commission  xy("Commission") to review the CPST rates of cable systems not subject to effective competition  X{- x[to ensure that rates charged are not unreasonable. The Cable Television Consumer Protection  Xd- xand Competition Act of 1992UdZE yOo!-ԍ Pub. L. No. 102385, 106 Stat. 1460 (1992).U ("1992 Cable Act") required the Commission to review CPST rates  XM- x>upon the filing of a valid complaint by a subscriber. The Telecommunications Act of 1996UME yO#-ԍ Pub. L. No. 104104, 110 Stat. 56 (1996). U  X6- x("1996 Act") and our rules implementing the new legislation,6zE {Oa&- xԍ See Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996, 11 FCC Rcd 5937  {O+'-(1996) ("Interim Rules"). require that complaints against the  xCPST rate be filed with the Commission by a local franchising authority ("LFA") that has  xjreceived subscriber complaints. The filing of a valid complaint triggers an obligation on behalf"!,))ZZ "  X- xzof the cable operator to file a justification of its CPST rate.C yOy-ԍ 47 C.F.R. Section 76.956.C If the Commission finds the rate  X-to be unreasonable, it shall determine the correct rate and any refund liability.OX {O-ԍ  47 C.F.R. Section 76.957.O  X- ` x3.` ` The Commission's original rate regulations became effective on September 1,  X- x1993. yO? - xԍ Implementation of Sections of the Cable Consumer Protection and Competition Act of 1992: Rate Regulation, MM Docket No. 92266, FCC 93372, 58 Fed. Reg. 41042 (Aug. 2, 1993). The Commission revised its rate regulations effective May 15, 1994.ZB yO - xJԍ Implementation of Sections of the Cable Consumer Protection and Competition Act of 1992: Rate Regulation,  xJMM Docket No. 92266, Second Order on Reconsideration, Fourth Report and Order, and Fifth Notice of Proposed  {O' -Rulemaking, FCC 9438, 9 FCC Rcd 4119 (1994) ("Second Order on Reconsideration"). Cable operators  xattempting to justify their rates through a benchmark showing for the period prior to May 15,  Xv- x>1994 must complete and file FCC Form 393.3 vd  {O-ԍ Id.3 Beginning May 15, 1994, operators attempting  X_- xto justify their rates through a benchmark showing must use the FCC Form 1200 series.3 _  {O-ԍ Id.3 Cable  xoperators may file FCC Form 1210 to justify rate increases based on the addition and deletion  X1- xof channels, changes in certain external costs, and inflation.F 1  yOj-ԍ 47 C.F.R. Section 76.922(d).F FCC Form 1210 must be filed at  xleast 30 days before new rates are scheduled to go into effect when there is a pending complaint  X - x<against the operator's CPST rate.I   yO-ԍ 47 C.F.R. Section 76.958.I Operators may justify adjustments to their rates on an annual  xbasis using FCC Form 1240 to reflect reasonably certain and quantifiable changes in external  X - x[costs, inflation, and the number of regulated channels that are projected for the twelve months  X - xfollowing the rate change.z ^  {O- 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, 11 FCC Rcd 388, 391 (1996) ("Thirteenth  {O-Reconsideration Order").z Any incurred cost that is not projected may be accrued with interest  X - xand added to rates at a later time.E  {O&"-Ѝ  Id. at 392.E If actual and projected costs are different during the rate year  X- xa "trueup" mechanism is available to correct estimated costs with actual cost changes.3` {O$-ԍ Id.3 The",N(N(ZZ"  X- x"trueup" requires operators to decrease their rates or alternatively permits them to increase their  X-rates to make an adjustment for over or under estimations of these cost changes.< {Ob- xԍ 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  {ON-Order on Reconsideration, DA 96220, released February 22, 1996.<  X- ` 3x4.` ` A valid complaint was filed with the Commission on February 28, 1995 against  xTCI's February 14, 1995 increase in the CPST rate from $11.10 to $12.46. X` hp x (#%'0*,.8135@8:- xwԍ Information regarding the specific adjustments made to TCI's FCC Form 1200, FCC Forms 1210 and FCC Form  x1240 filings can be found in the public file for CUID No. GA0011, which is available in the Cable Services Bureau's  x: public reference room, or through the Commission's copy contractor, International Transcription Services (ITS), 1919 M Street N.W., Washington, DC, 20554, or by calling ITS at (202) 8573800.   X1- ` x5.` ` FCC Form 1210 Filing: To justify its February 14, 1995 increase, TCI filed an  xFCC Form 1210 covering the period April 1, 1994 through September 30, 1994 and setting a  xmaximum permitted rate ("MPR") of $11.10. In a supplemental filing, TCI claimed an  x=additional $1.20 for six channels added as of December 31, 1994 and $.16 for programming cost  xincreases for the first quarter of 1995, for a revised MPR of $12.46. Because TCI may not  X - xincrease rates based on increased costs until the end of the quarter in which they are incurred,C  yO-ԍ 47 C.F.R. Section 76.922.C  xwe adjusted TCI's maximum permitted rate for the period of February 28, 1995 through  xMarch31, 1995 to $12.30 instead of $12.46. Although TCI failed to demonstrate that its CPST  Xy- xjrate was not unreasonable, we determine that the total overcharge per subscriber is de minimis and it would not serve the public interest to order a refund.  X6- ` ax6.` ` FCC Form 1240 Filing: TCI filed an FCC Form 1240 for the period beginning  xJune 1996 through May 1997. TCI claimed an inflation factor on Lines C1C3 of 1.0261 for  xboth the trueup period and the projected period. Since this form was filed prior to the release  xkof the latest inflation factor figures, we allow TCI to use the inflation factor of 1.0261 on line  xC1 and worksheet 1. However, for the projected period, the inflation factor will be subject to adjustment on the next FCC Form 1240 filing. ",N(N(ZZ4"Ԍ X- ` x7.` ` Notwithstanding the above, we find TCI's MPR's from April 1, 1995 through the present to be justified and reasonable.  X- ` x8.` ` Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's  xrules, 47 C.F.R.  0.321, that the CPST rate charged by TCI in the City of Valdosta, GA, CUID  X-No. GA0011 from February 28, 1995 through March 31, 1995 IS UNREASONABLE. (#(#X  X_- ` x9.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules,  x?47 C.F.R.  0.321, that the complaint against the CPST rate charged by TCI in the City of Valdosta, GA, CUID No. GA0011 IS GRANTED TO THE EXTENT DISCUSSED HEREIN. xH x` `  hhFEDERAL COMMUNICATIONS COMMISSION x` `  hhElizabeth W. Beaty  X-x` `  hhChief, Financial Analysis and Compliance Division(#(#Xx` `  hhCable Service BureauH