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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) TCI Cablevision of California, Inc. ) CUID No. CA0039 (City of Salinas) ) ) Complaint Regarding ) Cable Programming Services Tier Rates ) ORDER Adopted: March 13, 1997 Released: March 21, 1997 By the Chief, Cable Services Bureau: 1. In this Order we consider a complaint about the rates of the above-referenced operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. Operator has attempted to justify its CPST rates through benchmark showings on FCC Form 1200 and multiple FCC Forms 1210. We have already issued a separate order which found that the Operator's rates in effect before May 15, 1994 were not unreasonable ("Prior Order"). Accordingly, this Order addresses the reasonableness of Operator's CPST rates in effect from May 15, 1994 to present. 2. The Communications Act authorizes the Federal Communications Commission ("Commission") to review the CPST rates of cable systems not subject to effective competition to ensure that rates charged are not unreasonable. The Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act") requires the Commission to review CPST rates upon the filing of a valid complaint by a subscriber or local franchise authority ("LFA"). If the Commission finds the rate to be unreasonable, it shall determine the correct rate and any refund liability. 3. The Commission's original rate regulations took effect on September 1, 1993. The Commission revised its rate regulations effective May 15, 1994. Cable operators that have valid CPST complaints filed against them prior to May 15, 1994 must demonstrate that their CPST rates were in compliance with the Commission's initial rules from the time the complaint was filed through May 14, 1994. Cable operators must also demonstrate that their rates were in compliance with the revised rules from May 15, 1994 forward. Cable operators attempting to justify their rates for the period beginning May 15, 1994 by a benchmark showing must use the FCC Form 1200 series. Cable operators may also justify rate increases based on the addition and deletion of channels, changes in certain external costs, and inflation, by filing FCC Form 1210. FCC Form 1210 must be filed at least 30 days before new rates are scheduled to go into effect when the Commission has found the CPST rate to be unreasonable less than one year prior to the filing. In addition, FCC Form 1210 may be filed where there is a pending complaint against the CPST rate. 4. Our Memorandum Opinion and Order addressing the first valid complaint for the community referenced above indicates that the findings in that review "do not in any way prejudge the reasonableness of the price for CPS service after May 14, 1994." Consequently, the rates beginning May 15, 1994, and subsequent rate increases, are subject to Commission review and are addressed in this Order. 5. In a letter filed June 15, 1994, Operator advised the Commission that it had elected, as provided in the Commission's rules, to take advantage of the refund liability deferral period from May 15, 1994 through July 14, 1994 for any overcharges resulting from the calculation of a new maximum permitted rate on the FCC Form 1200. Accordingly, the rate submitted by Operator on its FCC Form 393, which was approved in our Prior Order, governs the CPST rate during the period from May 15, 1994 through July 14, 1994. The liability period for any CPST overcharges by Operator associated with its FCC Form 1200 filing did not begin to run until July 15, 1994. 6. On March 30, 1995, Operator filed its FCC Form 1200 and its first FCC Form 1210 to justify CPST rates in effect from July 15, 1994 to December 31, 1994. On its FCC Form 1200, Operator calculated a maximum permitted rate ("MPR") for the CPST of $12.00. On its first FCC Form 1210, Operator calculated a MPR for the CPST of $12.19. However, Operator was actually charging $13.42 for its CPST. Thus, Operator has failed to demonstrate that its July 15, 1994 CPST rate of $13.42 was not unreasonable. 7. On March 30, 1995, Operator filed its second FCC Form 1210 to justify a CPST rate of $13.69 effective January 1, 1995. Upon review of Operator's second FCC Form 1210 for the period beginning January 1, 1995, Operator has demonstrated that its CPST rate is not unreasonable. 8. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the monthly CPST rate of $13.42, charged by Operator in the community referenced above, during the period July 15, 1994 through December 31, 1994, IS UNREASONABLE. 9. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the monthly CPST rate of $13.69, charged by Operator in the community referenced above, beginning January 1, 1995, IS NOT UNREASONABLE. 10. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47 C.F.R.  76.961, that Operator shall refund to subscribers in the community referenced above that portion of the amount paid in excess of the maximum permitted CPST rate of $12.19 per month (plus franchise fees), plus interest to the date of the refund, for the period from July 15, 1994 to December 31, 1994. 11. IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges to CPST subscribers for the stated periods, and shall within 30 days of the release of this Order, file a report with the Chief, Cable Services Bureau, stating the cumulative refund amount so determined (including franchise fees and interest), describing the calculation thereof, and describing its plan to implement the refund within 60 days of Commission approval of the plan. 12. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the complaint against the CPST rate charged by Operator in the community referenced above, IS GRANTED TO THE EXTENT INDICATED HEREIN. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau