WPC 2MB%RK Z3|X Times New RomanTimes New Roman Bold P6G;P"i~'^09CSS999S]+9+/SSSSSSSSSS//]]]Ixnnxg]xx9?xgxx]xn]gxxxxg9/9MS9ISISI9SS//S/SSSS9?/SSxSSIP!PZ9+ZM999+99999999S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN(Document 7Document 7' Right Par 1Right Par 1(` hp x (#X` hp x (#X` hp x (#` hp x (#Right Par 2Right Par 2)` hp x (#X` hp x (#0X` hp x (#0` hp x (#Document 3Document 3* 2T1+(,*--.6/Right Par 3Right Par 3+` hp x (#X` P hp x (#X` P hp x (#` hp x (#Right Par 4Right Par 4,` hp x (#X` hp x (#0X` hp x (#0` hp x (#Right Par 5Right Par 5-` hp x (#X` hp x (#X` hp x (#` hp x (#Right Par 6Right Par 6.` hp x (#X` hp x (#0X` hp x (#0` hp x (#2:/1031(52$7Right Par 7Right Par 7/` hp x (#X` hp x (#X` hp x (#` hp x (#Right Par 8Right Par 80` hp x (#X` hp x (#0X` hp x (#0` hp x (#Document 1Document 11` hp x (#X` hp x (#X` hp x (#` hp x (#Technical 5Technical 52` hp x (#X` hp x (# X` hp x (#` hp x (#2`?3$@:4ld<5l<6$<=Technical 6Technical 63` hp x (#X` hp x (# X` hp x (#` hp x (#Technical 2Technical 24 Technical 3Technical 35 Technical 4Technical 46` hp x (#X` hp x (# X` hp x (#` hp x (#2dF7l?8$?9$"B:FDTechnical 1Technical 17 Technical 7Technical 78` hp x (#X` hp x (# X` hp x (#` hp x (#Technical 8Technical 89` hp x (#X` hp x (# X` hp x (#` hp x (#toc 1toc 1:` hp x (#!(#B!(#B` hp x (#2O;F<H=J>Ltoc 2toc 2;` hp x (#` !(#B` !(#B` hp x (#toc 3toc 3<` hp x (#` !(# ` !(# ` hp x (#toc 4toc 4=` hp x (# !(#  !(# ` hp x (#toc 5toc 5>` hp x (#h!(# h!(# ` hp x (#2V?@O@v^QAQBStoc 6toc 6?` hp x (#!(#!(#` hp x (#toc 7toc 7@ toc 8toc 8A` hp x (#!(#!(#` hp x (#toc 9toc 9B` hp x (#!(#B!(#B` hp x (#2]CBVD`XE~ZFv\index 1index 1C` hp x (#` !(# ` !(# ` hp x (#index 2index 2D` hp x (#` !(#B` !(#B` hp x (#toatoaE` hp x (#!(# !(# ` hp x (#captioncaptionF 2kGlD]Hr]I" "^JoDk_Equation Caption_Equation CaptionG endnote referenceendnote referenceH MACDocumentuI      X` hp x (#%'0*,.8135@8:<     #:}D4P XP# T I. A. 1. a.(1)(a) i) a)T,0*ÍÍ,*Í ., US!!!! ! #:}D4P XP#T 1. 1. 1. a.(1)(a) i) a)T     X` hp x (#%'0*,.8135@8:<     #:}D4P XP# ,0*ÍÍ,*Í ., US!!!! ! #:}D4P XP#FootnoteuJÍč2uKkX0nK{pKr"i~'^:DPddDDDdp4D48dddddddddd88pppX|pDL|pp||D8D\dDXdXdXDdd88d8ddddDL8ddddX`(`lD4l\DDD4DDDDDDDDd8XXXXXX|X|X|X|XD8D8D8D8ddddddddddXdbdddpdXXXXXlX~|X|X|X|XdddldldD8DdDDDdplld|8|P|D|D|8dvddddDDDpLpLpLpl|T|8|\ddddddl|X|X|Xd|DdpL|Dd~4ddC$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddzHxxHvppDXd<"dxtldpxxdvy.X80,X\  P6G;Pw7jC:,9Xj\  P6G;XPx7nC:,|Xn4  pG;Xyy.\80,T\4  pG;pDppLDd4ddC6CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxHjdDdddddd/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""""2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""service showing on FCC Form 1220 filed by Operator on March 23, 1995.^ {O-  ,ԍ See Petition for Special Relief, City of Perry, filed March 31, 1995 wherein the City asserts it lacks adequately trained personnel necessary to conduct a costofservice review. On December 12,   1996, Operator substituted this initial costofservice showing with a second costofservice   showing on FCC Form 1230. We will grant the City's request for assistance and review the Operator's FCC Form 1230.  X-  2.` ` Under the Commission's rules, an operator may attempt to justify its BST rate   zthrough a benchmark showing, a costofservice showing, or a small system costofservice   showing. In any case, the operator has the burden of demonstrating that its rate is not  X-  /unreasonable." {Oy"-ԍ See Section 623 of the Communications Act of 1934, as amended, , 47 U.S.C. Section 543 (1996). Under costofservice regulation a cable system's rates are reviewed under   >traditional rate of return analysis. Costofservice regulation imposes heavy burdens upon   xregulators and the regulated entity because of the significant administrative and compliance costs  Xa -  !associated with this regulatory model. The Commission has recognized that some local   yfranchising authorities may have resources and personnel sufficient to conduct a review of the   ratesetting justification based on the benchmark approach but not to examine and review a cost   ofservice showing. The Commission has also understood that this concern may have discouraged   xcertification by many local franchising authorities. Therefore, it has established procedures under"$,))ZZ#"   which the Commission, if requested by the local franchising authority in a petition for special  X-  relief under Section 76.7 of the Commission's rules,G18 yOb-ԍ 47 C.F.R. Section 76.7 (1996).G will issue a ruling that makes costof X-  service determinations for the BST.WX18 {O-ԍ See 47 C.F.R. Section 76.933(d) (1996). W Pursuant to Sections 76.7 and 76.933(d)U18 yOm-ԍ 47 C.F.R Sections 76.7 and 76.933(d) (1996).U of the   Commission's rules, the City has certified that it lacks sufficient adequately trained personnel to   Kconduct the costofservice review. Consequently, we grant the City's request for assistance and make a determination on the reasonableness of Operator's BST rate.  X_-  A3.` ` 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  X -  form of small system rate relief in Implementation of Sections of the Cable Television Consumer  V -  Protection and Competition Act of 1992: Rate Regulations; Sixth Report and Order and Eleventh  X -  Order on Reconsideration ("Small Systems Order").@ z18 yO-ԍ 10 FCC Rcd 7393 (1995).@ In the Small Systems Order, the   Commission introduced FCC Form 1230 to simplify the costofservice showings for small cable  X -  companies and small systems.- 18 yOf-  -ԍ The FCC Form 1230 is a onepage form "on which the system inserts its expense, rate base, rate of return,  yO.-channel count and subscriber count figures and then calculates its rate of return." Small Systems Order at Par. 64.- FCC Form 1230 requires that the Operator Selected Per   Subscriber Monthly Programming Rate Per Channel (FCC Form 230, Line A11) not exceed the  X}-  kPer Subscriber, Per Channel Monthly Programming Costs (FCC Form 1230, Line A6).e}b 18 {O-ԍ See FCC Form 1230, page 3, instructions for line A11. e If the   maximum rate established on FCC Form 1230 does not exceed $1.24 per channel, the rate shall  XO-  [be presumed reasonable.V O 18 {O-ԍ See 47 C.F.R. Section 76.934(h) (1996).V 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 system rate mechanism   .found in FCC Form 1230 in lieu of other Commission rate processes, provided the Commission  X -  Zhas not reached a final resolution on the rate complaints filed against the system.H  18 yOA"-ԍ Small Systems Order at par. 75.H In the present   {case, although Operator had filed FCC Form 1220 with the City, who then filed it with the   Commission, prior to filing FCC Form 1230, no final resolution of the FCC Form 1220 had been reached. Consequently, we will consider only Operator's FCC Form 1230. " ,N(N(ZZ"Ԍ X-  a4.` ` We first determine that Operator is a company with fewer than 400,000 total   subscribers and that the system in the community referenced above serves fewer than 15,000   subscribers, making it eligible for small system status. We also determine that, on its FCC Form   /1230, filed December 12, 1996, Operator's actual rate per channel for regulated cable service  X-  (FCC Form 1230, Line A11) 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) does not exceed $1.24. We, therefore, find that Operator's maximum permitted  X_-rate is not unreasonable." _18 yO-  ԍ Our findings are based solely on the representations of Operator in its BST rate filings. Should information  yO -  come to our attention that these representations were materially inaccurate, we reserve the right to take appropriate   action. This Order is not to be construed 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. "  X1-  5.` ` Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's   rules, 47 C.F.R. Section 0.321, that the Petition for Special Relief for assistance in reviewing Operator's basic service tier costofservice showing, made by the City, IS GRANTED.  X -  46.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that Operator's request for small system relief IS GRANTED.  X-  47. ` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's   yrules, 47 C.F.R. Section 0.321, that the monthly BST rate charged by Operator during the period under review in the community referenced above IS JUSTIFIED.   X4-  o8.` ` IT IS FURTHER ORDERED, pursuant to Section 76.933(d) of the Commission's   rules, 47 C.F.R. Section 76.933(d), that this decision is binding on the local franchising authority, the City of Perry, and the cable operator, Crossroads Cable TV. ` `  hh,FEDERAL COMMUNICATIONS COMMISSION ` `  hh,John E. Logan ` `  hh,Deputy Chief, Cable Services Bureau