******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. 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 ) ) Comcast Cablevision of Warren, Inc.) CUID No. MI0465 (City of Warren) ) ) Complaints Regarding ) Cable Programming Services Tier ) Rates ) ORDER Adopted: April 29, 1997 Released: May 1, 1997 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints about the rate increases the above-captioned Operator ("Operator") was charging for its cable programming services tier ("CPST") in the community referenced above. Operator has chosen to attempt to justify its rates through benchmark showings on FCC Form 1200, multiple FCC Form 1210s and FCC Form 1240. This Order addresses the reasonableness of Operator's CPST rates for the period after July 14, 1994. We have already issued a separate order which resolved complaints against Operator's CPST rates in effect before July 15, 1994. 2. Under the Communications Act, the Federal Communications Commission ("Commission") is authorized to review the CPST rates of cable systems not subject to effective competition to ensure that rates charged are not unreasonable. If the Commission finds the rate unreasonable, it shall determine the correct rate and any refund liability. The Telecommunications Act of 1996 ("1996 Act") and our rules implementing the new legislation, require that complaints against the CPST rates be filed with the Commission by a local franchising authority ("LFA") that has received subscriber complaints. An LFA may not file a CPST rate complaint unless, within 90 days after such increase becomes effective, it receives more than one subscriber rate complaint. 3. To justify their rates for the period beginning May 15, 1994 through a benchmark showing, operators must use the FCC Form 1200 series. 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 where the Commission has found the cable programming service tier rate to be unreasonable less than one year prior to the filing, or where there is a pending complaint against the CPST rate. Alternatively, operators may justify adjustments to their rates on an annual basis using FCC Form 1240 to reflect reasonably certain and quantifiable changes in external costs, inflation, and the number of regulated channels that are projected for the twelve months following the rate change. Any incurred cost that is not projected may be accrued with interest and added to rates at a later time. If actual and projected costs are different during the rate year a "true-up" mechanism is available to correct estimated costs with actual cost changes. 4. On January 30, 1995 and March 14, 1995, we received rate complaints against the CPST rate change implemented by Operator on February 15, 1995 in the community referenced above. In addition, pursuant to the 1996 Act, the LFA filed a complaint on March 6, 1997 regarding the Novemer 1, 1996 increase in Operator's CPST rate in the above-referenced community. In its complaint, the LFA asserts that it has received more than one subscriber complaint against Operator's CPST rate increase, thereby triggering the Commission's jurisdiction to review this complaint. The valid complaint from the LFA triggers an obligation on behalf of the cable operator to file a justification of its CPST rates with the LFA. 5. Operator asserts that its monthly CPST rates are justified because the rates are equal to or lower than the maximum permitted rates as calculated on its rate justifications. Upon review of Operator's FCC Form 1200, FCC Form 1210's and FCC Form 1240, we have found no apparent errors in Operator's calculation of its maximum permitted rates. 6. We conclude, therefore, that Operator's FCC Form 1200 justifies a CPST rate of $12.92 effective July 15, 1994; its FCC Form 1210's justify CPST rates of $13.52, $13.57 and $15.05 effective October 1, 1994, January 1, 1995 and January 1, 1996, respectively; and its FCC Form 1240 justifies a CPST rate of $17.00 effective November 1, 1996. 7. Accordingly, IT IS ORDERED that the CPST rates charged by Operator in the community referenced above from July 15, 1994 to the present ARE NOT UNREASONABLE. 8. IT FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the complaints referenced herein against the CPST rates charged by Operator from July 15, 1994 to the present in the community referenced above ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau