******************************************************** 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 West Florida, Inc. ) CUID Nos. FL0091 (Englewood) ) FL0104 (Sarasota) ) FL0155 (Sarasota) ) FL0380 (North Port) Complaints Regarding ) Cable Programming Services Tier ) Rate Increases ) ORDER Adopted: April 29, 1997 Released: May 7, 1997 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints concerning the rates charged by the above- referenced operator ("Operator") for its cable programming services tier ("CPST") in the communities referenced above. Operator has attempted to justify its CPST rates through benchmark showings on FCC Forms 1200, 1210, and 1240. We have issued a separate order addressing the reasonableness of Operator's rates in effect prior to July 15, 1994. Accordingly, this Order addresses the reasonableness of Operator's CPST rates beginning July 15, 1994 in Operator's non- upgraded area and its CPST rates beginning July 1, 1995 in its upgraded area. We conclude that Operator's CPST rates beginning July 15, 1994 in its non-upgraded area, and beginning July 1, 1995 in its upgraded area, are not unreasonable. 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. 3. To justify rates for the period beginning May 15, 1994 through a benchmark or cost of service showing, operators 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. 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. The "true-up" requires operators to decrease their rates or alternatively permits them to increase their rates to make an adjustment for over or under estimations of these cost changes. 4. On March 14, 1997, a valid complaint was filed by the local franchising authority ("LFA") for the above-referenced communities regarding the November 1, 1996 increase in Operator's CPST rates from $12.87 to $14.31 in Operator's upgraded area. 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. Operator filed FCC Form 1240 with the LFA as justification for its rate increase. 5. Upon review of Operator's FCC Forms 1200, 1210, and 1240, we find that the Operator has provided sufficient evidence to support its CPST rates from July 15, 1994 to the October 31, 1996 in its non-upgraded area and from July 1, 1995 to October 31, 1996 in its upgraded area. We further conclude, that the Operator's CPST rate increases which went into effect November 1, 1996 in the communities referenced above in the upgraded and non-upgraded areas of Operator's system are justified. 6. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rates charged by Operator in the communities referenced above for the periods from July 15, 1994 to October 31, 1996 in the non-upgraded area of Operator's system and from July 1, 1995 to October 31, 1996 in the upgraded area, ARE NOT UNREASONABLE. 7. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rates of $14.31 charged by Operator in the upgraded area of the communities referenced above, and $12.34 charged by Operator in the non-upgraded area of the communities referenced above, beginning November 1, 1996, ARE NOT UNREASONABLE. 8. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R. Section 0.321 that the complaints referenced herein against the CPST rates charged by Operator in the communities referenced above, ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau