******************************************************** 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 Meridian, Inc.) CUID No. MS0225 (Lauderdale County) ) Complaint Regarding a) Cable Programming Services Tier ) Rate Increase ) ORDER Adopted: May 19, 1997 Released: May 22, 1997 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider a complaint concerning the rate increase of the above- referenced Operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. Operator increased its CPST rate on November 1, 1995 from $15.95 to $16.55. Operator's response includes benchmark justifications filed on FCC Forms 1200, 1210, and 1240. We conclude that Operator's CPST rate increase is not unreasonable. 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") required the Commission to review CPST rates upon the filing of a valid complaint by a subscriber. The filing of a valid complaint triggers an obligation on behalf of the cable operator to file a justification of its CPST rates. 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 subsequently revised its rate regulations effective May 15, 1994. Cable operators must use the FCC Form 1200 series to justify their rates through a benchmark showing for the period beginning May 15, 1994. 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. Operators must file FCC Form 1210 at least 30 days before new rates are scheduled to go into effect where the Commission has found the CPST rate to be unreasonable less than one year prior to the filing, or where there is a pending complaint against the CPST rate. 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 December 27, 1995, Operator filed an FCC Form 1200, as well as an FCC Form 1210 for the period from April 1, 1994 through September 30, 1995, to justify the CPST rate of $16.55 implemented on November 1, 1995. Operator filed a second FCC Form 1210, dated January 25, 1996, covering the period from October 1, 1995 through December 31, 1995, to justify a CPST rate of $17.92 implemented on March 1, 1996. Operator filed an FCC Form 1240, dated October 1, 1996, to justify a CPST rate of $20.08 for the period from November 1, 1996 through October 31, 1997. 5. Upon review of Operator's FCC Forms 1200, 1210, and 1240, we conclude that Operator has justified its CPST rate of $16.55 implemented on November 1, 1995, as well as its CPST rate of $17.92 implemented on March 1, 1996, and its CPST rate of $20.08 implemented on November 1, 1996. Therefore, we find that Operator's CPST rates beginning November 1, 1995, in the community referenced above are not unreasonable. 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 the Operator in the community referenced above from November 1, 1995 through October 31, 1996 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 rate of $20.08 established for the period from November 1, 1996 through October 31, 1997 in the community referenced above IS NOT UNREASONABLE. 8. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the complaint referenced herein against the CPST rate charged by Operator in the franchise area referenced in the caption IS DENIED. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau