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A. a.(1)(a) i) a)DocumentgPleadingHeader for Numbered Pleading PaperE!n    X X` hp x (#%'0*,.8135@8: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 (#2U?N@vQA}QBStoc 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\CUD XE'ZFvE\index 1index 1C` hp x (#` !(# ` !(# ` hp x (#index 2index 2D` hp x (#` !(#B` !(#B` hp x (#toatoaE` hp x (#!(# !(# ` hp x (#captioncaptionF 2abGl\HrY]K]X`_Equation Caption_Equation CaptionG endnote referenceendnote referenceH "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$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddzHxxHvppDXd<"dxtldpxxdy.X80,IX\  P6G;P7jC:,+Xj\  P6G;XP7nC:,Xn4  pG;Xy.\80, {\4  pG;pDppLDd4ddC6CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxHjdDdddddd/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""""2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""permitted rate ("MPR"). v_ yO - xiԍ This finding is based solely on the representations of Operator. Should information come to our attention  xthat these representations were materially inaccurate, we reserve the right to take any appropriate action. This Order  xis 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. Operator claimed an inflation factor for the twelvemonth trueup  xperiod at Line C1 of 4.10 percent but failed to provide any explanation of how it was derived.  x.Accordingly, we reduced the inflation factor to 3.28 percent which consists of inflation for the  xsixmonth trueup period beginning July 1, 1995 through December 31, 1995 and allows the  xjOperator unclaimed inflation of 2.96 percent for the period beginning July 1, 1994 through June  x30, 1995. In addition, we determined that Operator incorrectly calculated the total amount for  xLine I4 (Projected Period Rate Eligible for Inflation). Operator calculated a total of $16.32. We  xcalculated a total of $14.46. Consequently, we reduced Line I4 to $14.46. These adjustments  xresulted in a revised maximum permitted rate ("MPR") for the projected period of $19.69 rather than Operator's $21.65.  Xy- ` x7.` ` Upon review of Operator's FCC Form 1240 for the projected period January 1,  x1997 through December 31, 1997, we find that Operator has not correctly calculated its MPR.  xyWe adjusted the current MPR on Line A1 to conform with the previous revised FCC Form 1240  xprojected period MPR. Operator also made trueup adjustments through to the effective date of  x.the rate increase. This is incorrect. The annual adjustment afforded by FCC Form 1240 allows  xjoperators to project changes in external costs, inflation, and the number of regulated channels.  xThis structure avoids the delay some operators experienced in recouping costs through multiple  xrate adjustments throughout the year. Because projections will not reflect the costs that actually  xoccur, the Commission provided, as part of the annual adjustment, a "trueup" to correct projected  x.cost changes with the actual cost changes. However, the Commission has noted that, as FCC  xForm 1240 must be filed 90 days before an increase is to take effect, the period for the trueup  X|- xwill not coincide with the previous year's projections.s|_ {O#-ԍ Thirteenth Reconsideration Order, 11 FCC Rcd 388, 420 fn 151 (1995).s The trueup data is intended to indicate"|* ,N(N(ZZ"  X- xreal, not projected data.3_ {Oy-ԍ Id.3 This policy is reflected in the instructions accompanying FCC Form  X-1240.aZ_ {O-ԍ See FCC Form 1240 Instructions for Timing at 34.a  X- ` nx8.` ` Based on this instruction and considering evidence in the filing,z_ yOX- xЍ Operator, for instance, did not reflect in its trueup the inflation factor for the second quarter of 1996 released  {O - xYby the Commission in November 1996. See Public Notice, "Inflation Adjustment Figures for Cable Operators Using  x=FCC Forms 1210 and 1240 Now Available", DA 961986, (November 27, 1996). Had this been available to  xOperator at time of filing, Operator would have been required to include the factor released (2.22%) for all months  x;after March 1996 and for its projection period. Instead, Operator used the previous factor (2.39%) for all inflation  xadjustments and projections. It is evident, therefore, that Operator did not have November 1996 data available at the time it completed its FCC Form 1240.  reasonable time  xfor closing accounts and completing forms, we have adjusted Operator's trueup period from 12  xmonths to 9 months. This adjustment required that we refresh Operator's inflation factors to 2.22  xpercent for the second quarter of 1996 and to 2.21 percent for the third quarter of 1996 and  x.adjust Worksheet 1 accordingly. As a result, the trueup inflation factor in Module C, Line C1  xfor the 9 month period was corrected to 1.0171 instead of the 1.0239 used by the Operator for  x[a 12 month period. We have adjusted Module E, and have corrected the number of months on  xLine E2 to 9 months and Line E3 to 3 months. We have also adjusted the inflation segment in  xModule F, Line F5 to reflect the corrections made in Line C1. This has resulted in a corresponding adjustment on Line F9 (MPR for TrueUp Period 1).  X - ` x9.` ` The reduction in the length of the trueup period also results in a reduction in Line  xH2 (Revenue From MPR for Period 1). This results in a corresponding reduction in Line I8  x(TrueUp Segment for the Projected Period). In total, our adjustments to Operator's FCC Form  x1240 result in a reduction of the MPR for the Projected Period to $20.94 (Line I9). Thus,  xOperator has failed to demonstrate that its January 1, 1997 rate of $22.46 for its CPST was not  x<unreasonable. To the extent that external costs from the three months disallowed from Operator's  X4- xtrueup periodT4. _ yO-ԍ As found on Operator's Worksheets 7 and 8.T have been averaged into the rates charged in the nine months allowed in  xKOperator's trueup period, and have not been removed by our adjustments, we will order Operator  xto make a monthbymonth accounting of such external costs. Such accounting shall allow a  xcomparison of the actual external costs for the permitted ninemonth trueup period with the  xrecovery of external costs afforded by the external cost segment for that period as calculated on  xLWorksheet 7. We will order the removal of any overrecovery, plus interest, identified thereby  xin Operator's next FCC Form 1240 filed with the Commission. Any such overrecovery of  xLexternal costs shall be added to the amount otherwise reportable on Line H1 of Operator's next FCC Form 1240 rate calculation. "e ,N(N(ZZ"Ԍ X- ` x10.` ` Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's  xrules, 47 C.F.R.  0.321, that the CPST rate of $22.46, charged by Operator in CUID No.  X-NY0135 during the period from January 1, 1997 to the present, IS UNREASONABLE.  X- ` 4x11.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's  xrules, 47 C.F.R.  0.321, that the CPST rate of $22.46, charged by Operator in CUID No.  Xv-NY0403 during the period from January 1, 1997 to the present, IS UNREASONABLE.  XH- ` x12.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's  x!rules, 47 C.F.R.  76.961, that Operator shall refund to subscribers in the franchise areas  xreferenced above that portion of the amount paid in excess of the maximum permitted CPST rate  xof $20.94 per month (plus franchise fees), plus interest to the date of the refund, for the period  X - xfrom the filing of the earliest complaint in each franchise area" _ yOe - x<ԍ In CUID No. NY0135 the earliest filed complaint was filed on January 8, 1997 and in CUID No. NY0403  {O-- xxthe earliest filed complaint was filed on January 17, 1997. See letter dated April 18, 1997 from John A. Wright,  xChief, Cable Analysis and Evaluation, State of New York Department of Public Service, to William Agee, Federal Communications Commission. to the day before Operator implements the maximum permitted CPST rate of $20.94.  X - x  X - `  x13.` ` IT IS FURTHER ORDERED that Operator shall promptly determine the  xyovercharges to CPST subscribers for the stated periods, and shall within 30 days of the release  xof this Order, file a report with the Chief, Cable Services Bureau, stating the cumulative refund  xamount so determined (including franchise fees and interest), describing the calculation thereof,  xand describing its plan to implement the refund within 60 days of Commission approval of the plan.  X-  X- ` 4x14.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's  xrules, 47 C.F.R.  0.321, that Operator revise the calculation of its maximum permitted CPST  x0rate in its next FCC Form 1240 filing in accordance with our findings in this order and, in  xaddition, that Operator attach to its next FCC Form 1240 filing a monthbymonth accounting of  xits external costs from Operator's ninemonth trueup period as found on Operator's Worksheets,  xand that Operator adjust its rates in its next FCC Form 1240 filing for any overrecovery of external costs, plus interest, identified thereby. "e,N(N(ZZ"Ԍ X- ` 4 x15.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's  xrules, 47 C.F.R.  0.321, that the referenced complaints ARE GRANTED TO THE EXTENT DISCUSSED HEREIN. x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@Meredith J. Jones x` `  hh@Chief, Cable Services Bureau