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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 ) ) TCI Cablevision of Nebraska, Inc. ) CUID No. NE0011 (Grand Island) ) ) Complaints Regarding ) Cable Programming Services Tier ) Rate Increase ) ORDER Adopted: May 21, 1997 Released: May 23, 1997 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. Here we consider complaints about the rates that the above-captioned Operator ("Operator") was charging for its cable programming service tier ("CPST") in the community referenced above. Operator has chosen to attempt to justify its CPST rates through benchmark showings on FCC Forms 1200, 1210 and 1240. 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 to be 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 file an FCC Form 1210 to justify rate increases based on the addition and deletion of channels, changes in certain external costs and inflation. In addition, Operators must file FCC Form 1210 with the Commission within thirty days of the date of service of the complaint regarding the new 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. The first valid complaint was filed with the Commission on January 9, 1995, against Operator's November 21, 1994 CPST rate increase from $12.61 to $13.59. On January 21, 1995, Operator implemented a CPST rate increase from $13.59 to $14.32. On March 1, 1995, Operator implemented a CPST rate increase from $14.32 to $15.70. On April 1, 1995, Operator implemented a CPST rate increase from $15.70 to $16.22. On June 1, 1996, Operator implemented a CPST rate increase from $16.22 to $18.20. Upon review of Operator's FCC Form 1200, FCC Form 1210s and FCC Form 1240, we conclude that Operator has justified its CPST rate of $13.59 implemented on November 21, 1994, its CPST rate of $14.32 implemented on January 21, 1995, its CPST rate of $15.70 implemented on March 1, 1995, its CPST rate of $16.22 implemented on April 1, 1995, and its CPST rate of $18.20 implemented on June 1, 1996. 5. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rate of $13.59 charged by Operator in the community referenced above beginning November 21, 1994, IS REASONABLE. 6. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rate of $14.32 charged by Operator in the community referenced above beginning January 21, 1995, IS REASONABLE. 7. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rate of $15.70 charged by Operator in the community referenced above beginning March 1, 1995, IS REASONABLE. 8. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rate of $16.22 charged by Operator in the community referenced above beginning April 1, 1995, IS REASONABLE. 9. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rate of $18.20 charged by Operator in the community referenced above beginning June 1, 1996, IS REASONABLE. 10. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the complaints against the CPST rates charged by Operator in the community referenced above, ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau