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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 ) ) Marcus Cable of Alabama, L.P.)CUID No. AL0178 (Pelham) ) Complaint Regarding ) Cable Programming Services Tier ) Rate Increase ) ORDER Adopted: June 16, 1997 Released: June 18, 1997 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1.In this Order we consider a complaint concerning the rates of the above-captioned operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. Operator's response includes benchmark justifications filed on FCC Forms 1200, 1210 and 1240. This Order addresses the reasonableness of Operator's rates for the period October 1, 1995 to the present. 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 an FCC Form 1210 at least 30 days before new rates are scheduled to go into effect, 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.The first valid complaint was filed with the Commission on October 16, 1995 against Operator's October 1, 1995 CPST rate of $15.61. Operator has submitted FCC Forms 1200, 1210 and 1240 to justify its rates from October 1, 1995 forward. 5.Upon review of Operator's FCC Form 1200, we find Operator's maximum permitted rate ("MPR") of $13.92 to be reasonable. Upon review of Operator's FCC Form 1210 for the period July 1, 1994 to September 30, 1994, we find Operator's MPR of $14.25 to be reasonable. Upon review of Operator's FCC Form 1210 for the period January 1, 1995 to March 31, 1995, we find that Operator has not correctly calculated its MPR. We reduced Module C, Line C2 to nineteen, reflecting the correct number of regulated non-broadcast channels on the CPST. This adjustment reduced the MPR, effective April 1, 1995, to $14.42 from $14.45. 6. Upon review of Operator's FCC Form 1210 for the period April 1, 1995 to September 30, 1995 to justify a CPST rate of $15.61, effective October 1, 1995, we adjusted Operator's FCC Form 1210 so that Line A1 agreed with the MPR of $14.42 brought forward from the prior FCC Form 1210. This adjustment reduced Operator's MPR, effective October 1, 1995, to $15.58 from $15.61. Because Operator's actual CPST rate was $15.61, we find Operator's CPST rate, effective October 1, 1995 to May 31, 1996, to be unreasonable, as Operator has exceeded its MPR by $.03. However, we determine that the total overcharge per subscriber is de minimis and it would not serve the public interest to order a refund. 7.Upon review of Operator's FCC Form 1240 for the Projected Period June 1, 1996 to May 31, 1997, we find that Operator's MPR of $16.68, effective June 1, 1996, is not unreasonable. Because Operator's actual CPST rate of $16.68 is equal to its MPR, we find that Operator's CPST rate of $16.68, effective June 1, 1996, is not unreasonable. 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 $15.61 charged by Operator in the community referenced above for the period October 1, 1995 to May 31, 1996, IS UNREASONABLE TO THE EXTENT INDICATED HEREIN. 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 $16.68 charged by Operator in the community referenced above effective 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 complaint against the CPST rate charged by Operator in the community referenced above IS GRANTED TO THE EXTENT INDICATED HEREIN. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau