******************************************************** 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 ) ) TCA Cable Television Inc. of Tyler, Texas) CUID No. TX0218 (Andrews) ) Complaint Regarding ) Cable Programming Services Tier ) Rate Increase ) ORDER Adopted: July 8, 1997 Released: July 10, 1997 By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider a complaint about the rate the above-captioned operator ("Operator") was charging for its cable programming services tier ("CPST") in the community referenced above. Operator has chosen to justify its CPST rates in effect on September 1, 1993 through a cost of service showing on FCC Form 1220. Operator has also filed FCC Form 1200 and FCC Form 1210 to justify its rates from May 15, 1994 forward. We find that the CPST rates implemented by Operator beginning September 1, 1993 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. The Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act") required the Commission to review rates upon the filing of a valid complaint for the CPST filed by a subscriber or a local franchise authority ("LFA"). 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. The Commission received a valid complaint concerning Operator's CPST rates in effect on September 1, 1993. Accordingly, this complaint triggers the Commission's jurisdiction to review the Operator's CPST rates. 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 with valid CPST complaints filed prior to May 15, 1994 must demonstrate that their CPST rates complied with the Commission's initial rules from the time the complaint was filed through May 14, 1994. Their rates must also comply with the revised rules from May 15, 1994 forward. Cable operators attempting to justify their September 1, 1993 CPST rates using a cost of service showing may file FCC Form 1220. 4. In reviewing Operator's FCC Form 1220, we evaluated its cost of service showing to determine whether the Operator should be permitted to recover its investments and expenses as filed. Where a certain rate base or expense element was not justified under our rules, such cost was disallowed in whole or in part. Where reported costs were disallowed, we have made appropriate adjustments. Even with our adjustments and disallowances, however, we find that the Operator's monthly CPST rates in effect on September 1, 1993 has been justified and are reasonable. 5. Upon review of Operator's FCC Form 1220, we agree that the Operator's actual rate of $15.25 for the CPST effective September 1, 1993 is reasonable. Also, upon review of Operator's FCC Form 1210 for the period April 1, 1994 to June 30, 1994, we find that Operator's maximum permitted rate ("MPR") is justified. Because Operator's CPST rate of $15.33, effective September 14, 1994, does not exceed its MPR, we find that Operator's CPST rate of $15.33, effective September 14, 1994 is not unreasonable. Upon review of Operator's FCC Form 1210 for the period July 1, 1994 to December 31, 1994, we find Operator has justified its MPR. Because Operator's actual CPST rate of $15.88, effective March 1, 1995, does not exceed its MPR, we find that Operator's CPST rate of $15.88, effective March 1, 1995, is 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 monthly CPST rates charged by Operator from September 1, 1993 to February 28, 1995 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 monthly CPST rate of $15.88 charged by Operator in the community referenced above, effective March 1, 1995, 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 rates charged by Operator in the in the community referenced above IS DENIED. FEDERAL COMMUNICATIONS COMMISSION Margaret M. Egler Acting Chief, Financial Analysis and Compliance Division Cable Services Bureau