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NJ0082 (Fort Lee Borough)  S-Time Warner Cable ,hh^)ppNJ0092 (Edgewater Borough ) (#(# S- +` `  ,hh^)ppNJ0203 (Ridgefield Borough) (#(#  S-` `  ,hh^)ppNJ0208 (Englewood Cliffs  S-` `  ,hh^)pp& Borough)  Sa-` `  ,hh^)ppNJ0232 (Cliffside Park)  S9 -` `  ,hh^)ppNJ0251 (Englewood City)  S -` `  ,hh^)ppNJ0252 (Palisades Park Borough)  S -` `  ,hh^)ppNJ0253 (Fairview Borough)  S -` `  ,hh^)ppNJ0254 (Ridgefield Park)  S -` `  ,hh^)ppNJ0338 (Guttenberg)  Sq -` `  ,hh^)ppNJ0339 (Little Ferry Borough)  SI-` `  ,hh^)ppNJ0427 (Moonachie Borough)  S!-` `  ,hh^)ppNJ0431 (Leonia Borough)  S-Complaint Regarding ,hh^)ppNJ0484 (Teterboro)  S-Cable Programming Services Tier Rates)  S- ORDER ă  S1- Adopted: July 14, 1997 hh^ppReleased: July 16, 1997  S - By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: "VX` hp x (#%'0*,.8135@8:(>(II;"Ԍ S-  `ԙ5.The Commission has allowed Operator to use a modified format of FCC Form 1240 to  &reflect the adjustments required under the Social Contract. We have reviewed Operator's modified FCC  S-Form 1240 filings and have made the following adjustments. F yO-ԍ Information regarding the specific adjustments made to Operator's FCC Form 1240 filings can be found in the public file for the community referenced above which is available in the Cable Services Bureau's public reference room, or through the Commission's copy contractor, International Transcription Services (ITS), 1919 M Street, N.W., Washington, DC 20554, or by calling ITS at (202) 8573800.  S`-  n6.Our review of Operator's FCC Form 1240 for the period January 1, 1996 to December 31,  &1996 reveals that Operator has correctly calculated its maximum permitted rate ("MPR") of $17.66. Consequently, Operator's CPST rate of $17.18 is justified and is not unreasonable.  S-  n7.Our review of Operator's FCC Form 1240 for the period January 1, 1997 to December 31,  S- &1997 reveals that Operator has incorrectly calculated its MPR. F yO -ԍ These findings are based solely on the representations of Operator. Should information come to our attention that these representations were materially inaccurate, we reserve the right to take any appropriate action. This Order is 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. In particular, Operator has made trueup  &adjustments through to the effective date of the rate increase. This is incorrect. The annual adjustment  &afforded by FCC Form 1240 allows operators to project changes in external costs, inflation, and the  &number of regulated channels. This structure avoids the delay some operators experienced in recouping  &costs through multiple rate adjustments throughout the year. Because projections will not reflect the costs  &that actually occur, the Commission provided, as part of the annual adjustment, a "trueup" to correct  &projected cost changes with the actual cost changes. However, the Commission has noted that, as FCC  &Form 1240 must be filed 90 days before an increase is to take effect, the period for the trueup will not  SX- &coincide with the previous year's projections.nXF yO-ԍ Thirteenth Reconsideration Order, 11 FCC Rcd 388, 420 fn 151 (1995).n The trueup data is intended to indicate real, not projected  S0-data.30( F {O-ԍ  Id.3 This policy is reflected in the instructions accompanying FCC Form 1240.a0 F {O-ԍ  See FCC Form 1240 Instructions for Timing at 34.a  S- 8. Based on this instruction and considering evidence in the filing,zL F yO-ԍ Operator, for instance, did not reflect in its trueup the inflation factor for the second quarter of 1996  {O -released by the Commission in November 1996. See Public Notice, "Inflation Adjustment Figures for Cable Operators Using FCC Form 1210 and 1240 Now Available," DA 961986, (November 27, 1996). Had this been available to Operator at time of filing, Operator would have been required to include the factor released (2.22%) for all months after March 1996 and for its projection period. Instead, Operator used the previous factor (2.39%) for all inflation adjustments 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 for closing  &accounts and completing forms, we have adjusted Operator's trueup period from 12 months to 9 months.  &This adjustment required that we refresh Operator's inflation factors to 2.22 for the second quarter of 1996  &and to 2.21 for the third quarter of 1996 and adjust Worksheet 1 accordingly. As a result, the trueup"h,>(>(II"  &inflation factor in Module C, Line C1 for the 9 month period was corrected to 1.0171 instead of the  &1.0239 used by the Operator for a 12 month period. We have adjusted Module E, and have corrected the  &[number of months on Line E2 to 9 months and Line E3 to 3 months. We have also adjusted the inflation  &segment in Module 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).  S-  $9. The reduction in the length of the trueup period also results in a reduction in Line H2  &(Revenue From MPR for Period 1). This results in a corresponding reduction in Line I8 (TrueUp  &Segment for the Projected Period). In total, our adjustments to Operator's FCC Form 1240 result in a  &reduction of the MPR for the Projected Period to $18.37 (Line I9). Notwithstanding our adjustments,  &Operator's actual CPST rate of $18.27 is justified and is not unreasonable. To the extent that external  SH - &costs from the three months disallowed from Operator's trueup periodTH F 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 Operator's trueup period, and have not been removed by our  &[adjustments, we will order Operator to make a monthbymonth accounting of such external costs. Such  &\accounting shall allow a comparison of the actual external costs for the permitted ninemonth trueup  &lperiod with the recovery of external costs afforded by the external cost segment for that period as  & calculated on Worksheet 7. We will order the removal of any overrecovery, plus interest, identified  &thereby in Operator's next FCC Form 1240 filed with the Commission. Any such overrecovery of  &external costs shall be added to the amount otherwise reportable on Line H1 of Operator's next FCC Form 1240 rate calculation.  S- :   X hp x (#%'0*,.8135@8: