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A. 1. a.(1)(a) i) a) I. 1. 1. a.(1)(a) i) a)X` hp x (#%'0*,.8135@8:one subscriber complaint against Operator's CPST rate increase, thereby triggering the Commission's  x.jurisdiction to review this complaint. The valid complaint from the LFA triggers an obligation on behalf  S- xyof the cable operator to file a justification of its CPST rates with the LFA.>#  yO#-ԍ #X\  P6G;P#47 C.F.R Section 76.1402.#X\  P6G;P#ё Thus, in this case, Operator  x=is required to justify the increase in its CPST rate which is the subject of the LFA's complaint. We note  xithat Operator provides services on two CPSTs, CPST1 and CPST2, hereinafter referred to as "SATPAC." ",O(O(88"  S- x[Operator submitted FCC Forms 1210 and 1240 to justify the SATPAC additional outlet charge#  yOh-ԍ #X\  P6G;P#Initially, Operator indicated that it would change the SATPAC additional outlet pricing structure to  {O0-eliminate any fees in excess of allowable programming costs. See letter from Emerson Yearwood, Director of Government Relations, Falcon Cablevision to David Johnson, City Manager, City of Cedartown, dated February 15, 1997. On June 3, 1997, Operator indicated that it would discontinue its additional outlet charges for  {O-SATPAC services. See letter filed with the Commission on June 3, 1997 from Emerson Yearwood, Director of Government Relations to the Cable Services Bureau.and the  S-CPST rate increase that went into effect on November 1, 1996.QZD#  {O-ԍ #X\  P6G;P#See letter from Emerson Yearwood, Director Government Relations, Falcon to Gary Remondino, Federal Communications Commission, dated April 29, 1997, amending previously submitted FCC Forms 1210 and 1240 to justify its November 1, 1996 rate increases. Q x  S- ^x6.In the Prior Order, we found that Operator's SATPAC programming constituted a regulated  S`- x]tier and that Operator's April 1, 1996 rate increase for the tier was unreasonable.f`f #  yOf-ԍ #X\  P6G;P#Prior Order at 17437.f In June, 1997,  xpursuant to the Prior Order, Operator provided refunds to subscribers of the SATPAC tier and reduced  S- xlthe SATPAC rate to $5.15. #  {O-ԍ #X\  P6G;P#See facsimile transmission from Emerson Yearwood, Director, Government Relations, Falcon to the Federal Communications Commission, dated June 2, 1997. Consequently, we find that the LFA's complaint against Operator's  xMNovember 1, 1996 SATPAC rate of $7.71 is moot because Operator has reduced the rate to $5.15 as required by the Prior Order.  Sp- ^x7.The LFA's complaint also covers Operator's increase for the SATPAC additional outlet  SH - xcharge.XH P #  yO8-#X\  P6G;P#э Operator charges a fee equal to 50 percent of the first outlet charge to subscribers obtaining the SATPAC  yO-on an additional outlet.  Under Section 76.923(a) of the Commission's rules,qH p#  yOX-ԍ #X\  P6G;P#47 C.F.R.  76.923(a) (1996).q all equipment used to receive the basic  x=service tier ("BST") is subject to rate regulation, regardless of whether such equipment is used to receive  S - xkother tiers of regulated programming and/or unregulated service.j #  yO-ԍ #X\  P6G;P#47 C.F.R.  76.923(a).j Such equipmentrelated charges are  xsubject to regulation by LFAs. According to Operator, subscribers obtain both BST and CPST  xprogramming on the outlet for which Operator imposes an additional outlet charge. Therefore, the LFA's  xcomplaint does not trigger our jurisdiction to regulate the SATPAC additional outlet charge imposed by  xOperator. However, the LFA has jurisdiction to determine the reasonableness of Operator's SATPAC additional outlet charge for the SATPAC tier. ",O(O(88 "Ԍ S- ^x8.Upon review of Operator's amended FCC Form 1210#  yOh-ԍ #X\  P6G;P#In the Prior Order, Operator submitted and we reviewed Operator's FCC Form 1210 for the period January 1, 1995 to March 31, 1996 to justify Operator's April 1, 1996 CPST rate increase. In the instant proceeding, Operator has submitted an amended FCC Form 1210 for the period January 1, 1995 to March 31, 1996 to justify the starting rate on Line A1 of Operator's FCC Form 1240 filed to justify its CPST rate increase effective November 1, 1996.  for the period January 1, 1995 to  xyMarch 31, 1996, we find that Operator has correctly calculated its maximum permitted rate ("MPR") for  S- xCPST1 and CPST2 SATPAC, effective April 1, 1996.x#  yO-ԍ #X\  P6G;P#We note that Operator's amended FCC Form 1210 produces a lower MPR than Operator's original FCC Form 1210 in the Prior Order. Upon review of Operator's amended FCC Form  x.1240 for the projected period October 1, 1996 to September 30, 1997, Operator's actual CPST1 rate of  x>$6.78 exceeds the MPR of $6.43 that Operator calculated. Because Operator has failed to justify its  x\CPST1 rate of $6.78, we have adjusted Operator's FCC Form 1240. Specifically, we have refreshed  S- xOperator's inflation factor to 2.22 percent and adjusted Module C, Line C1 and Worksheet 1 accordingly.#  {O-ԍ #X\  P6G;P# See 47 C.F.R. 76.922(b)(9)(iii) (if a cable operator fails to justify its rates, rates must be adjusted in accordance with the most accurate data available at the time of analysis).   xjIn total, our adjustments to Operator's FCC Form 1240 result in a reduction of the MPR for CPST1 for  S- xythe Projected Period to $6.40 (Line I9). * #  yO-ԍ#X\  P6G;P# Information regarding the specific adjustments made to Operator's FCC 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,  yO-N.W., Washington, DC 20554, or by calling ITS at (202) 8573800.#Xj\  P6G;9XP# Consequently, we find that Operator has failed to demonstrate that its November 1, 1996 CPST1 rate of $6.78 was not unreasonable.  SH - ^x9. Accordingly, IT IS ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  xC.F.R. Section 0.321, that Operator's CPST1 rate of $6.78, effective November 1, 1996, in the community set forth above, IS UNREASONABLE.  S - ^`x10.IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  xC.F.R. Section 0.321 that the complaint referenced herein against the Operator's CPST2 SATPAC rate of $7.71, effective November 1, 1996, in the community set forth above, IS DISMISSED.  S- ^`x11.IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  xC.F.R. Section 0.321 that the complaint referenced herein against the Operator's additional outlet charge for CPST2 SATPAC, effective November 1, 1996, in the community set forth above, IS DISMISSED.  Sh- ^`x12.IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  xkC.F.R. Section 0.321, that the complaint referenced herein against the CPST1 rate of $6.78, effective November 1, 1996, in the community set forth above, IS GRANTED.  S- ^x13.IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47  xC.F.R.  76.961, that Operator shall refund to subscribers in the community referenced above that portion  x=of the amount paid in excess of the maximum permitted CPST1 rate of $6.40 per month (plus franchise"x,O(O(88"  xfee) plus interest during the period from November 1, 1996 to the day before Operator reduces its CPST rate to $6.40.  S- ^Ax14.IT IS FURTHER ORDERED, that Operator shall promptly determine the overcharges to  xCPST subscribers for the stated periods, and shall within 30 days of the release of this Order, file a report  xwith the Chief, Cable Services Bureau, stating the cumulative refund amounts so determined (including  xfranchise fees and interest), describing the calculation thereof, and describing its plan to implement the refund within 60 days of the Commission approval of the plan. x  S- ^  "BX hp x (#%'0*,.8135@8: