******************************************************** 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 ) )CUID Nos.MN0562 (Minnetrista) In the Matter of)MN0563 (St. Bonifacius) )MN0564 (Spring Park) )MN0565 (Minnetonka Beach) Triax Midwest Associates, L.P.)MN0566 (Excelsior) )MN0567 (Orono) )MN0568 (Medina) )MN0569 (Wayzata) )MN0570 (Shorewood) )MN0571 (Tonka Bay) )MN0572 (Long Lake) )MN0573 (Greenwood) )MN0574 (Deephaven) Complaints Regarding )MN0575 (Woodland) Cable Programming Services Tier Rates)MN0576 (Victoria) ) ORDER Adopted: July 29, 1997 Released: August 1, 1997 By the Chief, Cable Services Bureau: 1.In this Order we consider complaints about the rates charged by the above-referenced operator ("Operator") for its cable programming services tier ("CPST") in the communities referenced above. Operator has attempted to justify its CPST rates through benchmark justifications on FCC Form 393, FCC Form 1200, multiple FCC Form 1210s and FCC Form 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 a rate to be unreasonable, it shall determine the correct rate and any refund liability. 3.Valid complaints were filed with the Commission on November 1, 1993, by the local franchising authority ("LFA") for the communities referenced above, against the CPST rate Operator was charging in the above-referenced communities. The filing of a complete and timely complaint triggers an obligation on behalf of the cable operator to file a justification of its CPST rates. The Operator has the burden of demonstrating that its CPST rates are reasonable. 4. Operators with complete and timely CPST complaints filed against them prior to May 15, 1994 must demonstrate that their CPST rates were in compliance with the Commission's initial rules from the time the complaint was filed through May 14, 1994, and that their CPST rates were in compliance with the revised rules from May 15, 1994 forward. Operators attempting to justify CPST rates for the period prior to May 15, 1994 through a benchmark showing must complete and file FCC Form 393. To justify rates for the period beginning May 15, 1994 through a benchmark showing, operators must use the FCC Form 1200 series. Operators are permitted to make changes to their rates on a quarterly basis using FCC Form 1210. Operators may alternatively 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. 5.Upon review of Operator's FCC Form 393, we find Operator's calculated maximum permitted rate ("MPR") of $12.02 to be reasonable. Because Operator's actual CPST rate of $11.41 does not exceed its MPR, we find Operator's actual CPST rate of $11.41 to be reasonable, from the initial date of regulation, November 1, 1993, through May 14, 1994. 6.Upon review of Operator's FCC Form 1200, we find Operator's MPR of $11.69 to be reasonable. Because Operator's actual CPST rates of $11.41, effective May 15, 1994 and $11.69, effective October 1, 1994 do not exceed its MPR, we find Operator's actual CPST rates of $11.41, effective May 15, 1994 through September 30, 1994, and $11.69, effective October 1, 1994 through March 31, 1995, to be reasonable. 7.Upon review of Operator's FCC Form 1210 for the period April 1, 1994 through June 30, 1994, we find Operator's MPR of $11.94 to be reasonable. Because Operator's actual CPST rate of $11.93, effective April 1, 1995, does not exceed its MPR, we find Operator's actual CPST rate of $11.93, effective April 1, 1995 through June 30, 1995, to be reasonable. 8.Upon review of Operator's FCC Form 1210 for the period July 1, 1994 through June 30, 1995, we find Operator's MPR of $13.60 to be reasonable. Because Operator's actual CPST rate of $12.83, effective July 1, 1995, does not exceed its MPR, we find Operator's actual CPST rate of $12.83, effective July 1, 1995 through January 31, 1996, to be reasonable. Because Operator's actual CPST rate of $14.71, effective February 1, 1996 exceeds its MPR, we find Operator's actual CPST rate of $14.71, effective February 1, 1996 through February 28, 1997 to be unreasonable. 9.Upon review of Operator's FCC Form 1240 for the projected period March 1, 1997 through February 28, 1998, we amended Operator's Line A1 to reflect the MPR of $13.60 from Operator's previous FCC Form 1210. This amendment resulted in a revised MPR of $13.48 for the projected period rather than Operator's MPR of $13.63 for the projected period. Because Operator's actual CPST rate of $13.63, effective March 1, 1997, exceeds its revised MPR, we find Operator's actual CPST rate of $13.63, effective March 1, 1997 through the present, to be unreasonable. 10.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 $11.41, charged by Operator in the franchise areas referenced above effective September 1, 1993 through September 30, 1994, IS REASONABLE. 11.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rate of $11.69, charged by Operator in the franchise areas referenced above effective October 1, 1994 through March 31, 1995, IS REASONABLE 12.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rate of $11.93, charged by Operator in the franchise areas referenced above effective April 1, 1995 through June 30, 1995, IS REASONABLE. 13.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rate of $12.83, charged by Operator in the franchise areas referenced above effective July 1, 1995 through January 31, 1996, IS REASONABLE. 14.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rate of $14.71, charged by Operator in the franchise areas referenced above effective February 1, 1996 through February 28, 1997, IS UNREASONABLE. 15.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rate of $13.63, charged by Operator in the franchise areas referenced above effective March 1, 1997 through the present, IS UNREASONABLE. 16.IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47 C.F.R.  76.961, that Operator shall refund to subscribers in the community referenced above that portion of the amount paid in excess of the maximum permitted CPST rate of $13.60 per month (plus franchise fees), plus interest to the date of the refund, for the period February 1, 1996 through February 28, 1997. 17.IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47 C.F.R.  76.961, that Operator shall refund to subscribers in the community referenced above that portion of the amount paid in excess of the maximum permitted CPST rate of $13.48 per month (plus franchise fees), plus interest to the date of the refund, for the period March 1, 1997 through the day before Operator implements the maximum permitted rate of $13.48. 18.IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges to CPST subscribers for the stated periods, and shall within 30 days of the release of this Order, file a report with the Chief, Cable Services Bureau, stating the cumulative refund amount so determined (including franchise fees and interest), describing the calculation thereof, and describing its plan to implement the refund within 60 days of Commission approval of the plan. 19.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that Operator take into account our FCC Form 1240 adjustment when calculating its maximum permitted rate and performing the true-up calculation on its next FCC Form 1240. 20.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that this Order IS STAYED for 30 days from its release date, to enable Operator to provide the Commission with an FCC Form filing regarding its February 1, 1996 CPST rate increase. 21.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the referenced complaints ARE GRANTED. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau