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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) CUID Nos.VA0301 (Fairfax County) )VA0318 (Vienna) Media General Cable of Fairfax County) VA0326 (City of Fairfax) )VA0327 (Falls Church) Complaints Regarding)VA0346 (Herndon) Cable Programming Services Tier Rates) ) ORDER Adopted: August 1, 1997 Released: August 5, 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. We have already issued an order in which we found that Operator's CPST rate in effect prior to May 15, 1994 was reasonable, based on Operator's cost of service filing ("Prior Order"). Consequently, this Order reviews the CPST rates charged by Operator after May 15, 1994. This Operator has chosen to attempt to justify its subsequent CPST rates through multiple FCC Form 1210 and FCC Form 1240 filings updating its approved cost of service rate. 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. The filing of a complete and timely complaint triggers an obligation upon the cable operator to file a justification of its CPST rates. The Operator has the burden of demonstrating that the CPST rates complained about are reasonable. 3.To justify rates for the period beginning May 15, 1994, 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. 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. 4.Based upon our review of Operator's cost of service filing in our Prior Order, we find Operator's actual CPST rate of $17.77, effective May 15, 1994 through December 31, 1994, to be reasonable. Upon review of Operator's FCC Form 1210 covering the period September 30, 1993 through September 30, 1994, we find Operator's maximum permitted rate ("MPR") of $18.57 to be reasonable. Because Operator's actual CPST rate of $18.57, effective January 1, 1995, does not exceed its MPR, we find Operator's actual CPST rate of $18.57, effective January 1, 1995 through March 31, 1995, to be reasonable. 5.Upon review of Operator's FCC Form 1210 for the period September 30, 1994 through December 31, 1994, we find Operator's MPR of $18.92 to be reasonable. Because Operator's actual CPST rate of $18.92, effective April 1, 1995, does not exceed its MPR, we find Operator's actual CPST rate of $18.92, effective April 1, 1995 through September 30, 1995, to be reasonable. Upon review of Operator's FCC Form 1210 for the period January 1, 1995 through June 30, 1995, we find Operator's MPR of $19.27 to be reasonable. Because Operator's actual CPST rate of $19.27, effective October 1, 1995, does not exceed its MPR, we find Operator's actual CPST rate of $19.27, effective October 1, 1995 through December 31, 1995, to be reasonable. 6.Upon review of Operator's FCC Form 1210 for the period July 1, 1995 through September 30, 1995, we find Operator's MPR of $19.70 to be reasonable. Because Operator's actual CPST rate of $19.70, effective January 1, 1996, does not exceed its MPR, we find Operator's actual CPST rate of $19.70, effective January 1, 1996 through March 31, 1996, to be reasonable. Upon review of Operator's FCC Form 1210 for the period October 1, 1995 through December 31, 1995, we find Operator's MPR of $20.27 to be reasonable. Because Operator's actual CPST rate of $20.27, effective April 1, 1996, does not exceed its MPR, we find Operator's actual CPST rate of $20.27, effective April 1, 1996 through July 31, 1996, to be reasonable. 7.Upon review of Operator's FCC Form 1240 for the projected period August 1, 1996 through July 31, 1997, we recalculated Operator's Worksheet 1, Line 113 in accordance with FCC Form 1240 instructions. The recalculation reduced Operator's inflation factor at Line C1 to 1.0056 rather than 1.0222. This adjustment resulted in a revised MPR for the projected period of $21.21 rather than Operator's MPR of $21.53. Because Operator's actual CPST rate of $21.53, effective August 1, 1996, exceeds its revised MPR, we find Operator's actual CPST rate of $21.53, effective August 1, 1996 through July 31, 1997, to be unreasonable. 8.Upon review of Operator's FCC Form 1240 for the projected period August 1, 1997 through July 31, 1998, we adjusted Operator's Line A1 to reflect Operator's MPR of $21.21 from its previous revised FCC Form 1240. We also adjusted Operator's Modules D, F and H to coincide with the previous revised FCC Form 1240, in accordance with the FCC Form 1240 instructions. These adjustments resulted in a revised MPR of $21.31 rather than Operator's MPR of $21.92. Because Operator's actual CPST rate of $21.92, effective August 1, 1997, exceeds its revised MPR, we find Operator's actual CPST rate of $21.92, effective August 1, 1997, to be unreasonable. 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 $17.77, charged by Operator in the communities referenced above, effective May 15, 1994 through December 31, 1994, 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 CPST rate of $18.57, charged by Operator in the communities referenced above, effective January 1, 1995 through March 31, 1995, 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 $18.92, charged by Operator in the communities referenced, effective April 1, 1995 through September 30, 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 $19.27, charged by Operator in the communities referenced above, effective October 1, 1995 through December 31, 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 $19.70, charged by Operator in the communities referenced above, effective January 1, 1996 through March 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 $20.27, charged by Operator in the communities referenced, effective April 1, 1996 through July 31, 1996, IS REASONABLE. 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 $21.53, charged by Operator in the communities referenced above, effective August 1, 1996 through July 31, 1997, IS UNREASONABLE. 16.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 $21.92, charged by Operator in the communities referenced above, effective August 1, 1997 through July 31, 1998, IS UNREASONABLE. 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 communities referenced above that portion of the amount paid in excess of the maximum permitted CPST rate of $21.21 per month (plus franchise fees), plus interest to the date of the refund, for the period August 1, 1996 through July 31, 1997. 18.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 communities referenced above that portion of the amount paid in excess of the maximum permitted CPST rate of $21.31 per month (plus franchise fees), plus interest to the date of the refund, for the period August 1, 1997 through the day before Operator implements the maximum permitted rate of $21.31. 19.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. 20.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 adjustments when calculating its maximum permitted rate and performing the true-up calculation on its next FCC Form 1240. 21.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the complaints against the CPST rates charged by Operator in the community referenced above, ARE GRANTED. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau