******************************************************** 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 ) ) Jones Communications of Maryland, Inc.) d/b/a Jones Intercable, Inc. )CUID No. MD0163 (Prince George's County) ) Complaint Regarding a ) Cable Programming Services Tier ) Rate Increase ) ORDER Adopted: August 6, 1997 Released: August 8, 1997 By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1.In this Order we consider a complaint against the January 1, 1997 rate increase of the above- referenced operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. We have already issued orders that resolved complaints against Operator's rates for the period from September 1, 1993 through November 30, 1995. Accordingly, this order addresses the reasonableness of Operator's CPST rates beginning December 1, 1995. We find that the Operator's CPST rate of $17.96, effective January 1, 1997, is not unreasonable. 2.The Communications Act, authorizes the Federal Communications Commission ("Commission") to review the CPST rates of cable systems not subject to effective competition to ensure that rates charged are not unreasonable. The Telecommunications Act of 1996 ("1996 Act") and our rules implementing the new legislation ("Interim Rules"), require that complaints against CPST rates be filed with the Commission by a local franchising authority ("LFA") that has received subscriber complaints. An LFA may not file a CPST rate complaint unless it receives more than one subscriber complaint within 90 days after such increase becomes effective. If the Commission finds the rate unreasonable, it shall determine the correct rate and any refund liability. 3.On June 4, 1996, the LFA filed a complaint against Operator's January 1, 1997 rate increase from $15.96 to $17.96. The LFA certified that it has complied with the Interim Rules. The LFA verified that it received its first valid subscriber complaint on January 21, 1997. Along with its complaint, the LFA filed an FCC Form 1240 that had been submitted by the Operator. The filing of a complete and timely LFA complaint triggers an obligation upon Operator to file a justification of its CPST rates. The Operator has the burden of demonstrating that the CPST rates at issue are reasonable. 4.Operator's FCC Form 1240 set rates for the projected period from January 1, 1997 to December 31, 1997. Upon review of Operator's FCC Form 1240, we find that on Worksheet 4, Line 401, Operator incorrectly inserted $16.8313, rather than Operator's Current Maximum Permitted Rate of $15.8313, taken from Module A, Line A1. We inserted the correct figure, which resulted in a change from $0.223 to $0.1985 on both Line 408 of Worksheet 4 and Line I3 of Module I. This adjustment required that we refresh Operator's inflation factors on Worksheet 1, resulting in our adjustment of Module C, Line C1, Inflation Factor for True-Up Period 1, to 1.0134 and Line C3, Current FCC Inflation Factor, to 1.0221. We also adjusted Module F, Line F8, True-Up Segment For True-Up Period 1, from 0.2316 to 0.1351. These adjustments resulted in a maximum permitted rate ("MPR") of $18.30 for Operator's projected period, rather than Operator's MPR of $18.42. Because Operator actually was charging a CPST rate of $17.96, we find that Operator's CPST rate is not unreasonable. 5.Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that Operator's CPST rate of $17.96, effective January 1, 1997, in the community referenced above, IS NOT UNREASONABLE. 6.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 rate charged by Operator in the franchise area referenced in the caption IS DENIED. FEDERAL COMMUNICATIONS COMMISSION Margaret M. Egler Acting Chief, Financial Analysis and Compliance Division Cable Services Bureau