******************************************************** 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 ) ) Suburban Cable TV Company )CUID No. PA1248 (Ridley) ) Complaint Regarding ) Cable Programming Services Tier Rates) ORDER Adopted: August 14, 1997 Released: August 19, 1997 By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1.In this Order we consider a complaint against the April 1, 1997 rate increase of the above- referenced operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. Operator has attempted to justify its CPST rate through a benchmark justification on FCC Form 1240. We have already issued a separate order in which we denied previous complaints against Operator's CPST rates. Accordingly, this Order addresses only the reasonableness of Operator's April 1, 1997 CPST rate increase. 2.Under the Communications Act, the 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. The Telecommunications Act of 1996 ("1996 Act") and our rules implementing the new legislation ("Interim Rules"), require that complaints against the CPST rates be filed with the Commission by a local franchising authority ("LFA") that has received more than one subscriber complaint. 3.The LFA for the franchise area referenced above filed a complaint with the Commission on June 11, 1997. The LFA verified that it received more than one subscriber complaint for the franchise area and that the first valid complaint was received by the LFA on April 3, 1997. The filing of a complete and timely LFA 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. 4. To justify rates for the period beginning May 15, 1994 through a benchmark showing, operators must use the FCC Form 1200 series. 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. 5.Upon review of Operator's FCC Form 1240 for the period April 1, 1997 through March 31, 1998, we find that Operator has not correctly calculated its maximum permitted rate ("MPR"). We adjusted Line A1 to bring forward the correct MPR from the prior FCC Form 1240. Despite this adjustment, we find Operator's CPST rate of $16.05 effective April 1, 1997 to be reasonable. 6.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 $16.05, charged by Operator in the franchise area referenced above beginning April 1, 1997, IS REASONABLE. 7.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 adjustments when calculating its maximum permitted rate and performing the true-up calculation on its next FCC Form 1240. 8.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the complaint against Operator's April 1, 1997 CPST rate increase in the franchise area referenced above IS DENIED. FEDERAL COMMUNICATIONS COMMISSION Margaret M. Egler Acting Chief, Financial Analysis and Compliance Division Cable Services Bureau