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Cox Communications, Inc.  {O -  manages the daytoday operations for the system. See Letter dated October 8, 1993 to the Federal Communications Commission from Karen L. Crain. We have already issued an order in which we found that Operator's rates in effect  S- xprior to May 15, 1994 were unreasonable ("Prior Order"). {OR-ԍ See In The Matter of Cox Cable Pensacola, Inc. Emerald Coast Cable Television, 10 FCC Rcd 8656 (1995). Subsequently, we issued an order vacating and  xjsuperseding our Prior Order and resolving all the complaints filed from September 1993 through June 30,  S- x01995 against Operator's CPST rates ("Resolution").D {O- xԍ See In the Matter of Cox Communications, Inc. and Times Mirror Cable Television, Inc., 11 FCC Rcd 1972 (1996). Accordingly, this Order addresses only the reasonableness of Operator's March 1, 1997 CPST rate increase.  S8- ` Ex2.` ` Under the Communications Act,|8 {Ov"-ԍ Communications Act, Section 623(c), as amended, 47 U.S.C. 543(c) (1996).| the Federal Communications Commission  x!("Commission") is authorized to review the CPST rates of cable systems not subject to effective  xcompetition to ensure that rates charged are not unreasonable. If the Commission finds a rate to be  S- xunreasonable, it shall determine the correct rate and any refund liability.0  {O&-ԍ  See Section 76.957 of the Commission's Rules, 47 C.F.R. 76.957. The Telecommunications Act  S- xMof 1996 ("1996 Act")S  yO(-ԍ Pub. L. No. 104104, 110 Stat. 56 (1996).S and our rules implementing the new legislation ("Interim Rules"),R  {O- xԍ See Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996, 11 FCC Rcd 5937 (1996). require that"",))II"  xcomplaints against the CPST rates be filed with the Commission by a local franchising authority ("LFA")  S-that has received more than one subscriber complaint."w {O-ԍ See Communications Act, Section 623(c), as amended, 47 U.S.C. Section 543(c) (1996).  S- ` x3.` ` The LFA for the franchise area referenced above filed a complaint with the Commission  xon May 30, 1997 against Operator's March 1, 1997 CPST rate increase from $15.73 to $17.02. The LFA  xverified that it received more than one subscriber complaint for the franchise area and that the first valid  xcomplaint was received by the LFA on March 20, 1997. The filing of a complete and timely LFA  S- x\complaint triggers an obligation upon the cable operator to file a justification of its CPST rates.? w yO< -ԍ 47 C.F.R. 76.956.? The  S-Operator has the burden of demonstrating that the CPST rates complained about are reasonable.3 Dw {O-ԍ Id.3  Sp- ` `x4.` ` To justify rates for the period beginning May 15, 1994 through a benchmark showing,  SH - x.operators must use the FCC Form 1200 series.? H w yO-ԍ 47 C.F.R. 76.922.? Operators are permitted to make changes to their rates  S - x<on a quarterly basis using FCC Form 1210.3 f w {O&-ԍ  Id.3 Operators may alternatively justify adjustments to their rates  xon an annual basis using FCC Form 1240 to reflect reasonably certain and quantifiable changes in external  x.costs, inflation, and the number of regulated channels that are projected for the twelve months following  S - xthe rate change.3 w {O@-ԍ  Id.3 Any incurred cost that is not projected may be accrued with interest and added to rates  S -at a later time.3 w {O-ԍ  Id.3 x  S0- ` x5.` ` The Resolution approved a maximum permitted rate ("MPR") of $12.79 for the CPST in  xthe community referenced above. Upon review of Operator's FCC Form 1210 covering the period January  x1, 1995 through September 30, 1995, which updates Operator's approved MPR of $12.79, we adjusted  xOperator's inflation adjustment factor at Line I5 to 1.0296. This adjustment resulted in a revised MPR  xof $13.36 rather than Operator's MPR of $13.56. Upon review of Operator's FCC Form 1240 for the  x=projected period March 1, 1996 through February 28, 1997, we adjusted Operator's Line A1 to coincide  xLwith Operator's MPR of $13.36 from its previous revised FCC Form 1210. This adjustment resulted in a revised FCC Form 1240 MPR of $15.45 rather than Operator's MPR of $15.73.  S- ` x6.` ` Upon review of Operator's FCC Form 1240 for the projected period March 1, 1997  xthrough February 28, 1998, we adjusted Operator's Line A1 to coincide with Operator's MPR from its  xprevious revised FCC Form 1240. Also, Operator made trueup adjustments through to the effective date  xof the rate increase. This is incorrect. The annual adjustment afforded by FCC Form 1240 allows"P,_(_(II"  xoperators to project changes in external costs, inflation, and the number of regulated channels. This  x-structure avoids the delay some operators experienced in recouping costs through multiple rate adjustments  xthroughout the year. Because projections will not reflect the costs that actually occur, the Commission  xprovided, as part of the annual adjustment, a "trueup" to correct projected cost changes with the actual  S`- xcost changes. The trueup data is intended to indicate real, not projected data.\`w {O-  ԍ See In the Matter of Implementation of Sections of the Cable Television Consumer Protection and   wCompetition Act of 1992: Rate Regulation, MM Docket No. 92266, Thirteenth Order on Reconsideration, 11 FCC  {OZ-Rcd 388, 420 (1995) See also FCC Form 1240 Instructions for Timing at 3 4.ĉ Operator signed the  xsecond FCC Form 1240 on January 30, 1997. Consequently, Operator could not have had actual data for  xall twelve months of the trueup period. We will order Operator to submit an FCC Form 1240 for the  xprojected period March 1, 1997 through February 28, 1998 with a trueup period not to exceed ten  S- xymonths, provided Operator has actual data for all of the months used in the trueup.w {OL -ԍ The unit of measurement used by FCC Form 1240 is the month. See FCC Form 1240 Instructions at 8. We will also order Operator to use the rate of $15.45 on Line A1 of this FCC Form 1240.  SH - ` x7.` ` Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  xC.F.R.  0.321, that the CPST rate of $17.02, charged by Operator in the franchise area referenced above,  S -effective March 1, 1997, IS UNREASONABLE.  S - ` `x8.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  xjC.F.R. Section 0.321, that Operator shall, within 30 days of the release of this Order, file with the Chief,  x[Cable Services Bureau, an FCC Form 1240 for the projected period March 1, 1997 through February 28, 1998 that incorporates our findings in this Order.  S- ` x9.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the referenced complaint IS GRANTED. x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@Meredith J. Jones x` `  hh@Chief, Cable Services Bureau