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See also 47 C.F.R.  76.922(n).} If the Commission is unable to reach a determination  xregarding Operator's affirmative defenses within the 90day statutory deadline for resolving the complaint  x.filed by the LFA, Operator requested that any adverse determination regarding Operator's CPST rate be  S-suspended pending resolution of its defenses.D w {OX-ԍ See Davidson Letter.D  SH - ` x5.` ` On June 3, 1997, the Commission adopted an order denying Operator's Effective  S - xCompetition Petition for the community referenced above. w {Or-ԍ In the Matter of Cox Communications Hampton Road, Inc., et al., DA 971175 (released June 5, 1997). As a result, Operator's effective competition  xyaffirmative defense is moot. We will therefore review Operator's FCC Forms 1240 to determine whether Operator has correctly calculated its maximum permitted rate ("MPR") for its CPST.  S - ` Bx6.` ` Upon review of Operator's first FCC Form 1240, for the projected period February 1,  x=1996 to December 31, 1996, we find that Operator correctly calculated its MPR of $14.00. Pursuant to the Social Contract, Operator carried forward on Line A1 its actual rate in effect in January 3, 1996.  S- ` x7.` ` Upon review of Operator's second FCC Form 1240, for the projected period January 1,  x1997 to December 31, 1997, we find that Operator incorrectly calculated its MPR. Operator began its  xtrueup period with the same month that it had used as the final month of its trueup period in its first  Sh- xFCC Form 1240. Operator is not permitted to perform a trueup on the same period of time twice._hDw {OL&-ԍ See FCC Form 1240 Instructions for Timing at 4._ For  xthis reason, we have eliminated the first month from Operator's trueup period, reducing it from 11"@,_(_(II"  xmonths to 10 months. Operator also made trueup adjustments through to the month prior to the effective  xdate of the rate increase. This is incorrect. The annual adjustment afforded by FCC Form 1240 allows  xoperators to project changes in external costs, inflation, and the number of regulated channels. This  x-structure avoids the delay some operators experienced in recouping costs through multiple rate adjustments  xthroughout the year. Because projections will not reflect the costs that actually occur, the Commission  xprovided, as part of the annual adjustment, a "trueup" to correct projected cost changes with the actual  xcost changes. However, the Commission has noted that, as FCC Form 1240 must be filed 90 days before  xan increase is to take effect, the period for the trueup will not coincide with the previous year's  S- x[projections.sw {O( -ԍ Thirteenth Reconsideration Order, 11 FCC Rcd 388, 420 n.151 (1995).s The trueup data is intended to indicate real, not projected data.3Zw {O -ԍ Id.3 This policy is reflected  S-in the instructions accompanying FCC Form 1240.aw {O$ -ԍ See FCC Form 1240 Instructions for Timing at 34.a  SH - ` x8.` ` Based on this instruction and considering evidence in the filingzH ~w yOf- xЍ Operator, for instance, did not reflect in its trueup the inflation factor for the second quarter of 1996 released  {O.- xYby the Commission in November 1996. See Public Notice, "Inflation Adjustment Figures for Cable Operators Using  x=FCC Forms 1210 and 1240 Now Available", DA 961986, (November 27, 1996). Had this been available to  xOperator at time of filing, Operator would have been required to include the factor released (2.22%) for all months  x;after March 1996 and for its projection period. Instead, Operator used the previous factor (2.39%) for all inflation  xadjustments and projections. It is evident, therefore, that Operator did not have November 1996 data available at the time it completed its FCC Form 1240.  and reasonable time for  xclosing accounts and completing forms, we have further adjusted Operator's trueup period from 10  xLmonths to 8 months. These adjustments required that we refresh Operator's inflation factors to 2.22 for  xLthe second quarter of 1996 and to 2.21 for the third quarter of 1996 and adjust Worksheet 1 accordingly.  xAs a result, the trueup inflation factor in Module C, Line C1 for the 8 month period was corrected to  x1.0151 instead of the 2.19 percent (1.0219) used by the Operator for an 11 month period. We have  xadjusted Module E, and have corrected the number of months on Line E2 to 8 months and Line E3 to 3  xmonths. We have also adjusted the inflation segment in Module F, Line F5 to reflect the corrections made in Line C1. This has resulted in a corresponding adjustment on Line F9 (MPR for TrueUp Period 1).  S- ` $x9.` ` The reduction in the length of the trueup period also results in a reduction in Line H2  x(Revenue From MPR for Period 1). This results in a corresponding reduction in Line I8 (TrueUp  xSegment for the Projected Period). In total, our adjustments to Operator's FCC Form 1240 result in an  xMPR for the Projected Period, Line I9, of $15.43, rather than Operator's MPR for the projected period  S- xof $16.49.  w yOx"- xԍ Information regarding the specific adjustments made to Operator's FCC Form 1240 filing can be found in  x,the public file for the community referenced above which is available in the Cable Services Bureau's public reference  xI room, or through the Commission's copy contractor, International Transcription Services (ITS), 1919 M Street, N.W., Washington, DC 20554, or by calling ITS at (202) 8573800. Because Operator's actual CPST rate of $16.49 exceeds its revised MPR of $15.43 for the",_(_(II&"  x?projected period, we find Operator's actual CPST rate of $16.49, effective January 1, 1997, to be  S-unreasonable. w yO@- x-ԍ The findings herein are based solely on the representations of Operator. Should information come to our  xYattention that these representations were materially inaccurate, we reserve the right to take any appropriate action.  xxThis Order is not to be construed as a finding that we have accepted as correct any specific entry, explanation or argument made by any party to this proceeding not specifically addressed herein.  S- ` x 10.` ` To the extent that external costs from the three months disallowed from Operator's trueup  S`- xperiodT`w yO -ԍ As found on Operator's Worksheets 7 and 8.T have been averaged into the rates charged in the eight months allowed in Operator's trueup  xperiod, and have not been removed by our adjustments, we will order Operator to make a monthbymonth  xaccounting of such external costs. Such accounting shall allow a comparison of the actual external costs  xjfor the permitted eightmonth trueup period with the recovery of external costs afforded by the external  xcost segment for that period as calculated on Worksheet 7. We will order Operator to incorporate this  xaccounting report into its refund plan and refund any overrecovery, plus interest, to subscribers. We will  xLalso order Operator to submit an FCC Form 1240 for the projected period January 1, 1997 to December 31, 1997 which incorporates our revisions and the adjustments described above.  S - ` }  X` hp x (#%'0*,.8135@8: