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Operator has chosen to justify its CPST rates in effect on September 1, 1993  dv through a cost of service showing on FCC Form 1220. Operator has filed FCC Forms 1210 and  dv 1240 to justify its rates from May 15, 1994 forward. We find that the CPST rates implemented by Operator beginning September 1, 1993 are not unreasonable.  S- 2.` ` On August 15, 1994, above referenced Operator ("Operator"), filed a cost of  dv service showing with its local franchising authority ("LFA"), the City of Greenwood, South  S8- dv Carolina ("City"),C8 o yO-ԍ47 C.F.R  76.922(b)(i).C seeking to justify its Basic Service Tier ("BST") rate.}X8o yO- d(#ԍIn accordance with 47 C.F.R.  76.910, on October 7, 1993 the City filed FCC Form 328 with the Commission  d(#;requesting certification to regulate the BST rate. The City also served a copy of FCC Form 328 on Operator which served as notification to Operator of the City's intention to regulate the BST rate. } Thereafter, on  dv September 12, 1994, the City petitioned the Commission to review the BST   cost of service  S- dv showing.>Do {OX#- d(#ԍSee Petition of City dated September 9, 1994. See also Third Order on Reconsideration in MM Docket Nos.  {O"$- d(#92266 and 92262 (Third Recon. Order), 9 FCC Rcd 4316, 433839 (1994). The Commission recognized that some  d(#local franchising authorities may have resources and personnel sufficient to conduct a review of the ratesetting  d(#justification based on the benchmark approach but not to examine and review a cost of service showing. The  d(#.Commission also understood that this concern may have discouraged certification by many local franchising  d(#authorities. Therefore, it established procedures under which the Commission, if requested by the local franchising  d(#authority in a petition for special relief under Section 76.7 of the Commission's rules, will issue a ruling that makes  yO(-cost of service determinations for the BST. 47 C.F.R.  76.933(d). > On April 28, 1995, the Commission granted the City's request and agreed to review",))II"  S-Operator's cost of service showing for the BST rate.# {Oh- d(#iԍSee Letter dated April 28, 1995, from Jacqueline Spindler, Deputy Chief, Financial Analysis and Compliance Division, to Mr. Robert Haynie, County Manager, County of Greenwood, South Carolina.  S- D3.` ` According to information provided by Operator in its cost of service showings,  dv nits cable system serves approximately 6,121 basic service tier subscribers and 5,982 CPST  dv subscribers in its City of Greenwood franchise. Operator provides 10 channels on its BST and  dv 24 channels on its CPST. Operator's cost of service filings seek to establish that its BST rate of  dv }$6.64 per month and its CPST rate of $14.31 per month for the period September 1, 1993,  dv through March 31, 1994, is justified based on its cost of providing regulated cable service. Our  dv review of the record indicates that Operator's BST rate of $6.64 per month and its CPST rate of  dv $14.31 per month, as established in its FCC Form 1220 in effect for the referenced time period are cost justified under the Commission's most current rules.  S - 4.` ` Rate base and expense items have been evaluated to determine whether Operator  dv lshould be permitted to recover those items. Where a certain rate base or expense element was not  dv msupported, was excessive, or was unrelated to providing regulated cable service, such cost was  S - dv disallowed in whole or in part.+$ "# yOj- d(#ԍThe Commission made clear that the fact that an operator has incurred costs does not necessarily establish its  {O2- d(#right to recover those costs from subscribers. See Implementation of Sections of the Cable Television Consumer  d(#YProtection and Competition Act of 1992: Rate Regulation, MM Docket No. 92266, Report and Order and Further  {O-Notice of Proposed Rulemaking ("Rate Order"), 8 FCC Rcd 5631, 5794 n.619 (1993). + Where reported costs were disallowed, we have made appropriate  dv ^adjustments. Even with our adjustments and disallowances, however, we find that Operator's  SX-monthly BST and CPST rates for the periods under review have been justified. X# yO- d(#i X  X ЍInformation regarding the specific adjustments made to Operator's FCC Forms can be found in the public file  d(#for the abovereferenced community which is available in the Cable Services Bureau's public reference room, or  d(#through the Commission's copy contractor, International Transcription Services (ITS), 1919 M Street N.W.,  yO^-Washington, DC, 20554, or by calling ITS at (202) 8573800.   S- 5.` ` Operator also filed FCC Form 1210s and 1240s to justify its CPST rate, effective  dv February 1, 1994. Upon review of Operator's FCC Forms 1220, 1210 and 1240, we have made  S- dv adjustments. Despite our adjustments,  # yON- d(#iԍInformation regarding the specific adjustments made to Operator's FCC Forms can be found in the public file  d(#for the abovereferenced community which is available in the Cable Services Bureau's public reference room, or  d(#through the Commission's copy contractor, International Transcription Services (ITS), 1919 M Street N.W.,  yO -Washington, DC, 20554, or by calling ITS at (202) 8573800.  we find that Operator has justified its CPST rates from  dv September 1, 1993 to January 31, 1996. We also find that Operator has justified its CPST rate of $17.86, effective February 1, 1996.  S@-    S- 6.` `  Our review of Operator's BST rate included an analysis of its Equipment and  S- dv Installation rates.U # {On&-ԍSee Communication Act,  623(b)(3). U The 1992 Act requires that cable operators base their equipment and"p ,O(O(II"  S- dv installation rates on their actual costs.1 # {Oh-ԍId.1 We have reviewed Operator's cost of service showing and  dv related $#ZVF   $#ZVF FCC Form 1205 (Equipment Form) and find that the equipment and installation rates Operator charged in connection with its BST for the period under review are not unreasonable.  S-    S`- S7.` ` Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's  dv Nrules, 47 C.F.R. Section 0.321, that the monthly BST rate of $6.64 and associated equipment and  dv installation rates, as stated on its FCC Form 1205, charged by Operator with respect to the above S-referenced community, effective September 1, 1993, IS NOT UNREASONABLE.  Z# yO - d(#-ԍOur findings are based solely on the representations of Operator in its BST rate filings. Should information  yO - d(#come to our attention that these representations were materially inaccurate, we reserve the right to take appropriate  d(#action. This 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- %8.` ` IT IS FURTHER ORDERED, pursuant to Section 76.933(d) of the Commission's  dv ]rules, 47 C.F.R. Section 76.933(d), that this ruling on the rates Operator was charging for its BST  dv and associated equipment and installation are binding on the local franchising authority, the City of Greenwood, and Operator.  S - 9.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's  dv !rules, 47 C.F.R. Section 0.321, that the monthly CPST rates charged for the period September 1,  dv 1993 to January 31, 1996, by Operator with respect to the abovereferenced community, ARE NOT UNREASONABLE.  S-   10.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  d(#[C.F.R.  0.321, that the monthly CPST rate of $17.86 charged by Operator in the community referenced above, effective February 1, 1996 IS NOT UNREASONABLE.  Sh- 11.` ` IT IS FURTHER ORDERED that, pursuant to Section 0.321 of the Commission's rules,  d(#47 C.F.R. Section 0.321, that the complaint against the monthly CPST rates charged by Operator with respect to the abovereferenced community, IS DENIED. ` `  hhCqFEDERAL COMMUNICATIONS COMMISSION  ` `  hhCqMargaret M. Egler   ` `  hhCqActing Chief, Financial Analysis and Compliance Division ` `  hhCqCable Services Bureau  X-#Xj\  P6G;+XP#