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D In this Order, we grant Operator's request for small system relief under the Small Systems  x.Order and, based on our review of Operator's FCC Form 1230 filing, deny the pending CPST complaint and find the CPST rate to be not unreasonable. ",))II"Ԍ S- ` 2ԙx2.` ` Under the Communications Act,|o {Oh-ԍ Communications Act, Section 623(c), as amended, 47 U.S.C. 543(c) (1996).| the Commission is authorized to review the CPST rates  xof cable systems not subject to effective competition to ensure that rates charged are not unreasonable.  S- xThe Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act"),UZo yO-ԍ Pub. L. No. 102385, 106 Stat. 1460 (1992).U and our  xyrules in effect at the time the complaints were filed, required the Commission to review CPST rates upon  xzthe filing of a valid complaint by a subscriber. The filing of a valid complaint triggers an obligation on  S8- xbehalf of the cable operator to file a justification of its CPST rates.C8o yO -ԍ 47 C.F.R. Section 76.956.C Under the Commission's rules, an  xoperator may attempt to justify its CPST rate through a benchmark showing, a cost of service showing,  xor a small system cost of service showing. In any case, the operator has the burden of demonstrating that  S- x\its rate is not unreasonable.Rzo yO -ԍ 47 C.F.R. Sections 76.956(b) and 76.934.R If the Commission finds a rate to be unreasonable, it shall determine the  S-correct rate and any refund liability.  o {OB-ԍ  See Section 76.957 of the Commission's Rules, 47 C.F.R. Section 76.957.  SH - ` x3.` ` The Commission's original rate regulations took effect on September 1, 1993. H o yO- x.ԍ Order in MM Docket No. 92266, Implementation of Sections of the Cable Consumer Protection and Competition Act of 1992: Rate Regulation, FCC 93372, 58 Fed. Reg. 41042 (Aug. 2, 1993). The  S - xCommission subsequently revised its rate regulations effective May 15, 1994.1 Z o {O- xԍ 47 C.F.R. Section 76.922 (b). See also Second Order on Reconsideration, Fourth Report and Order, and Fifth  xjNotice of Proposed Rulemaking, MM Docket No. 92266, 9 FCC Rcd 4119, 4190 (1994) ("Second Order on Reconsideration").1 In a further effort to offer  xsmall cable companies administrative relief from rate regulation, the Commission amended the definition  xof small cable companies and small systems and introduced a simplified form of small system rate relief  xyin the Small Systems Order. Operators attempting to justify their rates through small system relief must  S - x/file FCC Form 1230.  o yO6- xԍ The FCC Form 1230 is a onepage form "on which the system inserts its expense, rate base, rate of return, channel count and subscriber count figures and then calculates its rate of return." Small Systems Order at  64. FCC Form 1230 requires that the Operator Selected Per Subscriber Monthly  xProgramming Rate Per Channel (FCC Form 1230, Line A11) not exceed the Per Subscriber, Per Channel  S0- xkMonthly Programming Costs (FCC Form 1230, Line A6).e 0no {O>!-ԍ See Instructions for Line A11, FCC Form 1230, page 3.e If the maximum rate established on FCC  S- xForm 1230 does not exceed $1.24 per channel, the rate shall be presumed reasonable.Wo {O#-ԍ See 47 C.F.R. Section 76.934(h) (1996) W Cable systems  xyserving 15,000 or fewer subscribers, and owned by a company having 400,000 or fewer subscribers, may  xelect to use the small system rate mechanism found in FCC Form 1230 in lieu of other Commission rate  xprocesses, provided the Commission has not reached a final resolution on the rate complaints filed against",_(_(II"  S- xthe system.Io yOh-ԍ Small Systems Order at  75.I In the present case, although Operator had filed FCC Form 393, Form 1200 and multiple  xForms 1210 with the Commission, prior to filing FCC Form 1230, no final resolution of the FCC Form  x393, Form 1200 and Forms 1210 had been reached. Consequently, we will consider only Operator's FCC Form 1230.  S8- ` x4.` ` On August 1, 1997 Operator filed FCC Form 1230 for the community referenced above  xjseeking to justify its CPST rate through the simplified small system cost of service procedures under the  xCommission's Small Systems Order. On September 5, 1997, Operator filed a letter with the Commission  xcertifying that the system for the community referenced above is eligible for the rate treatment reserved  S- xfor small systems.Xo {O - x[ԍ See Letter from Steven J. Horvitz, Esq., Cole, Raywid & Braverman, L.L.P., to William P. Agee, Esq., Federal Communications Commission, dated September 5, 1997. Operator's letter states that on the effective date of the Small Systems Order,  xOperator's system serving the community referenced above had approximately 6,155 subscribers and that  xthe entities legally affiliated with Operator, for purposes of small system rate relief, served approximately  S - x208,700 subscribers.3 o {Or-ԍ Id.3 Pursuant to Section 76.934 of the Commission's rules, "the size of a system or  xcompany shall be determined by reference to its size as of the date the system files with its franchising  xauthority or the Commission the documentation necessary to qualify for the relief sought or, at the option  S - x[of the company, by reference to system or company size as of the effective date [of these rules]."| Do {O-ԍ 47 C.F.R. Section 76.934(a). See also Small Systems Order at  38.| The Small Systems Order provides that:  ` pXx` ` A system's initial and continued eligibility for this new form of relief shall be  S- determined in the same manner as any other relief now available to them.do {O~-ԍ Small Systems Order at  73 citing  38.d Thus, if a  S- Qsystem qualifies for relief under this approach as of the effective date of this orderCZh o yO- xKԍ The Small Systems Order was released on June 5, 1995, and became effective upon approval by the Office  {O- xof Management and Budget on August 21, 1995. See Federal Communications Commission Public Notice, DA 951848 (August 22, 1995).C or  as of the date it files Form 1230, it shall remain eligible for so long as it serves 15,000  2or fewer subscribers, regardless of whether it, or the cable operator that owns the system,  #is subsequently acquired by a company that exceeds the 400,000 subscriber limit, or if its  current operator subsequently exceeds 400,000 subscribers due to the normal growth of  S- `its systems.3 o {OB#-ԍ Id.3 When a system that has established rates in accordance with Form 1230  `exceeds 15,000 subscribers, the system may maintain its then existing rates. However,  `any further adjustments shall not reflect increases in external costs, inflation or channel",_(_(II$"  2additions until the system has reestablished initial permitted rates in accordance with our  S-benchmark or costofservice rules.o {O@- xԍ Such a system may file a petition for special relief seeking continued treatment as a small system. See Small Systems Order at  73 citing  36.  Small Systems Order at  73.  S8- ` %x5.` ` We find that as of the effective date of the Small Systems Order, August 21, 1995,  xOperator was a company with fewer than 400,000 total subscribers and that the system in question served  x>fewer than 15,000 subscribers, thereby making it eligible for small system relief. Further, Operator's  xfilings show that its actual rate per channel for regulated cable service (FCC Form 1230, Line A11) does  xnot exceed its per subscriber, per channel monthly programming costs (FCC Form 1230, Line A6) and  xthe Maximum Permitted Rate per channel (FCC Form 1230, Line A10) does not exceed $1.24. We,  SH -therefore, find that Operator's monthly CPST rate of $15.16 is not unreasonable. H "o yO - xhԍ This finding is based solely on the representations of the operator. Should information come to our attention  xYthat these representations were materially inaccurate, we reserve the right to take appropriate action. This Order is  xnot 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 - ` x6.` ` Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that Operator's request for small system relief IS GRANTED.  S - ` x7.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  xC.F.R. Section 0.321, that the monthly CPST rate of $15.16 charged by Operator in the community referenced above IS JUSTIFIED.  S- ` x8.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  x.C.F.R. Section 0.321, that the complaint against the monthly CPST rate charged by Operator during the period under review in the community referenced above IS DENIED.  S@- ` x9.` ` This action is taken pursuant to delegated authority under Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321. x` `  hhFEDERAL COMMUNICATIONS COMMISSION x` `  hhMargaret M. Egler x` `  hhActing Chief, Financial Analysis and Compliance Division x` `  hhCable Services Bureau