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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 ) ) Rifkin & Associates, d/b/a Columbia) CUID No. TN0016 (Columbia) CableVision ) ) Small System Filing to Support ) Cable Programming Services ) Tier Rates ) ORDER Adopted: September 19, 1997 Released: September 24, 1997 By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints filed with the Federal Communications Commission ("Commission") regarding the rate that Rifkin & Associates d/b/a/ Columbia CableVision ("Operator") was charging for its cable programming services tier ("CPST") in the franchise area referenced above. Operator filed a petition for special relief, seeking a waiver of the Commission's rules in accordance with the small system cost of service procedures under the Sixth Report and Order and Eleventh on Reconsideration, MM Docket Nos. 92-266 and 93-215 ("Small System Order"). The Commission granted the Operator's request for small system relief under the Small System Order. Operator filed FCC Form 1230, dated September 9, 1997, to justify its rate in accordance with the Commission's Order. 2. Under the Communications Act and the Commission's rules, the Commission must review a cable operator's rate for its CPST upon the filing of a valid complaint. The filing of a valid complaint triggers an obligation on behalf of the cable operator to file a justification of its CPST rate. Under the Commission's rules, an operator may attempt to justify its CPST rate through a benchmark showing, a cost of service showing, or a small system cost of service showing. In any case, the operator has the burden of demonstrating that its rate is not unreasonable. 3. The Commission's original rate regulations took effect on September 1, 1993. The Commission subsequently revised its rate regulations effective May 15, 1994. In a further effort to offer small cable companies administrative relief from rate regulation, the Commission amended the definition of small cable companies and small systems and introduced a simplified form of small systems rate relief in the Small Systems Order. In the Small Systems Order, the Commission introduced FCC Form 1230 to simplify the cost-of-service showings for small cable companies and small systems. FCC Form 1230 requires that the Operator Selected Per Subscriber Monthly Programming Rate Per Channel (FCC Form 1230, Line A11) not exceed the Per Subscriber, Per Channel Monthly Programming Costs (FCC Form 1230, Line A6). If the maximum rate established on FCC Form 1230 does not exceed $1.24 per channel the rate shall be presumed reasonable. Cable systems serving 15,000 or fewer subscribers, and owned by a company having 400,000 or fewer subscribers, may elect to use the small cable system rate mechanism found in FCC Form 1230 in lieu of other Commission rate processes, provided the Commission has not reached a final resolution on the rate complaints filed against the system. 4. We first determine that Operator is a company with fewer than 400,000 total subscribers and that the system in the community referenced above serves fewer than 15,000 subscribers, making it eligible for small system status. We also determine that, on its FCC Form 1230, dated September 9, 1997, Operator's actual rate per channel for regulated cable service (FCC Form 1230, Line A11) does not exceed its per subscriber, per channel monthly programming costs (FCC Form 1230, Line A6) and the Maximum Permitted Rate per channel (FCC Form 1230, Line A10) does not exceed $1.24. We, therefore, find that Operator's maximum permitted rate of $13.00 is not unreasonable. 5. 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. 6. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the monthly rate of $13.00 charged by the Operator in the community referenced above IS NOT UNREASONABLE. 7. IT IS FURTHER ORDERED that the complaints against the rate charged by the Operator during the period under review in the community referenced above ARE DENIED. 8. This action is taken pursuant to delegated authority under Section 0.321 of the Commission's rules, 47 C.F.R. 0.321. FEDERAL COMMUNICATIONS COMMISSION Margaret M. Egler Acting Chief, Financial Analysis and Compliance Division Cable Services Bureau