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S-)CUID No. WI0386 (Village of Denmark)  S-X` hp x (#%'0*,.8135@8:will find valid any complaint that states a claim on which relief can be granted and provides adequate  d(#information to allow us to process the complaint despite minor flaws or inaccuracies. We believe that this  d(#approach best implements the mandate of the 1992 Cable Act. In this case, the complaining party and  d(#the franchising authority were one and the same; and the complaining party included its name and address  d(#on the complaint. The complaint also included the current monthly CPST rate, and Operator provided  d(#its prior rate with its FCC Form 1200 filing. We thus had the information necessary to process the"PT ,_(_(II"  d(#complaint. Consequently, we deny Operator's motion to dismiss and evaluate Operator's CPST rates beginning May 15, 1994.  S- 6.` ` Upon review of Operator's FCC Form 1200, we find Operator's maximum permitted rate  d(#("MPR") of $12.76 to be reasonable. Because Operator's actual CPST rate was $13.00, however, we find  S8- d(#Operator's CPST rate to be unreasonable for the period May 15, 1994 through June 30, 1994. 8u_ yO- d(#ԍ The findings herein are based solely on the representations of Operator. Should information come to our  d(#attention that these representations were materially inaccurate, we reserve the right to take appropriate action. This  d(#=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. However,  d(#Operator elected to take advantage of the refund liability deferral period in accordance with the  S- d(#jCommission's Rules.u_ {O8 - d(#iԍ See letter from Susie C. Holliday, Manager of Regulatory Financial Affairs and Acquisition Review, Marcus  {O -Cable, to Commission (June 8, 1994). See also 47 C.F.R.  922(b)(6)(ii) (1996). Accordingly, Operator does not incur refund liability for charging in excess of the MPR calculated on its FCC Form 1200 for the period May 15, 1994 through July 14, 1994.  Sp-  A7.` ` Upon review of Operator's first FCC Form 1210, for the period April 1, 1994 to June 30,  d(#1994, we find that Operator's MPR of $12.98 was not unreasonable. Because Operator's actual CPST  d(#rate was $13.00, however, we find Operator's CPST rate of $13.00, effective July 1, 1994 through  S -September 30, 1994, to be unreasonable.z u_ yO-ԍ As stated above, Operator's refund liability does not begin until July 15, 1994.z  S -  48.` ` Upon review of Operator's second FCC Form 1210, for the period July 1, 1994 to  d(#jSeptember 30, 1994, we find that Operator's MPR of $13.15 was not unreasonable. As a result, we find  d(#Lthat Operator's actual CPST rate of $ 12.98, effective October 1, 1994 through November 30, 1994, was not unreasonable.  S-  9.` ` Upon review of Operator's third FCC Form 1210, for the period October 1, 1994 to  d(#=December 31, 1994, we find that Operator's MPR of $13.36 was not unreasonable. As a result, we find  d(#.that Operator's actual CPST rate of $13.15, effective December 1, 1994 through February 28, 1995, and  d(#its actual CPST rate of $13.36, effective March 1, 1995 through September 30, 1995, were not unreasonable.  S-  } 10.` ` Upon review of Operator's fourth FCC Form 1210, for the period January 1, 1995 to June  d(#30, 1995, we find that Operator prematurely claimed inflation. Operator is not permitted to claim inflation  S- d(#until after September 30, 1995 for the period of Operator's fourth FCC Form 1210.Wu_ {O!-ԍ See 47 C.F.R.  76.922(d)(2) (1996).W Accordingly, we  d(#changed Lines I5 (Inflation Adjustment Factor) and J5 (Inflation Adjustment Factor) each from 1.03 to  d(#[1. The adjustments to Operator's fourth FCC Form 1210 have reduced Operator's MPR from $13.61 to  d(#$13.31. Because Operator's actual CPST rate was $13.61, effective October 1, 1995 through May 31, 1996, we find that Operator's CPST rate was unreasonable. ". ,_(_(II="Ԍ S-   11.` ` Upon review of Operator's first FCC Form 1240, for the projected period June 1, 1996  d(#to May 31, 1997, we have adjusted Line A1 (Current MPR) to $13.31 to correspond with our revision of  d(#Operator's MPR on its fourth FCC Form 1210. We find that on Worksheet 1, Operator used an inflation  d(#factor of 2.96 percent for each of the eight months of its trueup period, from July 1, 1995 to February  d(#.28, 1996. However, the latest inflation factor for the trueup period available to Operator at the time of  d(#zfiling (April 30, 1996) was 2.22 percent. For this reason, we have modified Worksheet 1 to reflect an  d(#[inflation factor of 2.22 percent. This modification normally would have reduced the Inflation Factor For  d(#TrueUp Period 1 (Line 113, Worksheet 1, and Line C1) from 1.0197 to 1.0148. However, because  d(#Operator was unable to take inflation for the period July 1994 through June 1995 on its fourth FCC Form  d(#y1210, we are allowing Operator this inflation on its first FCC Form 1240. As a result, we have increased  d(#Line C1 (Inflation Factor For TrueUp Period 1) from 1.0197 to 1.0448. We have reduced Line C3  d(#(Current FCC Inflation Factor) from 1.0296 to 1.0222. In addition, we have adjusted Line D2 (Current  d(#External Costs Segment) from $3.40 to $3.39 to correspond with Line D9 (Current External Costs Per  d(#Subscriber) on Operator's fourth FCC Form 1210, as revised. These adjustments in total have reduced  d(#Operator's MPR from $14.59 to $14.45. Because Operator's actual CPST rate, effective June 1, 1996 through May 31, 1997, was $14.59, we find that Operator's CPST rate was unreasonable.  SX-  P 12.` ` Upon review of Operator's second FCC Form 1240, for the projected period June 1, 1997  d(#[to May 31, 1998, we have adjusted Line A1 (Current Maximum Permitted Rate) to $14.45 to agree with  d(#ythe revised MPR from Operator's first FCC Form 1240. We have also adjusted Lines D6 (Current True d(#Up Segment) from $0.23 to $0.21 and D7 (Current Inflation Segment) from $0.31 to $0.23 to correspond  d(#{respectively with Lines I8 (TrueUp Segment For Projected Period) and I5 (Inflation Segment For  d(#Projected Period) of Operator's first FCC Form 1240, as revised. In addition, we find that Operator made  d(#trueup adjustments through to the effective date of the rate increase. This is incorrect. The annual  d(#adjustment afforded by FCC Form 1240 allows operators to project changes in external costs, inflation,  d(#Mand the number of regulated channels. This structure avoids the delay some operators experienced in  d(#<recouping costs through multiple rate adjustments throughout the year. Because projections will not reflect  d(#.the costs that actually occur, the Commission provided, as part of the annual adjustment, a "trueup" to  d(#correct projected cost changes with the actual cost changes. However, the Commission has noted that,  d(#as FCC Form 1240 must be filed 90 days before an increase is to take effect, the period for the trueup  SP- d(#jwill not coincide with the previous year's projections.sPu_ {O-ԍ Thirteenth Reconsideration Order, 11 FCC Rcd 388, 420 n.151 (1995).s The trueup data is intended to indicate real, not  S(-projected data.3(Zu_ {O"-ԍ Id.3 This policy is reflected in the instructions accompanying FCC Form 1240.a(u_ {O-ԍ See FCC Form 1240 Instructions for Timing at 34.a  S- $ 13.` ` Based on this instruction and considering evidence in the filing and reasonable time for  d(#closing accounts and completing forms, we have adjusted the trueup period in Operator's second FCC  d(#Form 1240 from 15 months to 12 months. This adjustment has required that we refresh Operator's  d(#inflation factors to 1.83 percent for the fourth quarter of 1996 and the first two months of 1997 and adjust  d(#Worksheet 1 accordingly. As a result, we have corrected the Inflation Factor For TrueUp Period 1 (Line  d(#C1) for the 12month period to 1.0206 instead of the 1.0221 used by the Operator; and we have eliminated  d(#the Inflation Factor For TrueUp Period 2, Line C2. We have adjusted Line C3 (Current FCC Inflation  d(#/Factor) to reflect the latest inflation factor of 1.0183. Accordingly, we have corrected the number of  d(#jmonths on Line E2 from 15 to 12 months and on Line E4 from 3 months to none. We have also adjusted"!~,_(_(IIF#"  d(#the inflation segment in Module F, Line F5 to reflect the corrections made in Line C1. This change has resulted in a corresponding adjustment on Line F9 (MPR for TrueUp Period 1).  S-  o 14.` ` The reduction in the length of the trueup period in Operator's second FCC Form 1240  d(#has also resulted in a reduction in Line H2 (Revenue From MPR for Period 1). This reduction has  d(#resulted in a corresponding reduction in Line I8 (TrueUp Segment for the Projected Period). In  d(#accordance with these changes, we have also modified Line F8 (TrueUp Segment For TrueUp Period  d(#[1) from $0.2332 to $0.2101. In total, our adjustments to Operator's second FCC Form 1240 result in an  d(#MPR for the Projected Period (Line I9) of $16.15, rather than Operator's MPR for the Projected Period  d(#of $16.73. Because Operator's actual CPST rate of $16.95, beginning June 1, 1997, exceeds its revised  Sp-MPR of $16.15 for the projected period, we find Operator's actual CPST rate to be unreasonable. pu_ yO - d(#ԍ Information regarding the specific adjustments made to the Operator's FCC Forms can be found in the public  d(#file for the community set forth above. This file is available in the Cable Services Bureau's public reference room  d(#xor 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.  S - 15.` ` To the extent that external costs from the three months disallowed from Operator's trueup  S - d(#periodT u_ yOH-ԍ As found on Operator's Worksheets 7 and 8.T have been averaged into the rates charged in the twelve months allowed in Operator's trueup  d(#period, and have not been removed by our adjustments, we will order Operator to make a monthbymonth  d(#accounting of such external costs. Such accounting shall allow a comparison of the actual external costs  d(#for the permitted twelvemonth trueup period with the recovery of external costs afforded by the external  d(#cost segment for that period as calculated on Worksheet 7. We will order Operator to incorporate this  d(#accounting report into its refund plan and refund any overrecovery, plus interest, to subscribers. We will  d(#also order Operator to submit an FCC Form 1240 for the projected period June 1, 1997 to May 31, 1998 which incorporates our revisions and the adjustments described above.  S- 16.` ` Accordingly, IT IS ORDERED, pursuant to Section 623(a)(2)(A) and (B) of the  d(#Communications Act of 1934, as amended, 47 U.S.C. Section 543(a)(2) and (B), that Operator's December 10, 1993 motion to dismiss IS DENIED.  S- 17.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  d(#C.F.R.  0.321, that the complaint referenced herein against the CPST rate charged by Operator in the franchise area referenced in the caption IS GRANTED.  Sx- 18.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  d(#C.F.R.  0.321, that Operator's CPST rate of $13.00, effective July 15, 1994 through September 30, 1994, in the community referenced above, IS UNREASONABLE.  S- 19.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  d(#C.F.R.  0.321, that Operator's CPST rate of $12.98, effective October 1, 1994 through November 30, 1994, in the community referenced above, IS NOT UNREASONABLE.  S8- 20.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  d(#C.F.R.  0.321, that Operator's CPST rate of $13.15, effective December 1, 1994 through February 28, 1995, in the community referenced above, IS NOT UNREASONABLE." @,_(_(IIe""Ԍ S- ԙ21.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  d(#\C.F.R.  0.321, that Operator's CPST rate of $13.36, effective March 1, 1995 through September 30, 1995, in the community referenced above, IS NOT UNREASONABLE.  S`- 22.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  d(#C.F.R.  0.321, that Operator's CPST rate of $13.61, effective October 1, 1995 through May 31, 1996, in the community referenced above, IS UNREASONABLE.  S- 23.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  d(#C.F.R.  0.321, that Operator's CPST rate of $14.59, effective June 1, 1996 through May 31, 1997, in the community referenced above, IS UNREASONABLE.  S - 24.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  d(#C.F.R.  0.321, that Operator's CPST rate of $16.95, effective June 1, 1997, in the community referenced above, IS UNREASONABLE.  S - 25.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47  d(#C.F.R.  76.961, that Operator shall refund to subscribers in the community referenced above that portion  d(#[of the amount paid in excess of the CPST rate of $12.98 per month (plus franchise fees), plus interest to the date of the refund, for the period July 15, 1994 through September 30, 1994.  S- 26.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47  d(#C.F.R.  76.961, that Operator shall refund to subscribers in the community referenced above that portion  d(#[of the amount paid in excess of the CPST rate of $13.31 per month (plus franchise fees), plus interest to the date of the refund, for the period October 1, 1995 through May 31, 1996.  S- 27.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47  d(#C.F.R.  76.961, that Operator shall refund to subscribers in the community referenced above that portion  d(#[of the amount paid in excess of the CPST rate of $14.45 per month (plus franchise fees), plus interest to the date of the refund, for the period June 1, 1996 through May 31, 1997.  S(- 28.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47  d(#C.F.R.  76.961, that Operator shall refund to subscribers in the community referenced above that portion  d(#[of the amount paid in excess of the CPST rate of $16.15 per month (plus franchise fees), plus interest to  d(#the date of the refund, for the period June 1, 1997 through the day before Operator implements the CPST rate of $16.15.  S8- 29.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  d(#C.F.R.  0.321, that Operator shall conduct a monthbymonth accounting of its external costs from  d(#Operator's twelvemonth trueup period in its second FCC Form 1240, as found on Operator's  d(#Worksheets, and that Operator shall file, within 30 days of the release of this Order, a report detailing the overrecovery of external costs, plus interest, with the Chief, Cable Services Bureau.  SH$- 30.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  d(#C.F.R.  0.321, that Operator shall promptly determine the overcharges to CPST subscribers for the stated  d(#Lperiods, including any overrecovery as detailed in its accounting report, and shall file, within 30 days of  d(#the release of this Order, a report with the Chief, Cable Services Bureau, stating the cumulative refund"&,_(_(IIn("  d(#amounts so determined (including franchise fees and interest), describing the calculation thereof, and describing its plan to implement the refund within 60 days of the Commission approval of the plan.  S- 31.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  d(#C.F.R.  0.321, that Operator shall revise its FCC Form 1240 for the projected period June 1, 1997  d(#through May 31, 1998 incorporating the changes detailed in this order and shall file such amended FCC Form 1240 with the Chief, Cable Services Bureau within 30 days of the release of this Order. ` `  hhCqFEDERAL COMMUNICATIONS COMMISSION ` `  hhCqMeredith J. Jones ` `  hhCqChief, Cable Services Bureau