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If the Commission finds the rate to be unreasonable, it shall determine the correct rate and any",**88*!"  S- xrefund liability.M2 {Oh-ԍ See 47 C.F.R. Section 76.957.M The Telecommunications Act of 1996 ("1996 Act")Z2 yO-#X\  P6G;P#Ѝ#X\  P6G;P# Pub. L. No. 104104, 110 Stat. 56 (1996). and our rules implementing the new  S- xlegislation,2 {Ob- x#X\  P6G;P#Ѝ#X\  P6G;P# See Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996, 11 FCC Rcd 5937 (1996). requires that complaints against CPST rates be filed with the Commission by a franchising  xauthority that has received subscriber complaints. A franchising authority may not file a CPST rate  x!complaint unless, within 90 days after such increase becomes effective, it receives more than one subscriber complaint.  S- ` Rx3.` ` The Commission's original rate regulations took effect on September 1, 1993.FD2 yO - x#X\  P6G;P#э#X\  P6G;P# Order in MM Docket No. 92266, Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992: Rate Regulation, FCC 93372, 58 Fed. Reg. 41042 (Aug. 2, 1993).F The  S- xCommission revised its rate regulations effective May 15, 1994.^2 {O$- x#X\  P6G;P#э #X\  P6G;P#47 C.F.R. Section 76.922(b); see also Second Order on Reconsideration, Fourth Report and Order, and Fifth  {O- xKNotice of Proposed Rulemaking, MM Docket No. 92266, FCC 9438, 9 FCC Rcd 4119, 4190 (1994) ("Second  {O-Order on Reconsideration"). Operators with valid CPST complaints  xkfiled against them prior to May 15, 1994, were required to demonstrate that their CPST rates were in  xcompliance with the Commission's initial rules from the time the complaint was filed through May 14,  Sp- x1994, and that their prices were in compliance with the revised rules from May 15, 1994 forward.L p 2 {O-ԍ Id. at 4190, paras. 150152.L  xOperators attempting to justify their prices for the period prior to May 15, 1994, through a benchmark  S -showing had to complete and file FCC Form 393.3 T 2 {O-ԍ Id.3  S - ` nx4.` ` Cable operators attempting to justify rates for the period beginning May 15, 1994 through  S - xa benchmark showing must use the FCC Form 1200 series. 2 {O.-#X\  P6G;P#э #X\  P6G;P#47 C.F.R. Section 76.922 (b)(6); see also Second Order on Reconsideration, 9 FCC Rcd at 4189 n. 195. Cable operators may also justify rate  xincreases based on the addition and deletion of channels, changes in certain external costs, and inflation,  SX- xby filing FCC Form 1210. Xx2 yOp -#X\  P6G;P#э #X\  P6G;P#47 C.F.R. Section 76.922 (d). FCC Form 1210 must be filed at least 30 days before new rates are  xscheduled to go into effect where the Commission has found the CPST rate to be unreasonable less than  S- xone year prior to the filing, or where there is a pending complaint against the CPST rate. 2 yO#-#X\  P6G;P#э #X\  P6G;P#47 C.F.R. Sections 76.958 and 76.960.ģ The period under review in our Prior Order was the period beginning March 1, 1995 to the present.  S- ` x5.` ` In our Prior Order, we found Operator's maximum permitted rate ("MPR") of $14.34, as  xcalculated on Operator's FCC Form 1200, to be reasonable. We further found that Operator's FCC Form"h ,p(p(88"  x1210 filing, for the period April 1, 1994 to December 31, 1994 (the "1994 FCC Form 1210"), justified  S- xa MPR of $15.69 beginning March 1, 1995.B2 yO@-ԍ Prior Order at para. 7. B However, we found that Operator, on its amended FCC  xForm 1210 filing, for the period January 1, 1995 to March 31, 1995 (the "First Quarter FCC Form 1210"),  x.had not correctly calculated its MPR. Therefore, we adjusted Operator's First Quarter FCC Form 1210  xLand changed the inflation factor in Module I, Line I5 to 1.000, thereby removing all inflation, because we  xjbelieved Operator had already taken an inflation adjustment of 1.0215 in its 1994 FCC Form 1210. This  xyadjustment resulted in a new MPR of $15.69 versus the Operator's MPR of $15.96. Because Operator's  xactual rate of $16.35 was more than the revised MPR of $15.69, we found that Operator's CPST rates for  S- xthe period July 1, 1995 to October 31, 1995 was unreasonable.?X2 {O -ԍ Id. at para. 8.? We also found that Operator's CPST  S-rates beginning November 1, 1995 were unreasonable.32 {O" -ԍ  Id.3  SH - ` x6.` ` In its Petition, Operator alleges that the Bureau erred when it removed all inflation from  xOperator's First Quarter FCC Form 1210 due to the Bureau's belief that Operator had already taken an  x>inflation adjustment of 1.0215 in Operator's 1994 FCC Form 1210. Operator contends that its rates  xincluded no inflation component prior to the July 1, 1995 increase which was justified by the First Quarter  S - xFCC Form 1210.8 |2 yO-ԍ Petition at 3.8 Operator maintains that, as a "transition rate" system, it had been precluded by the  S - xjCommission's rules from incorporating any inflation in its rates until April 1, 1995. 2 {O,- xԍ Id. citing In the Matter of Implementation of Sections of the Cable Television Consumer Protection and  {O- x;Competition Act of 1992: Rate Regulation, Ninth Order on Reconsideration, 10 FCC Rcd 5198, 5201, 5203, paras.  {O- x7, 12 (1995) ("Ninth Recon. Order"); In the Matter of Implementation of Sections of the Cable Television Consumer  {O- xProtection and Competition Act of 1992: Rate Regulation, Second Order on Reconsideration, Fourth Report and  {OT- xOrder, and Fifth Notice of Proposed Rulemaking, 9 FCC Rcd 4119, 418283, paras. 13134 (1994) ("Second Recon.  {O-Order").  Operator contends  x-that its 1994 FCC Form 1210 and FCC Form 1200 reflect that Operator was a "transition rate" system and  S0- xthat the MPR derived from the 1994 FCC Form 1210 included no inflation.80 2 yO`-ԍ Petition at 3.8 First, Operator argues that,  xas shown on its FCC Form 1200, it qualified as a "transition rate" system because its March 31, 1994 rate  x.adjusted for external costs (FCC Form 1200, Line B19) was above its benchmark rate (FCC Form 1200,  S- xjLine C10), but its full reduction rate (FCC Form 1200, Line J8) was below it.; 2 {Ox!-ԍ Id. at 34.; Second, Operator argues  xthat its 1994 FCC Form 1210 applied no inflation adjustment to the transition rate. Operator contends  xthat Module D of the 1994 FCC Form 1210, which adjusted the transition rate for changes in external  xcosts and channel changes, included no provision for an inflation adjustment. In contrast, Module E of  xthe 1994 FCC Form 1210 adjusted the full reduction rate for inflation, changes in external costs, and  xjchannel changes. Operator contends that the inflation factor applied to the full reduction rate is reflected  x.on Line E5 of Operator's 1994 FCC Form 1210 (as 1.0215) and the inflation adjustment is calculated on  x=Line E6. Operator further contends, however, that this inflation was never applied to the transition rate",p(p(88"  S- xin Module D from which Operator's MPR was derived.92 {Oh-ԍ Id. at 4.9 Operator maintains that the MPR calculated on  xits 1994 FCC Form 1210 (Line F9) was derived from the Updated Transition Rate (Line F3, Line D4)  S- xjbecause the Aggregate Transition Rate (Line F5) exceeded the Aggregate Full Reduction Rate (Line F8).3Z2 {O-ԍ Id.3  xAccordingly, Operator argues that the Bureau's elimination of Operator's 1.0215 inflation adjustment from  xthe First Quarter FCC Form 1210 was based upon the mistaken conclusion that Operator's 1994 FCC  xForm 1210 had already included this inflation adjustment in the MPR. This error caused the Bureau to  xreduce the MPR from the First Quarter FCC Form 1210, the starting rate on Line A1 of the Third Quarter FCC Form 1210, and the MPR for the period beginning November 1, 1995.  S- ` #x7.` ` Upon review of Operator's FCC Forms 1200 and 1210 filings, we find that Operator was  xa transition rate system and that Operator did not take an inflation adjustment in its 1994 FCC Form 1210.  xAccordingly, we will grant Operator's Petition with respect to this issue and allow Operator to take an inflation adjustment of 1.0215 in its First Quarter FCC Form 1210.  S - ` x8.` ` However, upon review of Operator's FCC Forms 1210, pursuant to this proceeding, we  xfind that Operator failed to correctly calculate its MPR on its 1994 FCC Form 1210. This is because the  x?Operator added $1.00 to its MPR on Line F9 of its 1994 FCC Form 1210. Operator attached an  x"Addendum to Form 1210" to justify this $1.00 increase purporting to show that Operator had added four  S0- xCPST channels and was entitled to increase its rates pursuant to the new going forward rules.^02 {O- xJԍ See Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992:  {O- xRate Regulation, MM Docket Nos. 92266, 92215, Sixth Order on Reconsideration, Fifth Report and Order, and  {OP-Seventh Notice of Proposed Rulemaking, 10 FCC Rcd 1226 (1994). See also 47 C.F.R. Section 76.922(g). A review  xzof Operator's channel lineup cards that it submitted with its Forms 1200 and 1210 reveals that while  xyadding four new channels, Operator dropped two CPST channels. Although Operator's 1994 FCC Form  x1210, Line C2 states that Operator had 25 CPST channels, Operator's attached lineup cards dated March  x31, 1994 and December 31, 1994 clearly show that Operator had 27 CPST channels. We accept  xyOperator's December 31, 1994 channel lineup card and substitute 27 CPST channels for the 25 listed by  xOperator on the form. On its March 1, 1995 channel lineup card, also attached to its 1994 FCC Form 1210, Operator represented that it had 29 CPST channels.  S- ` Bx9.` ` Thus, for rate purposes Operator is deemed to have substituted two of the new CPST  S- xKchannels for the two CPST channels that it dropped effective March 1, 1995.@2 yOR -ԍ 47 C.F.R. 76.922(g)(6)@ Operator failed to properly  xadjust the license fee and residual components for the two substituted channels as required under 47 C.F.R.  x76.922(g)(6). Further, for rate purposes Operator is treated as adding only two CPST channels on  xMarch C#%H 1, 1995. Due to the lack of information regarding the residuals and license fees of the two CPST  x.channels that were dropped, no further review could be made. Consequently, we will order Operator to  xMfile a revised FCC Form 1210 for the period April 1, 1994 to December 31, 1994 consistent with the  xrequirements of 47 C.F.R. 76.922(g)(6). Based upon that revised form, Operator should review and revise  x=its subsequent filings as necessitated by the revised FCC Form 1210. Upon receipt of revised forms we will determine Operator's maximum permitted rates for the relevant periods."`,p(p(88"Ԍ S- ` Pԙx10.` ` Accordingly, IT IS ORDERED that Operator shall file a revised FCC Form 1210 with the  xChief, Cable Services Bureau, for the period April 1, 1994 to December 31, 1994 revised in accordance  xLwith this Order, and any resulting revisions required for subsequent filings, within 30 days of the release of this Order.  S8- ` x11.` ` IT IS FURTHER ORDERED, pursuant to Section 1.106 of the Commission's rules, 47  x1C.F.R. Section 1.106, that the Petition for Reconsideration seeking reversal of Comcast Cable  xCommunications, Inc., d/b/a Pine Belt Cable, Inc., DA 971562 (released July 24, 1997) IS GRANTED  xONLY TO THE EXTENT INDICATED HEREIN AND FURTHER CONSIDERATION THEREOF IS  xSUSPENDED PENDING OUR RECEIPT OF ADDITIONAL INFORMATION REQUIRED HEREUNDER.  S - ` x12.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  xC.F.R. Section 0.321, that Operator's Petition for Stay of Comcast Cable Communications, Inc., d/b/a Pine Belt Cable, Inc., DA 971562 (released July 24, 1997) IS DENIED AS MOOT.  S - ` x13.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  xC.F.R. Section 0.321, that Operator's Refund Plan submitted pursuant to Comcast Cable Communications, Inc., d/b/a Pine Belt Cable, Inc., DA 971562 (released July 24, 1997), IS DENIED. x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@Meredith J. Jones x` `  hh@Chief, Cable Services Bureau  X-#Xj\  P6G;9XP#