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A. 1. a.(1)(a) i) a) I. 1. 1. a.(1)(a) i) a)1. ` ` In this Order we consider a complaint against the March 1, 1997 rate increase that the   Labovecaptioned operator ("Operator") implemented for its cable programming services tier ("CPST") in   the community set forth above. Operator has attempted to justify its CPST rate through a benchmark   showing on FCC Form 1240. We have already issued an order which resolved complaints filed against  SI-  NOperator from September 1, 1993 through June 30, 1995.Ir X-ԍ#X\  P6G;P# See In the Matter of Cox Communications, Inc., and Times Mirror Cable Television, Inc., 11 FCC Rcd  yO-1972 (1995).#Xj\  P6G;9XP# Accordingly, this Order addresses the reasonableness of the Operator's CPST rate of $17.95 effective March 1, 1997.  S-  2. ` ` The Communications ActAr X-ԍ#X\  P6G;P# Section 623(c) of the Communications Act of 1934, as amended, 47 U.S.C. Section 543(c) (1996).#Xj\  P6G;9XP# authorizes the Federal Communications Commission   ("Commission") to review the CPST rates of cable systems not subject to effective competition to ensure   jthat rates charged are not unreasonable. If the Commission finds the rate unreasonable, it shall determine  SY-  the correct rate and any refund liability.tYr X-ԍ #X\  P6G;P#See 47 C.F.R. Section 76.957.t The Telecommunications Act of 1996 ("1996 Act")Yr X -Ѝ#X\  P6G;P# Pub. L. No. 104104, 110 Stat. 56 (1996). and our  S1-  jrules implementing the new legislation ("Interim Rules"),1Tr X%#-  Ѝ#X\  P6G;P# See Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996, 11 FCC Rcd  yO$-5937 (1996).#Xj\  P6G;9XP# require that complaints against the CPST rates  S -  be filed with the Commission by a local franchising authority ("LFA") that has received subscriber   complaints. An LFA may not file a CPST rate complaint unless, within 90 days after such increase becomes effective, it receives more than one subscriber complaint. " ,))II"Ԍ S-  33. ` ` To justify rates for the period beginning May 15, 1994 through a benchmark showing,  S-  operators must use the FCC Form 1200 series.^{ t X@-ԍ #X\  P6G;P#47 C.F.R. Section 76.922(b)(6); see also Second Order on Reconsideration, Fourth Report and Order, and Fifth Notice of Proposed Rulemaking, MM Docket No. 92266, FCC 9438, 9 FCC Rcd 4119, 4190 (1994)  {O-("Second Order on Reconsideration").^ Operators may justify adjustments to their rates on an   annual basis using FCC Form 1240 to reflect reasonably certain and quantifiable changes in external costs,   inflation, and the number of regulated channels that are projected for the twelve months following the rate  S`-  change.{`  t X -  yЍ#X\  P6G;P# See 47 C.F.R. Section 76.960; see In the Matter of Implementation of Sections of the Cable Television   Consumer Protection and Competition Act of 1992: Rate Regulation, MM Docket No. 92266, Thirteenth Order on  {O -Reconsideration, ("Thirteenth Reconsideration Order") 11 FCC Rcd 388, 391 (1995).#Xj\  P6G;9XP# Any incurred cost that is not projected may be accrued with interest and added to rates at a later  S8-  time.8N t X& -Ѝ#X\  P6G;P# See Thirteenth Reconsideration Order at 392.#Xj\  P6G;9XP#Ѵ If actual and projected costs are different during the rate year a "trueup" mechanism is available  S-to correct estimated costs with actual cost changes.Z  t X-ԍ #X\  P6G;P# Id.Z   S-  4. ` ` On July 21, 1997, the LFA filed a complaint regarding the March 1, 1997 increase in   Operator's CPST rate in the community referenced above. In its complaint, the LFA asserts that it has   received more than one subscriber complaint against Operator's CPST rate increase, thereby triggering  SH -  the Commission's jurisdiction to review this complaint. H t X-ԍ#X\  P6G;P# The first subscriber complaint was received by the LFA on March 6, 1997.#Xj\  P6G;9XP#ѿ The valid complaint from the LFA triggers an  S -  obligation by the cable operator to file a justification of its CPST rates with the LFA.k a t X!-ԍ #X\  P6G;P#47 C.F.R. Section 76.1402.k Thus, in this case,   LOperator is required to justify the increase in its CPST rate which is the subject of the LFA's complaint.   Operator submitted an FCC Form 1240 for the community set forth above to justify the rate increase that went into effect on March 1, 1997.  SX-  35.` ` Upon review of Operator's revised FCC Form 1240 for the projected period March 1,   =1997 to February 28, 1998, we find that Operator has incorrectly calculated its maximum permitted rate  S-  ("MPR").& A t X-  xЍ #X\  P6G;P#This finding is based solely on the representations of Operator. Should information come to our attention   Ythat these representations were materially inaccurate, we reserve the right to take appropriate 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.& In particular, on Worksheet 1, Operator incorrectly reported the inflation factor of 2.39   [percent for all months in its trueup period. As a result, Operator reported the incorrect inflation factor  S-  of 1.0199 on Line C1. In addition, Operator reported the incorrect inflation factor of 1.0239 on Line C3.  S-  On April 8, 1997, the Commission released the fourth quarter 1996 inflation adjustment factor of 1.83" ,>(>(II"  S-  percent for cable operators using FCC Form 1240.  t Xh-ԍ #X\  P6G;P#See Public Notice, "Fourth Quarter 1996 Inflation Adjustment Figure For Cable Operators Using FCC Form 1240 Now Available," DA 97692 (released April 8, 1997). Thus, the correct inflation factor was available to   the Operator at the time Operator prepared and signed its FCC Form 1240 on May 27, 1997. Therefore,   we have adjusted Worksheet 1 to reflect the correct inflation factor of 2.22 percent, 2.21 percent, and 1.83   percent for the second quarter of 1996, the third quarter of 1996, and the first month of the fourth quarter   of 1996, respectively. We have also adjusted Operator's FCC Form 1240, Line C1 and Line C3 to reflect   the correct inflation factor of 1.0186 and 1.0183, respectively. Our adjustments to Operator's FCC Form  S-  1240 result in a reduction of the MPR for the Projected Period to $17.89 (Line I9).AA t X -ԍ#X\  P6G;P# Information regarding the specific adjustments made to Operator's FCC Form 1240 filing can be found in the public file for the community referenced above which is available in the Cable Services Bureau's public reference room, or through the Commission's copy contractor, International Transcription Services (ITS), 1231  yOj -20th Street, N.W., Washington, DC 20036, or by calling ITS at (202) 8573800.#Xj\  P6G;9XP# Thus, Operator has failed to demonstrate that its March 1, 1997 rate of $17.95 was not unreasonable.  S-  6.` ` Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47   [C.F.R.  0.321, that Operator's CPST rate of $17.95 effective March 1, 1997 in the community set forth above, IS UNREASONABLE.   X` hp x (#%'0*,.8135@8: