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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 April 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   zshowing on FCC Form 1240. Accordingly, this Order addresses the reasonableness of the Operator's CPST rate of $15.55 effective April 1, 1997.  S-  q2.` ` The Communications Act X-Ѝ#X\  P6G;IP#Section 623(c) of the Communications Act of 1934, as amended, 47 U.S.C. Section 543(c) (1996). 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  S1-  the correct rate and any refund liability.r1y XJ-ԍ#X\  P6G;IP#See 47 C.F.R. Section 76.957.r The Telecommunications Act of 1996 ("1996 Act")1* X-Ѝ#X\  P6G;IP#Pub. L. No. 104104, 110 Stat. 56 (1996). and our  S -  jrules implementing the new legislation ("Interim Rules"),  X!-  KЍ#X\  P6G;IP#See Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996, 11 FCC Rcd 5937 (1996). require that complaints against the CPST rates   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.  SA-  33.` ` To justify rates for the period beginning May 15, 1994 through a benchmark showing, "AT,))IIw"  S-  operators must use the FCC Form 1200 series.} Xh-  Ѝ#X\  P6G;IP#47 C.F.R. Section 76.922(b)(6); see also Second Order on Reconsideration, Fourth Report and Order, and Fifth  {OQ-  KNotice of Proposed Rulemaking, MM Docket No. 92266, FCC 9438, 9 FCC Rcd 4119, 4190 (1994) ("Second  {O-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.{  X5-  .Ѝ#X\  P6G;IP#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;+XP# Any incurred cost that is not projected may be accrued with interest and added to rates at a later  S`-  time.`P XP -Ѝ#X\  P6G;IP#See Thirteenth Reconsideration Order at 392. If actual and projected costs are different during the rate year a "trueup" mechanism is available  S8-to correct estimated costs with actual cost changes.X8  X-ԍ#X\  P6G;IP#Id.X  S-  o4.` ` On September 12, 1997, the LFA filed a complaint regarding the April 1, 1997 increase   in Operator's CPST rate in the community referenced above. In its complaint, the LFA asserts that it has   jreceived more than one subscriber complaint against Operator's CPST rate increase in the community set  Sp-  forth above, thereby triggering the Commission's jurisdiction to review its complaint. p  X-ԍ#X\  P6G;IP#The first subscriber complaint was received by the LFA on April 7, 1997. The valid   \complaint from the LFA triggers an obligation by the cable operator to file a justification of its CPST  S -  >rates with the LFA.i c  X#-ԍ#X\  P6G;IP#47 C.F.R. Section 76.1402.i Thus, in this case, Operator is required to justify the increase in its CPST rate which is the subject of the LFA's complaint.  S -  5.` ` Upon review of Operator's FCC Form 1240 for the projected period April 1, 1997 to   March 31, 1998, we find that Operator has correctly calculated its maximum permitted rate and has  SX-justified its CPST rate of $15.55 effective April 1, 1997.& AX X -  Ѝ#X\  P6G;IP#These finding are 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.&  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 $15.55 effective April 1, 1997 in the community set forth above, IS NOT UNREASONABLE. " ,>(>(II"Ԍ S-  H 7.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the complaint referenced herein, IS DENIED. ` `  hh,FEDERAL COMMUNICATIONS COMMISSION ` `  hh,Elizabeth W. Beaty ` `  hh,Chief, Financial Analysis and Compliance Division H ` `  hh,Cable Services Bureau