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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 concerning the rates the abovecaptioned operator   [("Operator") was charging for its cable programming services tier ("CPST") in the community referenced   above. Operator has attempted to justify its CPST rate through a benchmark showing on FCC Form 1240.   We have already issued two orders resolving earlier complaints against Operator's rates. In the first order   ("First Order"), we resolved complaints against Operator's rates for the period September 1, 1993 through  S!-  September 15, 1995.!># {O- x#X\  P6G;IP#э See In the Matter of TCI Communications, Inc., Final Resolution of Cable Programming Service Rate Complaints, 11 FCC Rcd 14696 (1996). In the second order ("Second Order"), we found that Operator's June 1, 1996 CPST  S-  Lrate increase was not unreasonable.1"># {O- x#X\  P6G;IP#э #X\  P6G;IP#See In the Matter of TCI of Illinois, d/b/a Telenois, Inc., 11 FCC Rcd 12724 (1996). Operator has filed a Petition for Reconsideration of our Prior Order. 1 Accordingly, this Order addresses the reasonableness of Operator's June 1, 1997 CPST rate increase.  S-  2.` ` The Communications Act |># {O-#X\  P6G;IP#э#X\  P6G;IP# Section 623(c) of the Communications Act of 1934, as amended, 47 U.S.C. Section 543(c) (1996).#Xj\  P6G;+XP#  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  S -  the correct rate and any refund liability.~ ># {O"-#X\  P6G;IP#э See 47 C.F.R. Section 76.957.~ The Telecommunications Act of 1996 ("1996 Act"), ># yOI$-#X\  P6G;IP#Ѝ#X\  P6G;IP# Pub. L. No. 104104, 110 Stat. 56 (1996). and our  S-  .rules implementing the new legislation ("Interim Rules"),0 ># {O&- x#X\  P6G;IP#Ѝ#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 CPST rates be   {filed with the Commission by a Local Franchising Authority ("LFA") that has received subscriber" ,))ZZ"   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.  S-  _3.` ` Cable 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  S8-  regulated channels that are projected for the twelve months following the rate change.\8 {O-  y#X\  P6G;IP#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  {O2-Reconsideration, ("Thirteenth Reconsideration Order") 11 FCC Rcd 388, 391 (1995). Any incurred cost  S-  lthat is not projected may be accrued with interest and added to rates at a later time. {O -#X\  P6G;IP#Ѝ#X\  P6G;IP# See Thirteenth Reconsideration Order at 392.#Xj\  P6G;+XP# If actual and   projected costs are different during the rate year a "trueup" mechanism is available to correct estimated  S-  [costs with actual cost changes.Z ~ {O -#X\  P6G;IP#э Id.Z The "trueup" requires Operators to decrease their rates or alternatively   permits them to increase their rates to make an adjustment for over or under estimations of these costs  Sp-changes.   S -  4.` ` On August 4, 1997, the LFA filed a complaint regarding the June 1, 1997 increase in   Operator's CPST rate in the community referenced above. The LFA asserts that it has received more than   >one subscriber complaint against Operator's CPST rate increase, thereby triggering the Commission's   \jurisdiction to review this complaint. The valid complaint from the LFA triggers an obligation on the  S -  cable operator to file a justification of its CPST rate with the LFA.  yO0-#X\  P6G;IP#э The first subscriber complaint regarding the CPST rate increase was received by the LFA on June 2, 1997. Thus, in this case, Operator is   required to justify the increase in its CPST rate which is the subject of the LFA's complaint. In its   response to the complaint, Operator asserts that its CPST rate increase is justified by the FCC Form 1240  S-filed along with the LFA's complaint.  yOH- xw#X\  P6G;IP#Ѝ In a letter dated July 25, 1997, Operator submitted to the LFA its FCC Form 1240 for the period June 1, 1997 to May 31, 1998 to justify its June 1, 1997 CPST rate.  S-  5.` ` On February 23, 1996, the Commission granted Operator a waiver of certain rate   =adjustment requirements in its initial filing of the Commission's annual rate adjustment form (FCC Form  Sh-  1240) ("Waiver Order").) h  {O - x#X\  P6G;IP#э  See Annual Rate Adjustment System for Cable Service Rates, Request for Waiver of Requirements Contained in the Thirteenth Order on Reconsideration, (DA 96220, released February 22, 1996).) Specifically, the Waiver Order allowed Operator, in its initial FCC Form 1240   filings, to include estimated changes in costs, inflation, channels and subscriber information attributable   to the period between the last date for which actual cost data was available and the effective date of the   new rates. In the Waiver Order, Operator was instructed to include in its initial FCC Form 1240 filing   certain calculations, such calculations to be performed on FCC Form 1240 (primarily in Module G), or   off FCC Form 1240, in an alternative showing done pursuant to the Waiver Order's "General"R ,-(-(ZZ"  S-  =Guidelines."  yOh-#X\  P6G;IP#э#X\  P6G;IP# Waiver Order at Appendix A. Operator chose to use an alternative showing rather than perform its calculations directly on FCC Form 1240.  S-  6.` ` To justify its CPST rate, effective June 1, 1997, Operator submitted an FCC Form 1240   for the projected period June 1, 1997 to May 31, 1998, which is Operator's second FCC Form 1240 filing.   Upon review of this FCC Form 1240, we are unable to determine if Operator correctly adjusted its second   FCC Form 1240 to take into account the calculations performed in its initial FCC Form 1240's alternative   showing. We will therefore order Operator to refile its FCC Forms 1240 along with an explanation detailing why its forms justify Operator's current CPST rate of $16.68 in the community referenced above.  Sp-  7.` ` Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47   C.F.R.  0.321, that Operator shall file with the Chief, Cable Services Bureau, within 30 days of the   release of this Order, the relevant FCC Forms 1240, and all supporting documentation, to support the   monthly CPST rate of $16.68 implemented by Operator on June 1, 1997, in the community referenced above. ` `  hh,VFEDERAL COMMUNICATIONS COMMISSION ` `  hh,VMeredith J. Jones ` `  hh,VChief, Cable Services Bureau