******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) ) Samson Cablevision Corporation) CUID Nos. NY0237 (Brookhaven) ) NY0239 (Islip) ) NY0242 (Smithtown) ) Complaints Regarding ) Cable Programming Services Tier Rate ) ORDER Adopted: November 10, 1997 Released: November 14, 1997 By the Chief, Cable Services Bureau: 1. In this Order we consider a complaint against the March 1, 1997 rate increase of the above-referenced operator ("Operator") for its cable programming services tier ("CPST") in the communities referenced above. We will address Operator's CPST rates and any potential refund liability for the period September 1, 1993 through February 28, 1997 in a separate order. This Order addresses only the reasonableness of Operator's March 1, 1997 CPST rate increase. 2. Under the Communications Act, the Commission is authorized to review the CPST rates of cable systems not subject to effective competition to ensure that rates charged are not unreasonable. If the Commission finds a rate to be unreasonable, it shall determine the correct rate and any refund liability. The Telecommunications Act of 1996 ("1996 Act") and our rules implementing the new legislation ("Interim Rules"), require that complaints against the CPST rates be filed with the Commission by a local franchising authority ("LFA") that has received more than one subscriber complaint. 3. The LFA for the communities referenced above filed a complaint with the Commission on August 25, 1997. The LFA verified that it received more than one subscriber complaint for each of the communities listed above and that the first complaint was received by the LFA on March 12, 1997 for CUID NY0242, on March 14, 1997 for CUID NY0239, and on March 21, 1997 for CUID NY0237. The filing of a complete and timely LFA complaint triggers an obligation upon the cable operator to file a justification of its CPST rates. The Operator has the burden of demonstrating that the CPST rates complained about are reasonable. 4. To justify rates for the period beginning May 15, 1994 through a benchmark or cost of service showing, operators must use the FCC Form 1200 series. Cable operators may file an FCC Form 1210 to justify rate increases based on the addition and deletion of channels, changes in certain external costs and inflation. In addition, Operators must file FCC Form 1210 with the Commission within thirty days of the date of service of the complaint regarding the new rate. 5. Upon review of Operator's FCC Form 1210, we find that Operator has justified an increase in its Maximum Permitted Rate ("MPR") from $12.84 to $14.10. We note, however, that Operator implemented its rate increase on March 1, 1997; whereas, the period of its FCC Form 1210 extends until March 31, 1997. Because the FCC's quarterly rate justification is based upon actual changes in expenses, Operator is not permitted to take a rate increase justified by an FCC Form 1210 until after the close of the period covered by the form. Consequently, Operator was not entitled to increase its rates until April 1, 1997. Because Operator's actual CPST rate in the communities referenced above, for the period beginning March 1, 1997, is $14.06, we find that Operator's CPST rate for the period March 1, 1997 through March 31, 1997 is unreasonable. We find further that Operator's CPST rate for the period beginning April 1, 1997 is not unreasonable. 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 for the period March 1, 1997 through March 31, 1997 in the communities referenced above, IS UNREASONABLE. 7 IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that Operator's CPST rate of $14.06 for the period beginning April 1, 1997 in the communities referenced above, IS NOT UNREASONABLE. 8. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47 C.F.R.  76.961, that Operator shall refund to subscribers in the communities referenced above that portion of the amount paid in excess of the maximum permitted CPST rate of $12.84 per month (plus franchise fees), plus interest to the date of the refund, for the period from the date of the first valid complaint in each community through March 31, 1997. 9. IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges to CPST subscribers for the stated periods, and shall within 30 days of the release of this Order, file a report with the Chief, Cable Services Bureau, stating the cumulative refund amount so determined (including franchise fees and interest), describing the calculation thereof, and describing its plan to implement the refund within 60 days of Commission approval of the plan. 10. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the complaints referenced herein, ARE GRANTED TO THE EXTENT INDICATED HEREIN. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau