WPCi 2MBVRKZ3|j"'7jC:,8Xj\  P6G;XP"i~'^:DPddDDDdp4D48dddddddddd88pppX|pDL|pp||D8D\dDXdXdXDdd88d8ddddDL8ddddX`(`lD4l\DDD4DDDDDDDDd8XXXXXX|X|X|X|XD8D8D8D8ddddddddddXdbdddpdXXXXXlX~|X|X|X|XdddldldD8DdDDDdplld|8|P|D|D|8dvddddDDDpLpLpLpl|T|8|\ddddddl|X|X|Xd|DdpL|Dd~4ddC$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddzHxxHvppDXd<"dxtldpxxdHP4Si (Additional); Rm. 907_1; LPT2HPLA4SAD.PRSXj\  P6G;\! EXP2  <K3|j"'Times New RomanTimes New Roman BoldTimes New Roman Italic"i~'^:DPddDDDdp4D48dddddddddd88pppX|pDL|pp||D8D\dDXdXdXDdd88d8ddddDL8ddddX`(`lD4l\DDD4DDDDDDDDd8XXXXXX|X|X|X|XD8D8D8D8ddddddddddXdbdddpdXXXXXlX~|X|X|X|XdddldldD8DdDDDdplld|8|P|D|D|8dvddddDDDpLpLpLpl|T|8|\ddddddl|X|X|Xd|DdpL|Dd~4ddC$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddzHxxHvppDXd<"dxtldpxxd2w ZR Kv HP4Si (Additional); Rm. 907_1; LPT2HPLA4SAD.PRSXj\  P6G;\! EXP"i~'^:DpddȨDDDdp4D48ddddddddddDDpppd|Ld|pȐD8DtdDdpXpXDdp8Dp8pdppXLDpdddXP,PhD4htDDD4DDDDDDdDp8dddddȐXXXXXJ8J8J8J8pddddppppddpddddzpdddXXhXXXXXdddhdptL8LpLDLpphhp8ZDP8pppddƐXXXpLpLpLphfDtppppppȐhXXXpDppLDd4ddC6CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxHjdDdddddd2$93$;4l=5l4>Technical 5Technical 52` hp x (#X` hp x (# X` hp x (#` hp x (#Technical 6Technical 63` hp x (#X` hp x (# X` hp x (#` hp x (#Technical 2Technical 24 Technical 3Technical 35 2E6$>7l@8$bA9$CTechnical 4Technical 46` hp x (#X` hp x (# X` hp x (#` hp x (#Technical 1Technical 17 Technical 7Technical 78` hp x (#X` hp x (# X` hp x (#` hp x (#Technical 8Technical 89` hp x (#X` hp x (# X` hp x (#` hp x (#2TN:E;G<J=6Ltoc 1toc 1:` hp x (#!(#B!(#B` hp x (#toc 2toc 2;` hp x (#` !(#B` !(#B` hp x (#toc 3toc 3<` hp x (#` !(# ` !(# ` hp x (#toc 4toc 4=` hp x (# !(#  !(# ` hp x (#2VU>N?P@vRA8Stoc 5toc 5>` hp x (#h!(# h!(# ` hp x (#toc 6toc 6?` hp x (#!(#!(#` hp x (#toc 7toc 7@ toc 8toc 8A` hp x (#!(#!(#` hp x (#2^BUCWDYE[toc 9toc 9B` hp x (#!(#B!(#B` hp x (#index 1index 1C` hp x (#` !(# ` !(# ` hp x (#index 2index 2D` hp x (#` !(#B` !(#B` hp x (#toatoaE` hp x (#!(# !(# ` hp x (#2`Fv2^Gl^Hr_I_captioncaptionF _Equation Caption_Equation CaptionG endnote referenceendnote referenceH head1 #I'd#2p}wC@ #2mbJ}7`K`L/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNI\\>>>\g0>03\\\\\\\\\\33gggQyyrg>Frgygrr>3>T\>Q\Q\Q>\\33\3\\\\>F3\\\\QX%Xc>0cT>>>0>>>>>>>>\3QQQQQwyQrQrQrQrQ>3>3>3>3\\\\\\\\\\Q\Z\\\g\QQQyQyQycyQtrQrQrQrQ\\\c\c\>3>\>>>\gcc\r3rIr>r>r3\l\\\\y>y>y>gFgFgFgcrMr3rT\\\\\\crQrQrQ\r>\gFr>\t0\\=!=WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNBnnBT\>Q\\\\\3;\7;\7>>QQ\??n\\pBnnBmgg>Q\7"yyyy\njc\gnn\"i~'^5>g\\>>>\g0>03\\\\\\\\\\>>ggg\yyrF\yrgyy>3>j\>\gQgQ>\g3>g3g\ggQF>g\\\QI(I_>0_j>>>0>>>>>>\>g3\\\\\QyQyQyQyQD3D3D3D3g\\\\gggg\\g\\\\pg\\\QQ_QyQyQyQyQ\\\_\gjF3FgF>Fgg__gy3ySy>yIy3ggg\\QQQgFgFgFg_y^y>yjgggggg_yQyQyQgy>ggFy>\0\\=2=WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNBnnBa\>\\\\\\7>\7>\7>>\\\??n\\pBnnBsgg>\\7"yyyy\nlc\gnn\2AxKoK`qKs Ku"i~'^ %,77\V%%%7>%7777777777>>>0eOIIOD>OO%*ODaOO>OI>DOOgOOD%%37%07070%777V7777%*77O77055;%;3%%%%%%%%%%%7O0O0O0O0O0aHI0D0D0D0D0%%%%O7O7O7O7O7O7O7O7O7O7O0O7O6O7O7O7>7O0O0O0I0I0I;I0OED0D0D0D0O7O7O7O;O7O;O7%%7%%%7M>;;O7DD,D%D%DO7AO7O7O7O7aOI%I%I%>*>*>*>;D.DD3O7O7O7O7O7O7gOO;D0D0D0O7D%O7>*D%O7E77%%WMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN(BB(37%07777j7#TT7!#TT7T!%%007n&&Bn77lCTn(nBB(A\\>>n%07\n!"IIIITTenn7TnB@;7>lBBn7"i~'^#)0<M\\>>>\}0>03\\\\\\\\\\>>}}}\rryrr>Qygyrr\grrggF3FM\>\\Q\Q3\\33Q3\\\\FF3\QyQQFI3Ic>0cM>>>0>>>>>>\>\3r\r\r\r\r\yyQrQrQrQrQ>3>3>3>3y\\\\\\\\\gQr\\\\gQ\r\r\r\r\yQyQycyQnrQrQrQrQ\\\c\c\>3>\>>>\\ccyQg3gBg>g;g3y\jy\y\\\yrFrFrF\F\F\FccgBg3gM\\\\\\ygcgFgFgF\g>y\\Fg>g\n0\\=(=WddddddddddddddddddddddddddddddddddddddddNBnnB_\F\\\\\\3;\7;\7>>gg\??n\\pBnnBb\\>g\7"yyyy\njc\}nn\"i~'^"(22TN"""28"2222222222888,\HBBH>8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""""2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""Washington, D.C. 20554 #&a\  P6G;0&P#у In the Matter of) )  S-Community Cable TV)CUID Nos.NV0017 (Boulder City)  S-d/b/a Prime Cable of Los Angeles)NV0040 (City of North Las Vegas)  S-)NV0041 (City of Henderson)  Sh-) Complaint Regarding) Cable Programming Services Tier Rates)  S - pORDER ă  SP - Adopted: November 17, 1997qppReleased: November 20 r#S , 1997  S(- By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau:  S-   I. A. 1. a.(1)(a) i) a) I. 1. 1. a.(1)(a) i) a)1.` ` In this Order we consider complaints against the March 1, 1997 rate increase that the  d(#Labovecaptioned operator ("Operator") implemented for its cable programming services tier ("CPST") in  d(#the communities set forth above. Operator has attempted to justify its CPST rate through a benchmark  d(#showing on FCC Form 1240. We have already issued an order which found that Operator's CPST rate  S- d(#increases effective February 1, 1995 and February 1, 1996 were reasonable ("Prior Order"). {Ox-#X\  P6G;IP#э #X\  P6G;IP#See In the Matter of Community Cable TV d/b/a Prime Cable of Las Vegas, 11 FCC Rcd 13864 (1996). Accordingly, this Order addresses the reasonableness of the Operator's CPST rate of $17.29 effective March 1, 1997.  S-  2.` ` The Communications ActZ {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). authorizes the Federal Communications Commission  d(#("Commission") to review the CPST rates of cable systems not subject to effective competition to ensure  d(#jthat rates charged are not unreasonable. If the Commission finds the rate unreasonable, it shall determine  S - d(#the correct rate and any refund liability.  {O-#X\  P6G;IP#э #X\  P6G;IP#See 47 C.F.R. Section 76.957. The Telecommunications Act of 1996 ("1996 Act") ~ yO> -#X\  P6G;IP#Ѝ#X\  P6G;IP# Pub. L. No. 104104, 110 Stat. 56 (1996). and our  S- d(#jrules implementing the new legislation ("Interim Rules"), {O"- d(##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 the CPST rates  d(#be filed with the Commission by a local franchising authority ("LFA") that has received subscriber  d(#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."h ,))II"Ԍ S- 33.` ` To justify rates for the period beginning May 15, 1994 through a benchmark showing,  S- d(#operators must use the FCC Form 1200 series.^g {O@- d(#Y#X\  P6G;IP#э #X\  P6G;IP#47 C.F.R. Section 76.922(b)(6); see also Second Order on Reconsideration, Fourth Report and Order, and Fifth  {O - d(#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  d(#annual basis using FCC Form 1240 to reflect reasonably certain and quantifiable changes in external costs,  d(#inflation, and the number of regulated channels that are projected for the twelve months following the rate  S`- d(#change.\`g {O- d(#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  d(#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). Any incurred cost that is not projected may be accrued with interest and added to rates at a later  S8- d(#time.8g {O -#X\  P6G;IP#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  S-to correct estimated costs with actual cost changes.Z g {OT-#X\  P6G;IP#э Id.Z   S-  `4.` ` On August 27, 1997, the LFA filed complaints regarding the March 1, 1997 increase in  d(#Operator's CPST rate in the communities referenced above. In its complaints, the LFA asserts that it has  d(#0received more than one subscriber complaint against Operator's CPST rate increase in each of the  SH - d(#communities set forth above, thereby triggering the Commission's jurisdiction to review these complaints.W H 6 g yO- d(##X\  P6G;IP#э#X\  P6G;IP# The first subscriber complaint was received by the LFA on March 17, 1997 for CUID No. NV0017 (Boulder City), March 3, 1997 for NV0040 (City of North Las Vegas) and CUID No. NV0041 (City of Henderson).W  d(#kThe valid complaint from the LFA triggers an obligation by the cable operator to file a justification of  S - d(#its CPST rates with the LFA. g yO&-#X\  P6G;IP#э #X\  P6G;IP#47 C.F.R. Section 76.1402. 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 March 1, 1997 to  d(#{February 28, 1998, we find that Operator has not correctly calculated its maximum permitted rate  S0- d(#("MPR").O 0g yO- d(#;#X\  P6G;IP#э #X\  P6G;IP#These finding are based solely on the representations of Operator. Should information come to our attention  d(#Ythat these representations were materially inaccurate, we reserve the right to take appropriate action. This Order is  d(#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.O In particular, we have corrected the starting rate on Line A1 to reflect the MPR of $16.20  S- d(#>that we calculated in the Prior Order.D g yO#- d(##X\  P6G;IP#э#X\  P6G;IP# Information regarding the specific adjustments made to Operator's FCC Form 1240 filing can be found in  d(#,the public file for the community referenced above which is available in the Cable Services Bureau's public reference  d(#,room, or through the Commission's copy contractor, International Transcription Services (ITS), 1231 20th Street, N.W., Washington, DC 20036, or by calling ITS at (202) 8573800.D This adjustment required that we refresh Operator's inflation  d(#yfactor to 2.22% for the second quarter of 1996, 2.21% for the third quarter of 1996, 1.83% for the fourth" ,>(>(II "  d(#quarter of 1996, and to 2.70% for January and February of the first quarter of 1997 and adjust Worksheet  d(#k1 accordingly. As a result, the trueup inflation factor in Module C, Line C1 was corrected to 1.0529  d(#Linstead of 1.0533 and the trueup inflation factor on Module C, Line C2 was corrected to 1.0146 instead  d(#of 1.0159. We also adjusted Worksheet 8 to eliminate franchise fees that Operator incorrectly reported  d(#in the trueup rate charged. Notwithstanding our adjustments, Operator's actual CPST rate of $17.29 is justified and is not unreasonable.  S- 6.` ` Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  d(#C.F.R.  0.321, that Operator's CPST rate of $17.29 effective March 1, 1997 in the communities set forth above, IS NOT UNREASONABLE.   X` hp x (#%'0*,.8135@8: