WPC 2MB RK<3|j&-#XP\  P6Q9XP#"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$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddzHxxHvppDXd<"dxtldpxxdTimes New RomanTimes New Roman BoldTimes New Roman Italic\&P2g% ZXTimes New RomanTimes New Roman BoldP\  P6Q9XP#HP4M (PCL) (Additional); Local PrintHL4MPCAD.PRSXj\  P6G;\"\XP|D8D\dDXdXdXDdd88d8ddddDL8ddddX`(`lD4l\DDD4DDDDDDDDd8XXXXXX|X|X|X|XD8D8D8D8ddddddddddXdbdddpdXXXXXlX~|X|X|X|XdddldldD8DdDDDdplld|8|P|D|D|8dvddddDDDpLpLpLpl|T|8|\ddddddl|X|X|Xd|DdpL|Dd~4ddC$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddzHxxHvppDXd<"dxtldpxxd7jC:,9Xj\  P6G;XP7nC:,|Xn4  pG;Xy.X80,X\  P6G;Py.\80,T\4  pG;2E RKZ 3|P% Times New Roman (TT)Times New Roman (Bold) (TT)Times New Roman (Italic) (TT)"i~'^:DpddȨDDDdp4D48ddddddddddDDpppd|Ld|pȐD8DtdDdpXpXDdp8Dp8pdppXLDpdddXP,PhD4htDDD4DDDDDDdDp8dddddȐXXXXXJ8J8J8J8pddddppppddpddddzpdddXXhXXXXXdddhdptL8LpLDLpphhp8ZDP8pppddƐXXXpLpLpLphfDtppppppȐhXXXpDppLDd4ddC6CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxHjdDdddddddYzzzzBBBBqodYYYYYYYYYYY8888dddddddndddddddHP LaserJet 5Si/5Si MX04_2; LPT3HPLA5SMX.WRSXj\  P6G;,,,/#uRXP2 w v p kg a8DocumentgDocument Style StyleXX` `  ` a4DocumentgDocument Style Style . a6DocumentgDocument Style Style GX  2k o vta5DocumentgDocument Style Style }X(# a2DocumentgDocument Style Style<o   ?  A.  a7DocumentgDocument Style StyleyXX` ` (#` BibliogrphyBibliography:X (# 20  m a1Right ParRight-Aligned Paragraph Numbers:`S@ I.  X(# a2Right ParRight-Aligned Paragraph Numbers C @` A. ` ` (#` a3DocumentgDocument Style Style B b  ?  1.  a3Right ParRight-Aligned Paragraph Numbers L! ` ` @P 1. ` `  (# 2  f.a4Right ParRight-Aligned Paragraph Numbers Uj` `  @ a. ` (# a5Right ParRight-Aligned Paragraph Numbers _o` `  @h(1)  hh#(#h a6Right ParRight-Aligned Paragraph Numbersh` `  hh#@$(a) hh#((# a7Right ParRight-Aligned Paragraph NumberspfJ` `  hh#(@*i) (h-(# 2`0  a8Right ParRight-Aligned Paragraph NumbersyW"3!` `  hh#(-@p/a) -pp2(#p Tech InitInitialize Technical Style. k I. A. 1. a.(1)(a) i) a) 1 .1 .1 .1 .1 .1 .1 .1 Technicala1DocumentgDocument Style Style\s0  zN8F I. ׃  a5TechnicalTechnical Document Style)WD (1) . 2na6TechnicalTechnical Document Style)D (a) . a2TechnicalTechnical Document Style<6  ?  A.   a3TechnicalTechnical Document Style9Wg  2  1.   a4TechnicalTechnical Document Style8bv{ 2  a.   2GF3a1TechnicalTechnical Document StyleF!<  ?  I.   a7TechnicalTechnical Document Style(@D i) . a8TechnicalTechnical Document Style(D a) . Doc InitInitialize Document Stylez   0*0*0*  I. A. 1. a.(1)(a) i) a) I. 1. A. a.(1)(a) i) a)Documentg2#ye}""b#PleadingHeader for Numbered Pleading PaperE!n    X X` hp x (#%'0*,.8135@8:P?Rtoc 3toc 3<` hp x (#` !(# ` !(# ` hp x (#toc 4toc 4=` hp x (# !(#  !(# ` hp x (#toc 5toc 5>` hp x (#h!(# h!(# ` hp x (#toc 6toc 6?` hp x (#!(#!(#` hp x (#2\@vBUAUBWCYtoc 7toc 7@ toc 8toc 8A` hp x (#!(#!(#` hp x (#toc 9toc 9B` hp x (#!(#B!(#B` hp x (#index 1index 1C` hp x (#` !(# ` !(# ` hp x (#2baDD\Eb^Fv`Gl`index 2index 2D` hp x (#` !(#B` !(#B` hp x (#toatoaE` hp x (#!(# !(# ` hp x (#captioncaptionF _Equation Caption_Equation CaptionG 2cHraIbJ}bKcendnote referenceendnote referenceH head1 #I'd#2p}wC@ #a1Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfJ$ a2Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfK/` ` ` 2JfLcMOdNdOea3Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfL:` ` `  a4Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfME` ` `  a5Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfNP  ` ` ` hhh a6Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfO[   2uP|fQ;gR" hSo'ua7Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfPf  a8Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfQq MACDocumentuR      X` hp x (#%'0*,.8135@8:<     #:}D4P XP# T I. A. 1. a.(1)(a) i) a)T,0*ÍÍ,*Í ., US!!!! ! #:}D4P XP#T 1. 1. 1. a.(1)(a) i) a)T     X` hp x (#%'0*,.8135@8:<     #:}D4P XP# ,0*ÍÍ,*Í ., US!!!! ! #:}D4P XP#FootnoteuSÍč2KuKxK{K~"i~'^09CSS999S]+9+/SSSSSSSSSS//]]]Ixnnxg]xx9?xgxx]xn]gxxxxg9/9MS9ISISI9SS//S/SSSS9?/SSxSSIP!PZ9+ZM999+99999999S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN/>/>/>/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\!!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""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\H5!,i,5\  P6G;,P2a=5,&a\  P6G;&P 2e=5,&e4  pG;&"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\2 KZ^̋"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>lBBn77jC:,9Xj\  P6G;XP7nC:,|Xn4  pG;Xy.X80,X\  P6G;Py.\80,T\4  pG;W!@(#,h@\  P6G;hP\{,W80,%0W*f9 xr G;X\5hC:,%2Xh*f9 xr G;XXH5!,i,5\  P6G;,P2a=5,&a\  P6G;&P 2e=5,&e4  pG;&P:% ,J:\  P6G;JP\0_=5,%&_*f9 xr G;&XxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNBnnBT\>Q\\\\\3;\7;\7>>QQ\??n yO X   |N X- #&a\  P6G;&P# Federal Communications Commission`}(#<DA 972511 #Xj\  P6G;9XP#у  yxdddy  X- |Պ Kv #X\  P6G;P#Before thelUFederal Communications Commission  yO}"Washington, D.C. 20554 #Xj\  P6G;9XP#у  SA-#&a\  P6G;&P#In the Matter ofj) j)  S-Cablevision Systemsj)CUID No. NY0617 (Farmingdale) X(#(# S-j)pp  S-j)pp Complaint Regardingj) Cable Programming Services Tier Ratesj)  S -T ORDER ă  S - Adopted: November 26, 1997VppReleased: November 28, 1997  Sa - By the Chief, 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 a complaint against the May 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 Forms 1200, 1210, and 1235. This Order addresses only the reasonableness of the  SI-Operator's CPST rate of $20.42 effective May 1, 1997.oI9  yO- xx#X\  P6G;P#э #X\  P6G;P#On February 23, 1996, we dismissed a complaint filed against Operator's CPST rate in the franchise area set  {Oy-forth above.  See In the Matter of Cablevision Systems Corporation, 11 FCC Rcd 2391 (1996).o  S-  2.` ` The Communications Act "9  {O-#X\  P6G;P#э#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  S-  the correct rate and any refund liability.9  {O-#X\  P6G;P#э #X\  P6G;P#See 47 C.F.R. Section 76.957. The Telecommunications Act of 1996 ("1996 Act")F9  yOg-#X\  P6G;P#Ѝ#X\  P6G;P# #X\  P6G;P#Pub. L. No. 104104, 110 Stat. 56 (1996). and our  SY-  jrules implementing the new legislation ("Interim Rules"),Y9  {O!-  #X\  P6G;P#Ѝ#X\  P6G;P# 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.  |#;0 "0 ,))ZZ"Ԍ S-  n |#;0 3.` ` Cable operators attempting to justify rates for the period beginning May 15, 1994 through  S-  a benchmark showing must use the FCC Form 1200 series. {O@-#X\  P6G;P#э #X\  P6G;P#47 C.F.R. Section 76.922(b)(6); see also Second Order on Reconsideration, 9 FCC Rcd at 4189 n. 195. Cable operators may also justify rate   increases based on the addition and deletion of channels, changes in certain external costs, and inflation,  S-  by filing FCC Form 1210.Z yO-#X\  P6G;P#э #X\  P6G;P#47 C.F.R. Section 76.922(d). FCC Form 1210 must be filed at least 30 days before new rates are scheduled   to go into effect where the Commission has found the CPST rate to be unreasonable less than one year  S8-prior to the filing, or where there is a pending complaint against the CPST rate.8 yO -#X\  P6G;P#э #X\  P6G;P#47 C.F.R. Sections 76.958 and 76.960.ģ  S-    S-  A4.` ` FCC Form 1235 is an abbreviated cost of service filing used in cases of network upgrades.   It allows cable operators to justify rate increases related to significant capital expenditures used to improve   rateregulated services. This option is extended only in cases of significant upgrades requiring added   capital investment, such as bandwidth capacity and conversion to fiber optics, and for system rebuilds.   Normal improvements and expansions of service will remain subject to the usual rate adjustments allowed   by filings of FCC Forms 1210, 1220 and 1240. Cable operators that incur increases in operating costs   associated with a significant network upgrade will be permitted to charge additional rates as justified by  S -their FCC Form 1235 filing.   S -  5.` ` On September 3, 1997, the LFA filed a complaint regarding the May 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 in the community  S-  >set forth above, thereby triggering the Commission's jurisdiction to review the complaint. z yO"-#X\  P6G;P#э #X\  P6G;P#The first subscriber complaint was received by the LFA on May 5, 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.   yOb-#X\  P6G;P#э #X\  P6G;P#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. Operator submitted FCC Forms 1200, 1210, and 1235 for the community set forth above to justify the rate increase that went into effect on May 1, 1997.  S-  26.` ` Upon review of Operator's FCC Form 1200 and FCC Forms 1210, we find that Operator   -has justified its maximum permitted rates ("MPRs") for the period May 15, 1994 through March 31, 1997,   .as detailed on those FCC Forms 1200 and 1210. Operator's May 1, 1997 rate increase reflects not only   the quarterly increase as reported on its most recent FCC Form 1210, covering the period October 1, 1996   =to March 31, 1997 to justify an MPR effective April 1, 1997, but also recovery of costs for its network   [upgrade as reflected on FCC Form 1235. Operator initially filed its FCC Form 1235 on March 28, 1997  S(-  xand selected the preapproval option..  ( yOb$-  #X\  P6G;P##X\  P6G;P#э The preapproval option is provided to assist operators in projecting cash flows and obtaining capital for the   construction of upgraded cable systems. The FCC Form 1235 can be filed for preapproval any time prior to the   upgrade services becoming available to subscribers using projected upgrade costs. The Network Upgrade Addon   (Part III, Line 4), however, cannot be charged to subscribers until upgraded cable services become available and are"& ,-(-(&"  {O-providing benefits to customers of rateregulated services. See FCC Form 1235 Instructions at 2.. Operator also chose to allocate its Monthly Network Upgrade Add"(Z ,-(-(ZZ"ԫ  on (Section III, Lines 4 and 5) to both its basic service tier ("BST") and its CPST rates. On November   24, 1997, Operator notified the Commission that "because the preapproval requested in connection with   the initial filing has not yet been provided," Operator was revising its FCC Form 1235 so that it could  S-  recover the total Monthly Network Upgrade Addon through the CPST rate.G FZ {O-  Y#X\  P6G;P#э  Operator stated that the "revised form allocates the entire amount of the upgrade addon revenue requirement   to the CPST, and should be utilized for purposes of determining whether any potential CPST refund liability arises   Zin communities where upgrade addon rate adjustments have been implemented. [Operator] reserves the right to   submit additional and revised data in connection with [this] Form 1235 filing, and to further revise the upgrade  {O -  -revenue recovery allocation for such filing, should such a modification be warranted." See Letter to Meredith J.   hJones, Chief, Cable Services Bureau, from Christopher J. Harvie, Counsel for Cablevision, dated November 24, 1997.  {O6 -  .See also Operator's FCC Form 1235, Part III, Lines 4 and 5, as amended November 24, 1997. We make no comment regarding Operator's reservation of rights.G Such an election is  S`-  consistent with the FCC Form 1235 instructions. `h  {Oh-#X\  P6G;P##X\  P6G;P#э See FCC Form 1235 Instructions at 8. Upon review of Operator's FCC Form 1210 for the   period October 1, 1996 to March 31, 1997, along with Operator's FCC Form 1235, as amended November   24, 1997, we have made adjustments. Despite these adjustments, we find that Operator's CPST rate of  S-$20.42, effective May 1, 1997, is not unreasonable.T   yO-  w#X\  P6G;P#э #X\  P6G;P#These findings are based solely on the representations of Operator. Should information come to our attention   that these representations were materially inaccurate, we reserve the right to take any 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.T  S-  7.` ` 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 $20.42 effective May 1, 1997 in the community set forth above, IS NOT UNREASONABLE.   X` hp x (#%'0*,.8135@8: