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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 August 1, 1997 rate increase that the  d(#Labovecaptioned operator ("Operator") implemented for its cable programming services tier ("CPST") in  S`- d(#the community set forth above. Operator has attempted to justify its CPST rate through a benchmark  d(#showing on FCC Forms 1240. We have already issued a separate order which resolved complaints filed  d(#against Operator's CPST rates for the period from September 1, 1993 to December 31, 1995 ("Resolution  S- d(#=Order").ir XP-ԍ #X\  P6G;P#See In the Matter of Adelphia Communications Corporation, Final Resolution of Cable Programming Service Rate Complaints, 12 FCC Rcd 6344 (1997). This Order addresses only the reasonableness of the Operator's CPST rate of $17.19 effective August 1, 1997.  Sp-  2. ` ` The Communications ActpAir XQ-ԍ#X\  P6G;P# Section 623(c) of the Communications Act of 1934, as amended, 47 U.S.C. Section 543(c) (1996).#Xj\  P6G;9XP# authorizes the Federal Communications Commission  d(#("Commission") to review the CPST rates of cable systems not subject to effective competition to ensure  d(#jthat rates charged are not unreasonable. If the Commission finds the rate unreasonable, it shall determine  S- d(#the correct rate and any refund liability.tir X -ԍ #X\  P6G;P#See 47 C.F.R. Section 76.957.t The Telecommunications Act of 1996 ("1996 Act")ir X;"-Ѝ#X\  P6G;P# Pub. L. No. 104104, 110 Stat. 56 (1996). and our  S- d(#jrules implementing the new legislation ("Interim Rules"),Tir X$- d(#Ѝ#X\  P6G;P# See Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996, 11 FCC Rcd  yO%-5937 (1996).#Xj\  P6G;9XP# 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. "0 ,))II"Ԍ S-  _3.` ` Cable operators may justify adjustments to their rates on an annual basis using FCC Form  d(#.1240 to reflect reasonably certain and quantifiable changes in external costs, inflation, and the number of  S- d(#regulated channels that are projected for the twelve months following the rate change.{rW X- d(#Ѝ#X\  P6G;P# 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  S- d(#lthat is not projected may be accrued with interest and added to rates at a later time. rW X3-Ѝ#X\  P6G;P# See Thirteenth Reconsideration Order at 392. If actual and  d(#projected costs are different during the rate year a "trueup" mechanism is available to correct estimated  S8- d(#[costs with actual cost changes.Z8rW X -ԍ #X\  P6G;P# Id.Z The "trueup" requires Operators to decrease their rates or alternatively  d(#permits them to increase their rates to make an adjustment for over or under estimations of these costs  S-changes.   S-    4. ` ` On November 4, 1997, the LFA filed a complaint regarding the August 1, 1997 increase  d(#in Operator's CPST rate in the community referenced above. In its complaint, the LFA asserts that it has  d(#received more than one subscriber complaint against Operator's CPST rate increase, thereby triggering  S - d(#the Commission's jurisdiction to review this complaint. mrW X--ԍ #X\  P6G;P#The first subscriber complaint was received by the LFA on August 4, 1997. The valid complaint from the LFA triggers an  S - d(#obligation by the cable operator to file a justification of its CPST rates with the LFA.k  rW X-ԍ #X\  P6G;P#47 C.F.R. Section 76.1402.k Thus, in this case,  d(#LOperator is required to justify the increase in its CPST rate which is the subject of the LFA's complaint.  d(#\Operator submitted FCC Forms 1210 and 1240 for the community set forth above to justify the rate increase that went into effect on August 1, 1997.  S0-  5.` ` Upon review of Operator's FCC Form 1240 for the projected period August 1, 1996 to  d(#=July 31, 1997, pursuant to the Resolution Order, we find that Operator has correctly carried forward its  S- d(#maximum permitted rate ("MPR") of $9.87 on Line A1 and that Operator has correctly calculated its MPR  S- d(# of $13.80. A rW X'-ԍ #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 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. Upon review of Operator's FCC Form 1240 for the projected period August 1, 1997 to  S- d(#LJuly31, 1998, we find that Operator has incorrectly reported its trueup period@ {rW X#-ԍ #X\  P6G;P#The FCC Form 1240 calculates maximum permitted rates for the coming year ("Projected Period") and  {O#-for a period of time which has already passed ("TrueUp Period"). See FCC Form 1240 (July 1996) Instructions at 3.@ on Line 6. Therefore,  Sh- d(#we have revised Line 6 to reflect the correct trueup period of May 1, 1996 to April 30, 1997 reported"h ,>(>(II"  d(#yon Worksheet 1 (TrueUp Period Inflation). Notwithstanding our adjustment, we find that Operator has  S-justified its CPST rate of $17.19 effective August 1, 1997. ArW X@-ԍ #X\  P6G;P#Information regarding the specific adjustments made to Operator's FCC Form 1240 filing can be found in the public file for the community referenced above which is available in the Cable Services Bureau's public reference room, or through the Commission's copy contractor, International Transcription Services (ITS), 1231  yO-20th Street, N.W., Washington, DC 20036, or by calling ITS at (202) 8573800.#Xj\  P6G;9XP#  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 $17.19 effective August 1, 1997 in the community set forth above, IS NOT UNREASONABLE.   X` hp x (#%'0*,.8135@8: