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LL2L"",,2d""d<d<BBYYdBBddBYBdYzzzzBBBBqodYYYYYYYYYYY8888dddddddnddddddd2@1w"5@^2Boddȧ8BBdr2B28ddddddddddBBrrrdzNdzoȐB8BtdBdoYoYBdo8Bo8odooYNBodddYO,Oh2BB!BBPRBdodddddȐYYYYYN8N8N8N8oddddooooddoddddzodddYYYYYYddddooPoNoNBNodo8RoodȐYYoNoNNF2ldBdddddd"@^*7]SS.77S_*7*.SSSSSSSSSS77___SxoxxofASoxfx]oxxxxo27@7@w@@"5@^.=K\\!==\h.=.3\\\\\\\\\\33hhhRzzpf=Gpfzfpp=3=V\=R\R\R=\\33\3\\\\=G3\\\\RX%Xc.====IK=\\RRRRRzzRpRpRpRpR=3=3=3=3\\\\\\\\\\R\\\\\f\\RRzRzRzRpRpRpR\\\\\\I\=\===\G\p3pK\\\z=zKfGfGN@.S\=R\\\\\39\7\7==RR\==\\=R=7t=ddddhdo.Iih3[\\xdCpi_w[dfdmoPpP~j_d~~tqo.=K\\!==\h.=.3\\\\\\\\\\33hhhRzzpf=Gpfzfpp=3=V\=R\R\R=\\33\3\\\\=G3\\\\RX%Xc=\R\\=f===RR@\=G=.=\\\\%\=3\h=\Id77=iS.=79\Rzpppp====hf\RRRRRRzRRRRR3333\\\\\\\d\\\\\\\"5@^.=f\\3==\i.=.3\\\\\\\\\\==iii\zzpG\zpfzz=3=k\=\fRfR=\f3=f3f\ffRG=f\\\RH(H`.====IK=\f\\\\\RzRzRzRzRG3G3G3G3f\\\\ffff\\f\\\\pf\\\RRRzRzRzR\\\\ffIfGfG=Gf\fz3zKff\RRfGfGN@.c\=\\\\\\7<\7\7==\\\==\\=\=7t=ddddido.Iii3[\\xdCpi_w[dfdmoPpP~j_d~~tqo.=f\\3==\i.=.3\\\\\\\\\\==iii\zzpG\zpfzz=3=k\=\fRfR=\f3=f3f\ffRG=f\\\RH(H`=\\\\=f===\\@\=G=.=\\\\(\=7\i=\Id77=ic.=7<\\zzzzGGGGipf\\\\\\RRRRR3333\f\\\\\d\ffff\f"5@^*7\TT/77T_*7*/TTTTTTTTTT77___TxoxxofAToxfx\oxxxxo7/7aT7T\J\J7T\/7\/\T\\JA7\TxTTJB%BW*7777BD7T\xTxTxTxTxTxxJoJoJoJoJA/A/A/A/x\TTTTx\x\x\x\xTxTx\TTxTxTf\xTxTxTxJxJxJoJoJoJTTTT\\B\A\A7A\T\o/oDx\x\TxxJxJ\A\AN:*ZT7TTTTTT27}}T2}}T}277TTT77TT7T72t7[[[[_[e*B`_.wRTTn[Cfx`xWlRx[\[ceIfIs`Wx[rriwge*7\TT/77T_*7*/TTTTTTTTTT77___TxoxxofAToxfx\oxxxxo7/7aT7T\J\J7T\/7\/\T\\JA7\TxTTJB%BW7TTTT7\777TT:T7A7xx*7TTTT%T7}2T_7}TB[227`Z*727T}}}TxxxxxxxooooAAAAxx_xxxxxf\TTTTTTxJJJJJ////T\TTTTT[T\\\\T\"5@^!)22SN!!28!2222222222888-\HCCH=7HH!'H=YHH7HC7=HH^HH=!!/2!-2-2-!222N2222!'22H22-006!!!!()!22H-H-H-H-H-YCC-=-=-=-=-!!!!H2H2H2H2H2H2H2H2H2H2H-H2H2H2H2H272H2H-H-C-C-C-=-=-=-H2H2HH2H2H2H2(2!2!!!2'H2==)H2H2H2YHC!C)7'7'N#-2!-22222KK2LL2K!!--2d!!22bd!-d!t!77778c72J=.,/&J\  P6Q&P.?2N=.,&N4  pQ&.@y.G8*,.G4  pQAI(!,,(\  P6Q,PB{,C8*,3C*f9 xQX.CI+!,-,+4  pQ, y.K8?,RK\  P@QP"5@^!722dS!!29!2222222222!!9992]HCHHC=NN'2NC^HN=NH7CHHdHHC!!:2!27-7-!27!7S7277-'!72H22-((4!!!!()!27H2H2H2H2H2dHH-C-C-C-C-''''H7N2N2N2N2H7H7H7H7H2H2H7N2N2H2H2=7H2H2H2H-H-H-C-C-C-N2N2NN2N2N7N7(7'7'!'72N7CC)H7H7N2dHH-H-7'7'N#62!222222!KK2KK2K!!222d!!22dd!2d!t!77779c7Washington, D.C. 20554 ă In the Matter of) ) CENTURY COMMUNICATIONS) CORPORATION) ) Resolution of ) Rate Complaints)  yO8 q ORDER \  yO X` hp x (#%'0*,.8135@8:and CPST. BV yO@- xԍ The City of Los Angeles resolved its BST rate dispute with Century through October 31, 1995 for $525  xmillion. The BST refunds for Los Angeles areas have been calculated from November 1, 1995 forward. The BST  xrefund for West Hollywood has been calculated from May 1, 1995 forward. The BST refunds for Santa Monica and Beverly Hills have been calculated from September 1, 1993 forward. These refund amounts are based on unrefreshed inflation data BV yO( - xԍ Because the benchmark formula is based on cable rates in effect on September 30, 1992, the date of the rate  xsurvey from which the benchmark formula was derived, a system's rate at the time of a valid rate complaint is  xcompared to the benchmark rate produced by the formula and then adjusted forward by an inflation factor and for  xchanges in the number of channels provided from September 30, 1992 until the system justifies its rates. Final  xinflation data for measuring the change in inflation between September 1992 and the operator's rate justification was  xnot always available at the time the operator prepared its justification. The Commission directed operators to  xwestimate inflation using the most recently available Gross National Product Price Index published on an interim basis  xiby the U.S. Department of Commerce. If an operator's CPST rate was not justified when first put into effect, or  xxwhen challenged, Bureau practice was to "refresh" the inflation data used in the calculation with the most current  x-data for the period in question that was available at the time of the Bureau's review. Depending on the inflation  xKdata at the time of Bureau review, this could work to the subscribers' advantage or disadvantage. In this case, use  xof unrefreshed data provided some advantage to the operator in calculating its permitted CPST rates over data the  xBureau used in its rate orders, although in the context of the overall refund amount, the differences in the various  xinflation calculations were minimal. At the time the Bureau agreed to this compromise, challenges to the Bureau's  xpractice were pending before the Commission, and compromise on this point without awaiting a ruling in a pending  xjcase facilitated final resolution of Century's rate cases pending before the Commission. The Commission has  x/subsequently affirmed the Bureau's practice of using refreshed inflation data in those cases where a rate is  x<unreasonable on its face or has to be adjusted for reasons other than the availability of a more accurate inflation  {O8- xfigure. See Cencom Cable Income Partners II, L.P. (Jasper, TX), FCC 97205 at  918 (released June 13, 1997)  {O-("Cencom"), reconsideration denied, FCC 97374 (released October 14, 1997). and include offsets of CPST  x;undercharges against BST overcharges within individual franchise areas, where relevant. The refund amounts shown  xin the Proposed Resolution, Exhibit 1, covered the period through October 31, 1996 and include interest calculated  xthrough October 31, 1997. These amounts have been adjusted in the Resolution to reflect corrections to Century's  yO- xrate forms recommended by the local franchising authorities,BBV {O- xԍ See revised rate forms for Los Angeles Areas F, G and H, Santa Monica, and West Hollywood attached to  xletter from Seth A. Davidson to Peggy Greene (2/12/97); revised Form 1200 Rate Computation Addendums for  xxBeverly Hills, Los Angeles Areas F, G and H, Santa Monica, and West Hollywood attached to letter from Seth A.  xDavidson to Peggy Greene (6/17/97). Copies can be found in the Cable Services Bureau Public Reference Room  x("Bureau Public Reference Room"), Third Floor, 2033 M Street, N.W., Washington, DC 20054 (Century Rate  x Resolution Collection). Copies can be ordered through the Commission's copy contractor, International Transcription  x: Services, Inc. ("ITS"), 1231 20th Street, N.W., Washington, DC 20036 (telephone: (202) 8573800; facsimile: (202) 8573805). Century's annual rate adjustment for 1997 on FCC  yO- xiForm 1240,&BV {O%- x<ԍ See FCC Forms 1240 attached to letter from Seth A. Davidson to Peggy Greene (5/19/97). Copies can be found in the Bureau Public Reference Room or can be ordered from ITS. and an extension of the period calculated in the refund amounts until August 31, 1997. Resolution  xsections 12(b), 12(c), and 12(d) have been amended to reflect this additional refund period. In addition, the refund",-(-(ZZ3 "  xhamount will continue to increase until Century implements the rates in Exhibit 2 and interest will continue to accrue until the refunds are paid in full.  yOX- ` x8.` ` Refunds will be paid in Beverly Hills, Los Angeles, Santa Monica, and West Hollywood as credits  xZon the bills of those who are subscribers as of the date of payment. Refunds will start no later than 90 days after  xithe local franchising authorities' deadline for opting out of the refunds, the Implementation Deadline, and will be  yO- xcompleted within a period no longer than 12 months from the first refund.IBV yO- x,ԍ The Commission has previously addressed waiver of the requirement that refunds be implemented with a one xtime credit on subscribers' bills for good cause, including situations were refunds are substantial. "In such  xcircumstances, we will consider permitting the operator to implement the refund by spreading the credits to  {O` - xsubscribers over a period of several billing cycles." Rate Order, 8 FCC Rcd at 5867 n. 909. No party has objected  xZto this refund payment plan, and we find that waiver of 47 C.F.R.  76.942(d)(2) and 76.961(c)(2) is warranted  xin light of the amount of the refunds and in order to further resolution of the rate disputes concerning Century's BST  {O - xand CPST rates. See, e.g., Comcast Cable Communications, Inc., 11 FCC Rcd 4029, 4041, Att. A  IV.12.(a) (1995)  xWe are also waiving the requirement in 47 C.F.R.  76.962 that remedial action be taken within 60 days and a  xcertificate of compliance be filed within 90 days in order to allow for the opt out period and adjustment to subscribers' bills and also to allow for refunds to be made over several billing cycles.I At least onetwelfth of the refund must be paid each month.  yO- ` x9.` ` The Resolution also sets new BST and CPST rates for the Los Angeles Area Systems. BST rates  xwill decrease in each of the Los Angeles Area Systems, including those where rates are not being regulated by a  xlocal franchising authority. Because CPST rates have been below the maximum permitted for those tiers, CPST rates  x-may increase, but in no case will the combined BST and CPST rates exceed current rates. The CPST rates in the  xResolution reflect Century's agreement to defer an amount equal to a portion of the 1996 annual CPST increase as  xcalculated on FCC Form 1240 for a twelvemonth period commencing on the Implementation Deadline. The amount  xdeferred is reflected in Exhibit 2 and the calculation is described in Exhibit 3. The four channels removed from  xthe benchmark rate calculation were priced at the benchmark rate determined for the other channels. These channels are included in the largest CPST offered for each system shown in Exhibit 2.  yO- ` x 10.` ` Because we are calculating BST rates and refund liability, local franchising authorities are given  xxthe right to opt out of the BST refunds included in Exhibit 1 by giving notice of their intent to both Century and  xithe Commission within 30 days of the effective date of the Resolution. If a local franchising authority exercises  x,its right to opt out of the refunds, the Resolution provides that the BST rate for that jurisdiction will not be binding  x,on Century. If a local franchising authority does opt out, however, it will be bound by the minusfour channel count  xJfor purposes of calculating refunds and establishing revised rates. Subject to the right of local franchising authorities  xxto opt out of the refunds, the refunds issued pursuant to the Resolution will finally resolve all BST and CPST rate cases filed prior to August 23, 1996 and also the reasonableness of the rates specified in Exhibit 2.  yO- ` x 11.` ` The Resolution provides that, unless a local franchising authority opts out of the refunds for its  xjcommunity, Century will not seek repayment of approximately $199,783 in franchise fees to which it would  yOp-otherwise be entitled when making refunds.CXpd BV yOd"- x<ԍ For this purpose, we are waiving the requirement in 47 C.F.R.  76.942(f) and 76.961(e) that franchising  xauthorities return to the operator any franchise fees attributable to the amount of the refunds being paid. This provision is unopposed.C  {O- ` ^x 12.` ` The Resolution vacates the Beverly Hills/Los Angeles LOI Order and the Bureau CPST orders, and  xupon our adoption of this Order, Century's applications for review of those orders will be deemed to be withdrawn, as provided in section 12(j) of the Resolution." ,-(-(ZZ"Ԍ yO- ` `ԙx 13.` ` The Resolution allows Century to avail itself of any applicable modifications of the law or  xYregulations governing rates charged for the Los Angeles Area Systems. Century also may adjust its rates in the event  xKthat such rates become unregulated for any reason. In either event, Century must still provide refunds according to the terms of the Resolution.  yO"P IV. COMMENTS ĐTP  yOx- ` Ax 14.` ` A total of 289 copies of the Commission's Order and the Proposed Resolution were served on  xcomplainants and representatives of local franchising authorities. The Commission received comments from the  yO- xiCities of Beverly Hills, Los Angeles, Santa Monica,sBV yO` -ԍ Los Angeles and Santa Monica jointly filed comments and further comments.s and West Hollywood, California ("commenting cities") and  xfrom three individual complainants, supplemental comments from Beverly Hills, further comments from Los Angeles  xand Santa Monica, reply comments from the California Cable Television Association ("CCTA") and Century, and supplemental materials from Century.  yO - ` x15.` ` The City of West Hollywood stated that it does not object to the concept of the rate resolution but  x.seeks clarification on some points in the Proposed Resolution and asks that BST subscriber refunds for West  xHollywood subscribers be computed over a longer period of time. The Cities of Beverly Hills, Los Angeles and  xxSanta Monica objected to the refunds and going forward rates included in the Proposed Resolution and to the fact  xthat they were not included in the Bureau's discussions with Century concerning the Proposed Resolution. Each of  xthe commenting cities raised questions about errors in the operator's rate forms. In addition, Santa Monica asked  xxfor clarification about the treatment of its utility user's tax in Century's rates, an issue to which CCTA responded  xwin reply comments. Santa Monica and West Hollywood asked for clarification regarding the impact of the Proposed  xResolution on uncontested matters in local rate orders. Hector L. Camilleri complained about a rate increase near  xYthe time of the Proposed Resolution. Zahra M. AniseLevine asked that refunds be paid to former as well as current  xsubscribers. Kevin Laubach asked that the Commission address issues concerning converter boxes. In its Reply  xzComments, Century addressed the comments from the local franchising authorities. Its subsequently filed  xsupplemental materials consist of revised rate forms and refund calculations, which it shared with the affected local  xYfranchising authorities. In their further comments, Los Angeles and Santa Monica argued that Century's corrections  xfall short of those needed for reasonable rates and fair refunds, and they requested assurance that local franchising authorities can enforce rates and refunds for equipment and installation charges.  yO8- ` Qx16.` ` On August 27, 1997, Century wrote to the Commission proposing to amend the Proposed  xResolution to exclude any of the commenting communities which did not want to be included in the Proposed  yO- xResolution.eXBV yO-ԍ Letter from Seth A. Davidson to William F. Caton (8/27/97).e On August 27, 1997, the Chief, Cable Services Bureau wrote to the commenting communities asking  yO- xeach to advise the Commission as to whether the community should be included in the Proposed Resolution.BV yO - xԍ Letter from Meredith J. Jones to Gregory W. Stepanicich (Beverly Hills), Helen J. Goss (West Hollywood), and William E. Cook, Jr. (Los Angeles and Santa Monica) (8/27/97). The  x<Cities of Beverly Hills, Los Angeles, Santa Monica, and West Hollywood each responded through counsel that it  yO -would like to be included.X @BV yO#- xԍ Beverly Hills: letter from Gregory W. Stepanicich to William F. Caton (9/10/97); Los Angeles: letter from  xZWilliam E. Cook, Jr. to William F. Caton (9/15/97); Santa Monica: letter from William E. Cook, Jr. to William F. Caton (9/15/97); West Hollywood: letter from Michael Jenkins to William F. Caton (9/5/97). "` ,-(-(ZZ"Ԍ yO g V. DISCUSSION ĐTP  yO- ` x17.` ` As an initial matter, we find that the Commission has authority to approve the Proposed  yOX- xResolution. The Communications Act of 1934 provides the Commission with wide discretion to resolve rate cases.XBV yO-ԍ Communications Act of 1934, as amended, 47 U.S.C.  151, et seq. ("Communications Act").  xSection 4(i) of the Communications Act authorizes the Commission to "perform any and all acts . . . not inconsistent  yO- xwith [the] Act, as may be necessary in the execution of its functions."@XBV yO-ԍ 47 U.S.C.  154(i).@ Section 4(j) provides that the "Commission  xmay conduct its proceedings in such manner as will best conduce to the proper dispatch of business and to the ends  yOx- xof justice. . . ."AxBV yO -ԍ 47 U.S.C.  154(j).A Our action in this case is fully consistent with the 1992 Cable Act and with Congress' dual  yO@- xobjectives of simplifying cable rate regulation and protecting consumers.m@xBV {OH -ԍ 47 U.S.C.  521(6); see also 47 U.S.C.  543(b)(2)(A).m We have concluded in other recent  xproceedings that the Commission has authority to consider the Proposed Resolution and to determine, after review  yO-and consideration of comments, that the rates set forth in the Resolution are not unreasonable.^ BV {Oj- xiԍ See Adelphia Communications Corp., FCC 97151, 12 FCC Rcd 6344, 635152 (1997) ("Adelphia"); TCI  {O4- xjCommunications, Inc. FCC 96187, 11 FCC Rcd 14696, 1469914700 (1996) ("TCI"); see also Garden State  {O-Cablevision, L.P., FCC 96261, 11 FCC Rcd 7327, 732930 (1996) ("Garden State").  yO` - ` x18.` ` We find that the rates and refunds provided for in the Resolution are not unreasonable. The  xyBureau reviewed FCC Forms 393, 1200, 1210, and 1240 for the eight community unit identification numbers  yO - x("CUIDs") included in the Resolution. 0 BV yO- xԍ The Commission has assigned CUID numbers to local communities across the country for identification purposes. The Resolution takes into consideration certain offsets and channel count  xadjustments claimed by Century and also the benefit to consumers of prompt, certain relief. The major features of  yO -the Resolution reflect principles that have been adopted by the Commission in previous rate orders.9h BV {O- xYԍ See Adelphia, FCC 97151  14, 22, 2830 (global resolution of rate complaints, exclusion of channels from  {Ob- xbenchmark formula rate calculation, adoption of local franchising authority "opt out" provision); TCI, 11 FCC Rcd  xat 14723 (global resolution of rate complaints); Comcast Cable Communications, Inc., 11 FCC Rcd 4029, 403233  x(1995) (global resolution of rate complaints); Social Contract for Time Warner, 11 FCC Rcd 2788, 2858, 2860, 2862  {O- xY(1995), appeal pending sub nom. Intercommunity Cable Regulatory Comm'n v. FCC, No. 96-1027 (D.C. Cir., filed  xJan. 29, 1996) (motion to hold in abeyance granted by order dated June 12, 1996) (global resolution of rate  xxcomplaints, exclusion of channels from benchmark formula rate calculation, waiver of franchise fee repayment);  xSocial Contract for Continental Cablevision, 11 FCC Rcd 299, 34344 (1995) (global resolution of CPST rate  x-complaints and BST rate proceedings, adoption of local franchising authority "opt out" provision); Continental  yO!- xCablevision, Inc. Amended Social Contract, 11 FCC Rcd 11118, 11170 (exclusion of channels from benchmark  {On"- xformula rate calculation) ("Continental Amended Social Contract"); Garden State, 11 FCC Rcd at 7334 (global resolution of rate complaints). 9  yO- ` x19.` ` Were the Commission to resolve the pending CPST complaints without addressing BST ratemaking  xand refunds and without the offsets and channel count adjustments incorporated in the Resolution, Century would  xbe able to prolong the ultimate resolution of these matters by filing petitions for reconsideration of each order and  xiby seeking review of our orders on reconsideration in a federal appeals court. Under the Resolution, Century will"h,-(-(ZZ"  x-not seek reconsideration or appellate review of the channel count determined in the Resolution or of the refund  xlevels and rate reductions required by the Resolution, and it will issue its first refunds and reduce rates within no  yO-more than 120 days of our adoption of this Order.BV yO- xiԍ This 120 day period provides time for the billing company used by the operator to adjust bills as necessary after the opt out period ends.  yO - ` "x20.` ` The courts have long recognized that regulatory agencies have broad discretion to choose among  xratemaking methods and procedures in ratemaking determinations, provided that the resulting rates are within a range  yO- x;of reasonableness.& BV {O` - x,ԍ See Federal Power Comm'n v. Natural Gas Pipeline Co. of America, 315 U.S. 515, 58586 (1942); cf. FERC  {O* - xv. Pennzoil Producing Co., 439 U.S. 508, 517 (1979) (construing ratemaking standard under the Natural Gas Act);  {O - xPermian Basin Area Rate Cases, 390 U.S. 747, 797 (1968) (construing ratemaking standard under the Natural Gas Act and affirming aggregated ratemaking approach). The process of adjudicating each of the rate complaints individually and litigating those rulings  xhthrough the courts a process likely to take several years would not benefit subscribers, given that the Resolution provides for reasonable rates and refunds immediately.  yO- ` x21.` ` To the extent that adoption of the Resolution requires waiver of any of our rules, or modifications  xto the information required on Commission forms, we find that such waiver or modification will ensure the  xexpeditious resolution of a large number of rate complaints while protecting consumers' statutory interest in CPST  x=rates that are not unreasonable. We recognize that our rules contemplate an adjudication of each CPST rate  yO - xcomplaint pursuant to specific ratemaking standards.Z BV {O-ԍ See 47 C.F.R.  76.922, 76.950963.Z To the extent that we diverge from these rules by adopting  yO - xthis Resolution, we find good cause to waive these rules pursuant to section 1.3 of our rules,  BV yO- x>ԍ Section 1.3 of the Commission's rules provides: "Any provision of the rules may be waived by the Commission on its own motion . . . if good cause therefor is shown." 47 C.F.R  1.3. because as further  xdiscussed herein, strict compliance with our rules would not serve the public interest under the circumstances before  yOH - xus.!H BV {O- x-ԍ See Northeast Cellular Telephone Co., L.P. v. FCC, 897 F.2d 1164, 1166 (D.C. Cir. 1990) (citing WAIT Radio v. FCC, 418 F.2d 1153, 1159 (D.C. Cir. 1969). We find that a waiver furthers the purpose of the rules because the Resolution effectively achieves the  xobjectives of the 1992 Cable Act by ensuring the expeditious resolution of all pending benchmark rate complaints  xregarding the affected systems while protecting consumers from unreasonable BST and CPST rates through rate  xreductions and refunds. We further observe that the Commission's authority to resolve cases in an analogous manner  yOh-has been affirmed in other contexts."hR BV {OJ- xԍ See New York State Dep't of Law v. FCC, 984 F.2d 1209, 1220 (D.C. Cir. 1993) (consent decree settling enforcement action upheld).  yO- ` Ax22.` ` The process followed here balances the need to present a reasonable resolution of a myriad of  xhcontested rate complaints with a real opportunity for those interested to present their views. Although our standard  xprocedures for the review of CPST rates do not include an opportunity for local franchising authorities,  xcomplainants, or others to participate in our decisionmaking process prior to the issuance of an initial order resolving"P",-(-(ZZ"  yO- xthe complaint that triggered our review,#"BV {OX- xԍ See 47 C.F.R.  76.957 ("The Commission will consider the complaint and the cable operator's response and  xthen determine by written decision whether the rate for the cable programming service or associated equipment is  xunreasonable or not.") The complainant and the cable operator participate in the decisionmaking process before the initial order is issued only by submitting the complaint and any response to the complaint. local franchising authorities and other interested parties were given a full  x;and fair opportunity to participate in our deliberative process by submitting comments on the Proposed Resolution,  yO- xiwhich, by its terms, was not binding on any party prior to our adoption of it in this Order as a final Resolution.$BV yO- xԍ Information provided by Century can be found in the Bureau Public Reference Room (Century Rate  {O- xYResolution Collection). Copies can be ordered through ITS or by calling ITS at (202) 8573800. See Public Notice,  xwAdditional Information Available for Public Inspection on Century Communications Corporation Cable Service Tier  {O, - x-Rates, DA 961524 (Cab. Serv. Bur. released Sept. 11, 1996). See also 47 C.F.R.  1.1204(b)(7) (1996) & note  x/(permitting ex parte communications in restricted proceedings that have not been set for hearing if such  x.communications are requested by the Commission or its staff in connection with the resolution of issues and  xrequiring that new information be made available to the public). For purposes of this provision, the Commission's  x<review of a CPST rate complaint was considered a restricted proceeding until June 2, 1997 when amendments to  xthe Commission's ex parte rules became effective, reclassifying cable rate proceedings as permitbutdisclose  {O- xproceedings for ex parte purposes. See Amendment of 47 C.F.R.  1.1200 et seq. Concerning Ex Parte Presentations in Commission Proceedings, GC Docket No. 9521, FCC 9792, App. B,  1.1206(a)(11).  xKThe Bureau also discussed the terms of the Resolution with local franchising authorities. The Bureau encouraged  xCentury to discuss matters raised in comments with the local franchising authorities, which it has done, and it has  xadjusted its rate forms, BST rates and refund calculations as a result of those discussions. Furthermore, although  xhthe operator's discussions with the Commission included matters of refunds and rates applicable to BST service, local  xfranchising authorities are not bound by the operator's choice to resolve BST matters through the Commission. They may opt out of the refund aspect of the Resolution and seek to enforce their own rate orders.  yO- ` Ax23.` ` The calculation of the benchmark rates using the minusfour channel count instead of the full  xchannel count is a reasonable means of resolving the dispute regarding Century's removal of a large number of  xhchannels from its BST and CPST to an a la carte package in the systems covered by the Resolution. The Resolution  xprovides that the benchmark rates are to be calculated as if Century initially had moved only four channels, rather  xxthan as many as twelve channels, into the Century Select a la carte package. The Commission has determined in  xYother cases that an operator's movement of four channels out of the BST or CPST did not constitute evasion of our  yO - xirules and therefore was not prohibited.% BV {O(- xԍ See Comcast Cablevision, City of Tallahassee, FL, 11 FCC Rcd 1246 (1995); Comcast Cablevision, Sterling  xHeights, MI, LOI9411, 10 FCC Rcd 537 (Cab. Serv. Bur. 1994); US Cable, City of Lake Forest, IL, Village of  xZLake Bluff, IL, 10 FCC Rcd 533, LOI 9313 (Cab. Serv. Bur. 1994); Warner Cable Communications, Milwaukee,  x,WI, LOI9314, 9 FCC Rcd 7777 (Cab. Serv. Bur. 1994); TKR Cable of Hamilton, Hamilton Twp., NJ, LOI9331,  xZ9 FCC Rcd 7325 (Cab. Serv. Bur. 1994); Dimension Cable Services, Oceanside, CA, LOI9336, 9 FCC Rcd 7311  x(Cab. Serv. Bur. 1994). The Bureau found that 6channel a la carte offerings were not clearly unreasonable in  xNashoba Cable Services, Danvers, MA, LOI9323, 10 FCC Rcd 994 (Cab. Serv. Bur. 1994); Falcon Cable TV, Port  xJOrchard, WA, LOI9350, 10 FCC Rcd 998 (Cab. Serv. Bur. 1994); Chattanooga Cable TV Company, Chattanooga,  xTN, LOI9351, 10 FCC Rcd 1519 (Cab. Serv. Bur. 1994). No refunds were ordered in these cases for a la carte offerings. However, instead of allowing Century to offer those four channels on a  yOH - x,marketpriced basis as a new product tier,Z&H BV {O%-ԍ See 47 C.F.R.  76.986(c); 76.987.Z which was permitted in cases in which only a few channels were actually  xremoved, the Resolution provides that those four channels will be priced at the benchmark rate, continue to be  xregulated as part of a CPST, and subject to the price caps applicable to CPST under our rules. The Resolution" D&,-(-(ZZ"  xresolves multiple CPST complaints, as well as issues raised in BST proceedings pending before the Commission,  xYand will ensure prompt payment of refunds and immediate rate reductions. The implementation of these provisions  xwill not be delayed by Century's attempt to modify or reverse them through review procedures, because the Resolution includes an agreement by Century to forego further Commission or appellate review of its terms.  yO- ` x24.` ` Administrative agencies are not precluded from modifying their approach to particular issues when  xcircumstances warrant such action. Agencies may depart from prior decisions so long as they have a rational basis  yOx- xfor doing so and explain their reasoning.$'xBV {O- x<ԍ National Conservative Political Action Comm. v. Federal Election Comm'n, 626 F.2d 953, 959 (D.C. Cir.  xK1980) ("Agencies are under an obligation to follow their own regulations, procedures, and precedents, or provide  {Ob - xa rational explanation for their departures"); Greater Boston Television Corp. v. FCC, 444 F.2d 841, 852 (1970),  {O, - xcert. denied, 403 U.S. 923 (1971) ("An agency's view of what is in the public interest may change . . . . But an  xagency changing its course must supply a reasoned analysis indicating that prior policies and standards are being deliberately changed, not casually ignored . . . ." (footnotes omitted)).$ We believe that the resulting refund levels and rate reductions required  xby the Resolution strike an appropriate balance between maximizing the compensation due subscribers for past  xovercharges and minimizing delay and uncertainty in the payment of refunds and the implementation of prospective  xrate reductions. For these reasons, we believe that vacating the disputed Bureau LOI orders, rate orders, and local rate order appeal orders and implementing the minusfour channel count in the Resolution is warranted.  yO( - ` |x25.` ` The Cities of Los Angeles and Santa Monica also question the treatment of channel changes made  xxon April 1, 1994. They contend that Century's "1200 Rate Computation Addendum" attached to its FCC Forms  x1200 erroneously shows that Century moved two channels from Century Select to BST on April 1, 1994, when these  xchannels were actually moved to a CPST minitier on April 1 and not moved to BST until July 14, 1994. The two  xchannels were replaced in the Century Select package with two new channels, for a net increase of two channels  x=overall for each system. The two cities object to recouping costs attributable to the two channels from BST  xsubscribers as of April 1, 1994 and also question the rates set for the minitiers. Century acknowledged in its reply  xcomments that it moved the two channels to a minitier when it added them to each of the systems but treated them  xas BST channels from April 1 forward in its revised rate forms, because the channels "were provided on an  yO0- xunsecured basis to all subscribers, effectively rendering them BST services."G(0FBV yO-ԍ Century Reply Comments at 28.G Century has corrected its 1200 Rate  xComputation Addendums for its Los Angeles and Santa Monica systems to reflect that the minitier channels were  yO- xJadded to CPST on April 1, 1994.I)ZBV yO&- xԍ Letter from Seth A. Davidson to Peggy Greene (6/17/97), with attachments. Century also submitted revised  xaddendums for Beverly Hills and West Hollywood where two channels were added to an existing CPST on April  {O-1, 1994. See id.I This correction has slightly increased the Santa Monica refund amount, but does  xnot affect refunds for the City of Los Angeles, where Century had previously settled BST refund issues through October 31, 1995.  yO- ` ^x26.` ` For the purpose of the Resolution, Century reconstructed rate forms and set rates as if eight of its  xa la carte channels were regulated at the initial date of regulation. Four additional a la carte channels were excluded  xfrom the channel count for the purpose of setting the per channel rate. Using this adjusted channel count in its  xbenchmark calculation on FCC Form 393, Century determined the per channel rate for its regulated channels as of  xthe initial date of regulation, and it set the tier rates by multiplying the per channel rate by the number of channels  xxin the tier. It applied this per channel rate to the four channels excluded from the channel count for purposes of  xxdetermining the per channel rate. It applied this same per channel rate to the two channels added to the Los and  x,Santa Monica systems when it created twochannel "minitiers" on April 1, 1994. Although the two cities question  x;whether the minitier channels were appropriately priced, they were priced for the Resolution in the same way they"  ),-(-(ZZ"  {O- xKwere priced in the Bureau's rate orders for Los Angeles and Santa Monica, i.e, at the per channel rate determined  yO- xhas of the initial date of regulation.D*\BV {O"- xԍ Los Angeles Area F Rate Order, 10 FCC Rcd at 434647; Los Angeles Area G Rate Order, 10 FCC Rcd at  {O- x5119; Los Angeles Area H Rate Order, 10 FCC Rcd at 433637; Santa Monica Rate Order, 10 FCC Rcd at 434243.D Century argues that this is consistent with past precedent. No local franchising  xauthorities or other complainants sought reconsideration or review of the rate orders on this point. Treating the  x-channels in the Resolution as they were treated in the rate orders has facilitated an expeditious resolution of the  xpending complaints, bringing subscribers certain refunds and reduced BST rates and eliminating the risks and delays  xof further litigation about the Bureau's rulings on Century's a la carte channels. Resolution section 12(e) leaves the  xquestion open in the event of an opt out, providing that the "effect on Century's maximum permitted rates of any  xadditions, deletions, or substitutions of channels will be governed by Commission rules applicable at the time such channel additions, deletions or substitutions were made." (Citations omitted.)  yO- ` x27.` ` Santa Monica asks that the Commission clarify the status of any equipment and installation refunds  yO- xthat may be owing pursuant to the City's July 19, 1994 local rate order.A+BV yO- xԍ Comments of the City of Los Angeles and the City of Santa Monica at 2223 and Exh. E (A Resolution of  xthe City Council of the City of Santa Monica Adopting a Rate Order Regarding Basic Service Rates and Associated  xCharges of Century Southwest Cable Television, Inc. and Regarding Further Information Regarding Delinquent  xAccount Charges, Resolution No. 8781, adopted July 19, 1994); Further Comments of the City of Los Angeles and the City of Santa Monica at 46.A As the City notes, the Resolution states  xxthat it resolves BST and CPST rate cases filed prior to the Publication Date. Of particular concern to the City is  x<whether the Resolution resolves any issues related to equipment and installation rates or refunds addressed in the  xlocal rate order but not raised in Century's appeal of the rate order to the Commission. Santa Monica argues that  xthe Resolution should not resolve such issues, and seeks Commission clarification that a local franchising authority  xJopting into the BST refunds retains the right to review the reasonableness of equipment and installation rates during  xLthe refund period covered by the Resolution and to order refunds, if any. Century disagrees with this request,  x,arguing that resolving BST rates implicitly resolves equipment and installation rates because of the interdependence  yO- xof the rates in the benchmark rate forms.J,BV yO-ԍ Century Reply Comments at 2427.J In its view, if the City opts into the refunds and rates provided in the  xResolution, it should not be able to further address equipment and installation issues in Century's FCC Form 393  xJor its first Form 1205. Century agrees that the "Proposed Resolution will not affect the review of any annual Form  yO2-1205 submission made by Century subsequent to the initial Form 1205."-2, BV {O- xYԍ Century Reply Comments at 26. See TCI Cablevision of Oregon, Inc. (Multnoma County and Portland, OR), 10 FCC Rcd 12547, 12550 n.29 (Cab. Serv. Bur. 1995).  yO- ` x28.` ` The 1992 Cable Act requires that the rates for installation and equipment used by subscribers to  xKreceive the BST, including the installation and use of connections for additional television receivers, be based on  yOR- xyactual cost, while the rates for the BST itself are to be reasonable.p.R BV yOh"-ԍ Communications Act  623(b)(1), (3), 47 U.S.C.  543(b)(1), (3).p The Commission concluded that, to best  ximplement the Act, equipment and installation rates should be included in an equipment "basket" and should be  xunbundled from programming service rates. FCC Form 393, which was used to establish initial regulated rates until  xJMay 15, 1994, and Form 1200, which has been used thereafter, provide for computing equipment basket rates based  xon costs, unbundling those costs from programming service charges, and then computing the maximum permitted"r .,-(-(ZZ"  yO- xiunbundled programming service rates.%/BV {OX- x[ԍ See Telerama, Inc. (Euclid, OH), DA 962085, slip. op at 34  67 (Cab. Serv. Bur. released Dec. 13,  yO"-1996); TCI Cablevision of Oregon, Inc. (Multnoma County and Portland, OR), 10 FCC Rcd at 1254748.% Because the unbundling is achieved by first combining monthly revenues  xhfrom programming service and equipment basket charges, the resulting rates are interdependent, which both Century  xand the City of Santa Monica acknowledge. A decrease in equipment basket rates, for example, results in a corresponding increase in the per channel programming service rate.  yO- ` x29.` ` Exercising its jurisdiction over Century's equipment basket rates,f0"BV yO-ԍ Communications Act  623(b)(3), 47 U.S.C.  543(b)(3).f Santa Monica specified in its  xxJuly 19, 1994 local rate order what those rates should be for the period from September 1, 1993 through July 14,  yOx- x1994.1 xBV yO - xԍ Resolution No. 8781 (City Council Series), A Resolution of the City Council of the City of Santa Monica  xMAdopting a Rate Order Regarding Basic Service Rates and Associated Charges of Century Southwest Cable  xwTelevision, Inc. and Requesting Further Information Regarding Delinquent Account Charges, Adopted July 19, 1994, Comments of the City of Los Angeles and the City of Santa Monica, Exhibit E at 811. Century did not appeal this part of the local rate order and has made revisions to the equipment basket  xcalculations in its FCC Forms 393, 1200 and 1205 submitted in this proceeding to reflect corrections requested by  yO- xwthe City.2BV yO2- x-ԍ Century Reply Comments at 2122; Further Comments of the City of Los Angeles and the City of Santa Monica at 45. With these corrections, the equipment basket rates shown it its Form 393 conform to the rates specified  xin the local rate order, and there appears to be no dispute about the equipment basket rates now shown in Century's  xKForm 393 and first Form 1205. Because the BST rates determined in this proceeding from Forms 393 and 1200  xreflect the City's order regarding equipment basket rates, and because reopening those equipment basket rates would  xireopen the BST rates and refunds determined in this Resolution, we view them as settled if the City opts into the  x;Resolution. However, we agree with the City that, if it opts into the Resolution, it is not foreclosed from enforcing  x<the equipment basket rates used to compute the Resolution BST rates. The refunds ordered in the Resolution do  xnot take into account any overcharges for equipment basket rates Century might have collected. We note that the  xCity's local rate order allows Century to offset equipment basket undercharges against both BST and installation  xZovercharges. We have not considered equipment basket offsets in determining the BST refunds ordered pursuant  x,to the Resolution. Because the Resolution incorporates other offsets into the BST refund calculation, no additional  x;offsets from equipment charges should be applied to Santa Monica BST refunds if the City opts into the Resolution. Nothing herein precludes offsets within the equipment basket, however.  yO- ` "x30.` ` The City of Santa Monica asks the Commission to clarify that the permitted Santa Monica rates  xset forth in the Resolution are inclusive of the 10 % Santa Monica Utility User's Tax owed by Century's subscribers  xZon charges for cable television service. Century collects this tax on behalf of the City, but the City enforces the  xtax obligation directly against delinquent subscribers. Century argues that the City's first local rate order did not  xquestion Century's practice of externalizing this tax, and that it is entitled to recover this tax from subscribers. We  xwhave reviewed the City's rate order and agree with Century that it does not appear to require any change in Century's  {O- xtreatment of the utility user's tax. Likewise, the Bureau's Santa Monica Rate Order left Century's treatment of the  yOr- xutility user's tax unchanged,:3r BV yO#-ԍ 10 FCC Rcd 4341.: and the City did not seek review on this point. In the context of the Resolution, we"r 3,-(-(ZZ"  xwill not depart from these City and Bureau orders by raising for the first time issues not previously addressed or  yO-challenged in the context of Century's rates.4BBV yO - xԍ CCTA filed Reply Comments, arguing on the basis of an economic consultant's analysis that utility user's  xtaxes were not included in operator responses to the Benchmark Questionnaire and, therefore, not incorporated in  xKthe Commission's benchmark rates. CCTA Reply Comments at 12. According to CCTA's consultant, the tax is  xxexcluded from the definition of the operator's "gross revenues" by the Santa Monica Cable Franchise Agreement.  {O@- xxId., Att. A, Barakat & Chamberlin, Report, Analysis of the Treatment of Utility User Taxes in Cable Television  xRatemaking, at 11, quoting from City of Santa Monica Cable Ordinance Chapter 6.108.02.020 ("Definitions").  xCCTA advises that the tax is not included as revenue or an expense on the company's books. CCTA Reply Comments at 10 & n.26.  yOX- ` x31.` ` The City of West Hollywood seeks clarification about the status of its local rate orders._5XBV yO -ԍ Letter comments of the City of West Hollywood at 23._ The City  x;wants assurance that the Resolution will not invalidate its local refund order covering the period from July 14, 1994  xxthrough April 30, 1995, but it would like the Resolution to supplement the refunds ordered in the local rate order  xfor that period and the previous period going back to September 1, 1993 in light of our resolution of the a la carte  xissue. The City argues that its local rate orders, Resolutions 941271 and 951467.1, reserved the right to revisit  xpreviously ordered refunds once the Commission resolved the a la carte issue. Century agrees that this Commission  x;Resolution should not supplant the West Hollywood rate orders, because they are not the subject of pending appeals  xZat the Commission, but disagrees with the request that the BST refund calculation for the Resolution be extended  xback from May 1, 1995, the date from which BST refunds are computed for West Hollywood subscribers in the  yO` -Resolution.J6` b BV yOR-ԍ Century Reply Comments at 2425.J  yO - ` "x32.` ` The Resolution we are adopting is intended to resolve BST and CPST matters pending before the  xCommission but does not reach to local rate orders not before us on appeal or application for review. Thus, it does  xnot affect the West Hollywood rate orders or preclude local enforcement of those rate orders. The BST refund  xliability in the Resolution was determined backward for one year from Century's May 1, 1996 rate increase, and  xliability continues to accrue until the rates agreed to in the Resolution are implemented. This treatment computes  xsubscriber refunds in West Hollywood for a longer period than that provided for in the applicable Commission's  yO-rules.7 BV {O"- xԍ See 47 C.F.R.  76.933(a) (local franchising authorities unable to rule on operator's rate filing in a timely  xfashion may preserve their right to order refunds by issuing an order tolling the deadline for review for 90 days and  x<then issuing a brief written accounting order before the 90day period expires); 47 C.F.R.  76.942(c)(2) (refund  xperiod pursuant to an accounting order limited to no longer than a year overall). However, refund liability  xYdetermined in a valid local rate order continues to accrue from the effective date of the rate order until the operator complies with the order. 47 C.F.R.  76.942(b).   yO0- ` x 33.` ` The City of West Hollywood seeks clarification of section 12(f) of the Proposed Resolution, which  xprovides that Century will not seek repayment of franchise fees from the local franchising authorities for the Los  xAngeles Area Systems with respect to the refunds paid pursuant to the Resolution. The City is concerned that  xCentury could indirectly recover these franchise fee payments by using the issuance of subscriber bill credits to  yOP- xreduce the basis for determining future franchise fee payments.V8PlBV yOL&-ԍ City of West Hollywood Letter Comments at 3.V Century advises that it has no objection to revising  xthe Proposed Resolution to make clear that indirect recovery of franchise fee overpayments is not permitted. " 8,-(-(ZZq"  xCentury states that is supports the following revision to paragraph 12(f), which was proposed by the City in  yO-discussions with Century regarding this issue:J9BV yO -ԍ Century Reply Comments at 2223.J  ` XxX` ` (f) Century will not seek repayment from any LFA of any Los Angeles Area  ` 'System of franchise fee overpayments otherwise due Century as a result of the  yO- ` 7payment of the Refunds specified in Exhibit 1, nor will Century credit such  ` (Refunds against any past or future amounts used to determine franchise fee  yOx-payments.x` We have amended the Resolution accordingly.  yO- ` Ax!34.` ` The City of West Hollywood also seeks clarification as to: (1) the period of time over which  xCentury can recover the portion of its otherwise permitted CPST rate increase it has agreed to defer; and (2) the time  yO( - xcycle for Century's subsequent 1240 rate submissions.X:( XBV yO-ԍ City of West Hollywood Letter Comments at 56.X Century advises that it has discussed these issues with West  x<Hollywood and has reached agreement on the language that will address the City's concerns by making clear that  xJrecovery of the deferred CPST rate increase will be spread over a twelvemonth period (thereby minimizing the risk  x-of a sudden, onetime rate spike) and that Century's next Form 1240 rate increase will be no earlier than August  yOH - x1, 1997 (thereby minimizing the risk of multiple rate increases).;H BV yO- xԍ We are waiving the limitations on filing annual rate adjustments in 47 C.F.R.  76.922(e) in order to implement these provisions. Century proposes and West Hollywood agrees that paragraph 12(h) of the Proposed Resolution be amended to read as follows:  ` XxX` ` (h) No later than the Implementation Deadline, Century will implement the BST  ` 'and CPST rates specified in Column (A) of Exhibit 2. The implementation of  ` rthese rates will result in a reduction in the BST rates in each of the Los Angeles  ` uArea Systems. In addition, CPST rates implemented pursuant to the  ` subparagraph reflect Century's agreement to defer, for a twelvemonth period  ` commencing on the Implementation Deadline, a portion of the otherwise  ` permitted Form 1240 increase in the CPST rates of the Los Angeles Area  yO- ` cSystems, as reflected in Column (B) of Exhibit 2. In accordance with the Form  ` E1240 calculations performed to determine maximum permitted BST and CPST  ` srates for purposes of this Resolution, Century's next annual Form 1240 rate  yOp- ` adjustments shall be no earlier than August 1, [1998]. Notwithstanding the  yO8- ` rscheduled date of its next subsequent annual Form 1240 adjustment, Century, at  ` sthe end of the twelvemonth deferral period, and upon thirty days notice to  ` subscribers, may adjust its CPST rates to recover any amounts deferred under  yO- ` this paragraph, such recovery to be calculated over a period of at least twelve  yOX- `  months, in accordance with the Commission's rules governing the recovery of  yO - ` deferred Form 1240 rate adjustments. Such adjustments may not include any  ` Eadjustments for inflation, increases in external costs, or other adjustments that  yO-may be determined in connection with a regular Form 1240 filing.x` "x@;,-(-(ZZ+ "Ԍ yO- xWe have amended the Resolution accordingly, but have changed the date for the next Form 1240 rate adjustment  yO-to August 1, 1998 from August 1, 1997.< BV yO - xiԍ To facilitate early implementation of the Resolution rates and refunds, we are waiving the requirements of  xL47 C.F.R.  76.309(c)(3)(i)(B) and 76.964 that subscribers and local franchising authorities be given 30day  xadvance notification of the rate changes in Resolution Exhibit 2 that are being implemented as a result of the Resolution.  yOX- ` 2x"35.` ` Hector L. Camilleri comments that he was encouraged by the proposed refunds but concerned  xZabout an intervening BST rate increase. The Resolution adjusts the rates and refunds in the Proposed Resolution  x<to bring them current. Subscribers will receive refunds for BST rates put into effect in both the summer of 1996 and the summer of 1997.  yO@- ` x#36.` ` Zahra M. AniseLevine, a former subscriber who has moved from the area, objects to Century's  x<plan to make refunds only to current subscribers. The Commission's rules allow an operator, at its discretion, to  xhimplement a refund in one of two ways either through identification of actual subscribers or through a prospective  yO- xpercentage reduction of the rates to the class of subscribers that currently subscribe to the service.C=BV yO-ԍ 47 C.F.R.  76.961(c).C Operators face  x>constant changes to their subscriber base making it difficult, if not impossible, to identify all such former  xsubscribers, maintain current address lists for them, and determine what portion of the refund amount should be  xremitted to any former subscriber for the period of that subscriber's subscription. We are convinced that the expense  xassociated with giving refunds to all former subscribers would be large and that making such refunds would be  xunduly burdensome to Century. We conclude that the payment method proposed for the refunds, as credits to current subscribers, is consistent with our rules and is appropriate.  yO- ` x$37.` ` Kevin Laubach complains that, in West Hollywood, subscribers taking less than the full  xcomplement of services offered by Century must use Century's converter box. According to Mr. Laubach, this  x;requires an installation charge and an extra remote control. He also complains that he must deal with special wiring  x-and additional technical complexity in order to use his VCR with the converter. He advocates that basic service  xibe provided without the need for a converter box, and complains that subscribers can avoid the inconvenience of  xwthe converter only by incurring the expense of subscribing to all of the services Century offers, whether or not they  xwant or use the extra services. We recognize Mr. Laubach's concerns regarding the converter box and the  xdifficulties of using his VCR with a converter, but addressing these concerns is beyond the scope of this  yO-proceeding.>@BV yO - xԍ We note that  76.630 of the Commission's rules, 47 C.F.R.  76.630, generally prohibits scrambling of signals carried on the BST.  yO-  VI. CONCLUSION AND ORDERING CLAUSES ă  yO8- ` x%38.` ` For the reasons discussed above, we conclude that it is in the public interest to adopt the Resolution as amended.   yO- ` x&39.` ` Accordingly, IT IS ORDERED that the March 28, 1997 Request for Leave to File Additional  yOX-Pleading by the City of Los Angeles and the City of Santa Monica IS GRANTED .  yO- ` mx'40.` ` IT IS FURTHER ORDERED that the Resolution attached to this Order as Attachment A IS  yOADOPTED AND INCORPORATED HEREIN. "x>,-(-(ZZ "Ԍ yO- ` #x(41.` ` IT IS FURTHER ORDERED that all CPST rate complaints under the jurisdiction of the  xxCommission against Century Communications Corporation as of August 23, 1996 for its cable systems operating  yO- xin Bell Canyon, Beverly Hills, Los Angeles, Marina Del Rey, Santa Monica, and West Hollywood, California ARE  yOX-GRANTED to the extent necessary to effectuate the Resolution and ARE DENIED in all other respects.  yO- ` ?x)42.` ` IT IS FURTHER ORDERED that the orders in Century Southwest Cable TV, Beverly Hills, CA,  yO- x+ DA 951135; and Century Southwest Cable Television, Santa Monica, CA, DA 95123, ARE HEREBY VACATED  x;and that all pending BST appeals, related petitions for stay, and applications for review filed by Century concerning  x,rate orders that were issued by the communities of Beverly Hills and Santa Monica, California and that address rates  yO-subject to the Resolution ARE HEREBY DISMISSED as moot.F?BV {O` -ԍ See n.10, supra.F  yO- ` 0x*43.` ` IT IS FURTHER ORDERED that Century Southwest Cable TV, Beverly Hills and Los Angeles,  x;CA, LOI9317, DA 941553; Century Southwest Cable Television III, Marina Del Rey, CA (CUID No. CA 0550),  xDA 95525; Century Southwest Cable Television, West Hollywood (CUID No. CA0254), DA 95478; Century  x;Southwest Cable Television I, Los Angeles, CA (CUID No. CA0253, Area G), DA 95516; Century Southwest Cable  xTelevision, Beverly Hills, CA (CUID No. CA0457), DA 95314; Century Southwest Cable Television III, Los  xAngeles, CA (CUID No. CA0253, Area F), DA 95499; Century Southwest Cable Television III, Santa Monica, CA  x(CUID No. CA0456), DA 95500; Century Southwest Cable Television II, Los Angeles, CA (CUID No. CA0253,  xKArea H), DA 95498; Century Southwest Cable Television, Bell Canyon, CA (CUID No. CA0726), DA 95433,  yO- xw ARE HEREBY VACATED and that Century's Applications for Review of the foregoing orders ARE DEEMED  yOWITHDRAWN .  yO0- ` x+44.` ` IT IS FURTHER ORDERED that waivers of 47 C.F.R.  76.942(d)(2), 76.961(c)(2), 76.942(f),  yO-76.961(e), 76.922(e), 76.962, 76.309(c)(3)(i)(B), and 76.964 as discussed herein, ARE GRANTED .  yO- ` xx,45.` ` IT IS FURTHER ORDERED that waivers of 47 C.F.R.  76.922 and 76.950963, to the extent  yOP-individual adjudication of CPST rate complaints is required thereby, ARE GRANTED .  yO- ` !x-46.` ` IT IS FURTHER ORDERED that the Cable Services Bureau IS GIVEN delegated authority to oversee implementation of this Resolution, as adopted.  yO8-xx.47.` ` IT IS FURTHER ORDERED that this Order IS EFFECTIVE upon adoption. x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@William F. Caton x` `  hh@Acting Secretary"Z?,-(-(ZZ," X01Í ÍX81Í Í  X-  TERMS OF RESOLUTION ă  yOA- I. INTRODUCTION. ă  yO- `  1 / I. A. 1.(a)(1)(a) i) a)x1.` ` These terms constitute a resolution of refunds owed subscribers in certain Los Angeles cable  x-communities in which cable systems (referred and defined herein as the "Los Angeles Area Systems") owned and  xJoperated by Century Communications Corporation and its affiliates and subsidiaries (collectively "Century") created  {O)-packages of a la carte channels. CPST rate complaints are pending with respect to each of these communities.  yO- II. BACKGROUND. ă  {OK - ` x2.` ` In each of the Los Angeles Area Systems, Century began providing packages of a la carte channels  x(the "Century Select" offerings) between April 1, 1993 and September 30, 1994. On December 22, 1994, the  xCommission's Cable Services Bureau ("Bureau") released a Letter of Inquiry ("LOI") ruling finding that the Century  xSelect offerings in Century's Los Angeles and Beverly Hills systems must be treated as regulated CPSTs (DA94 x1553). Century has filed an Application for Review of the Los Angeles/Beverly Hills LOI ruling. In addition, the  xBureau has issued eight CPST rate orders relying on the Los Angeles/Beverly Hills LOI ruling in finding that the  xCentury Select offerings in the Los Angeles Area Systems must be treated as regulated CPSTs. (DA95314,  x.DA95433, DA95478, DA95498, DA95499, DA95500, DA95516, DA95525). Century has filed Applications for Review of these rate orders.  yO- ` x3.` ` Thereafter, the Bureau staff met with Century to discuss resolution of issues relating to the rate  xcomplaints and the LOI decision. Century represented to the Commission that its initial decision to use the  xYCommission's benchmark formula to establish its rates was premised upon its goodfaith assumption that its Century  {Ou- xSelect package was a lawful a la carte offering. Century further represented that, in light of the LOI decision,  xapplication of the benchmark formula produced different maximum permitted rates in the Los Angeles Area Systems  xthan the rates actually charged by Century. As part of this process, Century submitted benchmark rate filings for  xthe Los Angeles Area Systems premised on the exclusion of four of the Century Select channels from the count of  xZregulated channels for purposes of calculating Century's maximum permitted benchmark rates (Forms 393, 1200 series, 1210, 1240).  yO- ` x4.` ` Century maintains that it followed the letter and spirit of the Commission's rules and the 1992  xiCable Act in creating its Century Select offerings and that those offerings should not be treated as regulated tiers.  xYCentury and the Commission desire to resolve the pending CPST rate cases involving the Los Angeles Area Systems and the various issues regarding the Century Select offerings described above under the terms set forth below.  yO- III. DEFINITIONS. ă  yOg-x5.` ` As used herein, the following definitions will apply:  yO - psXxX` ` (a)X "BST" means the tier of "Basic Service" as defined in Section 76.901 of the Commission's rules, 47 C.F.R. 76.901.(#  yOO#-  pXxX` ` (b)X "CPST" means any tier of cable programming service as defined in Section 76.901 of the Commission's rules, 47 C.F.R. 76.901.(#  yO%-x` ` (c)X "Effective Date" means the date on which the Commission issues the Resolution Order.(# "o&?,-(-(ZZA("Ԍ yO- p$XxX` ` (d)X "Implementation Deadline" means the date occurring 90 days after the OptOut Deadline   por such earlier date as has been established in a separate agreement between Century and   pa local franchising authority for the adjustment of BST rates to the level set forth in the  pSResolution Order and/or commencement of the payment of Refunds for the period covered by the Resolution Order.(#  yO-x` ` (e) "Interest" means the Internal Revenue Service rate of interest for tax overpayments.(#  yO@- pXxX` ` (f)X "Los Angeles Area Systems" means the cable systems owned and operated by Century   pserving the City of Los Angeles (Areas F, G, and H), Santa Monica, Beverly Hills, West Hollywood, Marina Del Rey, and Bell Canyon, California.(#  yO` - p x` ` (g)X "Los Angeles Area System Eligible Subscribers" means all nonbulk, residential   psubscribers of record in the Century systems listed in Exhibit 1 as of the date bills are issued reflecting Refunds.(#  yO -XxX` ` (h)X "OptOut Deadline" means the date occurring 30 days after the Effective Date.(#  yO- pXxX` ` (i)X "Publication Date" means the date on which the Commission releases its initial Order relating to this Proposed Resolution.(#  yOh-x` `  (j) "Refunds" means credits on subscriber bills.(#  yO- p$x` `  (k) "Resolution Order" means an order issued by the Commission approving the terms of this Proposed Resolution.(#  yOP-0 IV. TERMS. ă  yO- ` x 6.` ` Century accepts the jurisdiction of the Commission over it and the subject matter of these rate resolutions for purposes of the Resolution Order.  yO8- ` _x7.` ` All of Century's CPST rate cases for the Los Angeles Area Systems for the period through the Publication Date are finally resolved under the terms provided herein.  yO- ` x8.` ` Century agrees that the terms contained in this Proposed Resolution shall be incorporated by  xreference in the Resolution Order. Assuming the adoption of these terms in the Resolution Order, Century and the  xCommission will each actively defend the Resolution Order against any appeal of, or other legal challenge to, the  xxResolution Order by any third party. Century and the Commission will reasonably cooperate in any such defense of these terms.  yOx- ` 1x9.` ` Assuming the adoption of these terms in the Resolution Order, Century agrees that any violation  xof the Resolution Order shall constitute a violation of a Commission order, entitling the Commission to exercise any rights and remedies attendant to the enforcement of a Commission order.  yO!- ` "x 10.` ` These terms are for purposes of resolving outstanding CPST complaints in the Los Angeles Area  xSystems and the various issues regarding the Century Select offerings and do not constitute an admission by  xCentury of any violation of, or failure to conform to, the 1992 Cable Act, Commission Rules, or any other applicable law, rule, or policy.  yO%- ` x 11.` ` The Commission will not institute, on its own motion, any proceedings against Century based upon  x,the information obtained during consideration of the Proposed Resolution. In addition, in the absence of additional"H&?,-(-(ZZ2("  xYfacts, any allegations and other circumstances involved in consideration of this Proposed Resolution will not be used by any party against Century with respect to any future proceeding.  yOX- ` x 12.` ` In settlement of all of Century's CPST rate cases enumerated above in the Los Angeles Area  x,Systems and the various issues regarding the Century Select offerings, Century hereby agrees to the following terms,  xconditions, and procedures which will facilitate a fair and expeditious resolution of those matters in a manner that serves the public interest:  yO@- 6Xx` `   (a)The Bureau has reviewed Century's revised benchmark rate submissions (Forms   M393, 1200 Series, 1210, and 1240) and has determined a maximum permitted per channel rate in each of   the Los Angeles Area Systems reflecting the exclusion of four of the Century Select channels from the count of regulated channels for purposes of applying the Commission's benchmark rate rules.(#  yO( - Xx` `   (b)Subject to the right of local franchising authorities ("LFAs") to opt out under this   ]subparagraph, Century shall issue Refunds to Los Angeles Area System Eligible Subscribers as set forth   in Exhibit 1. Such Refunds cover the period through August 31, 1997 and already include applicable   {Interest through August 31, 1998. An LFA may elect to opt out of the Refunds established under this   zsubparagraph and set forth in Exhibit 1 by providing notice to the Commission and Century no later than   30 days following the Effective Date. Such notice shall: (a)be in writing; (b)be addressed to the Office   zof the Secretary, Federal Communications Commission, 1919 M Street, N.W., Washington, D.C. 20554,   =with a copy to Century Communications Corporation, 50 Locust Avenue, New Canaan, Connecticut 06840,   Oattention: George Franciscovich, Senior Vice President, Legal Affairs, Cable Television Division;   .(c)identify the local franchising authority and community unit identification number for the franchise area;   and (d)reflect the clear intent to opt out of the Refund provision of this subparagraph. However, such   knotice need not meet any other requirements and may be in letter form. An election by a particular LFA   |to opt out of the Refunds under this subparagraph will not otherwise affect the applicability of the   /remaining provisions of this Proposed Resolution in the system regulated by such LFA, including but not limited to subparagraphs (e), (f), and (h) hereof.(#  yO-  p~Xx` `  (c) With respect to the City of Los Angeles, the payment by Century of the Refunds specified   @in Exhibit 1 will be deemed to account for and finally resolve all BST and CPST amounts owed to   Nsubscribers in Areas F, G and H for the period beginning November 1, 1995 through August 31, 1997.   {The payment of such Refunds will have no effect on the refunds included in the resolution concerning   Century's BST rates adopted by the Los Angeles City Council on June 12, 1996 with respect to BST   refunds due for the period of September 1, 1993 through October 31, 1995 in Los Angeles Areas F, G, and   H. In the event the City of Los Angeles exercises its right to opt out described in subparagraph (b) with   respect to Areas F, G, and H, the terms of subparagraph (e) regarding the calculation of Century's rates   zunder the Commission's benchmark rate rules shall apply for purposes of determining any rates or refunds in the City of Los Angeles (Areas F, G, and H).(#  yO@- pXx` `  (d) Century will begin providing Refunds to Los Angeles Area System Eligible Subscribers   no later than the Implementation Deadline and the provision of such Refunds will be completed in a period   0not to exceed 12 months. At least onetwelfth of the total Refunds in each of the Los Angeles Area   >Systems will be reflected in the form of credits on subscriber bills for each month of the payment period,   provided further that in no case, except the final month of the payment period, will the amount of the   monthly credit on subscriber bills calculated pursuant to this subparagraph be less than $1.00. In the event   the Implementation Deadline is later than September 1, 1997, Century shall be required to calculate and   \pay additional Refunds and Interest based on the difference, if any, between the combined BST and CPST   rates being charged from September 1, 1997 until the Implementation Deadline, and the combined BST and    CPST rates put into effect as of the Implementation Deadline. Century also will be required to calculate   \and pay additional Interest through the date on which all Refunds are fully paid in the event that the date"'?,-(-(ZZ)"   on which the payment of Refunds is due to be complete under this subparagraph is later than August 31, 1998.(#  yOX-  pCXx` `  (e) Subject to the right of LFAs to opt out under subparagraph (b), and except as provided   in subparagraph (c), the Refunds issued pursuant to subparagraph (b) shall account for and finally resolve   >(i)all BST and CPST rate cases filed prior to the Publication Date and (ii)the reasonableness of the BST   zand CPST rates specified on Exhibit 2. In the event that an LFA of a Los Angeles Area System exercises   its right to opt out of the Refunds under subparagraph (b), any rate order adopted by said LFA or by the   LCommission with respect to Century's Form 393 and Form 1200 series maximum permitted rates will reflect   zthe exclusion of four of the Century Select channels from the count of regulated channels for purposes of   applying the Commission's benchmark rate rules. The maximum permitted rate for those four Century   Select channels, on a per channel basis, will be equal to the maximum permitted rate, on a per channel   basis, for the other CPST channels in such systems. The effect on Century's maximum permitted rates of   any additions, deletions, or substitutions of channels will be governed by Commission rules applicable at  yO -  Athe time such channel additions, deletions or substitutions were made. See, e.g., Warner Cable  yO -  NCommunications (Milwaukee, WI), DA941285 (CSB, rel. Nov. 18, 1994); Century Southwest Cable  yO -Television I (Los Angeles, Area G), DA 95516 (CSB, rel. March 17, 1995). (#  yO-  pXx` `  (f) Century will not seek repayment from any LFA of any Los Angeles Area System of   /franchise fee overpayments otherwise due Century as a result of the payment of the Refunds specified in   Exhibit 1, nor will Century credit such Refunds against any past or future amounts used to determine   franchise fee payments. This provision will not apply in any Los Angeles Area System as to which the LFA exercises its opt out election as described in subparagraph (b).(#  yO- p4Xx` `  (g) Century has calculated maximum permitted regulated BST and CPST rates for the Los   Angeles Area Systems as of May 1, 1996 using Form 1240. In calculating such rates, for systems where   the previous FCC Form 1210 maximum permitted rates exceeded the actual rates being charged as of April   [30, 1996, Century has capped its previous Form 1210 maximum permitted CPST rates so that the combined   Form 1210 maximum permitted BST and CPST rate did not exceed the combined BST and CPST rates actually being charged as of April 30, 1996.(#  yO8- pXx` `  (h) No later than the Implementation Deadline, Century will implement the BST and CPST   rates specified in Column (A) of Exhibit 2. The implementation of these rates will result in a reduction   0in the BST rates in each of the Los Angeles Area Systems. In addition, the CPST rates implemented   pursuant to this subparagraph reflect Century's agreement to defer, for a twelvemonth period commencing   on the Implementation Deadline, a portion of the otherwise permitted Form 1240 increase in the CPST rates    of the Los Angeles Area Systems, as reflected in Column (B) of Exhibit 2. In accordance with the Form   /1240 calculations performed to determine maximum permitted BST and CPST rates for purposes of this   Resolution, Century's next annual Form 1240 rate adjustments shall be no earlier than August 1, 1998.   /Notwithstanding the scheduled date of its next subsequent annual Form 1240 adjustment, Century, at the   /end of the twelvemonth deferral period, and upon thirty days notice to subscribers, may adjust its CPST   rates to recover any amounts deferred under this subparagraph, such recovery to be calculated over a period   /of at least twelve months, in accordance with the Commission's rules governing the recovery of deferred   Form 1240 rate adjustments. Such adjustments may not include any adjustments for inflation, increases   in external costs, or other adjustments that may be determined in connection with a regular Form 1240 filing. (# x  yO$-  pBXx` `  (i) The rate adjustments described herein will be binding on Century except that, in the event   the LFA of a Los Angeles Area System exercises its opt out election pursuant to subparagraph (b), Century   will not be required to implement any reduction in the BST rates of such system until such time as any rate"H&?,-(-(ZZ2("   order adopted by said LFA becomes final. Nothing in this Proposed Resolution limits Century's right to adjust its rates for unrecovered inflation and external costs pursuant to Commission rules.(#  yOX-  pXx` `  (j) As of the Effective Date, the Resolution Order will vacate and supersede the Los   Angeles/Beverly Hills LOI ruling and the aforementioned CPST orders. The decision that four Century    Select channels are to be excluded from the count of regulated channels for benchmark rate calculations,   as incorporated in the Resolution Order, will be binding on any decision relating to Century's BST or CPST   rates. Upon adoption of the Resolution Order, Century's applications for review of the LOI ruling and the CPST orders will be deemed to be withdrawn.(#  yO-  pBXx` `  (k) A copy of this Proposed Resolution shall be provided for comment to all LFAs in the Los   Angeles Area Systems and to each additional party that filed a valid complaint on FCC Form 329, pursuant to 47 C.F.R. 76.950.(#  yO - p4Xx` `  (l) Except as provided in subparagraph (m) hereof, these terms may not be terminated or   Lmodified without the mutual written agreement of Century and the Commission. The Commission's consent   to any such modification or termination shall be demonstrated by an order by the Bureau or, at the Commission's option, by the Commission itself.(#  yO- pXx` `  (m) Notwithstanding the terms hereof, Century may avail itself of any applicable modifications   of any law or regulation governing the rates charged in the Los Angeles Area Systems, including the   >adoption by the Commission of any regulation governing rates as applied to the cable industry generally.    If Century exercises this election, the terms contained herein shall be superseded upon the effective date   Mof such law or regulation, except that Century shall provide Refunds to Los Angeles Area System Eligible Subscribers pursuant to the terms of this Proposed Resolution.(#  yOP-  pRXx` `  (n) Nothing herein shall restrict the ability of Century to adjust its rates of any of the Los   Angeles Area Systems in the event such rates are not regulated for any reason, including changes from the 1996 Telecommunications Act or relevant Commission rules.(#  yOp- ` 1x 13.` ` The Resolution Order shall affirmatively state that any and all waivers of Commission Rules, and  x=any modifications to Commission forms, necessary to effectuate these terms are deemed to be granted. The  x,Commission will not assert in any proceeding that Century's compliance with the terms of the Proposed Resolution  xxviolates any Commission rule or order, and, in any proceeding before the Commission brought by a third party, a  xshowing by Century that it has complied with these terms shall constitute a defense to any claim that Century's actions in meeting the terms constitute a violation of any applicable Commission rule or order.  yO- ` x 14.` ` Assuming the adoption of these terms, these terms shall become effective when the Commission issues the Resolution Order.  yO@- ` x15.` ` If any provision, clause, or part of this Proposed Resolution is invalidated, the remainder of this  x.Proposed Resolution shall not be affected thereby and shall remain in effect; provided, however, that if such  x<invalidation is material to this Proposed Resolution, Century and the Commission shall attempt in good faith to  xhreconstitute the Proposed Resolution in a form that is, to the maximum extent possible, consistent with the original   intent of the Proposed Resolution."`"?,-(-(ZZ$"  yOX81Í ÍX81Í Í0>p yO-0 X  `!%> EXHIBIT 1 ă Y ddx !ddxXx OOO """Y     b?REFUNDS  X   x" yO@RefundY@bl yO-ԍ Refund amount calculated as of August 31, 1997.Yx" yO_Interest]AX yOh-ԍ Interest amount calculated through August 31, 1998.]x" yOTotalB yO - x=ԍ Total amount of Refund (plus Interest) is fixed. Per subscriber credit will vary with number of Eligible Subscribers monthly.  P  Y  Beverly Hills, CA (CA 0457)Y$L476,580Y$106,654Y$! 583,234P P x YY  Los Angeles, CA (CA 0253)Y$sԃY$ԃY$H1"ԃP P  YY  `Area Fh Y$L934,820h Y$D91,943h Y$1,026,763P P  YY  `Area G Y$L244,613 Y$D30,733 Y$! 275,346P P h  YY  `Area H Y$L316,757 Y$D30,897 Y$! 347,654P P   YY  ` TOTAL LOS ANGELESX Y$C#1,496,190X Y$153,573X Y$1,649,763P P   YY  Santa Monica, CA (CA 0456)Y$C#1,280,023Y$191,709Y$1,471,732P P X  YY  West Hollywood, CA (CA 0254)Y$L742,869Y$144,177Y$! 887,046P   Yw  `bTOTALxw$ yO 4,591,775 ă  w "@@B,-(-(ZZJ"  yO-`+"%B EXHIBIT 2 ă ^ !ddxXx OOO """ AddxX4444 "$$^       "A"4!B    X i  " yO Form 1240 }Rates To Be {Implemented On  yOn>Implementation Date "9V!  yOH Amount Of  yO Form 1240 CPST  yOIncrease Deferred   P  Yi  Bell Canyon J"nBST Y$28.55 Y$T"ԩP    Yi   "@CPST $D9.77 $`#ԃ.77  P   Yi  Beverly Hills J"nBST Y$26.16 Y$T"ԩP P   YYi  @ Y"CPST 1@ Y$D6.06@ Y$`#ԃ.43P     Yi  "CPST 2$D6.26$`#ԃ.75  P @  Yi  Los Angeles: Area FJ"nBSTY$26.37Y$T"ԩP P  YYi  `Y"@CPST`Y$10.77`Y$`#ԃ.71P P  YYi  `f Area GJ"nBSTY$27.66Y$T"ԩP P ` YYi  Y"@CPSTY$10.66Y$`#ԃ.78P P  YYi  `f Area HPJ"nBSTPY$23.41PY$T"ԩP    Yi  "@CPST$D9.40$`#ԃ.87  P P Yi  Marina Del Rey J"nBST Y$25.65 Y$T"ԩP P  YYi  pY"CPST 1pY$D6.15pY$`#ԃ.46P     Yi  "CPST 2$D7.46$`#ԃ.28  P p Yi  Santa Monica@J"nBST@Y$23.44@Y$T"ԩP    Yi  "@CPST$11.07$`#ԃ.64  P @ Yi  West HollywoodJ"nBSTY$21.80Y$T"ԩP P  YYi  ` Y"CPST 1` Y$D5.40` Y$`#ԃ.38P    Yi  !"CPST 2!$D5.44!$`#ԃ.69  `  yO!-BX81Í ÍX<1Í ÍXX<1Í ÍXX81Í ÍX0>P yO-0 "",-(-(ZZU# "  yOx` `  hh@hpp  xx X  EXHIBIT 3  yOX-  EXPLANATION OF DEFERRAL CALCULATION ă  x=xUnder the terms of the Resolution, Century has agreed to defer for a twelvemonth period (beginning on the   + Implementation Date) the recovery of a portion of the maximum permitted Form 1240 CPST rate(s) approved by the   Commission for each of the Los Angeles Area Systems. The minimum amount to be deferred in each of the Los Angeles   !Area Systems is equal to onehalf of the increase in the CPST rate(s) calculated on Century's first Form 1240. An additional   amount of the otherwise permitted CPST rate(s) must be deferred, as necessary, so that the combined BST/CPST rates   u!implemented pursuant to the Resolution is no greater than the combined BST/CPST rates in effect immediately prior to the Implementation Date. xThe calculation of the minimum deferral in each of the Los Angeles Area Systems is summarized as follows:  XX  ^ AddxX4444 "$$ addx I++1 """^     `  i  X "$ Beginning Rate $ r 1996 Form 1240, Line A1"A End Rate A }1996 Form 1240, Line I10x"Minimum * Deferral 9W!  yO SCol. 2 Col. 1 5-!2  P   Yi  Bell CanyonY$F8.54Y$10.05Y$`#ԃ.75P P x YYi  Beverly Hills Y$LpԃY$ԃY$`#ԃP P  YYi  `| CPST 1hY$F5.32hY$G6.19hY$`#ԃ.43P P  YYi  `| CPST 2Y$F6.43Y$G7.94Y$`#ԃ.75P P h YYi  Los AngelesY$LpԃY$ԃY$`#ԃP P  YYi  ` Area FXY$F9.40XY$10.83XY$`#ԃ.71P P  YYi  ` Area GY$F9.37Y$10.80Y$`#ԃ.71P P X YYi  ` Area HY$F8.17Y$G9.47Y$`#ԃ.65P P  YYi  Marina Del ReyHY$LpԃHY$ԃHY$`#ԃP P  YYi  `| CPST 1Y$F5.28Y$G6.21Y$`#ԃ.46P P H YYi  `| CPST 2Y$F6.37Y$G6.93Y$`#ԃ.28P P  YYi  Santa Monica8 Y$F8.768 Y$10.048 Y$`#ԃ.64P P  YYi  West Hollywood!Y$Lpԃ!Y$ԃ!Y$`#ԃP P 8  YYi  `| CPST 1"Y$F4.65"Y$G5.42"Y$`#ԃ.38P   ! Yi  `| CPST 2X$$F5.52X$$G6.90X$$`#ԃ.65  " X xThe calculation of the additional deferral is summarized as follows:     yO%- X "%,-(-(ZZ&&"Ԓ c addx I++1 """ ddx+ """"c "     "" i  "k k  PreImplementation T Combined BST/CPST"MkPostImplementation NBCombined BST/CPST \ (With Minimum qDeferral)"  4Additional Deferral dRequired"O" O" O" # Total Deferral"  P " Yi  Bell CanyonY$38.32Y$ 38.34Y$5ԃ.02Y$`#ԃ.77"P  " Y+i  Beverly Hills `Y$40.24`Y$ 38.48`Y$None`Y$`#ԃ.43 `#ԃ.75" P " +Yi  Los Angelesx Y$+ԃx Y$ԃx Y$5ԃx Y$`#ԃ"P P (" YYi  `P ' Area F Y$37.43 Y$ 37.14 Y$None Y$`#ԃ.71"P P x " YYi  `4 ' Area G Y$38.32 Y$ 38.39 Y$5ԃ.07 Y$`#ԃ.78"P P  " YYi  `4 ' Area Hh Y$32.81h Y$ 33.03h Y$5ԃ.22h Y$`#ԃ.87"P   " Y+i  Marina Del ReyY$40.27Y$ 39.26Y$NoneY$`#ԃ.46 `#ԃ.28" P h " +Yi  Santa MonicaY$36.37Y$ 34.51Y$NoneY$`#ԃ.64"P H  " YXi  West HollywoodP$35.91P$ 32.64P$NoneP$`#ԃ.38 `#ԃ.69H   X yO-X81Í ÍXX81Í ÍX0P  yO-0 XX  #K\  P@Q P#