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Operator has attempted to justify its CPST rate increase through a  xbenchmark showing on FCC Forms 1240. We have already issued a separate order ("Prior Order") which  S - xresolved Operator's CPST rates from September 1, 1993 through December 31, 1995."  {O- x<ԍ See In the Matter of Viacom Cable, Inc., Final Resolution of Cable Programming Service Rate Complaints,  xFCC 9732 (1997), released February 7, 1997. This system was purchased from Viacom by TCI in September 1996.  xiLetter from Stephen J. Flessner, Director of FCC Compliance, Cable Regulatory Department, TCI to the Federal Communications Commission (September 12, 1996). This Order addresses Operator's CPST rate effective June 1, 1997.  S- ` x2.` ` The Communications Act {O-ԍ Section 623(c) of the Communications Act of 1934, as amended, 47 U.S.C. Section 543(c) (1996). authorizes the Federal Communications Commission  x("Commission") to review the CPST rates of cable systems not subject to effective competition to ensure  xjthat rates charged are not unreasonable. If the Commission finds the rate unreasonable, it shall determine  S0- xthe correct rate and any refund liability.M0D {O!-ԍ See 47 C.F.R. Section 76.957.M The Telecommunications Act of 1996 ("1996 Act"),^0 yO"-Ѝ Pub. L. No. 104104, 110 Stat. 56 (1996). ^ and our  S- xrules,f  {O%- xЍ 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 franchising  xauthority that has received subscriber complaints. A franchising authority may not file a CPST rate  x!complaint unless, within 90 days after such increase becomes effective, it receives more than one subscriber complaint. "h ,**88"Ԍ S- ` x3.` ` Cable operators attempting to justify their rates for the period beginning May 15, 1994  S- xusing a benchmark showing must complete and file the FCC Form 1200 series.L\; {O@- xԍ 47 C.F.R. Section 76.922(b)(6); see Second Order on Reconsideration, supra at 4183, paras. 135138; supra  {O - xat 4190, n.136; see also Public Notice "Questions and Answers on Cable Television Rate Regulation" (April 26, 1994).L Cable operators may also  xzjustify rate increases based on the addition and deletion of channels, changes in certain external costs,  S- xand inflation, by filing FCC Form 1210.F; yO-ԍ 47 C.F.R. Section 76.922(d).F FCC Form 1210 must be filed at least 30 days before new rates  xare scheduled to go into effect where the Commission has found the cable programming service rate to  xbe unreasonable less than one year prior to the filing, or where there is a pending complaint against the  S- xCPST rate.U|; yO, -ԍ 47 C.F.R. Sections 76.960 and 76.958.U Cable operators may justify adjustments to their rates on an annual basis using FCC Form  x.1240 to reflect reasonably certain and quantifiable changes in external costs, inflation, and the number of  S- xregulated channels that are projected for the twelve months following the rate change. \ ; {Ol- xyЍ See 47 C.F.R. Section 76.960; see In the Matter of Implementation of Sections of the Cable Television  xConsumer 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- xthat is not projected may be accrued with interest and added to rates at a later time.f 0 ; {Oh-Ѝ See Thirteenth Reconsideration Order at 392.f If actual and  xprojected costs are different during the rate year a "trueup" mechanism is available to correct estimated  SH -costs with actual cost changes.3 H ; {O-ԍ Id.3  S - ` x4.` ` On July 29, 1997, the local franchising authority ("LFA") filed its complaint against  S - xOperator's June 1, 1997 CPST rate increase. T ; yO-ԍ The first subscriber complaint concerning the CPST rate increase was received by the LFA on June 4, 1997. In its complaint, the LFA asserts that it has received more  xthan one subscriber complaint against Operator's CPST rate increase, thereby triggering the Commission's  x.jurisdiction to review this complaint. The valid complaint from the LFA triggers an obligation on behalf  SX- xyof the cable operator to file a justification of its CPST rates with the LFA.C X; yO-ԍ 47 C.F.R Section 76.1402.C Thus, in this case, Operator  xyis required to justify the increase in its CPST rate which is the subject of the LFA's complaint. Operator  S-filed FCC Forms 1240 with the LFA as justification for this rate increase.     S- ` x5.` ` On February 22, 1996, the Commission issued an order granting Operator a waiver (the  x"Waiver Order") of certain rate adjustment requirements in its initial filing of the Commission's annual  Sh- x.rate adjustment form (FCC Form 1240).ht; {O|%- xԍ See Annual Rate Adjustment System for Cable Service Rates, Request for Waiver of Requirements Contained in the Thirteenth Order on Reconsideration, (DA 96220, released February 22, 1996). Specifically, the Waiver Order allowed Operator, in its initial  xFCC Form 1240 filings, to include estimated changes in costs, inflation, channels and subscriber"@,p(p(88"  xinformation attributable to the period between the last date for which actual cost data was available and  xthe effective date of the new rates. In the Waiver Order, Operator was instructed to include in its initial  x0FCC Form 1240 filing certain calculations, such calculations to be performed on FCC Form 1240  x.(primarily in Module G), or off FCC Form 1240, in an alternative showing done pursuant to the Waiver  S`- xOrder's "General Guidelines."E`; yO-ԍ Waiver Order at Appendix A.E Operator chose to use an alternative showing pursuant to the "General Guidelines" rather than perform its calculations directly on FCC Form 1240.  S- ` 2x6.` ` On October 25, 1996, Operator wrote to the Commission requesting review and approval  x\of a modified FCC Form 1240 to justify rates for the projected period from June 1, 1997 to May 31,  S- x1998.X; {O - x;ԍ See Letter from Angela Montoya, TCI Communications, Inc., to Alex Byron, Cable Services Bureau, Federal Communications Commission, dated October 25, 1996. On January 9, 1997 the Commission consented to the Operator's use of the form for such period  Sp-in lieu of filings on the Commission's standard FCC Form 1240.p; {O- xԍ See Letter from Meredith Jones, Chief, Cable Services Bureau, Federal Communications Commission to Angela Montoya, TCI Communications, Inc., Dated January 9, 1997.  S - ` x7.` ` To justify its CPST rate, effective June 1, 1997, Operator submitted two FCC Forms 1240,  xthe first for the projected period September 1, 1996 to May 31, 1997 ("First Form 1240"), and the second  xfor the projected period June 1, 1997 to May 31, 1998 ("Second Form 1240"). Operator's First Form  x1240 used Operator's alternative showing, calculated pursuant to the Waiver Order. Operator's Second  x]Form 1240 followed the format set forth in Operator's October 25, 1996 letter. On reviewing the  xsubmitted forms, we determined that neither of the submitted forms produced identical results to filings  xthat would have been made on the Commission's standard FCC Form 1240. Therefore, we ordered  xOperator to file the relevant FCC Forms 1240, and all supporting documentation, to support the monthly  S-CPST rate of $14.98 implemented by Operator on June 1, 1997, in the community referenced above. ; {O-ԍ  See In the Matter of TCI Pacific, Inc., TeleVue Systems, Inc., DA 972259 (Released October 27, 1997).  S- ` _x8.` ` Accordingly, on November 24, 1997, Operator submitted new standard FCC Forms 1240,  xfor the projected periods September 1, 1996 to May 31, 1997, and June 1, 1997 to May 31, 1998, which  xperformed the Waiver Order's calculations directly on the standard FCC Forms 1240 as well as the  S- xcalculations described in Operator's October 25, 1996 letter.J; yOV- xwԍ Operator submitted these forms but also stated that it "continues to believe that these additional forms are not  xrequired or necessary as [Operator used] the FCC approved waiver in filing the Form 1240 for this system." Letter  xfrom Angela Bricmont, Director of Regulatory Compliance, TCI Communications, Inc., to Margaret Egler, Assistant  xiChief, Financial Analysis and Compliance Division, Cable Services Bureau, Federal Communications Commission dated November 24, 1997.J Review of both FCC Forms 1240 is  xnecessary to calculate the appropriate maximum permitted rate, and refund liability, for the period  xbeginning June 1, 1997. Operator also submitted a refund plan which calculated the amount of refunds  xjowed to subscribers in the community referenced above for the duration of the one year projected period ending May 31, 1998.  ($[F "PN ,p(p(88"Ԍ S- `  ($[F x9.` ` Upon review of Operator's new FCC Form 1240, for the projected period September 1,  S- x1996 to May 31, 1997, ; yO@- xԍ TCI purchased this system from Viacom in September 1996 and used a projected period of 9 months instead  xof the required 12 months pursuant to In the Matter of: Annual Rate Adjustment System for Cable Service Rates,  xRequest for Waiver of Requirements Contained in the Thirteenth Order on Reconsideration, 11 FCC Rcd 9356 (1996).  we find that Operator has correctly calculated its maximum permitted rate  x("MPR") of $11.89. Upon review of Operator's new FCC Form 1240, for the projected period June 1,  xk1997 to May31, 1998, we find that Operator has correctly calculated its MPR of $14.90. However,  xkOperator's actual CPST rate, effective June 1, 1997, is $14.98. Operator has submitted a refund plan  xwhich calculates, with interest, the total amount of overcharges that will be collected from CPST  xNsubscribers in the community referenced above from June 4, 1997 (the date of the first subscriber  S- xcomplaint); {O8 -ԍ See Section 623(c)(1)(C) of the Communications Act, 47 U.S.C Section 543(c)(1)(C) (1996). to May31, 1998.wB; {O -ԍ See Section 76.961 of the Commission's Rules, 47 C.F.R. Section 76.961.w Upon review of Operator's refund plan, we find that Operator has  xcorrectly calculated, with interest, the amount of overcharges that will be received from subscribers during  xthe projected period ending May 31, 1998. These calculations result in a total refund amount of $1.02,  xper CPST subscriber, including interest. We will order Operator to pay the refund amount of $1.02 to  SH - xeach current CPST subscriber within 60 days of the release of this order.}H ; {O-ԍ See Section 76.961(c) of the Commission's rules, 47 C.F.R. Section 76.961(c).} We will also order that any  xrate Operator charges on and after June 1, 1998 shall be premised on Operator's use of (1) the standard  x[FCC Form 1240 for rate calculation purposes and (2) $14.90 as Operator's Current Maximum Permitted  xRate as called for on Line A1 of its FCC Form 1240 filing for the projected period beginning June 1,  x1998. Contingent upon Operator's refund payment to its subscribers, we have determined that Operator's  xtotal CPST rate collections in the community referenced above, for the projected period June 1, 1997 to May 31, 1998, will be reasonable.  S- ` `x10.` ` Accordingly, IT IS ORDERED, pursuant to Section 76.961 of the Commission's rules,  x47 C.F.R. Section 76.961, that Operator shall refund to CPST subscribers in the franchise area referenced above the amount of $1.02 within 60 days of the release of this Order.  Sh- ` x11.` ` IT IS FURTHER ORDERED, pursuant to Section 76.962 of the Commission's rules, 47  xC.F.R. Section 76.962, that Operator, within 90 days of the release of this Order, shall file with the Chief,  xCable Services Bureau, a certification of its compliance with the refund requirements of this Order, and a certification of its intent to comply with all other aspects of this Order.  S- ` x12.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  x{C.F.R. Section 0.321, that Operator shall use (1) the standard FCC Form 1240 for rate calculation  xpurposes and (2) $14.90 as Operator's Current Maximum Permitted Rate as called for on Line A1 of its FCC Form 1240 filing for the projected period beginning June 1, 1998."(f ,p(p(88l"Ԍ S- `  x13.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  xC.F.R. Section 0.321, that the complaint referenced herein against the rates charged by Operator in the community set forth above IS GRANTED TO THE EXTENT INDICATED HEREIN. x` `  hh@FEDERAL COMMUNICATIONS COMMISSION  x` `  hh@John E. Logan  S-x` `  hh@Deputy Chief, Cable Services Bureau