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Section 76.922(b)(6)(ii).V This  xdeferral of refund liability, however, does not apply to refund liability that may have occurred because  xMOperator's March 31, 1994 rates for its CPST subject to regulation were higher than levels permitted"b,p(p(88 "  S- xunder the Commission's rules in effect before May 15, 1994.2* {Oh-ԍ Id.2 Accordingly, while the liability period for  x>Operator's overcharges associated with its FCC Form 1200 filing does not begin to run until July 15,  x1994, Operator will incur refund liability between May 15, 1994 and July 14, 1994 for any CPST rates  S-charged above the MPR approved by the Commission on Operator's FCC Form 393.2Z* {O-ԍ Id.2  S8- ` x7.` ` Upon review of Operator's FCC Form 1200, filed to justify its CPST rates beginning  xMay15, 1994, we adjusted Line A6 to $10.15 to correspond to the maximum permitted rate ("MPR")  S- xdetermined in our 1994 Order. * yOt - xԍ Information regarding the specific adjustments made to Operator's FCC Forms can be found in the public files  xZfor the abovereferenced community which are available in the Cable Services Bureau's public reference room, or  x<through the Commission's copy contractor, International Transcription Services (ITS), 1231 20th Street N.W.,  yO -Washington, DC, 20554, or by calling ITS at (202) 8573800. We find Operator's CPST MPR of $9.25 to be reasonable. * yO\- xԍ This finding is based solely on the representations of Operator. Should information come to our attention that  x;these representations were materially inaccurate, we reserve the right to take any appropriate action. This Order is  xnot 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. Because  S- xOperator's actual CPST rate was $10.47,\ * {O- xiԍ See 1994 Order, Appendix B. In its 1994 Refund Plan, Operator states that the "Commission found [in its  x1994 Order] that [Operator's] actual monthly charge for its CPS tier was $10.47 per month (plus franchise fee)."  {O-1994 Refund Plan at p. 1. Operator further states that it "does not dispute these calculations or findings ..." Id.  however, we find Operator's CPST rate to be unreasonable for  xzthe period May 15, 1994 through July 14, 1994. However, Operator elected to take advantage of the  Sp- xrefund liability deferral period in accordance with the Commission's Rules.'p* {O- xԍ See Letter from Sandra K. Turley, Vice PresidentRegional Operations, Sammons Communications, Inc., to  {O-the Federal Communications Commission dated May 18, 1994. See also 47 C.F.R. Section 922(b)(6)(ii) (1996).' Accordingly, Operator does  xnot incur refund liability for charging in excess of the MPR calculated on its FCC Form 1200 for the  xLperiod May 15, 1994 through July 14, 1994. However, Operator does incur refund liability for charging  x.a CPST rate of $10.47, for the period May 15, 1994 through July 14, 1994, which is above the MPR of  x$10.15 approved by the Commission on Operator's FCC Form 393. In addition, because Operator's actual  x\CPST rate of $11.21, in effect from July 15, 1994 through October 31, 1995, exceeded its FCC Form  x1200 MPR, we find Operator's actual CPST rate of $11.21 to be unreasonable effective July 15, 1994 through October 31, 1995.  S- ` px8.` ` Upon review of Operator's FCC Form 1210 covering the period March 31, 1994 to  xSeptember 30, 1995, we find that Operator claimed an excessive inflation factor. Operator is a "transition  xrate" benchmark operator and, therefore, may apply an inflation adjustment factor of no more than 1.0215  xfor the period October 1, 1993 to June 30, 1994. Accordingly, we adjusted Operator's inflation factor on  xyLines I5 (Inflation Adjustment Factor) and J5 (Inflation Adjustment Factor) each from 1.0521 to 1.0215.  xThese adjustments to Operator's FCC Form 1210 have reduced Operator's MPR from $9.81 to $9.65,  xeffective October 1, 1995. Because Operator's actual CPST rate continued to be $11.21, from October1,  x1995 through October 31, 1995, we find Operator's CPST rate, effective October 1, 1995, to be"<,p(p(88%"  xyunreasonable. On November 1, 1995 Operator implemented a CPST rate $9.81 to conform with its FCC  xkForm 1210 filing. Because Operator's actual CPST rate of $9.81 exceeded its reduced MPR of $9.65,  x.we find Operator's actual CPST rate of $9.81, effective November 1, 1995 through May 31, 1996, to be  xunreasonable. However, because Operator's rates have been adjusted to remove excess inflation, pursuant  xto our "Public Notice: Cable Rates for Inflation Applied to Transition Rates," Operator will not incur  S8-refund liability because of its excess inflation until April 1, 1996.@8* yO-ԍ 11 FCC Rcd 1151 (1995).@   S- ` x9.` ` Upon review of Operator's first FCC Form 1240 for the period June 1, 1996 through  xMay31, 1997, we have adjusted Module A, Line A1 to reflect Operator's previous MPR of $9.65. On  xZits first FCC Form 1240, Operator's selected time period for performing its trueup adjustments overlapped  xthe time period covered by Operator's prior FCC Form 1210. This is incorrect. The FCC Form 1240  xinstructions clearly state that "[f]or first time filers of FCC Form 1240, the beginning date of the TrueUp  xPeriod on the initial filing is . . . the end of the last quarter to which [an operator's] most recently filed  S -Form 1210 applied if the rate adjustment after . . . September 22, 1995 was done with Form 1210."I X* yO-ԍ FCC Form 1240 Instructions p. 7.I  S - ` Bx10.` ` Based on this instruction, we have adjusted the trueup period in Operator's first FCC  S - xForm 1240 from 11 months to 8 months. * yO- xyԍ Operator selected an 11 month trueup period for its first FCC Form 1240 filing beginning July 1, 1995  xJthrough May 31, 1996. Operator's trueup period in its first FCC Form 1240 filing overlapped by three months the  xperiod covered by its prior FCC Form 1210, which began March 31, 1994 and ended September 30, 1995.  xiAccordingly, we adjusted Operator's trueup period in its first FCC Form 1240 filing to begin on October 1, 1995 and end on May 31, 1996, thereby reducing Operator's trueup period from 11 months to 8 months. This adjustment reduced the number of months on Worksheet  x1, True Up Period 1, from 11 months to 8 months. Our adjustments to Worksheet 1 required that we  xyrevise Operator's inflation factors. As a result, the inflation factor in Module C, Line C1 for the 8 month trueup period was corrected to 1.0152.  S- ` $x11.` ` The reduction in the length of the trueup period also results in a reduction in Line H2  x(Revenue From MPR for Period 1). This results in a corresponding reduction in Line I8 (TrueUp  xjSegment for the Projected Period). In total, our adjustments to Operator's first FCC Form 1240 result in  xa reduction of the MPR for the Projected Period to $11.32 (Line I9). Thus, Operator has failed to  xdemonstrate that its June 1, 1996 rate of $11.69 for its CPST was not unreasonable. To the extent that  S- xexternal costs from the 3 months disallowed from Operator's trueup periodS* yO( -ԍ As found on Operator's Worksheets 7 and 8.S have been averaged into the  xrates charged in the 8 months allowed in Operator's trueup period, and have not been removed by our  x[adjustments, we will order Operator to make a monthbymonth accounting of such external costs. Such  xyaccounting shall allow a comparison of the actual external costs for the permitted 8 month trueup period  x=with the recovery of external costs afforded by the external cost segment for that period as calculated on  x]Worksheet 7. We will order the removal of any overrecovery, plus interest, identified thereby in  xOperator's next FCC Form 1240 filed with the Commission. Any such overrecovery of external costs  xshall be added to the amount otherwise reportable on Line H1 of Operator's next FCC Form 1240 rate calculation. "( ,p(p(88"Ԍ S- `  ęx12.` ` Upon review of Operator's second FCC Form 1240 for the period June 1, 1997 through  xyMay 31, 1998, we have adjusted Module A, Line A1 to reflect Operator's previous MPR of $11.32. On  xits second FCC Form 1240, Operator's selected time period for performing its trueup adjustments  xyoverlapped its selected time period for trueup adjustments from its first FCC Form 1240. As discussed  x.above, this is incorrect. In addition, Operator made trueup adjustments through to the effective date of  xthe increase. This is also incorrect. The annual adjustment afforded by FCC Form 1240 allows operators  xto project changes in external costs, inflation, and the number of regulated channels. This structure avoids  xthe delay some operators experienced in recouping costs through multiple rate adjustments throughout the  xyear. Because projections will not reflect the costs that actually occur, the Commission provided, as part  xof the annual adjustment, a "trueup" to correct projected cost changes with the actual cost changes.  xHowever, the Commission has noted that, as FCC Form 1240 must be filed 90 days before an increase  SH - xis to take effect, the period for the trueup will not coincide with the previous year's projections.mH * yO -ԍ Thirteenth Reconsideration Order, 11 FCC Rcd 388, 420 fn 151 (1995).m The  S - x.trueup data is intended to indicate real, not projected data.2 X* {O-ԍ Id.2 This policy is reflected in the instructions  S -accompanying FCC Form 1240.d! * {O-ԍ See FCC Form 1240 Instructions for Timing at pp. 34.d  S - ` $x13.` ` Based on this instruction and considering evidence in the filing and reasonable time for  xclosing accounts and completing forms, we have adjusted the trueup period in Operator's second FCC  SX- xForm 1240 from 15 months to 11 months.b"xX|* yOt- xԍ Operator selected a 15 month trueup period for its second FCC Form 1240 filing beginning March 1, 1996  xYthrough May 31, 1997 (12 months for Period 1 and 3 months for Period 2). Operator's trueup period in its second  x;FCC Form 1240 filing overlapped by three months the selected trueup period from its first FCC Form 1240, which  x,began July 1, 1995 and ended May 31, 1996. In addition, Operator ended its trueup period in its second FCC Form  x1240 filing on the day before its projected period begins. Accordingly, we adjusted Operator's trueup period in its  xhsecond FCC Form 1240 filing to begin on June 1, 1996 and end on April 30, 1997, thereby reducing Operator's trueup period from 15 months to 11 months.b This adjustment reduced the number of months on Worksheet  x1, True Up Period 1, from 12 months to 11 months and eliminated the three months that Operator had  xlisted for True Up Period 2. Our adjustments to Worksheet 1 required that we refresh Operator's inflation  xLfactors. In particular, on Worksheet 1, Operator incorrectly reported the inflation factor of 2.22 percent  xfor the first 4 months of True Up Period 1 and 2.21 percent for the remaining 11 months listed in True  xUp Periods 1 and 2. As a result, Operator reported the incorrect inflation factor of 1.0221 on Lines C1  xand C3 of its second FCC Form 1240. Therefore, we have adjusted Worksheet 1 to reflect the correct  xjinflation factor of 2.22 percent, 2.21 percent, 1.83 percent, 2.70 percent, and 1.77 percent for the second  xquarter of 1996, the third quarter of 1996, the fourth quarter of 1996, the first quarter of 1997, and the  xfirst month of the second quarter of 1997, respectively. As a result, the inflation factor in Module C, Line  x=C1 for the 11 month trueup period was corrected to 1.0202 instead of the 1.0221 used by the Operator  xfor a 12 month period. The current inflation factor in Module C, Line C3 was corrected to 1.0177 instead of the 1.0221 used by the Operator.  S(- ` $x14.` ` The reduction in the length of the trueup period also results in a reduction in Line H2  x(Revenue From MPR for Period 1). This results in a corresponding reduction in Line I8 (TrueUp  xySegment for the Projected Period). In total, our adjustments to Operator's second FCC Form 1240 result" ",p(p(88="  x>in a reduction of the MPR for the Projected Period to $12.06 (Line I9). Thus, Operator has failed to  xdemonstrate that its June 1, 1997 rate of $13.38 for its CPST was not unreasonable. To the extent that  S- xjexternal costs from the four months disallowed from Operator's trueup periodS#* yO-ԍ As found on Operator's Worksheets 7 and 8.S have been averaged into  xthe rates charged in the 11 months allowed in Operator's trueup period, and have not been removed by  xour adjustments, we will order Operator to make a monthbymonth accounting of such external costs.  x[Such accounting shall allow a comparison of the actual external costs for the permitted 11 month trueup  xlperiod with the recovery of external costs afforded by the external cost segment for that period as  x=calculated on Worksheet 7. We order the removal of any overrecovery, plus interest, identified thereby  xin Operator's next FCC Form 1240 filed with the Commission. Any such overrecovery of external costs  xshall be added to the amount otherwise reportable on Line H1 of Operator's next FCC Form 1240 rate calculation.  S - ` `x15.` ` Accordingly, IT IS ORDERED, pursuant to Section 76.962 of the Commission's rules, 47 C.F.R. 76.962, that Operator's 1994 Refund Plan IS NOT ACCEPTED.  S - ` x16.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47  xjC.F.R. Section 76.961, that Operator revise its 1994 Refund Plan as detailed herein and resubmit its plan to the Chief, Cable Services Bureau, within thirty days of the release of this Order.  S- ` `x17.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  S- xC.F.R. Section 0.321 that Operator's CPST rate of $10.47, effective May 15, 1994 through July 14, 1994,  S-in the community set forth above, IS UNREASONABLE.  Sh- ` `x18.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  S@- xC.F.R. Section 0.321 that Operator's CPST rate of $11.21, effective July 15, 1994 through October 31,  S-1995, in the community set forth above, IS UNREASONABLE.  S- ` `x19.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  S- xC.F.R. Section 0.321 that Operator's CPST rate of $9.81, effective November 1, 1995 through May 31, 1996, in the community set forth above, IS UNREASONABLE.  S(- ` `x20.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  S- xC.F.R. Section 0.321 that Operator's CPST rate of $11.69, effective June 1, 1996 through May 31, 1997, in the community set forth above, IS UNREASONABLE.  S- ` `x21.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  S`- xC.F.R. Section 0.321 that Operator's CPST rate of $13.38, effective June 1, 1997 through May 31, 1998, in the community set forth above, IS UNREASONABLE.  S -  S - ` x22.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47  xC.F.R. Section 76.961, that Operator shall refund to subscribers in the franchise area referenced above that  xportion of the amount paid in excess of the maximum permitted CPST rate of $10.15 per month (plus  Sp#-franchise fees), plus interest to the date of the refund, for the period May 15, 1994 through July 14, 1994.  SH$- "H$X#,p(p(88%"Ԍ S- ` x23.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47  xC.F.R. Section 76.961, that Operator shall refund to subscribers in the franchise area referenced above that  x>portion of the amount paid in excess of the maximum permitted CPST rate of $9.25 per month (plus  S- xfranchise fees), plus interest to the date of the refund, for the period July 15, 1994 through September 30, 1995.  S8-  S- ` x24.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47  xC.F.R. Section 76.961, that Operator shall refund to subscribers in the franchise area referenced above that  x>portion of the amount paid in excess of the maximum permitted CPST rate of $9.65 per month (plus  xfranchise fees), plus interest to the date of the refund, for the periods October 1, 1995 through October31,  Sp-1995 and April 1, 1996 through May 31, 1996.  SH -  S - ` x25.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47  xC.F.R. Section 76.961, that Operator shall refund to subscribers in the franchise area referenced above that  xportion of the amount paid in excess of the maximum permitted CPST rate of $11.32 per month (plus  S -franchise fees), plus interest to the date of the refund, for the period June 1, 1996 through May 31, 1997.  S -  SX- ` x26.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47  xC.F.R. Section 76.961, that Operator shall refund to subscribers in the franchise area referenced above that  xportion of the amount paid in excess of the maximum permitted CPST rate of $12.06 per month (plus  S- xkfranchise fees), plus interest to the date of the refund, for the period June 1, 1997 to the day before it reduces its rate to $12.06.  S-  Sh- ` x27.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  xC.F.R. Section 0.321, that Operator shall conduct a monthbymonth accounting of its external costs from  xOperator's eightmonth trueup as found on Operator's first FCC Form 1240 Worksheets, and from  xOperator's elevenmonth trueup as found on Operator's second FCC Form 1240 Worksheets, and that  x.Operator shall file, within 30 days of the release of this Order, a report detailing the overrecovery of all external costs, plus interest, with the Chief, Cable Services Bureau.  SP- ` x28.` ` IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges to  xCPST subscribers for the stated periods, and shall within 30 days of the release of this Order, file a report  xkwith the Chief, Cable Services Bureau, stating the cumulative refund amount so determined (including  xfranchise fees and interest), describing the calculation thereof, and describing its plan to implement the refund within 60 days of Commission approval of the plan.  S-  S`- ` `x29.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  xC.F.R. Section 0.321, that the complaints referenced herein against the rates charged by Operator in the community set forth above ARE GRANTED.  W$: " #,p(p(88G""  S- ` x30.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  xC.F.R. Section 0.321, that Operator revise the calculation of its maximum permitted CPST rate in its next FCC Form 1240 filing in accordance with our findings in this order. x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@John E. Logan  S-x` `  hh@Deputy Chief, Cable Services Bureau#Xj\  P6G;9XP#