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Operator has attempted to justify its CPST rate increase through a  xbenchmark showing on FCC Forms 1240. This Order addresses Operator's CPST rate effective June 1, 1997.  S- ` qx2.` ` The Communications Act  {O8-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  SX- xthe correct rate and any refund liability.MXZ  {OR-ԍ See 47 C.F.R. Section 76.957.M The Telecommunications Act of 1996 ("1996 Act"),^X  yO-Ѝ Pub. L. No. 104104, 110 Stat. 56 (1996). ^ and our  S0- xrules,0|  {OL - 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. ",**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\E) {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- x>and inflation, by filing FCC Form 1210.FE) yO-ԍ 47 C.F.R. Section 76.922(d).F FCC Form 1210 must be filed at least 30 days before new  xLrates are scheduled to go into effect where the Commission has found the cable programming service rate  xkto be unreasonable less than one year prior to the filing, or where there is a pending complaint against  S- xthe CPST rate.U|E) 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  xk1240 to reflect reasonably certain and quantifiable changes in external costs, inflation, and the number  S- x.of regulated channels that are projected for the twelve months following the rate change.\ E) {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  {O-on Reconsideration, ("Thirteenth Reconsideration Order") 11 FCC Rcd 388, 391 (1995). Any incurred  S- xcost that is not projected may be accrued with interest and added to rates at a later time.f 0 E) {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 E) {O-ԍ Id.3  S - ` ox4.` ` On August 27, 1997, the local franchising authority ("LFA") filed its complaint against  S - xyOperator's June 1, 1997 CPST rate increase. T E) yO-ԍ The first subscriber complaint concerning the CPST rate increase was received by the LFA on June 3, 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 XE) 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). htE) {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`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- xk1998.XE) {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 we consented to the Operator's use of the form for such period in lieu of  Sp-filings on the Commission's standard FCC Form 1240.pE) {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,  x.the first for the projected period June 1, 1996 to May 31, 1997 ("First Form 1240"), and the second for  x=the projected period June 1, 1997 to May 31, 1998 ("Second Form 1240"). Operator's First Form 1240  xused Operator's alternative showing, calculated pursuant to the Waiver Order. Operator's Second Form  x1240 followed the format set forth in Operator's October 25, 1996 letter. On reviewing the submitted  x[forms, we determined that neither of the submitted forms produced identical results to filings that would  xhave been made on the Commission's standard FCC Form 1240. Therefore, we ordered Operator to file  xthe relevant FCC Forms 1240, and all supporting documentation, to support the monthly CPST rate of  S-$18.37 implemented by Operator on June 1, 1997, in the community referenced above. E) {O-ԍ  See In the Matter of TCI Cablevision of Ohio, Inc., DA 972440 (Released November 24, 1997).  S- ` Ax8.` ` Accordingly, on December 12, 1997, Operator submitted new standard FCC Forms 1240,  xfor the projected periods June 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-calculations described in Operator's October 25, 1996 letter.IE) yOV- x-ԍ Operator submitted these forms but also stated that is "continues to believe that these additional forms are  xnot required or necessary as [Operator used] the FCC approved waiver in filing the Form 1240 for this system."  xLetter from Angela Bricmont, Director of Regulatory Compliance, TCI Communications, Inc., to Margaret Egler,  xAssistant Chief, Financial Analysis and Compliance Division, Cable Services Bureau, Federal Communications Commission dated November 24, 1997.I  S- ` x9.` ` Upon review of Operator's new FCC Form 1240, for the projected period June 1, 1996  xto May 31, 1997, and Operator's new FCC Form 1240, for the projected period June 1, 1997 through"N ,p(p(88"  S- xMay31, 1998, we find Operator's actual CPST rate of $18.37, effective June 1, 1997, to be reasonable. E) yOh- xwԍ These findings are based solely on the representations of Operator. Should information come to our attention  xYthat these representations were materially inaccurate, we reserve the right to take 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. '  x.We will order that any rates Operator charges on and after June 1, 1998 shall be premised on Operator's use of the standard FCC Form 1240 for rate calculation purposes.  S`- ` x10.` ` Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules , 47  x.C.F.R.  0.321, that the CPST rate of $18.37, charged by Operator in the franchise area reference above, effective June 1, 1997, IS REASONABLE.  S- ` x11.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  xC.F.R.  0.321, that Operator shall use the standard FCC Form 1240 for rate calculation purposes for any rate Operator charges on or after June 1, 1998.  S - ` x12.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the referenced complaint IS DENIED.  x` `  hh@FEDERAL COMMUNICATIONS COMMISSION  x` `  hh@Elizabeth W. Beaty  S-x` `  hh @Chief, Financial Analysis and Compliance Division  S-x` `  hh@Cable Services Bureau#&a\  P6G;/&P#