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Section 76.922(b)(6)(ii).W This deferral of refund   liability, however, does not apply to refund liability that may have occurred because Operator's March31,"b,`(`(88"   1994 rates for its CPST subject to regulation were higher than levels permitted under the Commission's  S-  rules in effect before May 15, 1994.3(] {O@-ԍ  Id.3 Accordingly, the liability period for Operator's overcharges   [associated with its FCC Form 1200 filing does not begin to run until the date Operator changes its actual   rate for regulated services or, at the latest, July 15, 1994. However, Operator will incur refund liability  S`-  between May 15, 1994 and the date Operator changes the actual rate for regulated services, or July 14,   1994, for any CPST rates charged above the MPR approved by the Commission on Operator's FCC Form  S-393.3Z(] {O -ԍ Id.3  S-  A7.` ` FCC Form 1235 is an abbreviated cost of service filing used in cases of network upgrades.   It allows cable operators to justify rate increases related to significant capital expenditures used to improve   rateregulated services. This option is extended only in cases of significant upgrades requiring added   capital investment, such as bandwidth capacity and conversion to fiber optics, and for system rebuilds.   Normal improvements and expansions of service will remain subject to the usual rate adjustments allowed   by filings of FCC Forms 1210, 1220 and 1240. Cable operators that incur increases in operating costs   associated with a significant network upgrade will be permitted to charge additional rates as justified by  S -their FCC Form 1235 filing.   S -  SX-  8.` ` The LFA for the franchise area referenced above filed a complaint with the Commission   jon December 4, 1997 against Operator's August 1, 1997 CPST rate increase from $14.22 to $18.86. The   LFA verified that it received more than one subscriber complaint for the franchise area and that the first   valid complaint was received by the LFA on August 5, 1997. The filing of a complete and timely LFA  S-  complaint triggers an obligation upon the cable operator to file a justification of its CPST rates.?(] yOD-ԍ 47 C.F.R. 76.956.? The  S-Operator has the burden of demonstrating that the CPST rates complained about are reasonable.3|(] {O-ԍ Id.3  S@-  39 c$6^ . c$6^ ` ` In its complaint, the LFA requests that the Commission review Operator's charges for   Mcertain equipment. Operator responds that the equipment that is the subject of the LFA's complaint  S-  transmits BST and CPST programming and therefore, the equipment is not subject to our jurisdiction.(] {O-#X\  P6G;P#э See Facsimile Transmittal dated February 6, 1998 from Steven J. Horvitz.  S-  Under Section 76.923(a) of the Commission's rules,i(] yO!-ԍ #X\  P6G;P#47 C.F.R. 76.923(a).i all equipment used to receive the BST is subject   0to rate regulation, regardless of whether such equipment is used to receive other tiers of regulated  Sx-  programming and/or unregulated service.Zx0 (] {OH$-ԍ #X\  P6G;P#Id.Z Such equipment related charges are subject to regulation by   the LFA. According to Operator, subscribers use the same equipment at issue to receive both BST and   CPST programming. Therefore, the LFA's complaint does not trigger our jurisdiction to regulate"( ,`(`(88"   Operator's equipment charges. However, the LFA has jurisdiction to determine the reasonableness of Operator's equipment rates.  S-  10.` ` Upon review of Operator's FCC Form 1200, filed to justify its CPST rates beginning  S`-  yMay15, 1994, we adjusted Line A6 to $7.85 to correspond to the MPR determined in the Prior Order. `(] yO-  ԍ Information regarding the specific adjustments made to Operator's FCC Forms can be found in the public   files for the abovereferenced community which are available in the Cable Services Bureau's public reference room,   or through the Commission's copy contractor, International Transcription Services (ITS), 1231 20th Street N.W., washington, DC, 20554, or by calling ITS at (202) 8573800.   S8-  Notwithstanding our adjustment, we find that Operator has correctly calculated its MPR of $7.64. 8(] yO -  wԍ These findings are based solely on the representations of Operator. Should information come to our attention   that these representations were materially inaccurate, we reserve the right to take any appropriate action. This Order   is not to be construed as a finding that we have accepted as correct any specific entry, explanation or argument made by any party to this proceeding not specifically addressed herein.   Because Operator's actual CPST rate was $8.00, we find Operator's CPST rate to be unreasonable for the   period May 15, 1994 through July 14, 1994. However, Operator has elected to take advantage of the  S-  refund liability deferral period in accordance with the Commission's Rules.# (] {O-  ԍ  See Letter from Geary Stills, Vice President Regional Operations, Sammons Cable Services, to the Federal  {O-Communications Commission dated May 18, 1994. See also 47 C.F.R. Section 76.922(b)(6)(ii) (1996).# Accordingly, Operator does   not incur refund liability for charging in excess of the MPR calculated on its FCC Form 1200 for the   Lperiod May 15, 1994 through July 14, 1994. However, Operator does incur refund liability for charging   a CPST rate of $8.00 for the period May 15, 1994 through July 14, 1994, which is above the MPR of   $7.85 approved by the Commission on Operator's FCC Form 393. In addition, because Operator's actual   CPST rate of $7.90, in effect from July 15, 1994 to April 5, 1995, exceeded its FCC Form 1200 MPR   of $7.64, we find Operator's actual CPST rate of $7.90, to be unreasonable effective July 15, 1994 through April 5, 1995.   SX-  p11.` ` Upon review of Operator's FCC Form 1210 covering the period March 31, 1994 to   June30, 1995, we find that Operator claimed an excessive inflation factor. Operator is a "transition rate"   Lbenchmark operator and, therefore, may apply an inflation adjustment factor of no more than 1.0215 for   the period October 1, 1993 to June 30, 1994. Accordingly, we adjusted Operator's inflation factor on   yLines I5 (Inflation Adjustment Factor) and J5 (Inflation Adjustment Factor) each from 1.0521 to 1.0215.   These adjustments to Operator's FCC Form 1210 have reduced Operator's MPR from $9.20 to $9.09.   Although Operator's FCC Form 1210 for the period March 31, 1994 to June 30, 1995 justifies a CPST  S@-  rate of $9.09, as of July 1, 1995, Operator implemented this rate on April 6, 1995.y!X@ (] yO -  9!ԍ Section 76.922 (d)(3)(iii) provides that "a system may adjust its rates after the close of a quarter [emphasis   added] to reflect changes in external costs that occurred during that quarter as soon as it has sufficient information to calculate the rate change." 47 C.F.R.  76.922 (d)(3)(iii). y Therefore,   Operator's CPST rate of $9.09 for the period April 6, 1995 to June 30, 1995 is not justified. However, Operator justifies its CPST rate of $9.09, effective July 1, 1995.  S-  12.` ` Upon review of Operator's first FCC Form 1240 for the period June 1, 1996 through   [May31, 1997, we have adjusted Module A, Line A1 to reflect Operator's previous MPR of $9.09. The   adjustment to Line A1 required that we correct the inflation factor in Module C, Line C1 to 1.0151 and"P!,`(`(88"   Line C3 to 1.0222 and Worksheet 1 accordingly. These adjustments reduced Operator's MPR from   =$10.75 to $10.50. Because Operator's actual CPST rate of $10.75 exceeded its reduced MPR of $10.50,   we find Operator's actual CPST rate of $10.75, effective June 1, 1996 through May 31, 1997 to be unreasonable.  S8-  #13.` ` Upon review of Operator's second FCC Form 1240 for the projected period June 1, 1997   Mthrough May 31, 1998, we have adjusted Module A, Line A1 to reflect Operator's previous MPR of   k$10.50. This adjustment required that we revise Operator's inflation factor. As a result, the inflation   factor in Module C, Line C3 was corrected from 1.0221 to 1.0177. These adjustments reduced Operator's MPR for the projected period (Line I9) to $13.65.  SH -  14.` ` Operator's June 1, 1997 rate increase reflects not only the annual increase as reported on   >FCC Form 1240, but also recovery of costs for its network upgrade as reflected on FCC Form 1235.   Operator elected to apply all of its FCC Form 1235 allowable BST and CPST increases to its CPST  S -  MPR." (] yO8-  Yԍ Consistent with FCC Form 1235, Operator has elected to recover the total monthly Network Upgrade Addon  {O-through the CPST rate. See Operator's FCC Form 1235, Part III, Lines 4 and 5. Such an election is consistent with the FCC Form 1235 instructions.{# "(] {O-#X\  P6G;P#э See FCC Form 1235 Instructions at 8. { We have reviewed   [Operator's cost allocations and determined that the costs Operator is seeking to recover on the CPST are properly allocable to the BST and CPST. Consequently, we accept Operator's FCC Form 1235.  S0-  #15.` ` Upon review of Operator's FCC Form 1235, we have calculated an MPR of $8.02, which   Operator has chosen to apply completely to its CPST MPR. When the FCC Form 1240 MPR of $13.65   is combined with the FCC Form 1235 MPR of $8.02, the combined MPR is $21.67. Operator was   yactually charging a combined rate of $18.86. We conclude that the CPST rate of $18.86, effective June1, 1997, is reasonable.  S@-  `16.` ` Accordingly, IT IS ORDERED, pursuant to Section 76.962 of the Commission's rules, 47 C.F.R. 76.962, that Operator's Refund Plan IS NOT ACCEPTED.  S-  17.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47   C.F.R. Section 76.961, that Operator revise its Refund Plan as detailed herein and resubmit its plan to the  Sx-Chief, Cable Services Bureau, within thirty days of the release of this Order.     S(-  `18 c$6^ . c$6^ ` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  S-  yC.F.R. Section 0.321 that Operator's CPST rate of $8.00, effective May 15, 1994 through July 14, 1994,  S-in the community set forth above, IS UNREASONABLE.   S-  319.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules,47  S`-  C.F.R. Section 0.321 that Operator's CPST rate of $7.90, for the period July 15, 1994 through April 5,  S8-1995, in the community set forth above, IS UNREASONABLE.  S -  `20.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  S!-  C.F.R. Section 0.321 that Operator's CPST rate of $9.09, for the period April 6, 1995 through June 30,  S"-1995, in the community set forth above, IS UNREASONABLE. ""#,`(`(88$"Ԍ  S-  `21.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  S-  C.F.R. Section 0.321 that Operator's CPST rate of $9.09, for the period July 1, 1995 through May 31,  S-1996, in the community set forth above, IS REASONABLE.   S8-  `22.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  S-  =C.F.R. Section 0.321 that Operator's CPST rate of $10.75, for the period June 1, 1996 through May 31,  S-1997, in the community set forth above, IS UNREASONABLE.  S-  `23.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  Sp-  =C.F.R. Section 0.321 that Operator's CPST rate of $18.86, for the period June 1, 1997 through May 31,  SH -1998, in the community set forth above, IS REASONABLE.  S -  24 c$6^ . c$6^ ` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47   C.F.R. Section 76.961, that Operator shall refund to subscribers in the franchise area referenced above that   >portion of the amount paid in excess of the maximum permitted CPST rate of $7.85 per month (plus  S -franchise fees), plus interest to the date of the refund, for the period May 15, 1994 through July 14, 1994.  SX-  S0-  25.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47   C.F.R. Section 76.961, that Operator shall refund to subscribers in the franchise area referenced above that   >portion of the amount paid in excess of the maximum permitted CPST rate of $7.64 per month (plus franchise fees), plus interest to the date of the refund, for the period July 15, 1994 through June 30, 1995.  S-  Sh-   26.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47   C.F.R. Section 76.961, that Operator shall refund to subscribers in the franchise area referenced above that   portion of the amount paid in excess of the maximum permitted CPST rate of $10.50 per month (plus  S-franchise fees), plus interest to the date of the refund, for the period June 1, 1996 to May 31, 1997.  S-  27.` ` IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges to   CPST subscribers for the stated periods, and shall within 30 days of the release of this Order, file a report   kwith the Chief, Cable Services Bureau, stating the cumulative refund amount so determined (including   franchise fees and interest), describing the calculation thereof, and describing its plan to implement the refund within 60 days of Commission approval of the plan.  S-  S-  28.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47   C.F.R. Section 0.321, that the complaints referenced herein against the rates charged by Operator in the community set forth above ARE GRANTED. ` `  hh,VFEDERAL COMMUNICATIONS COMMISSION ` `  hh,VJohn E. Logan  SH$-` `  hh,VDeputy Chief, Cable Services Bureauxx-