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Falcon also filed a petition for a stay of the local rate order.Y yO!- xԍEmergency Petition for a Stay of Enforcement Pending Review (May 23, 1996) ("Stay"). Because this Order resolves the substantive issues raised, we dismiss the Stay Petition as moot.  SP- II.Xx BACKGROUND (#  S- ` ox2.` ` Under the Communications Act, the Commission reviews appeals of rate orders issued  S- xby LFAs.* Y {O'-ԍ47 C.F.R.  76.944; Rate Regulation, Report and Order, 8 FCC Rcd 5631, 5729 (1993) ("Rate Order"). When considering appeals, the Commission will not conduct a de novo review, but instead" ,**88="  S- xwill sustain the LFA's decision as long as it did not act unreasonably in applying the Commission's rules. H {Oh- x,ԍRate Order, 8 FCC Rcd at 5731; Rate Regulation & Buy-Through Prohibition, Third Order on Reconsideration,  {O2-9 FCC Rcd 4316, 4346 (1994) ("Third Recon.").  x|If the Commission reverses a decision, it will not substitute its own judgment, but will remand  S-the case to the LFA with instructions to resolve it consistent with the reversal.$ H {Ot-ԍSee, Rate Order, 8 FCC Rcd at 5732; see also, Third Recon., 9 FCC Rcd at 4346.  S`- ` ox3.` ` Both an LFA and a cable operator have rights and obligations under rate regulation law.  x.An LFA has the right to regulate the rates for a cable operator's basic service tier (BST), equipment, and  S- xinstallation.q  H {Of -ԍCommunications Act,  623(a)(2)(a), 47 U.S.C.  543(a)(2)(a).q To exercise this right, an LFA must file Form 328 with the Commission.A H H yO -ԍ47 C.F.R.  76.910(c).A Form 328  x requires an LFA to certify (a) it will adopt regulations within 120 days of certification, (b) it has the  xauthority and resources to administer the regulations, (c) it will afford a reasonable opportunity to consider  xNthe views of interested parties in rate proceedings, (d) that the operator is not subject to effective  Sp- x?competition, and (e) it has served a copy of Form 328 on all affected cable systems.V p H {O-ԍSee, 47 C.F.R.  76.910 and Form 328.V Unless the  SH -Commission notifies the LFA otherwise, certification becomes effective 30 days after Form 328 is filed. H j H {OR-ԍCommunications Act,  623(a)(4), 47 U.S.C.  543(a)(4); 47 C.F.R.  76.910(e).  S - ` `x4.` ` When cable operators do not face effective competition, they must justify their rates.  H {O- xԍRate Order, 8 FCC Rcd at 5636, 5639; 47 C.F.R.  76.905(a) (effective competition provision); 47 C.F.R.  76.930 (initiation of review of basic cable service and equipment rates).  x.For the period from September 1, 1993 to May 14, 1994, operators use FCC Form 393. For the period  S - xbeginning May 15, 1994, operators use the FCC Form 1200 series.w\ V H {O- xԍ47 C.F.R.  76.922(b)(6)(i); see also, 47 C.F.R.  76.930, 76.937(b); see also, Rate Regulation, Second Order  xon Reconsideration, Fourth Report and Order, and Fifth Notice of Proposed Rulemaking, 9 FCC Rcd 4119, 4187 {O0-4189 (1994) ("Second Recon.").w In Form 1200, operators calculate  xztheir initial maximum permitted rates. In Form 1205, operators determine the costs of regulated cable  x.equipment and installation. Operators may change their maximum permitted rates annually, using Form  S0- x1240, or quarterly, using Form 1210.0z H yOJ!-ԍ47 C.F.R. 76.922(e) (annual rate adjustment); 47 C.F.R.  76.922(d) (quarterly rate adjustment). Forms 1240 and 1210, the latter relevant in this case, adjust an  xoperator's maximum permitted rate to reflect changes in external costs, channel additions and deletions, and inflation.  S- ` x5.` ` A cable operator must first file the appropriate forms within 30 days of receiving written  Sh- xnotice from its LFA that the LFA has become certified.h  H {O'-ԍ47 C.F.R.  76.922(6)(i); 47 C.F.R.  76.930; Rate Order, 8 FCC Rcd at 57075708. For quarterly filers, the appropriate documents"h,`(`(88"  S- xare Forms 1200, 1205, and 1210.1 H {Oh-ԍId.1 After the initial filing, a cable operator may raise its rates only after  S-giving 30 days written notice to subscribers and filing an updated Form 1210 with its LFA.Z H {O- xԍ47 C.F.R.  76.964(a); 47 C.F.R.  76.932; Communications Act,  623(b)(6), 47 U.S.C. 543(b)(6); 47 C.F.R.  76.922(d)(3)(iii).  S- ` x6.` ` An operator has the burden of proving that any rate increases conform with Commission  S`- x<rules.A` H yO -ԍ47 C.F.R.  76.937(a).A This requires submitting forms and responding to requests for supporting information.`D H {OD -č47 C.F.R.  76.937(b), (e); see, Rate Order, 8 FCC Rcd at 5718 (1993). The LFA,  S8- xzafter reviewing an operator's forms and any additional information, may either approve the operator's  xrequested rate increase or issue a written decision explaining the factors it considered in denying the  S- xincrease. H {O^- xԍ47 C.F.R.  76.936; see, Century Cable of Southern California, 11 FCC Rcd 501 (1995); Ultracom of Marple  {O(-Inc., 10 FCC Rcd 6640 (1995). The LFA has only a limited time to complete its review before an operator's rates  S-automatically take effect.xZ2 H {O- xԍ47 C.F.R.  76.933;  Rate Order at 57075711. An LFA has 120 days to review rate increases not involving  xcostofservice showings and 180 days for cases involving costofservice showings. For one year after that, an LFA may reject rate increases and order refunds. 47 C.F.R.  76.933(b).x  Sp- III.Xx CHRONOLOGY (#  S - ` Bx7.` ` On October 12, 1993, the County submitted FCC Form 328 to certify its authority to  S -regulate Falcon's cable system. On July 12, 1994, the County passed its cable regulations. T H yO- xԍMcCreary County, Ky., McCreary County Fiscal Ct., Ordinance No. 850.0 (July 12, 1994) ("Ordinance"); 47 C.F.R. 76.910(e)(1)(ii).  S - ` x8.` ` On October 24, 1995, Falcon advised the County that its rates would rise because of  x\franchise fee increases and admitted that it mistakenly began collecting the increase before the 30day  SX- x^subscriber notice period ended.^X H yO-ԍLetter from Falcon to Jimmie Greene of 10/24/95.^ Falcon promised to correct the error by giving refunds to its  S0-subscribers.10< H {O "-ԍId.1 Falcon did not submit rate forms to the County justifying its rate increase.40 H yO#-ԍAppeal at 2.4 "^,`(`(88+"Ԍ S- ` qx9.` ` On February 23, 1996, Falcon announced a rate increase effective April 1.1 H {Oh-ԍId.1 On  S- xMarch25, the County requested that Falcon submit forms justifying it proposed rates.1Z H {O-ԍId.1 On April 1,  S- xbefore responding to the County's request, Falcon raised its basic service and addressable converter rates.1 H {O<-ԍId.1  xThree weeks later, in an April 24 letter to Falcon, the County stated that it was certified to regulate  S`- xFalcon's rates, that Falcon had proper notice of the County's regulations, and that the County expected  x0Falcon "to meet the FCC's and the County's requirements in connection with Falcon's recent rate  S-increases."~ H yO. - xԍLetter from Michael Marrero, representing McCreary County, to Falcon Cable of April 24, 1996, at 2 (attached to Appeal as Exhibit C) ("April 24, 1996 County Letter"). The County included a copy of its 1994 cable franchise regulations.1 H {O-ԍId.1  S-  S- ` x10.` ` The next day, April 25, 1996, Falcon submitted forms justifying both its 1995 and 1996  S- xrates.4 h H yO-ԍAppeal at 2.4 On May 14, before completing its review of Falcon's forms, the County rejected the 1996 rate  xyincrease by formal resolution because Falcon "failed to submit first to the [County] a rate filing to justify  SH - xthat increase."! H H yO- xԍMcCreary County, Ky., McCreary County Fiscal Ct. Resolution 95051401 (May 14, 1996) ("May 14, 1996  xResolution") (attached to Appeal as Exhibit A). The County had not finished its review by its own admission,  xstating in the resolution that it tolled the review period to "consider additional information or to consider comments from different parties." The County also tolled its 30day review for an additional 90 days, as Commission rules  S - xpermit,_"Z  H {O- xiԍId.; see, 47 C.F.R.  76.933. The intent of the tolling provisions in our rules, however, is to forestall a rate  xKincrease while the LFA has the increase under review. In this case, Falcon increased its rates prior to issuance of the County's tolling order._ but had not issued a final order regarding Falcon's rate forms prior to the filing of Falcon's  S -appeal.V#  H {O-ԍSee, Appeal at 4; Opposition at 3.V  S - IV.XxPLEADINGS (#  SX-Xx A.X` ` Jurisdiction (#`  S- ` x11.` ` Falcon asserts that the County lacks jurisdiction over cable rates because the County did  S- xnot pass cable regulations within 120 days of certification, as Section 76.910(e) requires.\$ H {O&-ԍAppeal at 2, 4; See, 47 C.F.R.  76.910(e).\ "If that time  x=limit is to have any meaning at all," Falcon argues, "it must mean that a local franchising authority which"&$,`(`(88"  S- xdoes not meet this deadline must begin the certification process again."3% H yOh-ԍReply at 2.3 Falcon states that this also voids  S-the County's resolution rescinding the rate increase.4&X H yO-ԍAppeal at 4.4  S- ` x12.` ` McCreary County responds that the Commission has never found an untimely ordinance  S`- xyto preclude an LFA from regulating rates.8'` H yO-ԍOpposition at 2.8 The County adds that nothing in Section 76.910(e) supports  S8- xFalcon's interpretation, and Falcon's position that the County must recertify makes no sense.7(8x H {OP -ԍId.7 According  S- xto the LFA, a better interpretation is that it could not regulate rates until enactment of its ordinance.7)  H {O -ԍId.7 The  xLCounty reasons that the failure to enact regulations within the 120day period only amounts to a "minor  S-nonconformance."8* H yO-ԍOpposition at 4.8  Sp-Xx B.X` ` "Use or lose" the regulations (#`  S - ` ox13.` ` Falcon argues that the burden is on local franchising authorities to ask operators for the  S - xappropriate forms and justification for their rates.@+ , H yO-ԍAppeal at 4; Reply at 1.@ Therefore, Falcon asserts that the County's failure to  x=make such a request in the past means that Falcon did not have to submit paperwork in 1996, regardless  xof the County's request. Nonetheless, Falcon states that as soon as it discovered that the County was  S -"actively regulating," it submitted the appropriate forms.4, H yO-ԍAppeal at 4.4  S0- ` Qx14.` ` The County characterizes this "use or lose" approach as false and unfair.8-0L H yO-ԍOpposition at 2.8 By arguing  xthat the County has no right to enforce its regulations because it has not done so in the past, "Falcon is  S-seeking to take advantage of the lack of resources of a rural government like McCreary County's."?. H {O\!-ԍId. at 23.?  S-Xx C.X` ` Procedural (#`  S@- ` x15.` ` Falcon believes that the County improperly rescinded the rate increase before completing  S- xits review.4/n H yO&'-ԍAppeal at 4.4 Falcon argues that the County should have waited until after the review to reject the increase,"/,`(`(88"  xespecially since the County has the right to demand that Falcon keep an accounting of the rate increases  S- xand refund the money if the increase is ultimately rejected.10 H {O@-ԍId.1 Under this scenario, Falcon states, "The end  S-result for subscribers should be the same."11Z H {O-ԍId.1  S`- ` x16.` ` McCreary County does not respond directly to this argument, but instead says that Falcon  S8- xchallenged the County on the wrong theory.828 H yO -ԍOpposition at 4.8 The County suggests that Falcon should have asked for  xkreconsideration of certification under Sections 76.911 and 76.914 of the Commission's rules, not for a  S- xreview of the County's rate order under Section 76.944.13| H {O -ԍId.1 Even so, the County contends, a petition for  xreconsideration of certification would fail because its regulations are not in conflict with the  S-Commission's.4 H {OF-ԍId., citing 47 C.F.R.  76.914(a)(1); see also, 47 C.F.R.  76.911(b)(1) and (e)(1)(i).  SH - ` 2x17.` ` In its Reply, Falcon argues that a revocation of certification is pointless if the County has  S -never been certified in the first place.35  H yO`-ԍReply at 4.3  S - V.XxDISCUSSION (#  S -x A.` ` Jurisdiction (#`  S0- ` 3x18.` ` The County has had jurisdiction over Falcon Cable since it passed its July, 1994 cable  xordinance. An LFA's failure to pass cable regulations within 120 days of certification is not, by itself,  S- xdeterminative of the LFA's inability or unwillingness to regulate cable rates.60 H {O-ԍSee, Cox Communications, Inc. d/b/a Dimension Cable Services, 11 FCC Rcd 9864 (1996) ("Dimension"). In the Dimension Cable  S- x=Services rate appeal, the LFA did not pass its rate regulations until nearly 250 days after being certified,  S- xbut it did pass them before exercising jurisdiction over the operator's rates.77 H {O-ԍId.7 We found that "the mere  xlapse of 120 days" failed to demonstrate that the LFA would not adopt rules consistent with Commission  SD- xLregulations or that its otherwise valid certificate should be revoked.18DT H {O8#-ԍId.1 Ruling for the LFA, we continued,  x"[T]he City's adoption of procedures to regulate rates cured any procedural defects that may have existed  S-due to its tardiness in adopting those procedures."19 H {Oz&-ԍId.1 "x9,`(`(88Q"Ԍ S- ` x19.` ` As in Dimension, the County cured the "procedural defect."G: H yOh-ԍAppeal at 12; Opposition at 2.G Moreover, Falcon was  x.aware of the ordinance when it was passed and when the County first asked for Falcon's rate forms (the  S- xregulations had been in effect for 20 months).Y;X H yO-ԍAppeal at 2; April 24, 1996 County Letter at 12.Y Falcon has not shown how the County's actions caused any disadvantage or harm.  S:- ` Bx20.` ` The County does not have to begin the certification process again.?<: H {O -ԍSee, Appeal at 4.? This would be an  xunnecessary burden on the County, especially since Falcon was unaffected during the time between the  S- xcertification filing and the ordinance's passage.9=z H {O -ԍId. at 12.9 Requiring franchising authorities to recertify under such  S- xcircumstances would delay implementation of local rate regulation with no resulting benefit.>Z  H {On- xԍSee, Rate Order, 8 FCC Rcd at 57075708. In outlining time limits for initiating basic cable rate review, the  xiCommission spoke of the goal of ensuring "that neither local franchising authorities nor cable operators delay in starting the rate review process, thereby benefitting subscribers in that community." The  xCounty's enforcement of its powers in 1996 was legitimate because it occurred after both the certification  Sr-and the regulations were in effect.A?r. H {O@-ԍSee, Appeal at 12.A  S" - XxB.X` ` "Use or lose" the regulations (#` x  S - ` x21.` ` Falcon incorrectly asserts that the County waived its right to regulate by delaying  S - x[enforcement of its ordinance.C@ H yO -ԍAppeal at 4; Response at x.C The responsibility to seek certification and promulgate rules initially lies  S - xwith the LFA.A P H yOr-ԍ47 C.F.R.  76.910(d) and 76.910(e)(2); 47 C.F.R.  76.930; 47 C.F.R.  76.922(b)(6)(i). Once complete, the operator incurs responsibilities.1B  H {O-ԍId.1 There is no authority for Falcon's  SZ- x"use or lose" proposition, and Falcon offers none.1CZr H {Ol -ԍId.1 Instead, Falcon argues that, by not asking for a  S2- xkjustification of the 1995 rate increases, the County gave up the right to ask for justification in 1996.6D2 H yO"-ԍAppeal at 23.6  S -Falcon tries to shift the entire burden of rate regulation to franchising authorities.1E  H {O>%-ԍId.1 "&E,`(`(889"Ԍ S- ` Px22.` ` The County has met its initial obligations and Falcon has not proven otherwise. First, the  S- x>County warranted that it served Form 328 on Falcon by checking the appropriate box on the form.kF H yO@-ԍMcCreary County's Form 328 (attached to Appeal as Exhibit B).k  xSecond, the County met the Commission's and Kentucky's notice requirement regarding regulations by  S-publishing its ordinance in a newspaper advertisement soon after passage.UGX H yO-ԍApril 24, 1996 County Letter at 2; Stay at 2.U  S8- ` ~x23.` ` Once the LFA has met its obligation of service and notification, responsibilities shift to  S- x.the operator.H H {O - xԍ47 C.F.R.  76.930 states, "A cable operator shall file... within 30 days of receiving written notification from  xthe franchising authority that the franchising authority has been certified." (emphasis added). 47 C.F.R.   {O* - x76.922(b)(6)(i) states, "Cable systems... shall file Forms 1200, 1205, and 1215 for a tier that is regulated on May  xx15, 1994 by June 15, 1994, or thirty days after the initial date of regulation for the tier. A system that becomes  xwsubject to regulation for the first time on or after July 1, 1994 shall also file FCC Form 1210 at the time it files FCC Forms 1200, 1205, and 1215." (emphasis added). Our regulations require operators to file several forms within 30 days of receiving notice  S- xthat the LFA is certified.1Id H {O-ԍId.1 Thereafter, operators must inform subscribers of rate increases and file the  S- xnecessary information with regulators.TJ H {OV-ԍSee, 47 C.F.R.  76.922(d) and (e).T By its own admission, Falcon did not file the required  xinformation after certification or before increasing its rates in 1994 and 1995, and filed the information  Sp- x{in 1996 only after implementing its rate increase.KKp H {O-ԍAppeal at 2, 4; Reply at 12.K Falcon's advancement of a "use or lose" rule is without merit.  S - XxC.X` ` Procedural (#`  S - ` x24.` ` Falcon correctly states that our regulations permit implementation of a rate increase  S - xMpending review by the County.?L  H {O:-ԍSee, Appeal at 4.? A proposed rate increase will take effect 30 days after the operator  SX- xsubmits its forms, unless the LFA rejects the increase or tolls the 30day implementation deadline.qMX H {O-ԍ47 C.F.R.  76.933(a) and (b); Rate Order, 8 FCC Rcd at 570910.q The  xLFA may toll the deadline for an additional 90 days in cases not involving costofservice showings and  S- x.for an additional 150 days in cases involving costofservice showings.BN> H yO"-ԍ 76.933(b)(1) and (2).B If the LFA does not act by the  x[end of this period, the increase takes effect subject to further review and possible refunds extending back"N,`(`(88"  S- xone year.O H {Oh-ԍ47 C.F.R.  76.933(c); Rate Order at 570910, n.312; see also, Rate Order at 5715, 57245728. These limits protect the rights of cable operators as well as those of franchising authorities  S-and subscribers.FPZ H {O-ԍRate Order at 57085711.F They also ensure that neither LFAs nor operators delay in starting the review process.@Q H {Od-ԍId. at 5708.@  S- ` x25.` ` In this case, Falcon neglected to file the appropriate forms with the County after  xannouncing its April 1, 1996 rate increase. In fact, Falcon did not file the forms until April 25, after the  xjincrease took effect and only after the County demanded them. Falcon should not have implemented the  xLincrease until it made its filing and until the County completed its review or the implementation deadline  xpassed, whichever came first. The County, in its May 14, 1996 resolution, tolled the implementation  xdeadline for an additional 90 days, even though the increase was already in effect. The County also  S-rejected the increase, but failed to adequately and substantively explain why, as our regulations require.|R~ H {O-ԍMay 14, 1996 resolution; See, Rate Order at 5715; 47 C.F.R.  76.936.|  SH - ` $x26.` ` Because the County did not fulfill its review obligations, we will not require Falcon to  xrescind its rate increase in this Order. We will instead remand this case to the County with instructions  xto complete the review of Falcon's rates and issue a local rate order within 60 days of the release of this  xOrder and consistent with Commission regulations. The 60day review period should provide the County  xywith enough time to consider this Order, review relevant information, and issue a substantive explanation for its decision, while not lengthening Falcon's refund liability period.  S0- VI.XxORDERING CLAUSES (#  S- ` x27.` ` Accordingly, IT IS ORDERED that Falcon Classic Cable's appeal of McCreary County's  S- xlocal order IS REMANDED to the County for resolution in accordance with the terms of this Memorandum and Order.  S@- ` x 28.` ` IT IS FURTHER ORDERED that Falcon Classic Cable's appeal of McCreary County's  xlocal order regarding the issues of the County's jurisdiction and authority to review Falcon Classic Cable's  S-rates is DENIED .  S- ` "x29.` ` IT IS FURTHER ORDERED that Falcon Classic Cable's appeal of McCreary County's  Sx- xlocal order regarding the premature rejection of Falcon Classic Cable's rate increase is GRANTED and  SP- xy REMANDED to the County for resolution in accordance with the terms of this Memorandum Opinion and Order.  j$> " R,`(`(88."  S- `  j$> x30.` ` IT IS FURTHER ORDERED that the Emergency Petition for a Stay  IS DENIED as moot.  S- ` x31.` ` This action is taken by the Deputy Chief, Cable Services Bureau, pursuant to authority delegated by  0.321 of the Commission's rules. 47 CFR  0.321. XxX` ` X XXhhX@FEDERAL COMMUNICATIONS COMMISSION(# XxX` ` X XXhhX@John E. Logan(# XxX` ` X XXhhX@Deputy Chief, Cable Services Bureau(#