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D In this Order, we grant Operator's request for small system relief under the Small Systems  xyOrder and, based on our review of Operator's FCC Form 1230 filing, deny the pending CPST complaints and find the CPST rate to be reasonable.  Sr- ` 2x2.` ` Under the Communications Act,|r* r {O<#-ԍ Communications Act, Section 623(c), as amended, 47 U.S.C. 543(c) (1996).| the Commission is authorized to review the CPST rates  xof cable systems not subject to effective competition to ensure that rates charged are not unreasonable.  S"- xThe Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act"),U" r yO~&-ԍ Pub. L. No. 102385, 106 Stat. 1460 (1992).U and our  S- xyrules in effect at the time the complaints were filed, required the Commission to review CPST rates upon  xzthe filing of a valid complaint by a subscriber. The filing of a valid complaint triggers an obligation on"L ,))II "  S- xbehalf of the cable operator to file a justification of its CPST rates.Cu_ yOh-ԍ 47 C.F.R. Section 76.956.C Under the Commission's rules, an  xoperator may attempt to justify its CPST rate through a benchmark showing, a cost of service showing,  xor a small system cost of service showing. In any case, the operator has the burden of demonstrating that  S- x\its rate is not unreasonable.RXu_ yO-ԍ 47 C.F.R. Sections 76.956(b) and 76.934.R If the Commission finds a rate to be unreasonable, it shall determine the  S`-correct rate and any refund liability.`u_ {O-ԍ  See Section 76.957 of the Commission's Rules, 47 C.F.R. Section 76.957.  S- ` Rx3.` ` The Commission's original rate regulations took effect on September 1, 1993. zu_ yO* - xԍ Order in MM Docket No. 92266, Implementation of Sections of the Cable Consumer Protection and Competition Act of 1992: Rate Regulation, FCC 93372, 58 Fed. Reg. 41042 (Aug. 2, 1993). The  S- xCommission subsequently revised its rate regulations effective May 15, 1994.1 Zu_ {OZ- x,ԍ 47 C.F.R. Section 76.922 (b). See also Second Order on Reconsideration, Fourth Report and Order, and Fifth  xjNotice of Proposed Rulemaking, MM Docket No. 92266, 9 FCC Rcd 4119, 4190 (1994) ("Second Order on Reconsideration").1 In a further effort to offer  xsmall cable companies administrative relief from rate regulation, the Commission amended the definition  xof small cable companies and small systems and introduced a simplified form of small system rate relief  xyin the Small Systems Order. Operators attempting to justify their rates through small system relief must  SH - x file FCC Form 1230. H u_ yO- xxԍ The FCC Form 1230 is a onepage form "on which the system inserts its expense, rate base, rate of return, channel count and subscriber count figures and then calculates its rate of return." Small Systems Order at  64. FCC Form 1230 requires that the Operator Selected Per Subscriber Monthly  xProgramming Rate Per Channel (FCC Form 1230, Line A11) not exceed the Per Subscriber, Per Channel  S - xMonthly Programming Costs (FCC Form 1230, Line A6).e L u_ {O-ԍ See Instructions for Line A11, FCC Form 1230, page 3.e Cable systems serving 15,000 or fewer  xsubscribers, and owned by a company having 400,000 or fewer subscribers, may elect to use the small  xsystem rate mechanism found in FCC Form 1230 in lieu of other Commission rate processes, provided  S -the Commission has not reached a final resolution on the rate complaints filed against the system.I u_ yO-ԍ Small Systems Order at  75.I  S0- ` Ax4.` ` On October 10, 1997 Operator filed FCC Form 1230 for the community referenced above  xjseeking to justify its CPST rate through the simplified small system cost of service procedures under the  x.Commission's Small Systems Order. Pursuant to Section 76.934 of the Commission's rules, "the size of  xa system or company shall be determined by reference to its size as of the date the system files with its"n ,_(_(II"  x=franchising authority or the Commission the documentation necessary to qualify for the relief sought or,  x {$-T  {$-T at the option of the company, by reference to system or company size as of the effective date [of these  S-rules]."|u_ {O-ԍ 47 C.F.R. Section 76.934(a). See also Small Systems Order at  38.| The Small Systems Order provides that:  ` pXx` ` A system's initial and continued eligibility for this new form of relief shall be  S8- determined in the same manner as any other relief now available to them.d8Zu_ {O2-ԍ Small Systems Order at  73 citing  38.d Thus, if a  S- B {$-T  {$-T system qualifies for relief under this approach as of the effective date of this orderCZu_ yO - x<ԍ The Small Systems Order was released on June 5, 1995, and became effective upon approval by the Office  {Od - xof Management and Budget on August 21, 1995. See Federal Communications Commission Public Notice, DA 951848 (August 22, 1995).C or  as of the date it files Form 1230, it shall remain eligible for so long as it serves 15,000  2or fewer subscribers, regardless of whether it, or the cable operator that owns the system,  #is subsequently acquired by a company that exceeds the 400,000 subscriber limit, or if its  current operator subsequently exceeds 400,000 subscribers due to the normal growth of  SH - `its systems.3H u_ {O-ԍ Id.3 When a system that has established rates in accordance with Form 1230  `exceeds 15,000 subscribers, the system may maintain its then existing rates. However,  `any further adjustments shall not reflect increases in external costs, inflation or channel  2additions until the system has reestablished initial permitted rates in accordance with our  S -benchmark or costofservice rules. u_ {O- xԍ Such a system may file a petition for special relief seeking continued treatment as a small system. See Small Systems Order at  73 citing  36.  Small Systems Order at  73.  S- ` 3x5.` ` We find that as of the effective date of the Small Systems Order, August 21, 1995, the  xysystem in question served fewer than 15,000 subscribers, and was owned by a company with fewer than  x400,000 total subscribers, thereby making it eligible for small system relief. Further, Operator's filings  x\show that its actual rate per channel for regulated cable service (FCC Form 1230, Line A11) does not  xexceed its per subscriber, per channel monthly programming costs (FCC Form 1230, Line A6) and the  xMaximum Permitted Rate per channel (FCC Form 1230, Line A10) does not exceed $1.24. We, therefore,  S-find that Operator's monthly CPST rate of $12.32 is reasonable.  u_ yO!- xԍ These findings are based solely on the representations of the operator. Should information come to our  xattention that these representations were materially inaccurate, we reserve the right to take appropriate action. This  xOrder 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.  S- `  x6.` ` Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  xC.F.R. Section 0.321, that Operator's request for small system relief, for the system in the community referenced above, IS GRANTED. "x,_(_(II"Ԍ S- ` ԙx7.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  xNC.F.R. Section 0.321, that the actual CPST rate of $12.32 charged by Operator in the community referenced above IS REASONABLE.  S`- ` x8.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  xyC.F.R. Section 0.321, that the complaints against the monthly CPST rate charged by Operator during the period under review in the community referenced above ARE DENIED.  S- ` x9.` ` This action is taken pursuant to delegated authority under Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321. x` `  hhFEDERAL COMMUNICATIONS COMMISSION x x` `  hhElizabeth W. Beaty x` `  hhChief, Financial Analysis and Compliance Division {$-T  x` `  hhCable Services Bureau  X-#Xj\  P6G;9XP#