WPC{ 2BJ Courier3|XTimes New Roman Bold P6G;PTimes New RomanRoom 907HPLAS5SI.PRSx  @\{$Q_X@26KF Z3|X"i~'^09CSS999S]+9+/SSSSSSSSSS//]]]Ixnnxg]xx9?xgxx]xn]gxxxxg9/9MS9ISISI9SS//S/SSSS9?/SSxSSIP!PZ9+ZM999+999999S9S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNpTimes New RomanTimes New Roman BoldTimes New Roman Italic"i~'^:DPddDDDdp4D48dddddddddd88pppX|pDL|pp||D8D\dDXdXdXDdd88d8ddddDL8ddddX`(`lD4l\DDD4DDDDDDdDd8XXXXXX|X|X|X|XD8D8D8D8ddddddddddXdbdddpdXXXXXlX~|X|X|X|XdddldldD8DdDDDdplld|8|P|D|D|8dvddddDDDpLpLpLpl|T|8|\ddddddl|X|X|Xd|DdpL|Dd~4ddC$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddxHxxHvppDXd<"dxtldpxxda8DocumentgDocument Style StyleXX` `  ` a4DocumentgDocument Style Style . 2G kVk, v a6DocumentgDocument Style Style GX  a5DocumentgDocument Style Style }X(# a2DocumentgDocument Style Style<o   ?  A.  a7DocumentgDocument Style StyleyXX` ` (#` 2 ty   * BibliogrphyBibliography:X (# a1Right ParRight-Aligned Paragraph Numbers:`S@ I.  X(# a2Right ParRight-Aligned Paragraph Numbers C @` A. ` ` (#` a3DocumentgDocument Style Style B b  ?  1.  2   d#a3Right ParRight-Aligned Paragraph Numbers L! ` ` @P 1. ` `  (# a4Right ParRight-Aligned Paragraph Numbers Uj` `  @ a. ` (# a5Right ParRight-Aligned Paragraph Numbers _o` `  @h(1)  hh#(#h a6Right ParRight-Aligned Paragraph Numbersh` `  hh#@$(a) hh#((# 2a7Right ParRight-Aligned Paragraph NumberspfJ` `  hh#(@*i) (h-(# a8Right ParRight-Aligned Paragraph NumbersyW"3!` `  hh#(-@p/a) -pp2(#p Tech InitInitialize Technical Style. k I. A. 1. a.(1)(a) i) a) 1 .1 .1 .1 .1 .1 .1 .1 Technicala1DocumentgDocument Style Style\s0  zN8F I. ׃  2+Oa5TechnicalTechnical Document Style)WD (1) . a6TechnicalTechnical Document Style)D (a) . a2TechnicalTechnical Document Style<6  ?  A.   a3TechnicalTechnical Document Style9Wg  2  1.   2]Ka4TechnicalTechnical Document Style8bv{ 2  a.   a1TechnicalTechnical Document StyleF!<  ?  I.   a7TechnicalTechnical Document Style(@D i) . a8TechnicalTechnical Document Style(D a) . 236e:Doc InitInitialize Document Stylez   0*0*0*  I. A. 1. a.(1)(a) i) a) I. 1. A. a.(1)(a) i) a)DocumentgPleadingHeader for Numbered Pleading PaperE!n    X X` hp x (#%'0*,.8135@8:Ltoc 2toc 2;` hp x (#` !(#B` !(#B` hp x (#toc 3toc 3<` hp x (#` !(# ` !(# ` hp x (#toc 4toc 4=` hp x (# !(#  !(# ` hp x (#toc 5toc 5>` hp x (#h!(# h!(# ` hp x (#2U?N@vPAuQBStoc 6toc 6?` hp x (#!(#!(#` hp x (#toc 7toc 7@ toc 8toc 8A` hp x (#!(#!(#` hp x (#toc 9toc 9B` hp x (#!(#B!(#B` hp x (#2\CUDXEZFv=\index 1index 1C` hp x (#` !(# ` !(# ` hp x (#index 2index 2D` hp x (#` !(#B` !(#B` hp x (#toatoaE` hp x (#!(# !(# ` hp x (#captioncaptionF 2^Gl\HrQ]I]J}B^_Equation Caption_Equation CaptionG endnote referenceendnote referenceH head1 #I'd#2p}wC@ #a1Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfJ$ 2SaK^Ly_M `N`a2Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfK/` ` ` a3Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfL:` ` `  a4Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfME` ` `  a5Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfNP  ` ` ` hhh 2 fOaP9bQbXca6Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfO[   a7Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfPf  a8Paragraph R!1. a. i. (1) (a) (i) 1) a)D )DDDFrfQq y.X80,ɒX\  P6G;P7jC:,ynXj\  P6G;XP7nC:,I\\>>>\g0>03\\\\\\\\\\33gggQyyrg>Frgygrr>3>T\>Q\Q\Q>\\33\3\\\\>F3\\\\QX%Xc>0cT>>>0>>>>>>\>\3QQQQQwyQrQrQrQrQ>3>3>3>3\\\\\\\\\\Q\Z\\\g\QQQyQyQycyQtrQrQrQrQ\\\c\c\>3>\>>>\gcc\r3rIr>r>r3\l\\\\y>y>y>gFgFgFgcrMr3rT\\\\\\crQrQrQ\r>\gFr>\t0\\=!=WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNBnnBT\>Q\\\\\3;\7;\7>>QQ\??n\\nBnnBmgg>Q\7"yyyy\njc\gnn\"i~'^5>g\\>>>\g0>03\\\\\\\\\\>>ggg\yyrF\yrgyy>3>j\>\gQgQ>\g3>g3g\ggQF>g\\\QI(I_>0_j>>>0>>>>>>\>g3\\\\\QyQyQyQyQD3D3D3D3g\\\\gggg\\g\\\\pg\\\QQ_QyQyQyQyQ\\\_\gjF3FgF>Fgg__gy3ySy>yIy3ggg\\QQQgFgFgFg_y^y>yjgggggg_yQyQyQgy>ggFy>\0\\=2=WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNBnnBa\>\\\\\\7>\7>\7>>\\\??n\\nBnnBsgg>\\7"yyyy\nlc\gnn\"i~'^ %,77\V%%%7>%7777777777>>>0eOIIOD>OO%*ODaOO>OI>DOOgOOD%%37%07070%777V7777%*77O77055;%;3%%%%%%%%%7%7O0O0O0O0O0aHI0D0D0D0D0%%%%O7O7O7O7O7O7O7O7O7O7O0O7O6O7O7O7>7O0O0O0I0I0I;I0OED0D0D0D0O7O7O7O;O7O;O7%%7%%%7M>;;O7DD,D%D%DO7AO7O7O7O7aOI%I%I%>*>*>*>;D.DD3O7O7O7O7O7O7gOO;D0D0D0O7D%O7>*D%O7E77%%WMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN(BB(37%07777j7#TT7!#TT7T!%%007n&&Bn77lBTn(nBB(AZZ>>n%07\n!"IIIITTenn7TnB@;7>lBBn72wKoKqK3tJ"i~'^"(22TN"""28"2222222222888,\HBBH>8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""2"2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""M\\>>>\}0>03\\\\\\\\\\>>}}}\rryrr>Qygyrr\grrggF3FM\>\\Q\Q3\\33Q3\\\\FF3\QyQQFI3Ic>0cM>>>0>>>>>>\>\3r\r\r\r\r\yyQrQrQrQrQ>3>3>3>3y\\\\\\\\\gQr\\\\gQ\r\r\r\r\yQyQycyQnrQrQrQrQ\\\c\c\>3>\>>>\\ccyQg3gBg>g;g3y\jy\y\\\yrFrFrF\F\F\FccgBg3gM\\\\\\ygcgFgFgF\g>y\\Fg>g\n0\\=(=WddddddddddddddddddddddddddddddddddddddddNBnnB_\F\\\\\\3;\7;\7>>gg\??n\\nBnnBb\\>g\7"yyyy\njc\}nn\"i~'^09FSS999Sq+9+/SSSSSSSSSS99qqqSggnxggxx9In]nxgxgS]xgg]]?/?FS9SSISI/SS//I/xSSSS??/SInII?C/CZ9+ZF999+999999S9S/gSgSgSgSgSnnIgIgIgIgI9/9/9/9/nSxSxSxSxSxSxSxSxS]IgSxSxSxS]IxSgSgSgSgSnInInZnIxdgIgIgIgIxSxSxSxZxSxZxS9/9S999SSZZnI]/]<]9]5]/nSanSnSxSxSng?g?g?S?S?S?ZZ]<]/]FxSxSxSxSxSxSn]Z]?]?]?xS]9nSS?]9]Sd+SS8%8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuddddddddddddddddddddddddddddddddddddddddNSystems Order").BXS t yO- xYԍ Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992: Rate  xRegulation; Sixth Report and Order and Eleventh Order on Reconsideration, MM Docket Nos. 92266 and 93215, FCC 95196, 10 FCC Rcd 7393 (1995).B In this Order, we grant Operator's request for small system relief under the Small  xSystems Order and, based on our review of Operator's FCC Form 1230 filing, deny the pending CPST complaints and find the CPST rate to be not unreasonable.  S- ` 2x2.` ` Under the Communications Act,|@t {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.  Sc- xThe Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act"),Uct yO"-ԍ Pub. L. No. 102385, 106 Stat. 1460 (1992).U and our  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  S- xbehalf of the cable operator to file a justification of its CPST rates.Cb t yO&-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" ,))II"  S- x\its rate is not unreasonable.R5 yOh-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- x=correct rate and any refund liability.X5 {O-ԍ  See Section 76.957 of the Commission's Rules, 47 C.F.R. Section 76.957. The Telecommunications Act of 1996 ("1996 Act")S5 yOb-ԍ Pub. L. No. 104104, 110 Stat. 56 (1996).S and our rules  S- ximplementing the new legislation, z5 {O- xԍ See Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996, 11 FCC Rcd 5937 (1996). requires that complaints against the CPST rates be filed with the  x=Commission by a franchising authority that has received subscriber complaints. A franchising authority  xmay not file a CPST complaint unless, within 90 days after such increase becomes effective, it receives more than one subscriber complaint.  S- ` x3.` ` The Commission's original rate regulations took effect on September 1, 1993. 5 yO\- x.ԍ 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 Z, 5 {O- xԍ 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  S - x/file FCC Form 1230.  N 5 yO- xԍ 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 - xkMonthly Programming Costs (FCC Form 1230, Line A6).e 5 {O-ԍ See Instructions for Line A11, FCC Form 1230, page 3.e If the maximum rate established on FCC  S - xzForm 1230 does not exceed $1.24 per channel, the rate shall be presumed reasonable.W 85 {O-ԍ See 47 C.F.R. Section 76.934(h) (1996) W Cable systems  xyserving 15,000 or fewer subscribers, and owned by a company having 400,000 or fewer subscribers, may  xelect to use the small system rate mechanism found in FCC Form 1230 in lieu of other Commission rate  xprocesses, provided the Commission has not reached a final resolution on the rate complaints filed against  S-the system.I5 yOr$-ԍ Small Systems Order at  75.I  S- ` x4.` ` On November 23, 1995 Operator filed FCC Form 1230 for the community referenced  xkabove seeking to justify its CPST rate through the simplified small system cost of service procedures"Z,_(_(II"  x=under the Commission's Small Systems Order. In its November 23, 1995 filing, Operator states that the  xentities legally affiliated with Operator, for purposes of small system rate relief, served approximately  x41,865 and that its system in the community referenced above served approximately 7,609 subscribers.  x0Pursuant to Section 76.934 of the Commission's rules, "the size of a system or company shall be  xkdetermined by reference to its size as of the date the system files with its franchising authority or the  xCommission the documentation necessary to qualify for the relief sought or, at the option of the company,  S- xby reference to system or company size as of the effective date [of these rules]."|5 {Ox-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  Sp- determined in the same manner as any other relief now available to them.dpZ5 {Oj -ԍ Small Systems Order at  73 citing  38.d Thus, if a  SH - Bsystem qualifies for relief under this approach as of the effective date of this orderCZH 5 yO- x<ԍ The Small Systems Order was released on June 5, 1995, and became effective upon approval by the Office  {O- 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  S - `its systems.3 5 {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.5 {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@- ` x5.` ` In addition, the Small Systems Order provides that "[o]nce the operator has established  xrates at a level permitted by Form 1230, it may increase rates thereafter at its discretion until it reaches  S- x=the maximum level permitted by the form, subject only to the 30 days' notice requirement."J 5 yO"-ԍ Small Systems Order at  69. J The Small  xSystems Order explains that "[a]s long as the actual rate does not exceed the maximum permitted rate, the  x=operator may adjust its actual rate as and when it desires, subject to the notice requirement. In addition,  Sx-at any time an operator may adjust its maximum permitted rate simply by filing a new Form 1230."3x 5 {O&-ԍ Id.3 "P,_(_(II"Ԍ S- ` %x6.` ` We find that as of the effective date of the Small Systems Order, August 21, 1995,  xOperator was a company with fewer than 400,000 total subscribers and that the system in question served  x>fewer than 15,000 subscribers, thereby making it eligible for small system relief. Further, Operator's  xfilings show that the Operator Selected Per Subscriber Monthly Programming Rate Per Channel (FCC  x Form 1230, Line A11) does not exceed $1.24 per channel. We, therefore, find that Operator's actual  S8-CPST rate of $12.80 is not unreasonable. 85 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- ` x7.` ` 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.  SH - ` x8.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  xC.F.R. Section 0.321, that the monthly CPST rate of $12.80 charged by Operator in the community referenced above IS NOT UNREASONABLE.  S - ` x9.` ` IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47  x.C.F.R. Section 0.321, that the complaint against the monthly CPST rate charged by Operator during the period under review in the community referenced above IS DENIED.  S- ` x10.` ` 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` `  hhElizabeth W. Beaty x` `  hhChief, Financial Analysis and Compliance Division  Sx-x` `  hhCable Services Bureau#Xj\  P6G;ynXP#