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Under the modified  x approach, we have permitted operators to deduct their preregulation deferred tax balance from their  S - xcurrent deferred tax balance before they deduct deferred taxes from the rate base. |[ {O-ԍSee TCI TKR of Houston, 11 FCC Rcd at 20932; TCI of St. Louis, 12 FCC Rcd at 1529596. This results in a  x.smaller deduction to the rate base and, correspondingly, larger revenues. Because the operator may earn  xa return on those revenues until it actually incurs the tax liability, the Commission requires that this  SX-amount, the deferred tax liability, be deducted from the ratebase so as to preclude a double recovery.NX[ {O-ԍCOS Order, 11 FCC Rcd at 2248. N  S- ` x9.` ` The City applied our rules correctly and ruled reasonably when it rejected DCLP's attempt  xto recover deferred taxes as an amortized expense. An operator may not recover deferred taxes that  S- x=accrued before the initiation of rate regulation.[ {O-Ѝ47 C.F.R.  76.922(i)(7); COS Order, 11 FCC Rcd at 2248; TCI TKR of Houston, 11 FCC Rcd at 20930. Section 76.922(i)(7) makes this clear: "Deferred income  S- x.taxes accrued after the date upon which the operator became subject to regulation shall be deducted from  Sj- xitems included in the ratebase."Uj2 [ yO<-ԍ47 C.F.R.  76.922(i)(7) (emphasis added).U Our rules do not provide the remedy DCLP seeks, and the local rate  xappeal process is not the proper vehicle for DCLP to seek modification of our rules. In addition, DCLP's  xdepreciation practices and rate design methods prior to rate regulation were matters entirely within DCLP's  xcontrol and discretion. The treatment DCLP seeks for the alleged unfunded deferred tax liability would  xallow it to recover for future tax liability without adjusting its rate base. Subscribers should not be  x[required to pay a penalty or subsidize TCI's future tax liability simply because TCI used accounting and rate design methods prior to regulation that TCI now wishes to revise. "R ,`(`(88"Ԍ S- ` x 10.` ` On this record, we find that DCLP has neither sustained its burden of demonstrating the  S- xreasonableness of its ratesO[ yO@-ԍ47 C. F. R. 76.937(a). O nor demonstrated that the City acted inconsistently with the Commission's  S-rules.KX[ {O-ԍSee 47 C.F.R.  76.944(a).K DCLP's Appeal is, therefore, denied.  S`- IV.XxORDERING CLAUSES (#  S8-  S-x 11.` ` Accordingly, IT IS ORDERED that DCLP's Appeal IS DENIED .  S-x 12.` ` IT IS FURTHER ORDERED that DCLP's Request for Stay IS DENIED as moot.  Sp- ` Bx 13.` ` This action is taken by the Acting Chief, Cable Services Bureau, pursuant to authority delegated by  0.321 of the Commission's rules. 47 C.F.R.  0.321. XxX` ` X XXhhX@FEDERAL COMMUNICATIONS COMMISSION(# XxX` ` X XXhhX@John E. Logan(# XxX` ` X XXhhX@Acting Chief, Cable Services Bureau (#