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Sixth Report and Order and Eleventh Order on Reconsideration, MM Docket Nos. 92Љ266 and 93Љ215, FCC 95Љ196, 10 FCC Rcd 7393 (1995). Dж In this Order, we grant Operator's request for small system relief under the Small Systems д Аx.дOrder and, based on our review of Operator's FCC Form 1230 filing, deny the pending CPST complaint and find the CPST rate to be reasonable. д …SƒУ- ` Ш2дСxС2.С` `  СUnder the Communications Act,ж|Ъƒ@tШд {OcД-д Communications Act, Section 623(c), УУas amendedФФ, 47 U.S.C. РР543(c) (1996).|ж the Commission is authorized to review the CPST rates д Аxддof cable systems not subject to effective competition to ensure that rates charged are not unreasonable. д …S3У- АxђдThe Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act"),жUШ3вtШд yOЅ"Д-д Pub. L. No. 102Љ385, 106 Stat. 1460 (1992).Uж and our д Аxyдrules in effect at the time the complaints were filed, required the Commission to review CPST rates upon д Аxzдthe filing of a valid complaint by a subscriber. The filing of a valid complaint triggers an obligation on д …SЛУ- АxЖдbehalf of the cable operator to file a justification of its CPST rates.жCШЛb tШд yOН&Д-д 47 C.F.R. Section 76.956.Cж Under the Commission's rules, an д Аxдoperator may attempt to justify its CPST rate through a benchmark showing, a cost of service showing, д АxІдor a small system cost of service showing. In any case, the operator has the burden of demonstrating thatд"kђ ˆ,я)я)IIУс"д д …SУ- Аx\дits rate is not unreasonable.жRШ5Ед yOhД-д 47 C.F.R. Sections 76.956(b) and 76.934.Rж If the Commission finds a rate to be unreasonable, it shall determine the д …SиУ-дcorrect rate and any refund liability.жƒЪиX5Ед {OаД-дУУ ФФ УУФФУУSeeФФ Section 76.957 of the Commission's Rules, 47 C.F.R. Section 76.957.ƒж д …SˆУ- ` ШRдСxС3.С` `  СThe Commission's original rate regulations took effect on September 1, 1993.жэˆъ5Ед yOД- Аxд Order in MM Docket No. 92Љ266, Implementation of Sections of the Cable Consumer Protection and Competition Act of 1992: Rate Regulation, FCC 93Љ372, 58 Fed. Reg. 41042 (Aug. 2, 1993).эж The д …S`У- АxЕдCommission subsequently revised its rate regulations effective May 15, 1994.ж1 Z`B5Ед {OB Д- Аxџд 47 C.F.R. Section 76.922 (b). УУSee alsoФФ Second Order on Reconsideration, Fourth Report and Order, and Fifth д АxjдNotice of Proposed Rulemaking, MM Docket No. 92Љ266, 9 FCC Rcd 4119, 4190 (1994) ("Second Order on Reconsideration").1ж In a further effort to offer д Аxдsmall cable companies administrative relief from rate regulation, the Commission amended the definition д …SД- Аxдof small cable companies and small systems and introduced a simplified form of small system rate relief д Аxyдin the Small Systems Order. Operators attempting to justify their rates through small system relief must д …SРУ- Аx/дfile FCC Form 1230.ж Рd 5Ед yOФД- Аx‡д The FCC Form 1230 is a oneЉpage 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 РР 64.ж FCC Form 1230 requires that the Operator Selected Per Subscriber Monthly д …S˜Д- АxдProgramming Rate Per Channel (FCC Form 1230, Line A11) not exceed the Per Subscriber, Per Channel д …SpУ- АxѓдMonthly Programming Costs (FCC Form 1230, Line A6).жe ЪpМ 5Ед {OЬД-д УУSeeФФ Instructions for Line A11, FCC Form 1230, page 3.eж Cable systems serving 15,000 or fewer д АxЖдsubscribers, and owned by a company having 400,000 or fewer subscribers, may elect to use the small д Аxудsystem rate mechanism found in FCC Form 1230 in lieu of other Commission rate processes, provided д …Sј У-дthe Commission has not reached a final resolution on the rate complaints filed against the system.жI Шј N 5Ед yOцД-д Small Systems Order at РР 75.Iж д …SЈ Д- ` ШAдСxС4.С` `  СOn October 16, 1995 Operator filed FCC Form 1230 for the community referenced above д Аxjдseeking to justify its CPST rate through the simplified small system cost of service procedures under the д Аx.дCommission's Small Systems Order. Pursuant to Section 76.934 of the Commission's rules, "the size of д Аxдa system or company shall be determined by reference to its size as of the date the system files with its д Аx=дfranchising authority or the Commission the documentation necessary to qualify for the relief sought or, д Аxдat the option of the company, by reference to system or company size as of the effective date [of these д …SИУ-дrules]."ж| ЪИо5Ед {O6"Д-дУУФФ 47 C.F.R. Section 76.934(a).УУ See alsoФФ Small Systems Order at РР 38.|ж The Small Systems Order provides that: д ` pдТXxТС` `  СA system's initial and continued eligibility for this new form of relief shall be д …S@У- Шйдdetermined in the same manner as any other relief now available to them.жdЪ@p5Ед {OP&Д-дУУФФ Small Systems Order at РР 73 УУcitingФФ РР 38.dж Thus, if aд"@ˆ,_(_(II№"д д …SУ- ШBдsystem qualifies for relief under this approach as of the effective date of this orderжCZ5Ед yOhД- Аx<д The Small Systems Order was released on June 5, 1995, and became effective upon approval by the Office д {O0Ѕ- Аx№дof Management and Budget on August 21, 1995.УУ SeeФФ Federal Communications Commission Public Notice, DA 95Њ1848 (August 22, 1995).Cж or д Шшдas of the date it files Form 1230, it shall remain eligible for so long as it serves 15,000 д Ш2дor fewer subscribers, regardless of whether it, or the cable operator that owns the system, д Ш#дis subsequently acquired by a company that exceeds the 400,000 subscriber limit, or if its д Шœдcurrent operator subsequently exceeds 400,000 subscribers due to the normal growth of д …S8У- Ш`дits systems.ж3Ъ8ъ5Ед {OТ Д-д УУIdФФ.3ж When a system that has established rates in accordance with Form 1230 д Ш`дexceeds 15,000 subscribers, the system may maintain its then existing rates. However, д Ш`дany further adjustments shall not reflect increases in external costs, inflation or channel д Ш2дadditions until the system has reЉestablished initial permitted rates in accordance with our д …S˜У-дbenchmark or costЉofЉservice rules.жг’˜|5Ед {OДД- Аx№д Such a system may file a petition for special relief seeking continued treatment as a small system. УУSeeФФ Small Systems Order at РР 73 citing РР 36.гж Ца Ц Small Systems Order at РР 73. д …Sј Д- ` Ш%дСxС5.С` `  СWe find that as of the effective date of the Small Systems Order, August 21, 1995, д АxдOperator was a company with fewer than 400,000 total subscribers and that the system in question served д Аx>дfewer than 15,000 subscribers, thereby making it eligible for small system relief. Further, Operator's д Аxдfilings show that its actual rate per channel for regulated cable service (FCC Form 1230, Line A11) does д Аx.дnot exceed its per subscriber, per channel monthly programming costs (FCC Form 1230, Line A6). We, д …S0У-дtherefore, find that Operator's monthly CPST rate of $14.94, is reasonable.жљ 0ж5Ед yOІД- АxYд This finding is based solely on the representations of the operator. Should information come to our attention д АxYдthat these representations were materially inaccurate, we reserve the right to take appropriate action. This Order is д Аxдnot 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.љж д …SрД- ` Шчд СxС6.С` `  СAccordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that Operator's request for small system relief IS GRANTED. д …ShД- ` ШдСxС7.С` `  СIT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 д АxNдC.F.R. Section 0.321, that the actual CPST rate of $14.94 charged by Operator in the community referenced above IS JUSTIFIED. д …SШД- ` ШдСxС8.С` `  СIT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 д Аx.дC.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. д"(О ˆ,_(_(II{с"дŒд …SД- ` ШдСxС9.С` `  СThis action is taken pursuant to delegated authority under Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321. СxСС` `  ССИ И ШСС№ССhhССРР@СFEDERAL COMMUNICATIONS COMMISSION СxСС` `  ССИ И ШСС№ССhhССРР@СElizabeth W. Beaty д …SРД-дСxСС` `  ССИ И ШСС№ССhhССРР@СChief, Financial Analysis and Compliance DivisionС(#(#XССxСС` `  ССИ И ШСС№ССhhССРР@СCable Services Bureau д ‘XH Д-дб#XPє\  PŽ6QynXP#б