******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) TCI Cablevision of Davis ) CUID Nos. CA1058 (City of Davis) ) TCI Cablevision of Greater Michigan MI0047 (Boyne City) ) ) MI0048 (City of Charlevoix) ) MI0050 (Gaylord) ) MI0040 (City of Petoskey) ) MI0126 (City of Harbor Springs) ) MI0294 (Resort Township) ) MI0357 (Bear Creek Township) ) TCI Cablevision of Western Michigan ) MI0125 (City of Wyoming) ) MI0256 (Grand Rapids) ) MI0289 (Grandville) ) MI0388 (Georgetown) ) MI0391 (Walker) ) MI0393 (Grand Rapids Township) ) TCI of Pennsylvania, Inc. ) PA1855 (Pittsburgh) ) Complaints Regarding ) Cable Programming Services Tier Rates) ORDER Adopted: June 25, 1998 Released: June 29, 1998 By the Acting Chief, Cable Services Bureau: 1. In this Order we consider additional information provided by the above-captioned operators ("Operator") concerning its cable programming services tier ("CPST") rates in the communities referenced above as required by our prior orders ("Prior Orders"). 2. In our Prior Orders, we approved the maximum permitted rates ("MPRs") on the FCC Forms 1240 for the projected period June 1, 1997 to May 31, 1998 ("1997 Forms 1240") filed by Operator in the communities referenced above, pending our review of certain programming revenue information. Specifically, we ordered Operator to "file with the Chief, Cable Services Bureau, . . . a channel by channel explanation of the revenues received from programmers, a description of the revenue, as well as a channel by channel explanation of its programming costs increases, for each CPST channel for which programming costs are being increased or revenues are being received from programmers, along with documentation explaining why, pursuant to the Commission's rules, the revenues received from programmers should not offset the increases in Operator's programming costs." 3. In response, Operator first filed a request for a thirty day extension of time to provide the information. Operator stated that "this is the first time that the Commission has required a cable operator to provide the sort of information and explanation being sought [and that it needed] to carefully assemble the required material." Given the amount of material in question, and because it assists the review to make available to the Commission the most comprehensive showing possible, we grant the request. 4. Operator then filed a request for confidential treatment of its programming cost and revenue information ("Request"). In its Request, Operator agreed to make available, at the office of its counsel, Operator's "programming cost and revenue information needed to verify calculations present on FCC Form 1240 [for the communities listed above and] copies of the underlying programming agreements pertinent to these calculations." The Cable Services Bureau ("Bureau") agreed to use the information provided by Operator solely for the resolution of the Prior Orders and to treat any notes, memoranda, or other written material generated by its review as confidential work product to be kept in non-public files. Members of the Bureau staff then reviewed the programming cost and revenue information, programming contracts, and other related material ("Programming Revenue Information") made available by Operator. 5. Upon review of Operator's Programming Revenue Information, we find that Operator has adequately accounted for programming revenue received from its CPST programmers in its 1997 Forms 1240. Our review and determination of the information submitted is premised on current rules implemented by the Commission with regard to revenues received by the Operator, other than those received from subscribers. While the information reviewed and the analysis performed reflects less than definitive circumstances, we cannot conclude that Operator's practice warrants further action. Consequently, we find that the MPRs calculated by Operator for the projected period June 1, 1997 to May 31, 1998, for the communities referenced above, as detailed in our Prior Orders, are reasonable. 6. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the thirty day extension of time request filed by Operator to respond to the Prior Orders IS GRANTED. 7. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the maximum permitted rates, calculated by Operator for the communities listed above, as detailed in the Prior Orders, ARE REASONABLE, effective June 1, 1997. FEDERAL COMMUNICATIONS COMMISSION John E. Logan Acting Chief, Cable Services Bureau