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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 ) ) CUID No. AR0191 (Little Rock) Comcast Cablevision of Little Rock, Inc. ) ) Complaints Regarding ) Cable Programming Services Tier Rates ) ORDER Adopted: July 6, 1998 Released: July 9, 1998 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints about the rates charged by the above-referenced operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. Operator has attempted to justify its CPST rates through benchmark justifications on FCC Form 1200, multiple FCC Form 1210s and multiple FCC Form 1240s. We have already issued a separate order in which we found Operator's rates in effect prior to May 15, 1994 to be unreasonable. Accordingly, this Order addresses only the reasonableness of Operator's CPST rates in effect after May 14, 1994. 2. Under the Communications Act, the Federal Communications Commission ("Commission") is authorized to review the CPST rates of cable systems not subject to effective competition to ensure that rates charged are not unreasonable. The Telecommunications Act of 1996 ("1996 Act") and our rules implementing the legislation ("Interim Rules"), require that, effective February 8, 1996, a complaint against the CPST rate be filed with the Commission by a local franchising authority ("LFA") that has received more than one subscriber complaint. Prior to the 1996 Act, the Commission's rules permitted subscribers to file complaints against CPST rates directly with the Commission. 3. In addition to the complaints filed against Operator's September 1, 1993 CPST rate, valid subscriber complaints were filed with the Commission against Operator's December 1, 1994 and March 1, 1995 CPST rate increases. The LFA for the franchise area referenced above filed a complaint with the Commission on April 15, 1998 against Operator's November 1, 1997 CPST rate increase from $15.50 to $17.47. The LFA verified that it received more than one subscriber complaint for the franchise area and that the first valid complaint was received by the LFA on November 5, 1997. The filing of a complete and timely complaint triggers an obligation upon the cable operator to file a justification of its CPST rates. The Operator has the burden of demonstrating that the CPST rates complained about are reasonable. If the Commission finds a rate to be unreasonable, it shall determine the correct rate and any refund liability. 4. To justify rates for the period beginning May 15, 1994, operators must use the FCC Form 1200 series. Operators are permitted to make changes to their rates on a quarterly basis using FCC Form 1210. Operators may justify their rates on an annual basis using FCC Form 1240 to reflect reasonably certain and quantifiable changes in external costs, inflation, and the number of regulated channels that are projected for the twelve months following the rate change. Any incurred cost that is not projected may be accrued with interest and added to rates at a later time. 5. Upon review of Operator's FCC Form 1200, we find that Operator has correctly calculated its maximum permitted rate ("MPR") of $11.81, effective May 15, 1994. Operator's actual CPST rate of $12.02, effective May 15, 1994 through July 31, 1994, exceeds its MPR. Operator elected to take advantage of the refund liability deferral period in accordance with the Commission's Rules. Consequently, Operator does not incur refund liability for charging in excess of the MPR calculated on its FCC Form 1200 until July 15, 1994. However, because Operator's actual CPST rate of $12.02, effective May 15, 1994 through July 14, 1994 exceeds its FCC Form 393 MPR of $12.01, we find Operator's actual CPST rate of $12.02, effective May 15, 1994 through July 14, 1994, to be unreasonable. Because Operator's actual CPST rate of $12.02, effective July 15, 1994 through July 31, 1994 exceeds its FCC Form 1200 MPR of $11.81, we find Operator's actual CPST rate of $12.02, effective July 15, 1994 through July 31, 1994, to be unreasonable. However, we determine that the total overcharge per subscriber for the period May 15, 1994 through July 31, 1994 is de minimis, and it would not be in the public interest to order a refund. We find Operator's actual CPST rate of $11.80, effective August 1, 1994 through November 30, 1994, to be reasonable. 6. Upon review of Operator's FCC Form 1210 for the period April 1, 1994 through September 30, 1994, we find Operator's actual CPST rate of $11.88, effective December 1, 1994 through February 28, 1995, to be reasonable. Upon review of Operator's FCC Form 1210 for the period October 1, 1994 through December 31, 1994, we find Operator's actual CPST rate of $12.19, effective March 1, 1995 through June 30, 1995, to be reasonable. Upon review of Operator's FCC Form 1210 for the period January 1, 1995 through March 31, 1995, we find Operator's actual CPST rate of $12.69, effective July 1, 1995 through December 31, 1995, to be reasonable. Upon review of Operator's FCC Form 1210 for the period April 1, 1995 through December 31, 1995, we find Operator's actual CPST rate of $12.96, effective January 1, 1996 through March 31, 1996, and Operator's actual CPST rate of $13.32, effective April 1, 1996 through October 31, 1996, to be reasonable. 7. Upon review of Operator's FCC Form 1240 for the projected period November 1, 1996 through October 31, 1997, we find Operator's actual CPST rate of $15.50, effective November 1, 1996 through October 31, 1997, to be reasonable. Upon review of Operator's FCC Form 1240 for the projected period November 1, 1997 through October 31, 1998, we find Operator's actual CPST rate of $17.47, effective November 1, 1997, to be reasonable. 8. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that the CPST rate of $12.02, charged by Operator in the franchise area referenced above effective May 15, 1994 through July 31, 1994, IS UNREASONABLE. 9. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that the CPST rates charged by Operator in the franchise area referenced above, effective August 1, 1994 through October 31, 1997, ARE REASONABLE. 10. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that the CPST rate of $17.47, charged by Operator in the franchise area referenced above, effective November 1, 1997, IS REASONABLE. 11. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the referenced complaints ARE GRANTED TO THE EXTENT INDICATED HEREIN. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau