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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 ) ) Cable One, Inc. ) CUID No. IA0084 (Sioux City) ) ) Complaints Regarding ) Cable Programming Services Tier Rates) ORDER Adopted: August 18, 1998 Released: August 25, 1998 By the Deputy Chief, Cable Services Bureau: 1. In this Order we consider complaints concerning the rates of the above-captioned operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. Operator's response includes benchmark justifications filed on FCC Forms 1200, 1210 and 1240. We have already issued a separate order ("Prior Order") addressing the reasonableness of Operator's rates for the period September 1, 1993, through May 14, 1994. This Order addresses the reasonableness of Operator's rates for the period after May 14, 1994, as justified on Operator's FCC Forms 1200, 1210 and 1240. 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 Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act"), and our rules in effect at the time the complaint was filed, required the Commission to review CPST rates upon the filing of a valid complaint by a subscriber. The filing of a valid complaint triggers an obligation on behalf of the cable operator to file a justification of its CPST rates. If the Commission finds the rate to be unreasonable, it shall determine the correct rate and any refund liability. 3. The Commission's original rate regulations took effect on September 1, 1993. The Commission subsequently revised its rate regulations effective May 15, 1994. Cable operators with valid CPST complaints filed against them prior to May 15, 1994 must demonstrate that their CPST rates were in compliance with the Commission's initial rules from the time the complaint was filed through May 14, 1994, and that their rates were in compliance with the revised rules from May 15, 1994 forward. Cable operators attempting to justify their rates for the period prior to May 15, 1994 using a benchmark showing must complete and file FCC Form 393. Operators must use the FCC Form 1200 series to justify their rates for the period beginning May 15, 1994 using a benchmark showing. Cable operators may also justify rate increases based on the addition and deletion of channels, changes in certain external costs, and inflation, by filing FCC Form 1210. FCC Form 1210 must be filed at least 30 days before new rates are scheduled to go into effect where the Commission has found the cable programming service rate to be unreasonable less than one year prior to the filing, or where there is a pending complaint against the CPST rate. 4. Upon review of Operator's FCC Form 1200, we find Operator's maximum permitted rate ("MPR") of $14.56 to be justified, effective May 15, 1994. Although Operator's actual CPST rate of $15.86, effective May 15, 1994 through May 31, 1994 exceeds its MPR, Operator elected to take advantage of the refund liability deferral period. The Commission's rules provide for a refund liability deferral period, if timely requested by Operator, beginning May 15, 1994 and ending July 14, 1994, for any overcharges resulting from Operator's calculation of a new MPR on FCC Form 1200. Therefore, we find Operator's actual CPST rate of $15.86, effective May 15, 1994 through May 31, 1994, to be reasonable. 5. Upon review of Operator's FCC Form 1210 for the period March 31, 1994 to June 30, 1994, we find Operator's MPR of $15.41 to be justified. Because Operator's actual CPST rate of $15.41 does not exceed its MPR, we find Operator's actual CPST rate of $15.41, effective June 1, 1994 through November 30, 1994, to be reasonable. Upon review of Operator's second FCC Form 1210 for the period July 1, 1994 to September 30, 1994, we find that Operator has justified its MPR of $15.73. Because Operator's actual CPST rate of $15.73 does not exceed its MPR, we find Operator's actual CPST rate of $15.73, effective December 1, 1994 through April 30, 1995, to be reasonable. Upon review of Operator's third FCC Form 1210 for the period January 1, 1995 to March 31, 1995, we find that Operator has justified its MPR of $16.10. Because Operator's actual CPST rate of $16.10 does not exceed its MPR, we find Operator's actual CPST rate of $16.10, effective May 1, 1995 through May 31, 1996, to be reasonable. Upon review of Operator's fourth FCC Form 1210 for the period July 1, 1995 to September 30, 1995, we find that Operator has justified its MPR of $16.18. Because Operator's actual CPST rate of $16.10 does not exceed its MPR, we find Operator's actual CPST rate of $16.10, effective May 1, 1995 through May 31, 1996, to be reasonable. 6. Upon review of Operator's FCC Form 1240, for the projected period June 1, 1996 to May 31, 1997, we find Operator's MPR of $19.32 to be justified. Because Operator's actual CPST rate of $18.26, does not exceed its MPR, we find Operator's actual CPST rate of $18.26, effective June 1, 1996 through August 31, 1997, to be reasonable. Upon review of Operator's second FCC Form 1240, for the projected period June 1, 1997 to May 31, 1998, we find Operator's MPR of $20.90 to be justified. We adjusted Operator's projected period ending date to May 31, 1998 instead of May 31, 1997. We also adjusted Line I10. Because Operator's actual CPST rate of $20.97, exceeds its MPR, we find Operator's actual CPST rate of $20.97, effective September 1, 1997 through May 31, 1998, to be unreasonable. 7. Accordingly, IT IS ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R. Section 0.321 that Operator's CPST rate of $15.86, effective May 15, 1994, in the community set forth above, IS REASONABLE. 8. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the monthly CPST rate of $15.41, effective June 1, 1994 through November 30, 1994, IS REASONABLE. 9. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the monthly CPST rate of $15.73, effective December 1, 1994 through April 30, 1995, IS REASONABLE. 10. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the monthly CPST rate of $16.10 charged by Operator in the community referenced above, effective May 1, 1995 through May 31, 1996, IS REASONABLE. 11. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the monthly CPST rate of $18.26 charged by Operator in the community referenced above, effective June 1, 1996 through August 31, 1997, IS REASONABLE. 12. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the monthly CPST rate of $20.97 charged by Operator in the community referenced above, effective September 1, 1997 through May 31, 1998, IS UNREASONABLE. 13. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47 C.F.R. Section 76.961, that Operator shall refund to subscribers in the franchise area referenced above that portion of the amount paid in excess of the maximum permitted CPST rate of $20.90 per month (plus franchise fees), to the date of the refund, for the period September 1, 1997 through May 31, 1998. 14. IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges to CPST subscribers for the stated periods, and shall within 30 days of the release of this Order, file a report with the Chief, Cable Services Bureau, stating the cumulative refund amount so determined (including franchise fees), describing the calculation thereof, and describing its plan to implement the refund within 60 days of Commission approval of the plan. 15. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R. Section 0.321, that the complaints referenced herein against the rate charged by Operator in the community set forth above ARE GRANTED. FEDERAL COMMUNICATIONS COMMISSION John E. Logan Deputy Chief, Cable Services Bureau