******************************************************** 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 ) CUID Nos. NJ0071 (Edgewater Park Twp.) ) NJ0074 (Willingboro Twp.) Comcast Cablevision of ) NJ0108 (Burlington Twp.) Burlington County, Inc. ) NJ0112 (Burlington City) ) NJ0305 (Cinnaminson Twp.) Complaints Regarding ) NJ0444 (Delran Twp.) Cable Programming Services Tier Rates ) ORDER Adopted: August 25, 1998 Released: August 28, 1998 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints against the January 1, 1998 rate increase of the above- referenced operator ("Operator") for its cable programming services tier ("CPST") in the communities referenced above. We have already issued an order in which we resolved all prior complaints filed against Operator's CPST rates ("Resolution"). Accordingly, this Order addresses only the reasonableness of Operator's January 1, 1998 CPST rate increase. 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. If the Commission finds a rate to be unreasonable, it shall determine the correct rate and any refund liability. The Telecommunications Act of 1996 ("1996 Act") and our rules implementing the new legislation ("Interim Rules"), require that complaints against the CPST rates be filed with the Commission by a local franchising authority ("LFA") that has received more than one subscriber complaint. 3. The LFA for the franchise area referenced above filed complaints with the Commission on June 9, 1998 against Operator's January 1, 1998 CPST rate increase from $18.88 to $21.01. The LFA verified that it received more than one subscriber complaint for each franchise area and that the first valid complaint for each franchise area was received by the LFA on the date listed in the attached Appendix. 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 alternatively justify adjustments to 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. The Resolution approved a maximum permitted rate ("MPR") of $16.61 for the CPST in the communities referenced above. Upon review of Operator's FCC Form 1210 for the period January 1, 1995 through September 30, 1995, which updates Operator's approved MPR of $16.61, we find Operator's calculated MPR of $18.56 to be reasonable. Upon review of Operator's FCC Form 1210 for the period October 1, 1995 through December 31, 1995, we find Operator's calculated MPR of $18.75 to be reasonable. 6. In response to a request made by Commission staff, Operator filed amended FCC Form 1240s for the projected periods January 1, 1997 through December 31, 1997 and January 1, 1998 through December 31, 1998. Upon review of Operator's FCC Form 1240 for the projected period January 1, 1997 through December 31, 1997, we find Operator's calculated MPR of $21.93 to be reasonable. Upon review of Operator's FCC Form 1240 for the projected period January 1, 1998 through December 31, 1998, we adjusted Operator's Line C5 (Current FCC Inflation Factor) to 1.0114. Our adjustment resulted in a revised MPR for the projected period of $21.63 rather than Operator's calculated MPR for the projected period of $21.66. Because Operator's actual CPST rate of $21.01 does not exceed its revised MPR, we find Operator's actual CPST rate of $21.01 to be reasonable, effective January 1, 1998. 7. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the CPST rate of $21.01, charged by Operator in the communities referenced above, effective January 1, 1998, IS REASONABLE. 8. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that Operator take into account our FCC Form 1240 adjustments when calculating its maximum permitted rate and performing the true-up calculation on its next FCC Form 1240. 9. 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 DENIED. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau APPENDIX DATE OF FIRST CUID NO. COMMUNITY VALID COMPLAINT NJ0071 Edgewater Park Twp. 1/16/98 NJ0074 Willingboro Twp. 3/6/98 NJ0108 Burlington Twp. 2/19/98 NJ0112 Burlington City 2/3/98 NJ0305 Cinnaminson Twp. 2/18/98 NJ0444 Delran Twp. 2/17/98