******************************************************** 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 ) ) Cablevision of Oakland, Inc. ) CUID Nos. NJ0036 (Wayne Township) ) NJ0076 (Ringwood Borough) ) NJ0077 (Bloomingdale Borough) ) NJ0171 (Kinnelon Borough) ) NJ0185 (Lincoln Park) ) NJ0191(Pequannock Township) Complaints Regarding ) NJ0195 (Ridgewood Township)) Cable Programming Services Tier Rates ) NJ0196 (Hawthorne Borough) ) NJ0201 (Bogota Borough) ) NJ0204 (Teaneck Township) ) NJ0219 (Clifton City) ) NJ0227 (Glen Rock Borough) ) NJ0244 (Maywood Borough) ) NJ0265 (Saddle Brook Township) ) NJ0271 (Washington Township) ) NJ0326 (Wood Ridge Borough) ) NJ0331 (Hasbrouck Heights) ) NJ0359 (Passaic City) ) NJ0403 (Wyckoff Township) ) NJ0477 Midland Park) ) NJ0532 (Franklin Lakes) ORDER Adopted: November 6, 1998 Released: November 10, 1998 By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider a complaint against the June 1, 1998 rate increase that the above- captioned operator ("Operator") implemented for its cable programming services tier ("CPST") in the communities set forth above. We have already resolved all complaints filed from September 1, 1993 through September 15, 1995 against Operator's CPST rates. Accordingly, this Order addresses the reasonableness of Operator's CPST rate increase, effective June 1, 1998. 2. The Communications Act authorizes the Commission 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 the rate 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 subscriber complaints. An LFA may not file a CPST rate complaint unless, within 90 days after such increase becomes effective, it receives more than one subscriber complaint. 3. 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. 4. On September 8, 1998, the LFA filed a complaint regarding the June 1, 1998 increase in Operator's regular CPST rate in the communities referenced above from $17.62 to $19.46. In its complaint, the LFA asserts that it has received more than one subscriber complaint against Operator's CPST rate increase and verified that the first complaint was received on June 2, 1998, thereby triggering the Commission's jurisdiction to review the complaint. The valid complaint from the LFA triggers an obligation by the cable operator to file a justification of its CPST rates with the LFA. Thus, in this case, Operator is required to justify the increase in its CPST rate which is the subject of the LFA's complaint. 5. Upon review of Operator's FCC Form 1240s for the projected periods June 1, 1996 to May 31, 1997 and June 1, 1997 to May 31, 1998, we accept Operator's filings and find that Operator has correctly calculated its CPST maximum permitted rates ("MPRs"). Upon review of Operator's FCC Form 1240, for the projected period June 1, 1998 to May 31, 1999, we find that Operator's CPST rate of $19.46, effective June 1, 1998, is 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 CPST rate of $19.46 charged by Operator in the community referenced above, effective June 1, 1998, IS REASONABLE. 7. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the complaint against Operator's June 1, 1998 CPST rate increase, in the communities referenced above, IS DENIED. FEDERAL COMMUNICATIONS COMMISSION Margaret M. Egler Acting Chief, Financial Analysis and Compliance Division Cable Services Bureau