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A. 1. a.(1)(a) i) a) 1. 1. 1. a.(1)(a) i) a)#Xj\  P6G;9XP##&a\  P6G;&P#"i~'^5>g\\>>>\g0>03\\\\\\\\\\>>ggg\yyrF\yrgyy>3>j\>\gQgQ>\g3>g3g\ggQF>g\\\QI(I_>0_j>>>0>>>>>>\>g3\\\\\QyQyQyQyQD3D3D3D3g\\\\gggg\\g\\\\pg\\\QQ_QyQyQyQyQ\\\_\gjF3FgF>Fgg__gy3ySy>yIy3ggg\\QQQgFgFgFg_y^y>yjgggggg_yQyQyQgy>ggFy>\0\\=2=WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNBnnBa\>\\\\\\7>\7>\7>>\\\??n\\pBnnBsgg>\\7"yyyy\nlc\gnn\zB8B^dBYdYdYBdd88d8ddddBN8ddddY`(`lBdYddBoBBBYYFdBNB2Bdddd(dB7dqBdPn<dYzzzzBBBBqodYYYYYYYYYYY8888dddddddnddddddd"i~'^09]SS999S]+9+/SSSSSSSSSS99]]]Sxnxxng?Snxgx]nxxxxn9/9aS9S]I]I9S]/9]/]S]]I?9]SxSSIC%CW9+Wa999+999999S9]/xSxSxSxSxSxxInInInInI>/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN%7777777777>>>0eOIIOD>OO%*ODaOO>OI>DOOgOOD%%37%07070%777V7777%*77O77055;%;3%%%%%%%%%%%7O0O0O0O0O0aHI0D0D0D0D0%%%%O7O7O7O7O7O7O7O7O7O7O0O7O6O7O7O7>7O0O0O0I0I0I;I0OED0D0D0D0O7O7O7O;O7O;O7%%7%%%7M>;;O7DD,D%D%DO7AO7O7O7O7aOI%I%I%>*>*>*>;D.DD3O7O7O7O7O7O7gOO;D0D0D0O7D%O7>*D%O7E77%%WMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN(BB(37%07777j7#TT7!#TT7T!%%007n&&Bn77lCTn(nBB(A\\>>n%07\n!"IIIITTenn7TnB@;7>lBBn7C%%47%17171%777U7777%+77O77155;N%71n77%n=%b%%11&7n%l+%OO%77777%S7>%S7,OOOOOO=7111111I111117777777<7777777"i~'^"(22TN"""28"2222222222888,\HBBH>8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""""2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""ruling on Operator's equipment, installation, and maintenance rates on Form 1205. The City filed an  SH-opposition on July 10, 1998.H 2 yO- xԍThe City filed a Motion for Extension of Time Within Which to File Opposition to Request for Emergency Stay on July 10, 1998. This motion is granted for good cause shown.  S- ` Px2.` ` Franchising authorities may regulate rates for basic cable service and associated equipment  xand installation charges pursuant to section 623(a) of the Communications Act of 1934, as amended  x("Communications Act") and the Commission's implementing regulations adopted pursuant to section  S- x\623(b) of the Communications Act.Zx2 yO- xKԍ47 U.S.C.  543(a), (b). The Commission's regulations are intended to ensure that rates for the basic service  xtier are reasonable and that prices or rates for the installation and lease of equipment used for the basic service tier  {O( -are based on actual cost. See 47 C.F.R.  76.922. The City issued a local rate order denying Operator's proposed  xequipment, installation, and maintenance rate increases. It based its action on a consultant's report  xNquestioning both the Operator's methodology for determining its rates and some costs included in  xOperator's rate calculations. Operator argues that, if a stay is not granted, it will be irreparably harmed  x1by what it alleges is an erroneous rate order, because the Commission's prescribed ratemaking  xmethodology determining equipment, installation, and maintenance rates does not provide a mechanism  xfor recovering lost revenues. Operator argues that, if a stay is granted, its subscribers will be fully  xprotected by its pledge to track its revenue and make appropriate refunds if ordered to do so under the  xjfinal disposition of the case. The City opposes Operator's request, arguing that Operator disregarded its rate order and that Operator's rate filing was unjustified. ",**88W!"Ԍ S- ` x3.` ` The Commission evaluates petitions for stay under well settled principles. To support a  S- xzstay, a petitioner must demonstrate: (1) that it is likely to prevail on the merits; (2) that it will suffer  x=irreparable harm if a stay is not granted; (3) that other interested parties will not be harmed if the stay is  S- xgranted; and (4) that the public interest favors granting a stay.t yO-ԍVirginia Petroleum Jobbers Ass'n v. FPC, 259 F.2d 921, 925 (D.C. Cir. 1958).t The likelihood of success on the merits  xjis an important element in a petitioner's showing. However, the degree to which a probability of success  S8- xon the merits must be found will vary according to the Commission's assessment of the other factors./Z8X {O0- x;ԍSee Cuomo v. NRC, 772 F.2d 972, 974 (D.C. Cir. 1985); Wisconsin Gas Co. v. FERC, 758 F.2d 669, 674 (D.C.  xCir. 1985); Washington Metropolitan Area Transit Comm'n v. Holiday Tours, Inc., 559 F.2d 841, 84344 (D.C. Cir. 1977). /  x=When confronted with a case in which other elements strongly favor interim relief, the Commission may exercise its discretion to grant a stay.  S- ` x4.` ` The substantive issues addressed by the City concern Operator's development of company x@wide equipment and installation rates after the Telecommunications Act of 1996 amended the  xCommunications Act to allow aggregated equipment rates on a franchise, system, regional, or company  xlevel. The appropriateness of Operator's methodology and the adequacy of supportive information  xprovided to franchising authorities has been questioned in local rate orders adopted by several franchising  xlauthorities and is being further reviewed pursuant to a petition for reconsideration of the Bureau's  S - x.Memorandum Opinion and Order in TCI of Richardson, Inc. z yO-ԍDA 981642 (Cab. Serv. Bur., released Aug. 17, 1998), petition for reconsideration filed Sept. 16, 1998. We find that a stay of the local rate order  xpending this review and a determination of the Operator's appeal is in the public interest so that Operator's nationally aggregated rate can be treated consistently in these jurisdictions.  S- ` x5.` ` Operator must protect the interests of subscribers and ensure that refunds will be paid if  xzOperator charges rates in excess of those permitted by the local rate order and does not prevail on the  xmerits. If Operator charges equipment, installation, and maintenance rates in excess of the rates permitted  xby the City's local rate order at any time after the effective date of the City's local rate order and before  xthis stay is dissolved, Operator must accumulate in an interestbearing escrow account an amount equal  xto the difference between the rates permitted by the City and the higher rates charged by Operator. An  xamount equal to the excess revenues received up to the time the escrow account is opened must be  xjdeposited when the account is opened, and additional amounts must be accumulated on an ongoing basis.  xAlternatively, Operator may elect to post a bond for the benefit of the City. The amount of the bond shall  x[be an estimate of the total amount that will accumulate based on the difference between the rates ordered  xby the City and the rates charged customers from the date Operator first began charging rates in excess  x=of those permitted in the City's local rate order until Operator's next annual rate adjustment is scheduled  xto take effect. The amount of the bond shall be based on Operator's subscriber count at the time the bond  xis posted. The bond shall provide that, if Operator is unable to fulfill its refund obligation for any reason, then the surety will fulfill that obligation to the City, on behalf of Operator's subscribers.  S- ` x6.` ` Accordingly, IT IS ORDERED that the Request for Emergency Stay of Local Rate Order  xfiled by Heritage Cablevision, Inc. d/b/a TCI of Central Iowa IS GRANTED with respect to Operator's  xequipment, installation, and maintenance rates on FCC Form 1205 pending the resolution of Operator's appeal on the merits."  ,`(`(88!"Ԍ S- ` ԙx7.` ` IT IS FURTHER ORDERED that, if Operator implements all or part of its proposed rates  xin excess of the rates permitted by the City's local rate order, Operator SHALL ESTABLISH an interest xbearing escrow account as described above. Alternatively, Operator SHALL SECURE the City against  xthe possibility of a refund of revenues collected in excess of those permitted by the City's local rate order  xby posting a bond as described above. Interest shall accrue, or be computed, at the prevailing U.S.  xInternal Revenue Service rate for tax refunds and additional tax payments. Proof of Operator's  xcompliance with this Order SHALL BE FILED with the Commission within thirty (30) days of the release  xof this Order or Operator's implementation of any increase in its equipment, installation, and maintenance rates in excess of the maximum rates permitted by the City's local rate order, whichever is later.  Sp- ` x8. ` ` IT IS FURTHER ORDERED that the Motion for Extension of Time Within Which to File  xOpposition to Request for Emergency Stay filed by the City of Des Moines, Iowa on July 10, 1998 IS GRANTED.  S - ` #x9.` ` This action is taken by the Associate Chief, Cable Services Bureau, pursuant to authority delegated by section 0.321 of the Commission's rules. 47 C.F.R.  0.321. x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@Marjorie Reed Greene x` `  hh@Associate Chief, Cable Services Bureau