******************************************************** 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 ) ) Kansas City Cable Partners d/b/a American) CUID No. KS0260 (Lansing) Cablevision ) ) Complaint Regarding ) Cable Programming Service Tier ) Rate Increase ) ORDER Adopted: December 8, 1998 Released: December 11, 1998 By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider a complaint against the January 1, 1996 rate increase of the above- referenced operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. On November 30, 1995, we issued an Order approving a Social Contract ("Social Contract") which Operator entered into with the Federal Communications Commission ("Commission"). This Order addresses only the reasonableness of Operator's CPST rate increase, consistent with the terms of the Social Contract, effective January 1, 1996. 2. Under the Communications Act, the 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") required the Commission to review CPST rates upon the filing of a valid complaint by a subscriber. 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. 3. Upon review of Operator's FCC Form 1240, for the projected period January 1, 1996 through December 31, 1996, we accept Operator's filings and find that Operator has correctly calculated its maximum permitted rate ("MPR") of $16.55. Because Operator's actual rate of $16.05 does not exceed its MPR, we find Operator's actual rate of $16.05 to be reasonable. 4. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rate, charged by Operator in the franchise area referenced above, effective January 1, 1996, IS REASONABLE. 5. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the complaint referenced herein against the rate charged by Operator in the community set forth above IS DENIED. FEDERAL COMMUNICATIONS COMMISSION Margaret M. Egler Acting Chief, Financial Analysis and Compliance Division Cable Services Bureau