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S- &Cablevision challenged those findings adverse to Cablevision for 33 CUIDs. The Bureau independently  &manalyzed Cablevision's arguments in its pleadings and determined that some, but not all, of the  &adjustments claimed by Cablevision were reasonable based on Cablevision's further explanations and in  &the context of a final resolution of the complaints against Cablevision. The Bureau reviewed each of  &MCablevision's later filings on Forms 1200 and 1210 for all 70 CUIDs. The Bureau also reviewed each  &of Cablevision's filings on Forms 393, 1200, and 1210 for CUIDs for which rate orders had not previously  S- &/been issued.  yO - &ԍThe Bureau did not review Form 393 for communities where the first complaint was not filed until after Form 1200 had replaced Form 393. The Resolution takes into consideration certain offsets claimed by Cablevision within  &individual franchise areas and does not include refreshed inflation data for those CUIDs where Forms 393  SH -had not previously been reviewed. 6H  yO- &xԍBecause the benchmark formula is based on cable rates in effect on September 30, 1992, the date of the rate  &survey from which the benchmark formula was derived, a system's rate at the time of a valid rate complaint is  &compared to the benchmark rate produced by the formula and then adjusted forward by an inflation factor and for  &changes in the number of channels provided from September 30, 1992 until the system justifies its rates. Final  &inflation data for measuring the change in inflation between September 1992 and the operator's rate justification was  &not always available at the time the operator prepared its justification. The Commission directed operators to  &westimate inflation using the most recently available Gross National Product Price Index published on an interim basis  &iby the U.S. Department of Commerce. If an operator's CPST rate was not justified when first put into effect, or  &xwhen challenged, Bureau practice was to "refresh" the inflation data used in the calculation with the most current  &wdata for the period in question that was available at the time of the Bureau's review. Depending on the inflation data  &at the time of Bureau review, this could work to the subscribers' advantage or disadvantage. In this case, use of  &unrefreshed data provided some advantage to the operator in calculating its permitted CPST rates over data the  &Bureau used in its rate orders, although in the context of the overall refund amount, the differences in the various  &inflation calculations were minimal. At the time Cablevision proposed using unrefreshed inflation data, challenges  &to the Bureau's practice were pending before the Commission, and compromise on this point without awaiting a  &ruling in a pending case facilitated final resolution of Cablevision's rate cases pending before the Commission. The  &xCommission has subsequently affirmed the Bureau's practice of using refreshed inflation data in those cases where  &a rate is unreasonable on its face or has to be adjusted for reasons other than the availability of a more accurate  {O- &inflation figure. See Cencom Cable Income Partners II, L.P. (Jasper, TX), 12 FCC Rcd 7948, 795257 (1997)  {O- &,("Cencom"), reconsideration denied, FCC 97374 (released October 14, 1997). Challenges to the Bureau's practice  &of disallowing intertier offsets were also pending at the time the Bureau agreed to the offset compromise. This  {Ot-practice was also affirmed in Cencom, 12 FCC Rcd at 795760.  S -  : Q9.` ` The offsets and use of unrefreshed inflation data agreed to here will facilitate the global  &resolution of the pending complaints against Cablevision and will bring refunds to subscribers without  &jfurther litigation. Were the Commission to resolve the pending CPST complaints without the offsets and  &use of unrefreshed inflation data incorporated in the Resolution, Cablevision would be able to prolong the  &ultimate resolution of these matters by exhausting the administrative review procedures available before  &[the Commission and by seeking review of the Commission's orders in a federal appeals court. Under the  &Resolution, Cablevision will not seek further review before the Commission or appellate review of the determinations in the Resolution, and it will issue its refunds expeditiously.  S-",`(`(88"Ԍ S- :  10.` ` The courts have long recognized that regulatory agencies have broad discretion to choose  &among ratemaking methods and procedures in ratemaking determinations, provided that the resulting rates  S- &mare within a range of reasonableness." {O- &iԍSee Federal Power Comm'n v. Natural Gas Pipeline Co. of America, 315 U.S. 515, 58586 (1942); cf. FERC  &v. Pennzoil Producing Co., 439 U.S. 508, 517 (1979) (construing ratemaking standard under the Natural Gas Act);  &Permian Basin Area Rate Cases, 390 U.S. 747, 797 (1968) (construing ratemaking standard under the Natural Gas Act and affirming aggregated ratemaking approach). The process of adjudicating each of the rate complaints  &individually and litigating those rulings through the courts a process likely to take several years would  &not benefit subscribers given that the Resolution provides for reasonable rates and refunds immediately.  &We believe that the refunds required by the Resolution strike an appropriate balance between maximizing  &the compensation due subscribers for past overcharges and minimizing delay and uncertainty in the payment of refunds.  S-  :  11.` ` To the extent that adoption of the Resolution requires waiver of any of our rules, or  &modifications to the information required on Commission forms, we find that such waiver or modification  &will ensure the expeditious resolution of a large number of rate complaints while protecting consumers'  &statutory interest in CPST rates that are not unreasonable. We recognize that our rules contemplate an  S - &adjudication of each CPST rate complaint pursuant to specific ratemaking standards.X  {OJ-ԍSee 47 C.F.R.  76.922, 76.950963.X Contrary to the  &Lviews expressed in the dissent, we do not see any indication that section 623(c)(1)(B)'s requirement that  &ythe Commission establish rate resolution procedures by regulation was intended by Congress to preclude  &the Commission from waiving those rate resolution procedures in appropriate circumstances. Indeed, our  &Mrules expressly provide for the waiver of any provision of our rules for good cause shown. As noted  &[above, the Bureau has reviewed the rates and refunds for each CUID covered by the Resolution. To the  &extent that we diverge from these rules by adopting this Resolution, we find good cause to waive these  S- &rules pursuant to section 1.3 of our rules,D yO- &ԍSection 1.3 of the Commission's rules provides: "Any provision of the rules may be waived by the Commission on its own motion . . . if good cause therefor is shown." 47 C.F.R  1.3. because as further discussed herein, strict compliance with our  S- &rules would not serve the public interest under the circumstances before us. {O- &wԍSee Northeast Cellular Telephone Co., L.P. v. FCC, 897 F.2d 1164, 1166 (D.C. Cir. 1990) (citing WAIT Radio v. FCC, 418 F.2d 1153, 1159 (D.C. Cir. 1969). We find that a waiver  &furthers the purpose of the rules because the Resolution effectively achieves the objectives of the 1992  &.Cable Act by ensuring the expeditious resolution of all pending benchmark rate complaints regarding the  &affected systems while protecting consumers from unreasonable CPST rates. We further observe that the  S-Commission's authority to resolve cases in an analogous manner has been affirmed in other contexts.  {O!- &ԍSee New York State Dep't of Law v. FCC, 984 F.2d 1209, 1220 (D.C. Cir. 1993) (consent decree settling enforcement action upheld).  S-  : } 12.` ` The process followed here balances the need to present a reasonable resolution of a myriad  &of contested rate complaints with a real opportunity for those interested to present their views. Although  &jour standard procedures for the review of CPST rates do not include an opportunity for local franchising  SP- &=authorities, complainants, or others to participate in our decisionmaking process prior to the issuance of"PP ,`(`(88"  S- &an initial order resolving the complaint that triggered our review," {Oh- &ԍSee 47 C.F.R.  76.957 ("The Commission will consider the complaint and the cable operator's response and  &then determine by written decision whether the rate for the cable programming service or associated equipment is  &unreasonable or not.") The complainant and the cable operator participate in the decisionmaking process before the initial order is issued only by submitting the complaint and any response to the complaint. local franchising authorities and other  &interested parties were given a full and fair opportunity to participate in our deliberative process by  &submitting comments on the Proposed Resolution, which, by its terms, was not binding on any party prior to our adoption of it in this Order as a final Resolution.  S8- :  13.` ` No local franchising authority opposes the Proposed Resolution. 8 yO - &ԍThe Cable TV & Communications Advisory Committee, Town of Lexington, Massachusetts, which is not the  &Kfranchising authority but which had complained about Cablevision's CPST rates, requested information about the  &Proposed Resolution and complaints filed on behalf of Lexington. Letter from Bussgang to Bureau of 4/26/98. This information was provided. Letter from Greene to Bussgang of 5/7/98. The Massachusetts  &.Office of Consumer Affairs, Department of Telecommunications and Energy, Cable Television Division  &j("Cable Television Division"), the franchising authority for 16 of the CUIDs in the Resolution, supports  &the resolution as "fair and reasonable" and "commend[s] the parties for their efforts to resolve these  S- &longstanding complaints."P yO-ԍCable Television Division Comments at 1.P With respect to offsets, it notes it had been advised by Commission staff and  &MCablevision that Commission staff had requested information about BST undercharges used to offset  &equipment overcharges and that Cablevision had provided the information. Assuming that such  &information was accurately factored into the Commission's analysis of Massachusetts rate complaints, the  &Cable Television Division states that the Resolution "represents an appropriate resolution of these  S - &complaints."7 *  {O-ԍId. at 2.7 This offset information was factored into the Resolution analysis. For purposes of the  &Resolution, Cablevision was not credited with any BST undercharges previously used to offset equipment overcharges.  S0- : 2 14.` ` The State of New Jersey Board of Public Utilities ("Board"), the franchising authority for  &=37 of the CUIDs in the Resolution, generally supports the Proposed Resolution. However, it questions  &the omission of the Township of Millstone, New Jersey, about which it had filed a complaint with the  &Commission. It asks the Commission to include Millstone in the Resolution and adjust the refund amount  &accordingly. Cablevision agrees that Millstone is part of its Cablevision of Monmouth system, that the  &MResolution should be amended to include Millstone, and if refunds are due, that the refund amount in  S@- &Exhibit 2 to the Proposed Resolution be adjusted accordingly.J@  yO!-ԍCablevision Reply Comments at 45.J Millstone was inadvertently omitted from  &ythe list of systems included in the Resolution. After reviewing Cablevision's rate forms for Millstone, we  &conclude that the August 1, 1997 maximum permitted rate for Millstone should be $13.74 and that  S- &Cablevision owes a refund for Millstone of $13,500, including interest through April 30, 1998. L  yO%- &ԍCablevision advises that Elizabeth Losinski, its Director Regulatory Affairs, conveyed this information to Pat Lombardy, Chief, Bureau of Accounts, Office of Cable Television, New Jersey Board of Public Utilities.  Resolution paragraph 12(d) and Exhibits 1 and 2 have been adjusted accordingly.",`(`(88"Ԍ S-  : `ԙ15.` ` The City of Westlake, Ohio "has no objection" to the Resolution. It "looks forward to  S-finalization of this settlement so that subscribers can receive the refunds due."? yO@-ԍWestlake Comments at 1.?  S-  : Q16.` ` The City of Euclid, Ohio has not objected to the result. However, it seeks amendment  &of the Proposed Resolution to delete language stating that Cablevision has followed the letter and spirit  S8- &/of the Commission's cable rate regulations and the 1992 Cable Act regarding the regulation of rates.u8X {O0-ԍSee Euclid Comments at 2. See also Letter of Robert O. Phillips.u  &It complains that it has had difficulty getting information from Cablevision relating to BST rates and, in  S- &yparticular, rates to be implemented in 1998, an allegation Cablevision disputes.M yOr -ԍCablevision Reply Comments at 6 n.15.M Because the Resolution  &addresses only CPST rates within our jurisdiction, the disputed language is not intended to provide any  &commentary on the BST ratemaking process. Similar language has routinely been included in other CPST  Sp- &jrate resolutions adopted by the Commission.fZpz {O- &ԍSee, e.g., Century Communications Corporation, Resolution of Rate Complaints, 12 FCC Rcd 18009, 18025  &(1997) (Terms of Resolution  4); Viacom Cable, Inc., Final Resolution of Cable Programming Service Rate Complaints, 12 FCC Rcd 5058, 5065 (1997) (Terms of Resolution  4).f The challenged language in paragraph 4 of the Resolution  &reflects the position of Cablevision only and is not a term of the Resolution. Moreover, the purpose of  &a resolution is to resolve rate complaints, pay refunds to subscribers, and set reasonable rates. The  &Resolution is an effort to do so in a manner that is both reasonable and fair to all parties. An admission  S -of wrongdoing is not necessary to achieve this goal.Q  {O -ԍSee TCI, 11 FCC Rcd at 14715.Q  S - : p17.` ` The City of Euclid approves of the language in the Proposed Resolution reserving a  &kfranchising authority's right to regulate the basic tier and associated equipment rates. It asks that this  &=language be broadened to preserve its right to enforce compliance with any Commission orders that may  S- &be issued regarding pending matters outside the Proposed Resolution.I.  {O-ԍSee Euclid Comments at 23.I The City is specifically concerned  &about the appeal of its benchmark order with respect to the calculation of gross revenues when  S- &determining franchise fees that was pending before the Commission and subsequently resolved.   {O- &ԍTelerama Inc., FCC 962085 (released Dec. 13, 1996), vacated in part, FCC 98173 (released July 30, 1998) (cable operator's gross revenues include revenues collected to pay franchise fee). The  &-Resolution before us is addressed only to CPST rate matters and has no effect on matters outside its scope.  &[For this reason, we see no need to broaden the Resolution language. We clarify, however, that the City's  S@- &Lrights with respect to calculating a cable operator's gross revenues for the purpose of collecting franchise  S-fees are unaffected by the Resolution.!$ {O$- &;ԍSee City of Dallas, Texas v. FCC, 118 F.3d 393 (1997) (a cable operator's gross revenues includes all revenues,  {O%- &including amounts collected from subscribers for franchise fees); Franchise Fee "Pass Through" and Dallas v. FCC,  &13 FCC Rcd 4566 (1998) (allowing cable operators to pass through to subscribers any underpayments of franchise fee charges requested by their local franchising authorities)."!,`(`(88b"Ԍ S- : oԙ18.` ` The Commission received letters from ten subscribers who had filed complaints. Some  S- &are supportive of the resolution process." {O@-ԍSee letters from Stephen T. Vishia; Gerard G. D'Ambrosio; Deborah Creta; and Bennett Sciacca. Some of the commenting subscribers are concerned that  S- &>Cablevision's overall rates are too high.q#Z {O-ԍSee letters from Roslynne & Robert J. Ost; Vishia; and D'Ambrosio.q Some question whether their complaints were addressed or  S- &whether they will be receiving refunds.$ {O-ԍSee letters from Hugh Halsey, II M.D (4/23/98); Ethna Kress; D'Ambrosio; and Creta. One commenting subscriber believes that the overall refund level  S`- &in the Resolution is too small.%`~ {O~ - &JԍSee Phillips letter. Commission records show that Mr. Phillips had complained about the Belmont, MA CUID. The refund for that CUID exceeds the average refund which Mr. Phillips computed in his letter. As described above, Cablevision's rates were reviewed pursuant to the  &Commission's rules governing the ratemaking process and calculated using the Commission's forms for  &computing maximum permitted rates. Although rates for some CUIDs exceeded maximum permitted rates  &at different times during the period covered by the Resolution, resulting in refund liability for those CUIDs  &>as shown in Exhibit 2 to the Resolution, the only rates current on August 1, 1997 that were found to  &=exceed maximum permitted rates were the rates for Millstone, New Jersey and Port Chester, Dover, and  &North Haven, New York. The Resolution requires appropriate rate adjustments for those communities as  SH - &ywell as refunds.|&H  yO-ԍAdjustments may have been taken in Forms 1240 for rate changes after August 1, 1997.| No refund liability was found for the Brookhaven'zH h  {OP- &ԍSee Kress letter noting a rate reduction and refund for Brookhaven implemented by Cablevision in 1998.  &Brookhaven subscribers will be receiving a further refund totaling $26,732.85 pursuant to the Bureau's Order in  &Samson Cablevision Corporation, DA 972377 (released Nov. 14, 1997), and the refund plan implementing the Order  &[approved in Samson Cablevision Corporation, DA 98744 (released Apr. 22, 1998). In its Order, the Bureau  &idetermined that Cablevision had justified a rate increase but implemented the increase too soon. Cablevision was  &ordered to issues refunds for the period from the date of the first valid complaint about the increase (March 21, 1997) through March 31, 1997. These refunds are outside the scope of the Resolution. or Huntington, New York CUIDs,  &which commenters asked about, because either the CPST or the combined BST/CPST rates were at or  &below the maximum permitted rates calculated using the Commission's rate forms during the period  S -covered by the Resolution.(  yO- &hԍAccording to Commission records, Creta and Kress filed complaints about Brookhaven, NY; D'Ambrosio, about Huntington, NY.  S - : 19.` ` Some commenters raise matters not addressed in the Proposed Resolution. Four  SX- &commenters raise concerns about rates charged for converter boxes.@)ZX {O!- &,ԍSee letters from Halsey (4/23/98); the Osts; Vishia; and Richard E. Frein questioning rates for converter boxes.  &In a letter dated May 26, 1998, Halsey stated his opposition to the Proposed Resolution if it does not resolve converter issues. @ Because these rates and rates for  S0- &other equipment are reviewed by local franchising authorities,r*\z0$ yO%- &ԍRates for the installation and lease of converter boxes and other equipment are subject to regulation by local  {O&- &=franchising authorities pursuant to regulations prescribed by the Commission on the basis of actual cost. See  {O'- &KCommunications Act  623(a)(3), (b)(3), 47 U.S.C.  543(a)(3), (b)(3); see also 47 C.F.R.  76.910 (franchising"'),`(`('"  &Yauthorities certified to regulate basic service tier and associated equipment); 47 C.F.R.  76.923 (rates for equipment  &used to receive the basic service tier, regardless of whether that equipment is also used to receive other tiers of  &programming service or unregulated service); 47 C.F.R.  76.933 (franchising authority review of basic cable rates  &and equipment costs). Only converters not used in any way in connection with the BST would not be regulated by  &ythe local franchising authorities. With the advent of rate regulation, equipment and installation charges were  {Ox- &Zunbundled from tier charges and determined separately on the basis of actual cost. See Rate Order, 8 FCC Rcd at 5810, 581516, 588990; FCC Forms 393, 1200, 1205.r they have not been reviewed as part of"0 *,`(`(88;"  &the Resolution. One commenter objects to Cablevision's packaging of a new channel of service in a way  S- &\that requires a converter.G+  {O -ԍSee letter from the Osts.G Another objects generally to Cablevision's repackaging of programming.D, {O -ԍSee letter from Kress.D  &The Communications Act and the Commission's rules implementing the statute prescribe the minimum  S- &programming for the basic tier-".  {OV- &ZԍSee Communications Act  623(b)(7), 47 U.S.C.  543(b)(7); 47 C.F.R.  901(a). The BST, at a minimum,  &includes all signals of domestic television stations carried by the cable system other than superstations; public,  &educational, and government access channels required by the franchising authority; and any additional video programming signals the cable operator chooses to add to the BST. but, apart from that, leave the packaging of programming to the  &]operator's discretion. The Resolution addresses rates for programming on the CPST but does not  &[otherwise review program packaging. Three commenters express concerns about recent rate adjustments  &taken by Cablevision after August 1, 1997 that are not encompassed within, nor approved by, the  S- &Resolution.e. {O-ԍSee letters from Frein; Sciacca; and Herbert E. Lytton.e Finally, one commenter raises what appears to be a billing dispute, which is also outside  S-the scope of the Resolution.D/ {O -ԍSee letter from Creta.D  Sp-+  V. CONCLUSION AND ORDERING CLAUSES ă  S -  : 20.` ` For the reasons discussed above, we conclude that it is in the public interest to adopt the Resolution as amended.  S - : 21.` ` Accordingly, IT IS ORDERED that the Resolution attached to this Order as Attachment  S -A IS ADOPTED AND INCORPORATED HEREIN.  S0- : R22.` ` IT IS FURTHER ORDERED that all rate complaints under the Commission's  S- &jurisdiction against Cablevision filed between September 1, 1993 and August 1, 1997 ARE GRANTED  S-to the extent indicated herein and ARE DENIED in all other respects.  S- : 23.` ` IT IS FURTHER ORDERED that all proceedings pending review before the Cable  &Services Bureau and the Commission with respect to rate complaints against the CPST rates of Cablevision  &Systems Corporation and which were filed between September 1993 and August 1, 1997, to the extent  S-indicated herein, ARE RESOLVED. " </,`(`(88"Ԍ S- : P24.` ` IT IS FURTHER ORDERED that the orders issued by the Cable Services Bureau, as  &listed in Attachment B to this Resolution Order, with respect to CPST rate complaints against Cablevision  &Systems Corporation filed between September 1993 and August 1, 1997, to the extent indicated herein,  S- ARE VACATED and ARE SUPERSEDED by this Resolution.  S8-  : 25.` ` IT IS FURTHER ORDERED that a waiver of 47 C.F.R.  76.922 and 76.950963, to  S-the extent individual adjudication of CPST rate complaints is required thereby, IS GRANTED.  S- : 26.` ` IT IS FURTHER ORDERED that the Cable Services Bureau IS GIVEN delegated authority to oversee implementation of this Resolution, as adopted.  SH -27.` ` IT IS FURTHER ORDERED that this Order IS EFFECTIVE upon adoption. ` `  ,hh^FEDERAL COMMUNICATIONS COMMISSION ` `  ,hh^Magalie Roman Salas ` `  ,hh^Secretary"0 /,`(`(88"  S-s ATTACHMENT A Đ S-d  S- Ã  S-WTERMS OF RESOLUTION I. Introduction  S-  S- (#1iheading 3`1.This Resolution finally resolves all Form 393, 1200 and 1210 cable programming services tier  &O( CPST) complaints pending as of August 1, 1997 against Cablevision Systems Corporation ( Cablevision) and its subsidiaries.  Sp- 3iheading 3 `  S -{ II. Background d  S - (#iheading 3`2.Complaints have been filed with the Federal Communications Commission ( Commission)  &pursuant to 47 C.F.R.  76.950, concerning the CPST rates charged by Cablevision in the franchises listed  S -in Exhibit 1. Rate justifications were filed in response to such complaints.  tiheading 3 `  S0- (#iheading 33.The Commissions Cable Services Bureau (the Bureau), under delegated authority, has reviewed  &LCablevisions rate justifications pursuant to the Cable Television Consumer Protection and Competition  &Act of 1992, Pub. L. No. 102385, 106 Stat. 1460 (1992) ( 1992 Cable Act), and the Commissions cable  S- &rate regulations. As a result of that review, the Bureau has determined that certain refunds are owed to subscribers.  iheading 3   S@- (#1iheading 34.Cablevision maintains that it has followed the letter and spirit of the Commissions cable rate  &[regulations and the 1992 Cable Act in the rate justification filings it has submitted and that the rates paid  &by its CPST subscribers are not unreasonable. Notwithstanding this position, Cablevision and the Bureau  &\propose to resolve all of Cablevisions CPST rates cases filed under FCC Form 393, 1200, and 1210, under the terms set forth below.  Oiheading 3   S(-z III. Definitions  S-d  S-iheading 35.As used herein, the following definitions will apply:  iheading 3   S- : l heading 6XX` ` (a)` ` Billing Cycle means the time period during which monthly bills are sent to subscribers, but in no event longer than 31 days.(#`  l heading 6   S -l heading 6XX` ` (b)` ` BST means basic service tier as defined in 47 C.F.R.  76.901.(#`  l heading 6   S!-l heading 6XX` ` (c)` ` CPST means cable programming service tier as defined in 47 C.F.R.  76.901.(#`  Il heading 6 XX` ` (#`  Sp#- : X(d)X` `  ` `  Commission Rules means all Commission rules currently in effect, as well as all  : osubsequent clarifications, amendments, and additions thereto, including, but not limited  : to, changes initiated by the Commission or changes required by or made pursuant to changes in federal law.(#` "& /,`(`(88n("Ԍ S-  : `l heading 68XX` ` (e)` ` Current Rates means the CPST rates charged by Cablevision as of August 1, 1997 in  : the franchises listed in Exhibit 1, excluding any CPST rate adjustment implemented in   : ~1997 in any such franchises that is sought to be justified (in whole or in part) through a pending or future Form 1235 filing. (#`  l heading 6 8XX` ` (#`  S8- : ~l heading 6XX` ` (f)` ` Effective Date means the date on which the Commission issues the Resolution Order approving this Resolution.(#`  l heading 6 XX` ` (#`  S- : Al heading 6XX` ` (g)` ` Eligible Subscribers means CPST subscribers of record to Cablevisions cable franchises listed in Exhibit 2 as of the date bills are issued reflecting Refunds.(#`  l heading 6   SH - : Bl heading 6XX` ` (h)` ` Form 393 Series filings means Forms 393 filed by Cablevision with the Commission   for the franchises listed on Exhibits 1 and 2. (#`  S - : XX` ` (i)` ` Form 1200 Series filings means Forms 1200 and 1210 filed by Cablevision with the   Commission for the franchises listed on Exhibits 1 and 2.(#`  Sp-XX` ` (j)` ` Interest means the Internal Revenue Service rate of interest for tax overpayments.(#`  S,-XX` ` (k)` ` Refund means a credit on a subscribers bills. (#`  :l heading 6   S- : _l heading 6XX` ` (l)` ` Resolution Order means an order issued by the Commission approving the terms of this Resolution and any modifications thereto.(#`  7l heading 6   Sd- : Rl heading 6XX` ` (m)` ` NonFinal Bureau Rate Order means any Bureau rate order issued concerning the  : reasonableness of Cablevisions CPST rates in the franchises listed in Exhibit 1 for which  : a Petition for Reconsideration or Application for Review was filed by Cablevision or any   other party. (#`    l heading 6    S-5 IV. Terms d  S0- (#{iheading 36.Cablevision accepts the jurisdiction of the Commission over it and the subject matter of these rate resolutions for purposes of the Resolution Order approving these terms.  iheading 3   S- (#?iheading 3`7.All of Cablevisions CPST rates cases involving the franchises listed in Exhibit 1 filed under FCC  &Forms 393, 1200, and 1210, for the period through August 1, 1997, are finally resolved under the terms provided herein.   iheading 3 `  S!- (#iheading 38.Cablevision agrees that the terms contained in this Resolution shall be incorporated by reference  &yin the Resolution Order. Assuming the adoption of these terms in the Resolution Order, Cablevision and  &the Commission will each actively defend the Resolution Order against any appeal of, or other legal  &.challenge to, the Resolution Order by any third party. Cablevision and the Commission will reasonably cooperate in any such defense of these terms.  iheading 3 "P% /,`(`(88&"Ԍ S- (#iheading 389.Assuming the adoption of these terms in the Resolution Order, Cablevision agrees that any  &>violation of the Resolution Order approving these terms shall constitute a violation of a Commission  &kOrder, entitling the Commission to exercise any rights and remedies attendant to the enforcement of a Commission order.  iheading 3 8Xd(#  S8- (# iheading 3`10.These terms are for purposes of settlement only, and do not constitute an admission by Cablevision  &of any violation of, or failure to conform to, the 1992 Cable Act, the Commissions Rules, or any other applicable law, rule, or policy.  iheading 3 `  S- (#liheading 3811.The Commission will not institute, on its own motion, any proceedings against Cablevision based  &Non the information obtained during consideration of the Resolution. In addition, in the absence of  &[additional facts, any allegations and other circumstances involved in consideration of this Resolution will not be used by any party against Cablevision with respect to any future proceeding.  iheading 3 8  S - (#iheading 3`12.In consideration for the resolution of Cablevisions CPST rate cases pending as of August 1, 1997,  &Cablevision hereby agrees to the following terms, conditions and procedures which will facilitate a fair and expeditious resolution of those matters in a manner that serves the public interest:  ciheading 3 `Xd(#  S0- : l heading 6XX` ` (a)` ` Cablevision will issue Refunds to the Eligible Subscribers in the amounts listed in Exhibit   : 2. The Refunds covering the Form 393 Series period issued for Eligible Subscribers in  : the New Jersey Franchises covered by DA 95579, DA 95682, DA 95683, DA 95684  : Pand DA 95685 have been computed in accordance with the requirements of those Orders.  : 2All refunds to Eligible Subscribers will include applicable Interest through April 30, 1998. Refunds will be reflected as a onetime credit on subscriber bills. (#`  l heading 6 XX` ` (#`  S- : l heading 6XX` ` (b)` ` Cablevision will provide Refunds to Eligible Subscribers during the May 1998 billing  : cycle or the first monthly billing cycle beginning 60 days after the Effective Date,   : whichever is later. If Refunds are not included in the Billing Cycle beginning May 1,  : A1998, Cablevision will adjust the Refunds to reflect additional Interest for the period from May 1, 1998 to the date on which the Billing Cycle that includes the Refunds begins.(#`  l heading 6 XX` ` (#`  S(-  : l heading 68XX` ` (c)` ` Except as otherwise noted below in subparagraphs (d) and (e) and in the notes to Exhibit   : 41, the Resolution Order will find that in each of the Cablevision franchises listed in  : QExhibit 1 and covered by this Resolution, the Current Rate is deemed not unreasonable under the 1992 Cable Act and Commission Rules.(#`  l heading 6 8" /,`(`(88"Ԍ S-  : l heading 6X(d)` ` The Resolution Order will find that, as of August 1, 1997, the maximum permitted CPST   : rates for the franchises listed in this subparagraph are as follows: for Millstone, NJ  : B(NJ0167), $13.74; for Port Chester, NY (NY1092), $13.26; for Dover, NY (NY0213),  : $13.40; and for North Haven, NY (NY0240), $13.86. Notwithstanding any other  : provision of this Resolution, any refund liability that may arise from the CPST rates  : ~currently charged in any of the franchises listed in this subparagraph (d) shall continue   : Dto accrue until such time as the present CPST rates are adjusted either (i) to the  : maximumpermitted levels set forth in this subparagraph or (ii) to reflect changes in  : external and other costs permitted under the Commissions rules, provided that the starting   : rate for any such adjustment will be the maximumpermitted CPST rates set forth in this  : subparagraph. The CPST rates currently charged in the franchises listed in this  : subparagraph shall be adjusted in accordance with the requirements of the preceding   : Bsentence (and any Refunds owed shall be issued) no later than the first monthly billing   : ocycle beginning 60 days after the Effective Date. Nothing in this subparagraph shall be  : deemed to constitute a finding that the CPST rates currently charged in the franchises listed in this subparagraph are unreasonable.(#`  vl heading 6 X  SX- : l heading 6XX` ` (e)` ` Nothing in this Resolution shall be deemed to resolve the reasonableness of any rate   : 2increases implemented in 1997 in any of the franchises listed in Exhibit 1 that Cablevision   : has sought, or will seek, to justify (in whole or in part) through the filing of a FCC Form   : 1235. The Resolution Order shall deem not unreasonable the CPST rates in effect in any such franchises up until the implementation of any such 1997 Form 1235 rate increase.(#`  %F  %F  l heading 6   Sh- : l heading 6`XX` ` (f)` ` As of the Effective Date, any NonFinal Bureau Rate Order concerning Cablevisions   : CPST rates in any of the franchises listed in Exhibit 1 is hereby vacated. The Resolution Order shall supersede any such vacated Bureau orders.(#`  l heading 6 `XX` ` (#`  S-  : l heading 6`XX` ` (g)` ` As of the Effective Date, the Petitions for Reconsideration and the Petitions for Stay of  : 3any Bureau orders filed by Cablevision with the Commission for any of the franchises listed in Exhibit 1 will be deemed withdrawn.(#`  l heading 6 `XX` ` (#`  S(-  : l heading 68XX` ` (h)` ` A copy of the Proposed Resolution was provided to: (i) each local franchising authority   : ( LFA) in the franchises listed in Exhibit 1 and (ii) to each party that filed a valid   : Bcomplaint on FCC Form 329 pursuant to 47 C.F.R.  76.950 in the franchises listed in  S-Exhibit 1, for comment.(#`  l heading 6 8XX` ` d(#`  S`- : l heading 68XX` ` (i)` ` Except as provided in subparagraph (j) hereof, these terms may not be terminated or  : modified without the mutual written agreement of Cablevision and the Commission. The  : #Commissions consent to any such modification shall be demonstrated by an order issued by the Bureau or, at the Commissions option, by the Commission itself.(#`  dl heading 6 8"!/,`(`(88(#"Ԍ S- : l heading 6XX` ` (j)` ` Notwithstanding the terms hereof, Cablevision may avail itself of any applicable  : bmodifications of any law or regulation governing the CPST rates charged in any  : $Cablevision franchise listed in Exhibit 1, including the adoption by the Commission of  : any regulation governing rates as applied to the cable industry generally. If Cablevision  : exercises this election, the terms contained herein shall be superseded upon the effective  : ~date of such law or regulation, except that Cablevision shall provide Refunds to Eligible Subscribers pursuant to the terms of this Resolution.(#`  l heading 6 XX` ` (#`  S- (#iheading 3 13.The Resolution Order shall affirmatively state that any and all waivers of the Commissions rules,  S- &and any modifications to Commission forms, necessary to effectuate these terms are deemed to be granted.  Sp- &L Such waivers shall include Cablevisions right to adjust, if necessary, any Form 1240 rate filing to reflect  &the CPST rates approved by the Resolution Order without affecting the implementation date or annual  &cycle elected for Form 1240 filings. The Commission will not assert in any proceeding that Cablevisions  &compliance with the terms of this Resolution violates any Commission rule or order, and, in any  &proceeding before the Commission brought by a third party, a showing by Cablevision that it has complied  &with these terms shall constitute a defense to any claim that Cablevisions action in meeting the terms  &constitute a violation of any applicable Commission rule or order. Notwithstanding the foregoing, nothing  &in this Resolution should be construed to preempt the authority of a local franchising authority to regulate the basic service tier and related equipment rates, consistent with the Commissions regulations and orders.  iheading 3    S- (#liheading 314.Assuming the adoption of these terms in the Resolution Order, these terms shall become effective when the Commission issues the Resolution Order approving these terms.  iheading 3   Sh- (#iheading 315.If any provisions, clause, or part of this Resolution is invalidated, the remainder of this Resolution  &\shall not be affected thereby and shall remain in effect: provided, however, that if such invalidation is  &material to this Resolution, Cablevision and the Commission shall attempt in good faith to reconstitute the  &Resolution in a form that is, to the maximum extent possible, consistent with the original intent of the  S-Resolution. "/,`(`(88" [8q  S- EXHIBIT 1  S`- [  XXX  J ddx !VZZV@J      P-9#XX2PQ̊XP# Cablevision Systems Corporation  P-5 Franchises Covered By Resolution   J !VZZV@(AVZZV@@@J    @ H   @ H    P-  System  P- Franchise  P- CUID No. !     ~J-#J2P Q |tP#AR Cable/Massachusetts Braintree}Braintree}MA 0217    AR Cable/Massachusetts FraminghamU R-Framingham# Xm2PG;̊XP# *#[2PG; |tP#v R-MA 0094# Xm2PG;̊XP#*#[2PG; |tP#  }  AR Cable/Massachusetts LexingtonNBedford Lexington MA 0210 MA 0140  v  AR Cable/Massachusetts Middlesex Maynard MA 0146    ) AR Cable/Massachusetts Montachusetts Fitchburg Gardner Leominster Templeton Westminister )MA 0015 MA 0016 MA 0017 MA 0127 MA 0230 h   ) AR Cable/Massachusetts NashobaBelmont Townsend DanversNMA 0316 MA 0296 MA 0279h     AR Cable/Massachusetts Norwood&Norwood WestwoodMA 0148 MA 0204  N  AR Cable/Massachusetts PeabodyPeabodyMA 0119    AR Cable/Maine Coastal R-Brewer# Xm2PG;̊XP# *#[2PG; |tP# R-ME 0026# Xm2PG;̊XP#*#[2PG; |tP#    Cablevision of Michigan KalamazooKalamazoo, T Kalamazoo, C_MI 0039 MI 0095    Cablevision of Newark Newark7Newark South OrangeNJ 0476 NJ 0582  _  Cablevision of Monmouth JacksonJackson TownshipNJ 0346    Cablevision of Monmouth MillstoneMillstoneNJ 0617    Cablevision of Monmouth LakewoodLakewood HowellONJ 0503 NJ 0531   ) Cablevision of Monmouth Seaside'Berkeley Township Dover Township Lavallette Seaside Heights Seaside ParkG)NJ 0214 NJ 0213 NJ 0128 NJ 0127 NJ 0129 O )   R-# Xm2PG;̊XP#*#[2PG; |tP# Cablevision's August 1, 1997 CPST rate for this franchise is approved on condition that the rate for basic service in this franchise is not increased in a way that would result in combined rates for the BST and the CPST in excess of the combined maximum permitted level for both tiers as computed under the Commission's rate regulation rules. "(#/,%% $" G /   y3 dddy Cablevision of Monmouth Wall y c3 dddhy Asbury Park Avon Belmar Bradley Beach Brielle Farmingdale Interlaken Manasquan Neptune Township Neptune City Ocean Township SeaGirt South Belmar Spring Lake Spring Lake Heights Wall Township /  y43 dddy NJ 0069 NJ 0277 NJ 0278 NJ 0279 NJ 0280 NJ 0483 NJ 0456 NJ 0281 NJ 0283 NJ 0282 NJ 0161 NJ 0284 NJ 0286 NJ 0285 NJ 0287 NJ 0288   / ) Cablevision of Monmouth Freeholdh Colts Neck Englishtown Freehold Township Manalapan Township Marlboro Township)NJ 0556 NJ 0429 NJ 0428 NJ 0430 NJ 0557    )) Cablevision of Hudson County`Hoboken North Bergen West New York Union City Weehawken)NJ 0111 NJ 0083 NJ 0365 NJ 0366 NJ 0345   ) Cablevision of Westchester DutchessXDover PlainsXNY 0213    Cablevision of Westchester Westchester0Mount Kisco North Castle Bedford Port Chester Somers YorktownNY 0427 NY 1056 NY 0426 NY 1092 NY 1066 NJ 0942  X  Cablevision of Westchester YonkersYonkersNY 0638    AR Cable/New York RensselaerCobleskill, TNY 0986    AR Cable/New York WellsvilleWellsville, VNY 0019 0  W Cablevision of Long Island Great NeckxGreat Neck Great Neck Plaza North Hills ThomastonWNY 1033 NY 1034 NY 1047 NY 1040/.e%e%3 3 3 B r3 uFfCcYyWwc3 oB c3 hv:){D43 #B 43 toc 30    W  Cablevision of Long Island WoodburyBabylon, T East Hills (Roslyn) East Rockaway Hempstead, T * Hempstead, V Huntington ** Islip *** Lindenhurst Long Beach Massapequa Park * North Hempstead Oyster Bay * Rockville Centre Westbury * NY 0423 NY 1032 NY 0849 NY 0454* NY 0772 NY 0392** NY 0379*** NY 0421 NY 0740 NY 0635* NY 0453 NY 0489* NY 0953 NY 0703*      Cablevision of Long Island East End Riverhead East Hampton, T Greenport, V Sag Harbor, V Southampton, T Southampton, V Southold ****NY 0149 NY 0176 NY 0187 NY 0190 NY 0192 NY 0188**** h    V Cable Long IslandBrookhaven, T ***** Islip, T ***** North Haven(NY 0237# [2PG; |tP#*****# [2PG; |tP# NY 0239***** NY 0240h    Cablevision of ClevelandCleveland, COH 1632   (   Cablevision of the MidwestBedford Heights Brook Park Chardon Cuyahoga Heights Hinckley Independence Lakewood North Royalton Richfield, V Brecksville Sheffield Lake Solon Valley View Westlake OH 0967 OH 0823 OH 1109 OH 1196 OH 1601 OH 0993 OH 1449 OH 0971 OH 1275 OH 1274 OH 1022 OH 0968 OH 1195 OH 0746  P    * CPST rate is approved through April 30, 1997. Current Rate (including Form 1235 component) was approved in DA 972512. ** CPST rate is approved through February 28, 1997. Current Rate was approved in DA 972403. *** CPST rate is approved through March 31, 1997. Current Rate was approved in DA 972283. **** CPST rate is approved through February 28, 1997. Current Rate was approved in DA 972422. ***** CPST rate is approved through February 28, 1997. Current Rate was approved in DA 972377. "#/.e%e%3 3 D%w"P  /   y3 ddd8y V Cable Ohio y c3 dddy Bedford Chagrin Falls Cleveland Heights Euclid Gates Mills Granger Township Highland Heights Mayfield Heights Northfield Pepper Pike Richmond Heights Shaker Heights University Heights Willowick Woodmere Mayfield Village /  y43 dddy OH 0805 OH 0804 OH 0695 OH 0109 OH 1944 OH 1272 OH 0986 OH 0777 OH 0969 OH 1062 OH 0765 OH 0175 OH 0662 OH 0776 OH 0775 OH 0862   /  US Cable Gulf Shoresh Gulf Shoresh AL 0247     US Cable Lucedale@Lucedale@MS 0199  h   US Cable Wiggins RP-Wiggins# Xm2PG;̊XP# *#[2PG; |tP#9 RP-MS 0155# Xm2PG;̊XP#*#[2PG; |tP#   @  US Cable Osceola!Osceola!MO 0603  %9 R!-# XX2P Q̊XP#  R -#Xm2PG;̊XP#*#[2PG; |tP# Cablevision's August 1, 1997 CPST rate for this franchise is approved on condition that the rate for basic service in this franchise is not increased in a way that would result in combined rates for the BST and the CPST in excess of the combined maximum permitted level for both tiers as computed under the Commission's rate regulation rules. K/.e%e%3 3 63 B r3 8uFfCcYyWwc3 oB c3 v:){D43 #B 43 toc 3  H-48qZ:  SX- # &a\  P6G;&P#EXHIBIT 2  S0-  TOTAL REFUNDS WITH INTEREST BY COMMUNITY  S- #CABLEVISION SYSTEMS CORPORATION#[2PG; |tP#у  ~J- 4 Community (System) ,hh^CUIDpp&  XxxTOTAL  ~J-X` hp x (#%'0*,.8135@8: