******************************************************** 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 ) ) Jones Communications of Virginia, Inc.) CUID Nos. VA0398 (City of Manassas) d/b/a Jones Intercable, Inc. ) VA0487 (Prince William County) ) Complaints Regarding ) Cable Programming Services Tier Rates) ORDER Adopted: January 12, 1999 Released: January 15, 1999 By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints concerning the rates of the above-captioned operator ("Operator") for its cable programming services tier ("CPST") in the communities referenced above. We have already issued a separate order ("Prior Order") addressing the reasonableness of Operator's rates from September 1, 1993 to May 14, 1994. This Order addresses the reasonableness of Operator's rates for the period beginning May 15, 1994 to the present, as justified on Operator's multiple FCC Forms 1240. 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. The Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act"), and our rules in effect at the time the complaints were filed, required the Commission to review CPST rates upon the filing of a valid complaint by a subscriber. The filing of a valid complaint triggers an obligation on behalf of the cable operator to file a justification of its CPST rates. If the Commission finds the rate to be unreasonable, it shall determine the correct rate and any refund liability. 3. The Commission's original rate regulations took effect on September 1, 1993. The Commission subsequently revised its rate regulations effective May 15, 1994. Cable operators with valid CPST complaints filed against them prior to May 15, 1994 must demonstrate that their CPST rates were in compliance with the Commission's initial rules from the time the complaint was filed through May 14, 1994, and that their rates were in compliance with the revised rules from May 15, 1994 forward. Cable operators attempting to justify their rates for the period prior to May 15, 1994 using a benchmark showing must complete and file FCC Form 393. Operators may use the FCC Form 1200 to justify their rates for the period beginning May 15, 1994 using a benchmark showing, or an FCC Form 1220 to justify their rates using a cost of service showing. Cable operators may also justify rate increases based on the addition and deletion of channels, changes in certain external costs, and inflation, by filing FCC Form 1210. FCC Form 1210 must be filed at least 30 days before new rates are scheduled to go into effect where the Commission has found the cable programming service rate to be unreasonable less than one year prior to the filing, or where there is a pending complaint against the CPST rate. 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. 4. Operator has previously filed an FCC Form 1220 (Cost of Service) to justify its CPST rates. Operator has also filed an FCC Form 1240 for the Projected Period January 1, 1997 to December 31, 1997, as well as an FCC Form 1240 for the Projected Period January 1, 1998 to December 31, 1998. Upon review of Operator's forms, we made certain adjustments. Despite our adjustments, we find that Operator has justified its CPST rates, effective May 15, 1994 through December 31, 1997. We also find that Operator has justified its CPST rate of $14.75, effective January 1, 1998. 5. Accordingly, IT IS ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R. Section 0.321 that Operator's CPST rates, effective May 15, 1994 through December 31, 1997, in the communities referenced above, ARE REASONABLE. 6. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R. Section 0.321 that Operator's CPST rate of $14.75, effective January 1, 1998, in the communities set forth above, IS REASONABLE. 7. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R. Section 0.321, that the complaints referenced herein against the rates charged by Operator in the communities set forth above ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Margaret M. Egler Acting Chief, Financial Analysis and Compliance Division Cable Services Bureau