******************************************************** 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 ) ) MediaOne of Ohio, Inc. ) CUID Nos. OH0496 (Kettering) ) OH0497 (Centerville) ) OH0767 (Bellbrook) Complaint 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 against the January 1, 1996 rate increase of the above- captioned operator ("Operator") for its cable programming services tier ("CPST") in the communities referenced above. On August 1, 1995, the Federal Communications Commission ("Commission") adopted an Order approving a Social Contract entered into between Operator and the Commission which resolved all previous complaints filed against Operator's CPST rates ("Social Contract"). We have already issued a separate order ("Prior Order") which found Operator's CPST rate in effect January 1, 1998 to be reasonable. This Order will only address complaints against Operator's January 1, 1996 rate increase, consistent with the terms of the Social Contract. 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 complaint was 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. 4. Operators must use the FCC Form 1200 series to justify their rates for the period beginning May 15, 1994 using a benchmark 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. There are no official forms available for use to implement the one-time changes in rates as required by the Social Contract. The Commission, seeking to simplify the implementation of the Social Contract, found that the rate form proposed by Operator ("SC Rate Form") to implement the rate restructuring under the Social Contract, was consistent with the methodologies of the Commission's Forms 1200 and 1210 and greatly simplified the review of the restructured rates under the Social Contract. Therefore, pursuant to the terms of the Social Contract, the Commission permitted Operator to file an SC Rate Form to establish its CPS tier rates. 5. Upon review of Operator's SC Rate Form, setting an initial maximum permitted rate ("MPR") in accordance with the Social Contract, and Operator's FCC Form 1210, covering the period from the SC Rate Form through December 31, 1995, we find Operator's actual CPST rate of $14.15 (excluding franchise fees), effective January 1, 1996, to be reasonable. 6. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that the CPST rate of $14.15 (excluding franchise fees) charged by Operator in the communities referenced above, effective January 1, 1996, IS REASONABLE. 7. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that the complaints against Operator's January 1, 1996 rate increase, in the communities referenced above, ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Margaret M. Egler Acting Chief, Financial Analysis and Compliance Division Cable Services Bureau