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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 ) ) Marcus Cable Partners, L.P. ) CUID No. WI0150 (Beaver Dam) ) Complaints Regarding ) Cable Programming Services Tier Rates ) ORDER Adopted: January 28, 1999 Released: February 1, 1999 By the Assistant Chief, Consumer Protection and Competition Division, Cable Services Bureau: 1. In this Order we consider complaints against the June 1, 1995 rate that the above-captioned operator ("Operator") was charging for its cable programming services tier ("CPST") in the community set forth above. Operator has attempted to justify its CPST rate through a benchmark showing on FCC Form 1200, multiple FCC Form 1210s and FCC Form 1240. This Order addresses the reasonableness of the Operator's CPST rate beginning June 1, 1995. 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. If the Commission finds a rate to be unreasonable, it shall determine the correct rate and any refund liability. The Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act") requires the Commission to review CPST rates upon the filing of a valid complaint by a subscriber or local franchise authority ("LFA"). The Telecommunications Act of 1996 ("1996 Act") and our rules implementing the new legislation ("Interim Rules"), require that, beginning February 8, 1996, complaints against CPST rates be filed with the Commission by an LFA that has received more than one subscriber complaint. 3. To justify rates for the period beginning May 15, 1994, operators must use the FCC Form 1200 series. Cable operators may justify quarterly rate increases based on the addition and deletion of channels, changes in certain external costs, and inflation, by filing FCC Form 1210. Operators may adjust their rates on an annual basis using FCC Form 1240. 4. The Commission received multiple complaints against Operator's June 1, 1995 CPST rate increase from $12.38 to $12.39. On June 29, 1995, Operator filed a Motion to Dismiss the pending complaints. In its Motion to Dismiss, Operator argues that the complaints against the June 1, 1995 CPST rate are invalid because the complaints concern a programming change rather than a CPST rate increase. Actually, the CPST rate did increase from $12.38 to $12.39, but even if it had remained the same we would still reject Operator's argument because a complaint may also be filed against a change in CPST programming service, for example, the deletion of channels from a tier without any corresponding rate decrease. Operator also complains about minor flaws in the subscribers' completion of the FCC Form 329 Complaint Forms. In general, we will find valid any complaint that states a claim upon which relief may be granted and provides adequate information to allow us to process the complaint, despite minor flaws or inaccuracies. We believe that this approach best implements the mandate of the 1992 Cable Act. Our review indicates that a valid complaint was filed against Operator's June 1, 1995 CPST increase. Therefore, Operator's Motion to Dismiss is denied. 5. Upon review of Operator's FCC Form 1200, FCC Form 1210s and FCC Form 1240, covering the period May 15, 1994 through May 31, 1997, we have found no apparent errors in Operator's calculation of its maximum permitted rates ("MPRs"). However, for the period from June 1, 1995 through June 30, 1995, Operator's actual CPST rate of $12.39 exceeded its calculated MPR of $12.34 and for the period from July 1, 1995 through May 31, 1996, Operator's actual CPST rate of $12.39 exceeded its calculated MPR of $12.31. Therefore, we find Operator's actual CPST rate of $12.39, effective June 1, 1995 through May 31, 1996, to be unreasonable. We find Operator's actual CPST rate of $13.15, effective June 1, 1996, to be reasonable. 6. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that Operator's Motion to Dismiss, IS DENIED. 7. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R. Section 0.321 that the CPST rate of $12.39, charged by Operator, in the community set forth above, effective June 1, 1995 through May 31, 1996, IS UNREASONABLE. 8. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R. Section 0.321 that the CPST rate of $13.15, charged by Operator, in the community set forth above, effective June 1, 1996, IS REASONABLE. 9. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47 C.F.R.  76.961, that Operator shall refund to subscribers in the franchise area referenced above that portion of the amount paid in excess of the maximum permitted CPST rate of $12.34 per month (plus franchise fees), plus interest to the date of the refund, for the period June 1, 1995 through June 30, 1995. 10. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47 C.F.R.  76.961, that Operator shall refund to subscribers in the franchise area referenced above that portion of the amount paid in excess of the maximum permitted CPST rate of $12.31 per month (plus franchise fees), plus interest to the date of the refund, for the period July 1, 1995 through May 31, 1996. 11. IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges to CPST subscribers for the stated periods, and shall within 30 days of the release of this Order, file a report with the Chief, Cable Services Bureau, stating the cumulative refund amount so determined (including franchise fees and interest), describing the calculation thereof, and describing its plan to implement the refund within 60 days of Commission approval of the plan. 12. 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 June 1, 1995 CPST rate charged by Operator in the community set forth above, ARE GRANTED. FEDERAL COMMUNICATIONS COMMISSION Patrick A. Boateng, Assistant Chief Consumer Protection and Competition Division Cable Services Bureau