******************************************************** 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 ) ) Century Colorado Springs Partnership ) CUID No. CO0030 (Colorado Springs) d/b/a Colorado Springs Cablevision ) ) Complaint Regarding ) Cable Programming Services Tier Rates ) ORDER Adopted: February 5, 1999 Released: February 9, 1999 By the Assistant Chief, Consumer Protection and Competition Division, Cable Services Bureau: 1. In this Order we consider a complaint about the rates charged by the above-referenced operator ("Operator") for its cable programming services tiers ("CPSTs") in the community referenced above. We have already issued a separate order in which we found that Operator's rates in effect prior to May 15, 1994 were reasonable ("Prior Order"). In our Prior Order, we stated that our findings "do not in any way prejudge the reasonableness of the price for CPS service after May 14, 1994." This Order addresses only the reasonableness of Operator's CPST rates in effect after May 14, 1994. 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. Operators with complete and timely 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 CPST rates were in compliance with the revised rules from May 15, 1994 forward. Operators attempting to justify CPST rates for the period prior to May 15, 1994 through a benchmark showing must complete and file FCC Form 393. 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. 4. Operator has attempted to justify its CPST rates through a benchmark justification on FCC Form 1200, updated with FCC Form 1210. Upon review of Operator's FCC Form 1200, and FCC Form 1210 covering the period April 1, 1994 through March 31, 1995, we find that Operator has correctly calculated its maximum permitted rates ("MPRs") for its two CPSTs. On its FCC Form 1200, Operator justified an MPR of $6.57 for its Standard Service tier ("CPST-1") and $5.03 for its Preferred Service tier ("CPST-2"). However, Operator's actual CPST rates in effect from May 15, 1994 through March 31, 1995 were $7.02 for CPST-1 and $5.26 for CPST-2. Therefore, we find Operator's actual CPST rates for the period May 15, 1994 through March 31, 1995 to be unreasonable. Upon review of Operator's FCC Form 1210 covering the period April 1, 1994 through March 31, 1995, we find that Operator has justified its actual CPST-1 rate of $7.13 and CPST-2 rate of $5.83, effective April 1, 1995. 5. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST-1 rate of $7.02 and the CPST-2 rate of $5.26, charged by Operator in the franchise area referenced above, effective May 15, 1994 through March 31, 1995, ARE UNREASONABLE. 6. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R. Section 0.321 that the CPST-1 rate of $7.13 and the CPST-2 rate of $5.83, charged by Operator in the franchise area referenced above, effective April 1, 1995, ARE REASONABLE. 7. 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 community referenced above that portion of the amount paid in excess of the maximum permitted CPST-1 rate of $6.57 and the maximum permitted CPST- 2 rate of $5.03 per month (plus franchise fees), plus interest to the date of the refund, for the period May 15, 1994 through March 31, 1995. 8. 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. 9. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R. Section 0.321, that the complaint referenced herein against the CPST rates charged by Operator in the community set forth above, IS GRANTED. FEDERAL COMMUNICATIONS COMMISSION Patrick A. Boateng, Assistant Chief Consumer Protection and Competition Division Cable Services Bureau