******************************************************** 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. OH0556 (Madison Township) ) OH0484 (City of Trotwood) ) Complaint Regarding ) Cable Programming Services Tier Rates) ORDER Adopted: February 16, 1999 Released: February 18, 1999 By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider a complaint against January 1, 1996 rate increases by the above- referenced operator ("Operator") for its cable programming services tier ("CPST") and Limited Plus tier ("LPT") 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"). This Order will address the reasonableness of Operator's rates, consistent with the terms of the Social Contract. 2. Under the Communications Act, the 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. 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. 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. 4. Upon review of Operator's SC Rate Form, setting an initial maximum permitted rate ("MPR") in accordance with the Social Contract, we find Operator's actual CPST rate of $14.89 and actual LPT rate of $1.51, effective January 1, 1996, to be reasonable. Upon review of Operator's FCC Form 1210, covering the period from the SC Rate Form through December 31, 1996, we find Operator's actual CPST rate of $16.25 and actual LPT rate of $1.51, effective February 1, 1997, to be reasonable. Upon review of Operator's FCC Form 1210, covering the period January 1, 1997 through December 31, 1997, we find Operator's actual CPST rate of $18.09 and actual LPT rate of $1.57, effective January 1, 1998, to be reasonable. 5. 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 $14.89 and the LPT rate of $1.51, charged by Operator in the community referenced above, effective January 1, 1996, ARE REASONABLE. 6. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that the CPST rate of $16.25 and the LPT rate of $1.51, charged by Operator in the community referenced above, effective February 1, 1997, ARE REASONABLE. 7. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that the CPST rate of $18.09 and the LPT rate of $1.57, charged by Operator in the community referenced above, effective January 1, 1998, ARE REASONABLE. 8. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that the complaint against Operator's CPST and LPT rates, in the communities referenced above, IS DENIED. FEDERAL COMMUNICATIONS COMMISSION Patrick A. Boateng Acting Chief, Financial Analysis and Compliance Division Cable Services Bureau