******************************************************** 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 ) ) CUID Nos. CA0130 (Glendora) Citizens Century Cable TV Venture) CA1219 (Los Angeles) ) ) Complaints Regarding ) Cable Programming Services Tier Rates) ORDER Adopted: March 31, 1999 Released: April 5, 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. Operator's response includes justifications filed on FCC Form 1200 and multiple FCC Form 1210s. This Order addresses the reasonableness of Operator's rates for the period beginning September 23, 1994, as justified on Operator's FCC Form 1200 and 1210s. 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 upon 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. Operators must use the FCC Form 1200 series to justify their rates for the period beginning May 15, 1994. 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. 4. Upon review of Operator's FCC Form 1200, we find that Operator has justified its calculated maximum permitted rate ("MPR") of $9.00. Upon review of Operator's FCC Form 1210 covering the period April 1, 1994 through June 30, 1994, we find that Operator has justified its calculated MPR of $9.18. Because Operator's actual CPST rate of $9.20, effective September 23, 1994 (the date of the first subscriber complaint) through June 30, 1995, exceeds its MPR of $9.18, we find Operator's actual CPST rate of $9.20, effective September 23, 1994 through June 30, 1995, to be unreasonable. 5. Upon review of Operator's FCC Form 1210 covering the period July 1, 1994 through June 30, 1995, we find that Operator has justified its calculated MPR of $11.97. Because Operator's actual CPST rate of $12.05, effective July 1, 1995 through October 31, 1995, exceeds its MPR of $11.97, we find Operator's actual CPST rate of $12.05, effective July 1, 1995 through October 31, 1995, to be unreasonable. Because Operator's actual CPST rate of $11.97, effective November 1, 1995, does not exceed its MPR of $11.97, we find Operator's actual CPST rate of $11.97, effective November 1, 1995, to be reasonable. We determine the total overcharge per subscriber for the period September 23, 1994 through October 31, 1995 to be de minimis, and it would not be in the public interest to order a refund. 6. Accordingly, IT IS ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R. 0.321 that the CPST rate of $9.20, charged by Operator in the communities referenced above, effective September 23, 1994 through June 30, 1995, IS UNREASONABLE. 7. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R. 0.321 that the CPST rate of $12.05, charged by Operator in the communities referenced above, effective July 1, 1995 through October 31, 1995, IS UNREASONABLE. 8. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R. 0.321 that the CPST rate of $11.97, charged by Operator in the communities referenced above, effective November 1, 1995, IS REASONABLE. 9. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R. 0.321, that the complaints against the CPST rates charged by Operator in the communities referenced above, ARE GRANTED TO THE EXTENT INDICATED HEREIN. FEDERAL COMMUNICATIONS COMMISSION Patrick A. Boateng Acting Chief, Financial Analysis and Compliance Division Cable Services Bureau