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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 ) ) Suburban Cable TV Co., Inc. ) CUID No. PA0622 (Mechanicsburg) ) Complaints Regarding ) Cable Programming Services Tier Rates ) ORDER Adopted: April 16, 1999 Released: April 21, 1999 By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints about the rates charged by the above-referenced operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. We have previously resolved complaints filed against Operator's CPST rates in effect through May 14, 1994 ("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"). 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. Upon review of Operator's FCC Form 1200, we find Operator's calculated maximum permitted rate ("MPR") of $9.84, to be reasonable. Because Operator's actual CPST rate of $9.73, effective May 15, 1994 through July 13, 1994 does not exceed Operator's MPR of $9.84, we find Operator's actual CPST rate of $9.73, effective May 15, 1994 through July 13, 1994, to be reasonable. Because Operator's actual CPST rate of $9.81, effective July 14, 1994 through April 2, 1995, does not exceed its MPR of $9.84, we find Operator's actual CPST rate of $9.81, effective July 15, 1994 through April 2, 1995, to be reasonable. 5. Upon review of Operator's FCC Form 1210 covering the period from April 1, 1994 through March 31, 1995, we find Operator's calculated MPR of $10.88 to be reasonable. Because Operator's actual CPST rate of $10.90, effective April 3, 1995 through June 30, 1995, exceeds its FCC Form 1210 MPR of $10.88, we find Operator's actual CPST rate of $10.90, effective April 3, 1995 through June 30, 1995, to be unreasonable. However, we determine the total refund liability for this period to be de minimis, and it would not be in the public interest to order a refund. Upon review of Operator's FCC Form 1210 covering the period from April 1, 1995 through June 30, 1995, we find Operator's calculated MPR of $11.11 to be reasonable. Because Operator's actual CPST rate of $10.90, effective July 1, 1995, does not exceed its MPR of $11.11, we find Operator's actual CPST rate of $10.90, effective July 1, 1995, 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 $9.73, charged by Operator in the franchise area referenced above, effective May 15, 1994 through July 13, 1994, 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 CPST rate of $9.81, charged by Operator in the franchise area referenced above, effective July 14, 1994 through April 2, 1995, IS REASONABLE. 8. 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 $10.90, charged by Operator in the franchise area referenced above, effective April 3, 1995 through June 30, 1995, IS UNREASONABLE. 9. 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 $10.90, charged by Operator in the franchise area referenced above, effective July 1, 1995, IS REASONABLE. 10. 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 CPST rates charged by Operator in the community set forth above, IS GRANTED TO THE EXTENT INDICATED HEREIN. FEDERAL COMMUNICATIONS COMMISSION Patrick A. Boateng, Acting Chief Financial Analysis and Compliance Division Cable Services Bureau