******************************************************** 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 ) ) TKR Cablevision of Gloucester ) CUID No. NJ0146 (Gloucester) ) Complaints Regarding ) Cable Programming Services Tier Rates ) ORDER Adopted: April 22, 1999 Released: April 27, 1999 By the Acting Chief, Financial Analysis and Compliance 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 tier ("CPST") in the community referenced above. This Order addresses only the reasonableness of Operator's CPST rates in effect beginning August 3, 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 $14.74, to be reasonable. Upon review of Operator's FCC Form 1210 covering the period from April 1, 1994 through June 30, 1994, we find Operator's calculated MPR of $15.13 to be reasonable. Because Operator's actual CPST rate of $15.19, effective August 3, 1994 (the date of the first valid complaint) through September 30, 1994, exceeds its FCC Form 1210 MPR of $15.13, we find Operator's actual CPST rate of $15.19, effective August 3, 1994 through September 30, 1994, 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 July 1, 1994 through September 30, 1994, we find Operator's calculated MPR of $15.38 to be reasonable. Because Operator's actual CPST rate of $15.19, effective October 1, 1994, does not exceed Operator's MPR of $15.38, we find Operator's actual CPST rate of $15.19, effective October 1, 1994, 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 $15.19, charged by Operator in the franchise area referenced above, effective August 3, 1994 through September 30, 1994, IS UNREASONABLE. 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 $15.19, charged by Operator in the franchise area referenced above, effective October 1, 1994, IS REASONABLE. 7. 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 TO THE EXTENT INDICATED HEREIN. FEDERAL COMMUNICATIONS COMMISSION Patrick A. Boateng, Acting Chief Financial Analysis and Compliance Division Cable Services Bureau