Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) CUID No. IL0688 (Village of Richton Park) Jones Intercable ) ) Complaint Regarding ) Cable Programming Services Tier Rates ) ORDER Adopted: May 18, 1999 Released: May 20, 1999 By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider a complaint against the February 1, 1995 rate increase by the above- referenced operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. Operator has chosen to justify its CPST rate through a cost of service showing on FCC Form 1220. This Order addresses the reasonableness of Operator's February 1, 1995 CPST rate increase. 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. To justify rates for the period beginning May 15, 1994, operators must use the FCC Form 1200 series. Cable operators attempting to justify their rates through a cost of service showing must complete and file FCC Form 1220. 4. In reviewing Operator's FCC Form 1220 cost of service showing, we evaluated Operator's rate base and expense elements to determine whether Operator should be permitted to recover those items. Where a certain rate base or expense element was not justified under our rules, such cost was disallowed in whole or in part. Where reported costs were disallowed, we have made appropriate adjustments. These adjustments resulted in a revised maximum permitted rate ("MPR") of $19.61. Because Operator's actual CPST rate of $11.95, effective February 1, 1995, does not exceed its revised MPR, we find Operator's actual CPST rate of $11.95 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 $11.95, charged by Operator in the franchise area referenced above, effective February 1, 1995, IS REASONABLE. 6. 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 rate charged by Operator in the community set forth above, IS DENIED. FEDERAL COMMUNICATIONS COMMISSION Patrick A. Boateng, Acting Chief Financial Analysis and Compliance Division Cable Services Bureau