Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) CUID No. MD0250 (Calvert County) 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 complaints against 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 prices 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"). 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 $20.45. Because Operator's actual CPST rate of $11.36, effective May 15, 1994, does not exceed its revised MPR, we find Operator's actual CPST rate of $11.36, 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 $11.36, charged by Operator in the franchise area referenced above, effective May 15, 1994, 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 complaints referenced herein against the CPST rates charged by Operator in the community set forth above, ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Patrick A. Boateng, Acting Chief Financial Analysis and Compliance Division Cable Services Bureau