Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Suburban Cable TV Co. ) CUID No. NJ0031 (Ventnor) ) ) 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 filed against the January 1, 1995 rate increase of the above-referenced operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. Operator has attempted to justify its CPST rate through a benchmark showing on FCC Form 1200 and FCC Form 1210. This Order addresses only the reasonableness of Operator's January 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"). 3. The LFA for the franchise area referenced above filed a complaint with the Commission on September 8, 1994 against Operator's July 15, 1994 CPST rate increase. Section 623(c)(3) of the Communications Act requires that complaints be filed within "a reasonable period of time" following a change in rates. We determined that "a reasonable period of time" is 45 days. In order to facilitate subscriber knowledge of the nature and extent of a rate increase and provide evidence of subscribership and the rate and service involved, we determined that we would compute the time period for filing a complaint from the date the complainant receives a bill from a cable operator that reflects the rate change. Section 76.953 of the Commission's rules, in effect at the time the complaint was filed, provides that complaints against CPST rate increases must be filed with the Commission within 45 days from that date. That provision does not apply to a complaint filed by the LFA which does not receive a bill. The LFA must file a complaint within 45 days of the date the rate increase becomes effective. Therefore, we will dismiss the September 8, 1994 complaint filed by the LFA against Operator's July 15, 1994 CPST rate increase because the complaint was not timely filed with the Commission. 4. A timely subscriber complaint was filed on February 14, 1995 against Operator's January 1, 1995 CPST rate increase to $11.90. Cable operators attempting to justify rates for the period beginning May 15, 1994 through a benchmark showing must use the FCC Form 1200 series. 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 CPST rate to be unreasonable less than one year prior to the filing, or where there is a pending complaint against the CPST rate. 5. Upon review of Operator's FCC Form 1200, we adjusted Operator's Line C2 (Number of Regulated Non-Broadcast Channels per Tier) from 13 to 6 to reflect the number of non-broadcast channels from Operator's channel line-up card. Our adjustment reduced Operator's maximum permitted rate ("MPR") to $10.48. Upon review of Operator's FCC Form 1210 covering the period April 1, 1994 through December 31, 1994, we adjusted Line A1 to $10.48 to correspond with Operator's revised FCC Form 1200. This adjustment reduced Operator's MPR to $12.04, effective January 1, 1995. Because Operator's actual CPST rate of $11.90 does not exceed its revised MPR, we find the Operator's actual CPST rate of $11.90, effective January 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 $11.90, charged by Operator in the community referenced above, effective January 1, 1995, 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 referenced complaint filed by the LFA on September 8, 1994 IS DISMISSED. 8. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that the referenced complaint filed against Operator's January 1, 1995 CPST rate increase, IS DENIED. FEDERAL COMMUNICATIONS COMMISSION Patrick A. Boateng, Acting Chief Financial Analysis and Compliance Division Cable Services Bureau