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A. 1. a.(1)(a) i) a) I I I I I (a) i) a)TLH-TXTFull ltr, date, etc. etc.a' %June 9, 1989 LH-FULLFull Ltr headbLr   'h *  '2ґc7Adxe0fHLH-LOC.STYALL LOCATIONS LTR HEADcNp%` hp x (#` hp x (# 857 %June 16, 1989 ` hp x (#` hp x (#COL.STY3 columns w/line in meddoLj XX ` hp x (#` hp x (#CH$҇` hp x (#` hp x (#ЈCH$CH$SIGNLNS.STYWITNESS & ADDRESS LNS.eٹH0   'h%%++0  @ ` WITNESS `   h%%+ HxFF KK(#Q `   h%%++00p6@64ADDRESS  'h%%++0  @ ` WITNESS `   h%%+  `   h%%++0@0p/ADDRESS  'h%%++0  @ ` WITNESS  Memo Headerf(? i3$W Page  $=2gh|iX`jb LetterheadPersonal letterhead with address, etc.gG 37 J.G. 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See also 47 C.F.R. 76.1403(a).r   r4. Normally, a finding that an operator qualifies as a small cable operator would not provide a  xrbasis to vacate a prior finding of liability. It would only function to dismiss that portion of any  xpcomplaints that had not yet been resolved. For example, our First Order resolved complaints through  x6May14, 1994. As we stated in our First Order, our findings "do not in any way prejudge the  S( xreasonableness of the prices for CPS service after May 14, 1994 under our new rate regulations."lx yO#(#X\  P6G;QwP#э First Order at n. 1. l A  xreview of Operator's CPST rates beginning May 15, 1994 and any subsequently filed complaints was still  xBpending when the Second Order was released. Because our Second Order found that Operator qualifies  x.as a small cable operator and dismissed the complaints for all of the abovereferenced communities with  xthe exception of MA0018, we would not complete the pending review of Operator's CPST rates beginning"W,p(p(88^"  xMay 15, 1994 and any subsequently filed complaints for those communities. We would, however, enforce  xany prior orders. The instant case differs from the normal situation because Operator filed a timely appeal  xof our First Order. Because we have determined, prior to a resolution of that appeal, that Operator is a  xsmall cable operator and not subject to the CPST rate regulation rules, we will vacate that part of our First Order which applies to the abovereferenced communities, with the exception of MA0018.  S( ` L5.` ` In its Petition, Operator argues that the recalculation of inflation in our First Order was  xunreasonable and unlawful because it relied on data not available at the time Operator set its rates.  x8Operator also argues that our First Order did not afford Operator the full inflation period to which it was  S( xentitled. This issue was addressed by the Commission in Cencom Cable Income Partners II, L.P.  Sr(("Cencom").rx {O (ԍ In the Matter of Cencom Cable Income Partners II, L.P., FCC 97205 (Released June 13, 1997). In Cencom, the Commission explained its policy regarding refreshing inflation:  XThe Commission is charged with protecting subscribers from paying unreasonable CPST  rates, while also providing system operators with a fair return. Accurate information,  Vincluding accurate inflation information, is central to setting an initial regulated rate that  meets the standard. Thus, the Commission requires that data used in setting a rate be  refreshed with the most current data available when an operator's rates become regulated  S\( and are justified.\Zx {OV( xԍ See Third Order on Reconsideration, 9 FCC Rcd at 434950; FCC Form 393 at 11 Instruction for Line 122 xGNPPI (Current) (Aug. 1993). The Bureau has explained the requirement to use current data in Cable Operators'  xrRate Justification Filings, Sections 76.945, 76.946 of the Commissions rules, 9 FCC Rcd 7752, 775455  3(8) (Cab.  {O( xServ. Bur. 1994) ("Rate Filings"); Nov. 10, 1993 Public Notice, Answer to Question No. 6 (in filing rate  xjustifications, operators must refresh data used in initial rates with most current information as of the date of initial regulation); July 30, 1993 Public Notice, Answer to Question 10. Because final inflation data for the period addressed in rate  $justifications may not be available when a justification is filed, the Commission directs  2operators to estimate inflation by using the most recently available inflation data published  S( Fon an interim basis in the Commerce "Survey of Current Business" at Table 7.3, Line 5.~x {OZ(ԍ See FCC Form 393 at 11 Instruction for Line 122GNPPI (Current) (Aug. 1993).~  The Bureau's practice when reviewing rate justifications is to verify that the operator has  used this inflation data. The Bureau also determines whether the other information in the  rate justification is correct, and on the basis of the inflation and other information in the  :form, including any corrections, whether the operator's rate meets the statutory  Nrequirement that the rate not be unreasonable. The Bureau does not find a rate  dunreasonable solely because more accurate inflation data has become available by the time  it makes its review. This would churn rates, causing significant administrative expenses  to operators and confusion to subscribers. However, if a rate is unreasonable on its face  `or has to be adjusted for reasons other than the availability of a more accurate inflation  Xfigure, e.g., because the operator failed to provide correct information in its rate  ljustification or failed to complete its rate justification form correctly, the Bureau  recalculates the maximum permitted rate using the most accurate inflation information"h ,p(p(88Z"  S( available, rather than earlier estimates.x {Oh( xԍ See Public Notice, Cable Services Bureau Announces Policy Regarding Inflation Adjustment on FCC Form  x393, DA 95999 at 2 (Cab. Serv. Bur. May 2, 1995). The Bureau gave operators the opportunity to review and  x(correct errors in their benchmark rate filings. Operators who had not previously correctly calculated the inflation  x(adjustment factor were directed to use the accurate factors through June 30, 1994. Public Notice, Cable Services  xBureau Announces Optional Procedures with Respect to Pending PreMay 15 Benchmark Cases, DA 941556 at 34 (Dec. 29, 1994). The Public Notice listed the inflation adjustment factors through June 30, 1994. This practice is consistent with 47 C.F.R.  76.922(b)(9)(iii), which provides:   ` 2XX` ` [I]f the rates charged by a cable operator are not justified by an analysis  ` based on the data available at the time it initially adjusted its rates, the  ` dcable operator must adjust its rates in accordance with the most accurate data available at the time of the analysis.x` X[footnotes in original]   Sp( ` V6.` ` Because we find that our action in our Prior Order is consistent with the Commission's  SH ( xholding in Cencom, we reject Operator's argument regarding the adjustment of the Inflation Adjustment  S" ( xFactor. In accordance with the Commission's decision in Cencom,G" Bx {O(ԍ See Cencom at para. 17.G however, we will afford Operator  xthe full inflation period to which it was entitled. Our modification of Operator's FCC Form 393 results  x$in a revised maximum permitted rate ("MPR") of $11.58, which matches with Operator's MPR from its  S (amended FCC Form 393 filed on June 24, 1994.I x {O (ԍ See First Order at 4.I Therefore, we will grant Operator's Petition in part.  S\( ` Z7.` ` To justify rates for the period beginning May 15, 1994, operators must use the FCC Form  S4( xF1200 series.)3  footnote reference)# footnote reference#p4f  yO(#X\  P6G;QwP#Ѝ 47 C.F.R. 76.922.p#&J\  P6Qr&P# Operators are permitted to make changes to their rates on a quarterly basis using FCC Form  S (1210.) ? footnote reference)# footnote reference#d   {OY(#X\  P6G;QwP#Ѝ  Id.d#&J\  P6Qr&P# Operators may adjust their rates on an annual basis using FCC Form 1240.)@ footnote reference)# footnote reference#d   {O(#X\  P6G;QwP#Ѝ  Id.d#&J\  P6Qr&P#)A footnote reference)# footnote reference#  S( ` 8.` ` Upon review of Operator's FCC Form 1200, we find Operator's calculated MPR of $10.84  S( xto be reasonable.%  yO"( x#X\  P6G;QwP#Ѝ This finding is based solely on the representations of Operator. Should information come to our attention  xthat this representations was materially inaccurate, we reserved the right to take appropriate action. This Order is  xnot to be construed as a finding that we have accepted as correct any specific entry, explanation or argument made by any party to this proceeding not specifically addressed herein.%#&J\  P6Qr&P# Because Operator's actual CPST rate of $11.75 exceeds its MPR, we find Operator's",p(p(88"  S( xactual CPST rate of $11.75, effective May 15, 1994 through June 30, 1994, to be unreasonable.x yOh( xԍ Operator did not elect to take advantage of the Commission's rules which provide for a refund liability  xpdeferral period, if timely requested by Operator, beginning May 15, 1994 and ending July 14, 1994, for any  {O( xovercharges resulting from Operator's calculation of a new maximum permitted rate on its FCC Form 1200. See  x47 C.F.R. Section 76.922(b)(6)(ii). If Operator did timely file such a request and can provide documentation in support thereof, we will take Operator's documentation under consideration in our review of Operator's refund plan. Upon review of Operator's FCC Form 1210 covering the period April 1, 1994 through  S( xJune 30, 1994, we find Operator's calculated MPR of $11.07 to be reasonable. Because Operator's actual  xVCPST rate of $11.75 exceeds its MPR, we find Operator's actual CPST rate of $11.75, effective July 1, 1994 through September 30, 1994, to be unreasonable.  S( ` 9.` ` Upon review of Operator's FCC Form 1210 covering the period July 1, 1994 through  S( xSeptember 30, 1994, we find Operator's calculated MPR of $11.27 to be reasonable. Because Operator's  xactual CPST rate of $11.75 exceeds its MPR, we find Operator's actual CPST rate of $11.75, effective  xOctober 1, 1994 through December 31, 1994, to be unreasonable. Upon review of Operator's FCC Form  x1210 covering the period October 1, 1994 through December 31, 1994, we find Operator's calculated  SH ( x`MPR of $11.71 to be reasonable. Because Operator's actual CPST rate of $11.75 exceeds its MPR, we  xfind Operator's actual CPST rate of $11.75, effective January 1, 1995 through March 31, 1995, to be unreasonable.  S ( `  10.` ` Upon review of Operator's FCC Form 1210 covering the period January 1, 1995 through  S ( xMarch 31, 1995, we find Operator's calculated MPR of $11.40 to be reasonable. Because Operator's  xactual CPST rate of $11.75 exceeds its MPR, we find Operator's actual CPST rate of $11.75, effective  xApril 1, 1995 through December 31, 1995, to be unreasonable. Upon review of Operator's FCC Form  xV1210 covering the period April 1, 1995 through December 31, 1995, we find Operator's calculated MPR  S( xof $11.87 to be reasonable. Because Operator's actual CPST rate of $11.75 does not exceed its MPR, we find Operator's actual CPST rate of $11.75, effective January 1, 1996, to be reasonable.  Sh( ` 11.` ` Accordingly, IT IS ORDERED, pursuant to Section 1.106 of the Commission's rules, 47  xC.F.R. 1.106, that Operator's Petition for Reconsideration IS GRANTED IN PART TO THE EXTENT INDICATED HEREIN.  S( ` t12.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  S( x.C.F.R. 0.321, that In the Greater Media Cable, DA 951739, 10 FCC Rcd 8749 (1995) IS VACATED IN PART TO THE EXTENT INDICATED HEREIN.  S(( ` t13.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  xC.F.R. Section 0.321 that the CPST rate of $11.75, charged by Operator in the community referenced  S(above, effective September 1, 1993 through May 14, 1994, IS UNREASONABLE.  S( ` t14.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  xC.F.R. Section 0.321 that the CPST rate of $11.75, charged by Operator in the community referenced  S8(above, effective May 15, 1994 through December 31, 1995, IS UNREASONABLE. " z,p(p(88"Ԍ S( ` t15.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  xC.F.R. Section 0.321 that the CPST rate of $11.75, charged by Operator in the community referenced above, effective January 1, 1996, IS REASONABLE.  S`( ` 16.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47  x(C.F.R. Section 76.961, that Operator shall refund to subscribers in the franchise area referenced above that  S( xportion of the amount paid in excess of the maximum permitted CPST rate of $11.58 per month (plus  xfranchise fees), plus interest to the date of the refund, for the period February 2, 1994 (the date of the first valid complaint) through May 14, 1994.  Sp( `  17.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47  x(C.F.R. Section 76.961, that Operator shall refund to subscribers in the franchise area referenced above that  S ( xportion of the amount paid in excess of the maximum permitted CPST rate of $10.84 per month (plus franchise fees), plus interest to the date of the refund, for the period May 15, 1994 through June 30, 1994.  S ( ` 18.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47  x(C.F.R. Section 76.961, that Operator shall refund to subscribers in the franchise area referenced above that  SX( xportion of the amount paid in excess of the maximum permitted CPST rate of $11.07 per month (plus  xjfranchise fees), plus interest to the date of the refund, for the period July 1, 1994 through September 30, 1994.  S( ` 19.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47  x(C.F.R. Section 76.961, that Operator shall refund to subscribers in the franchise area referenced above that  Sh( xportion of the amount paid in excess of the maximum permitted CPST rate of $11.27 per month (plus  x@franchise fees), plus interest to the date of the refund, for the period October 1, 1994 through December31, 1994.  S( ` 20.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47  x(C.F.R. Section 76.961, that Operator shall refund to subscribers in the franchise area referenced above that  Sx( xportion of the amount paid in excess of the maximum permitted CPST rate of $11.71 per month (plus  xLfranchise fees), plus interest to the date of the refund, for the period January 1, 1995 through March 31, 1995.  S( ` 21.` ` IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47  x(C.F.R. Section 76.961, that Operator shall refund to subscribers in the franchise area referenced above that  S( xportion of the amount paid in excess of the maximum permitted CPST rate of $11.40 per month (plus  xfranchise fees), plus interest to the date of the refund, for the period April 1, 1995 through December 31, 1995.  S ( ` 22.` ` IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges to  xCPST subscribers for the stated periods, and shall within 30 days of the release of this Order, file a report  xwith the Chief, Cable Services Bureau, stating the cumulative refund amount so determined (including  xfranchise fees and interest), describing the calculation thereof, and describing its plan to implement the refund within 60 days of Commission approval of the plan. " %,p(p(88`""Ԍ S( ` t 23.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  x.C.F.R. 0.321, that the complaints referenced herein against the CPST rates charged by Operator in the communities referenced above, with the exception of MA0018, ARE DISMISSED.  S`( ` t24.` ` IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47  xC.F.R. 0.321, that the complaint referenced herein against the CPST rates charged by Operator in the community of Worcester, CUID No. MA0018, IS GRANTED TO THE EXTENT INDICATED HEREIN.  ` `  ,hhhFEDERAL COMMUNICATIONS COMMISSION ` `  ,hhhWilliam H. Johnson  S (` `  ,hhhDeputy Chief, Cable Services Bureau