Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) CUID Nos. IN0189 (Greenwood) ) IN0191 (New Whiteland) Cable One, Inc. ) ) Complaints Regarding ) Cable Programming Services Tier Rates) ORDER ON RECONSIDERATION AND RATE ORDER Adopted: June 28, 1999 Released: June 30, 1999 By the Deputy Chief, Cable Services Bureau: 1. In this Order we consider complaints against the rates the above-referenced operator ("Operator") was charging for its cable programming services tiers ("CPSTs") in the communities referenced above. Operator has two CPSTs in the above-referenced communities, which we will refer to as CPST-1 and CPST-2. We have already issued an order in which we found that Operator's CPST-1 rates in effect prior to May 15, 1994 were unreasonable ("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 under our new rate regulations." We also stated that we reserved the right to take appropriate action, should information come to our attention that the factual representations upon which our finding was based were materially inaccurate. In this Order, we reconsider, on our own motion, the findings in our Prior Order and address 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. 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 filing of a complete and timely complaint triggers an obligation upon the cable operator to file a justification of its CPST rates. The operator has the burden of demonstrating that the CPST rates complained about are reasonable. If the Commission finds a rate to be unreasonable, it shall determine the correct rate and any refund liability. 3. In our prior Order, we found that Operator had justified a maximum permitted rate ("MPR") of $5.66 and $5.71 for its CPST-1 in the communities of Greenwood (CUID No. IN0189) and New Whiteland (CUID No. IN0191), respectively. Because Operator was charging an actual CPST-1 rate of $5.77, we found Operator's rates to be unreasonable. However, upon further review, we have discovered that the CPST-1 rate of $5.77 included franchise fees, and that Operator's actual CPST-1 rate was $5.60. Therefore, we will vacate our Prior Order and find Operator's actual CPST-1 rate of $5.60 to be reasonable, effective from the date of the first valid complaint in each community, through May 14, 1994. In our Prior Order, we also did not review the reasonableness of Operator's CPST-2. Upon review of Operator's FCC Form 393, we find that Operator has justified its actual CPST-2 rate of $8.81, effective from the date of the first valid complaint in each community, through May 14, 1994. On June 19, 1995, Operator filed a refund plan pursuant to our Prior Order. Because we are vacating our Prior Order, we will dismiss the refund plan as moot. 4. 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. Any incurred cost that is not projected may be accrued with interest and added to rates at a later time. 5. Upon review of Operator's FCC Form 1200, we find Operator's calculated MPRs of $5.65 for its CPST-1 and $7.83 for its CPST-2 to be reasonable. Because Operator's actual CPST-1 rate of $5.60, effective May 15, 1994, does not exceed Operator's CPST-1 MPR of $5.65, we find Operator's actual CPST-1 rate of $5.60 to be reasonable, effective May 15, 1994. The Commission's rules provide for a refund liability deferral period, if timely requested by Operator, beginning May 15, 1994 through July 14, 1994, for any overcharges resulting from Operator's calculation of a new MPR on the FCC Form 1200. Operator elected to defer refund liability pursuant to the Commission's Rules. However, Operator will incur refund liability from May 15, 1994 through July 14, 1994 for any CPST rates charged above the FCC Form 393 MPR approved by the Commission. As noted above, based on Operator's FCC Form 393, we find Operator's actual CPST-2 rate of $8.81 to be reasonable, effective May 15, 1994 through July 14, 1994. However, because Operator's actual CPST-2 rate of $8.81 exceeds its FCC Form 1200 MPR of $7.83, we find Operator's actual CPST-2 rate of $8.81 to be unreasonable, effective July 15, 1994 through July 31, 1994. We find Operator's actual CPST-2 rate of $7.83 to be reasonable, effective August 1, 1994. We determine that the total overcharges for the CPST-2, for the period from July 15, 1994 through July 31, 1994, are de minimis, and therefore, it would not be in the public interest to order a refund. 6. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that In the Matter of Post-Newsweek Cable, Inc., DA 95-1071, 10 FCC Rcd 9839 (1995), IS VACATED ONLY TO THE EXTENT IT APPLIES TO THE COMMUNITIES OF GREENWOOD, IN (CUID NO. IN0189) AND NEW WHITELAND, IN (CUID NO. IN0191). 7. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that the referenced refund plan filed by Operator IS NOT ACCEPTED and IS DISMISSED AS MOOT. 8. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that the CPST rates of $5.60 for CPST-1 and $8.81 for CPST-2, charged by Operator in the franchise areas referenced above, effective from the date of the first valid complaint in each community through July 14, 1994, ARE REASONABLE. 9. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that the CPST-1 rate of $5.60, charged by Operator in the franchise areas referenced above, effective July 15, 1994, IS REASONABLE. 10. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that the CPST-2 rate of $8.81, charged by Operator in the franchise areas referenced above, effective July 15, 1994 through July 31, 1994, IS UNREASONABLE. 11. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that the CPST-2 rate of $7.83, charged by Operator in the franchise areas referenced above, effective August 1, 1994, IS REASONABLE. 12. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that the complaints referenced herein against the CPST rates charged by Operator in the communities referenced above ARE DENIED TO THE EXTENT INDICATED HEREIN. FEDERAL COMMUNICATIONS COMMISSION William H. Johnson Deputy Chief, Cable Services Bureau