Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Suburban Cable TV Co., Inc. ) CUID No. PA1382 (Perkasie) ) Petition for Reconsideration ) and Refund Plan ) ORDER ON RECONSIDERATION AND REFUND PLAN ORDER Adopted: July 26, 1999 Released: July 29, 1999 By the Deputy Chief, Cable Services Bureau: 1. In this Order we consider a petition for reconsideration of a rate order concerning the April 1, 1998 rate increase of the above-referenced operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. On September 4, 1998, we issued a rate order concerning Operator's April 1, 1998 CPST rate increase ("Prior Order"). On October 5, 1998, Operator filed a petition for reconsideration of our Prior Order ("Petition") as well as a refund plan ("Refund Plan"). This Order addresses Operator's Petition and its Refund Plan. 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 Telecommunications Act of 1996 ("1996 Act") and our rules implementing the legislation ("Interim Rules"), require that a complaint against the CPST rate be filed with the Commission by a local franchising authority ("LFA") that has received more than one subscriber complaint. 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. 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. 4. In our Prior Order, we found that Operator had not correctly calculated its maximum permitted rate ("MPR") on its FCC Form 1240 for the projected period April 1, 1998 through March 31, 1999. The LFA had verified that it received more than one subscriber complaint and that the first valid complaint was received by the LFA on April 1, 1998. In its Petition, Operator challenges the LFA's verification that it had received more than one valid subscriber complaint against Operator's April 1, 1998 CPST rate increase. Operator bases its challenge on the fact that copies of subscriber complaints were not in the Commission public file room. Operator misunderstands Commission procedure. Following the 1996 Act, the LFA receives the subscriber complaints, not the Commission. The lack of copies of subscriber complaints at the Commission provides no basis for a challenge to the Prior Order and Operator's Petition will be denied. In the Interim Rules, we stated that "[t]he records maintained by an LFA in accordance with its regular business practice should be sufficient to establish that the LFA received the subscriber complaints within 90 days of a rate increase." More recently, we declined to require that the subscriber complaints to the LFA be made in writing and reiterated our standard that records maintained by an LFA in accordance with its regular business practice are sufficient. 5. Upon review of Operator's Refund Plan filed pursuant to our Prior Order, we find that the Refund Plan fulfills the requirements of our Prior Order provided Operator begins the refund liability period on April 1, 1998 (the date the LFA received the first valid subscriber complaint) and accrues refund interest up to the date of refund. 6. Accordingly, IT IS ORDERED, pursuant to Section 1.106 of the Commission's rules, 47 C.F.R. 1.106, that Operator's Petition for Reconsideration IS DENIED. 7. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. 0.321, that In the Matter of Suburban Cable TV Co., Inc., DA 98-1758, 13 FCC Rcd 18516 (1998), IS AFFIRMED. 8. IT IS FURTHER ORDERED, pursuant to Sections 0.321 and 76.962 of the Commission's rules, 47 C.F.R. 0.321 and 76.962, that Operator's Refund Plan IS APPROVED provided Operator modifies its Refund Plan to the extent indicated herein, and that Operator implement its refund plan within 60 days of the date of this Order. 9. IT IS FURTHER ORDERED, pursuant to Sections 0.321 and 76.962 of the Commission's rules, 47 C.F.R. 0.321 and 76.962, that Operator file a certificate of compliance with the Chief, Cable Services Bureau, within 90 days of the release of this Order certifying its compliance with this Order. FEDERAL COMMUNICATIONS COMMISSION William H. Johnson Deputy Chief, Cable Services Bureau