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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Time Warner Cable ) CUID No. IL0189 (Champaign) ) Petition for Reconsideration ) and Refund Plan ) ORDER ON RECONSIDERATION AND REFUND PLAN ORDER Adopted: August 13, 1999 Released: August 16, 1999 By the Deputy Chief, Cable Services Bureau: 1. In this Order we consider a petition for reconsideration of a rate order concerning the rates charged by the above-referenced operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. On July 1, 1998, we issued a rate order concerning Operator's CPST rates ("Prior Order"). On July 31, 1998, Operator filed a petition for reconsideration of our Prior Order ("Petition"). Operator also filed a refund plan dated October 7, 1998 ("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. 3. 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. 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. In our Prior Order, we adjusted Lines 801 through 804 of Worksheet 8 (True-Up Rate Charged) of Operator's 1996 FCC Form 1240 to conform with Operator's actual CPST rate based on Operator's rate card. Operator provided a rate card which stated that as of September 1995, Operator's CPST rate increased to $14.30. In its Petition, Operator requests that we reconsider our adjustment. Operator claims that the dated rate card that Operator provided to the Commission, which we relied upon in our Prior Order, was inaccurate. Operator requests that we rely instead on internal documents generated by Operator which purport to indicate that Operator did not increase its CPST rate until later. Operator was not able to provide any other documents, such as a subscriber invoice, which would support its claim. 6. We do not find Operator's request compelling. Once an operator has filed FCC Forms and supporting documentation with the Commission, we are entitled to act upon that information. Moreover, once we have released an order concerning those FCC Forms, we cannot ordinarily allow an operator to amend those FCC Forms on appeal with information that should have been submitted in the original certification. In the present case, we relied on information that Operator provided, specifically, a dated rate card which indicated that Operator increased its CPST rate to $14.30 as of September 1995. We will not accept Operator's belated submission of internal documents which purport to contradict the rate card previously submitted. Therefore, we affirm our Prior Order establishing refund liability based on Operator's January 1, 1998 CPST rate increase. 7. 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 accrues refund interest up to the date of refund. 8. 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. 9. 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 Time Warner Cable, DA 98-1277, 13 FCC Rcd 17328 (1998) IS AFFIRMED. 10. 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. 11. 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