******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. 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 ) CUID Nos. GA0169 (Cobb County) ) GA0236 (Cobb County) Media One ) GA0386 (Douglas County) ) Petitions for Reconsideration ) ORDER ON RECONSIDERATION Adopted: September 1, 1999 Released: September 7, 1999 By the Deputy Chief, Cable Services Bureau: 1. In this Order we consider two petitions for reconsideration of a rate order concerning the January 1, 1998 rate increase of the above-referenced operator ("Operator") for its cable programming services tier ("CPST") in the communities referenced above. On September 24, 1998, we issued a rate order concerning Operator's January 1, 1998 CPST rate increase ("Prior Order"). On October 26, 1998 the local franchise authorities ("LFAs") filed petitions for reconsideration of our Prior Order ("Petitions"). Operator filed oppositions to the Petitions on November 5, 1998. This Order addresses the LFAs' Petitions and any opposition. 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 an 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 the Petitions, the LFAs request that we treat the Operator as unregulated and correct Operator's FCC Form 1240 filings to include on Line A1 (Current Maximum Permitted Rate) the actual CPST rate charged by Operator prior to the rate increase, in accordance with the FCC Form 1240 Instructions. A closer reading of our Prior Order will show that we did treat Operator as unregulated and that Operator included on Line A1 the actual CPST rate charged by Operator prior to the rate increase. In addition, the LFA for Douglas County requested that we review the actual rate implemented on January 1, 1998. A portion of Douglas County is served by the Cobb County system and has the same channel line-up and rates as Cobb County. That is why that portion, represented by CUID No. GA0386 was included with Cobb County in our Prior Order. The rates suggested by the LFA in its Petition are applicable in the larger portion of Douglas County, represented by CUID No. GA0121, and not in GA0386. For these reasons, we will deny the LFAs' Petitions. 6. Accordingly, IT IS ORDERED, pursuant to Section 1.106 of the Commission's rules, 47 C.F.R. 1.106, that the local franchise authorities' Petitions for Reconsideration ARE 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 MediaOne, DA 98-1932, 13 FCC Rcd 19719 (1998) IS AFFIRMED. FEDERAL COMMUNICATIONS COMMISSION William H. Johnson Deputy Chief, Cable Services Bureau