******************************************************** 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. TX0397 (Borger) ) TX0550 (Mansfield) Marcus Cable Associates, L.P. ) TX0576 (Haltom City) ) TX0711 (Kennedale) ) TX0761 (Lake Worth) Petition for Reconsideration ) TX1214 (Burleson) and Refund Plans ) TX1215 (Edgecliff) ORDER ON RECONSIDERATION AND REFUND PLAN ORDER Adopted: September 16, 1999 Released: September 22, 1999 By the Deputy Chief, Cable Services Bureau: 1. In this Order we consider a petition for reconsideration and refund plans filed by the operator ("Operator") referenced above. We have already issued orders which granted complaints filed against the rates charged by Operator for its cable programming services tier ("CPST") in the communities referenced above ("Rate Orders"). Subsequently, we issued an order in which we found that Operator's refund plans, filed in response to our Rate Orders, were unacceptable ("Refund Order"). Operator filed its petition for reconsideration against our Refund Order ("Petition") on March 30, 1998 along with revised refund plans ("1998 Refund Plans"). This Order addresses Operator's Petition and 1998 Refund Plans. 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. In its Petition, Operator argues that it should have been allowed to raise the issue of inter-tier offsets for the first time when it filed its original refund plans. Because, in our Refund Order, we rejected Operator's request for offsets on other grounds, we find this argument to be moot and decline to address it. In its Petition, Operator also argues that it should be permitted to offset its past CPST overcharges with its past basic service tier ("BST") undercharges. This is essentially the same argument advanced by Operator with its original refund plans. We rejected this argument in the Refund Order and we reject it again now. The Commission has addressed the issue of inter-tier offsets in Cencom Cable Income Partners ("Cencom"). In Cencom, the Commission determined that such inter-tier offsets are "inconsistent with the Commission's conclusion in the [Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992, Rate Regulation, MM Docket 92-266, Report and Order and Further Notice of Proposed Rulemaking] that cable operators should not balance low BST rates with CPST rates that exceed the maximum permitted rate for the tier." Therefore, we will not allow Operator to offset its CPST overcharges with its BST undercharges. 4. Our review of Operator's 1998 Refund Plans reveals that Operator failed to properly calculate its interest. Therefore, we have calculated the total refund amount due from Operator to the CPST subscribers in the communities referenced above. Our calculations take into account Operator's overcharges to subscribers for the period beginning with the date the first valid complaints were filed with the Commission through July 15, 1994, with interest calculated through September 30, 1999. Our calculations result in a total refund liability of $20,271.35. We will order Operator to refund this amount plus franchise fees to its CPST subscribers within 60 days of the release of this Order. 5. 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. 6. 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 Plans ARE NOT ACCEPTED. 7. 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 shall refund to subscribers in the franchise areas referenced above the total amount of $20,271.35 plus franchise fees within 60 days of the release of this Order. 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 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 APPENDIX CUID NO. COMMUNITY PRINCIPAL INTEREST TOTAL TX0397 Borger $5,829.30 $2,427.94 $8,257.24 TX0550 Mansfield $1,683.82 $ 710.48 $2,394.30 TX0576 Haltom City $3,423.81 $1,444.91 $4,868.72 TX0711 Kennedale $ 439.54 $ 185.44 $ 624.98 TX0761 Lake Worth $ 619.43 $ 261.41 $ 880.84 TX1214 Burleson $1,891.31 $ 797.97 $2,689.28 TX1215 Edgecliff $ 390.97 $ 165.02 $ 555.99 TOTALS $14,278.18 $5,993.17 $20,271.35