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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 ) CUID No. MI0292 (Chocolay Township) ) Bresnan Telecommunications Company, LLC ) ) Complaints Regarding ) Cable Programming Services Tier Rates ) ORDER Adopted: February 10, 2000 Released: February 14, 2000 By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints concerning the rates charged by the above-referenced operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. We have already issued a separate order in which we found Operator's CPST rate in effect through May 14, 1994 to be reasonable ("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." This Order addresses the reasonableness of Operator's CPST rates in effect beginning May 15, 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") required the Commission to review CPST rates upon the filing of a valid complaint by a subscriber or local franchising 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. Operators must use the FCC Form 1200 series to justify rates for the period beginning May 15, 1994. Cable operators may file a FCC Form 1210 to justify quarterly rate increases based on the addition and deletion of channels, changes in certain external costs and inflation. 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. Upon review of Operator's FCC Form 1200, we find Operator's calculated maximum permitted rate ("MPR") of $9.75 to be reasonable. Because Operator's actual CPST rate of $10.45 exceeds its MPR, we find Operator's actual CPST rate of $10.45, effective May 15, 1994 through July 13, 1994, to be unreasonable. Because Operator's actual CPST rate of $9.75, effective July 14, 1994, does not exceed its MPR, we find Operator's actual CPST rate of $9.75, effective July 14, 1994 through November 14, 1994, to be reasonable. Upon review of Operator's FCC Form 1210 covering the period April 1, 1994 through June 30, 1994, we find Operator's calculated MPR of $10.34 to be reasonable. Because Operator's actual CPST rate of $10.34, effective November 15, 1994, does not exceed its MPR, we find Operator's actual CPST rate of $10.34, effective November 15, 1994, to be reasonable. 5. Accordingly, IT IS ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R.  0.321 that the CPST rate of $10.45, charged by Operator in the community referenced above, effective May 15, 1994 through July 13, 1994, IS UNREASONABLE. 6. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R.  0.321 that that the CPST rate of $9.75, charged by Operator in the community referenced above, effective July 14, 1994 through November 14, 1994, IS REASONABLE. 7. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R.  0.321 that the CPST rate of $10.34, charged by Operator in the community referenced above, effective November 15, 1994, IS REASONABLE. 8. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47 C.F.R.  76.961, that Operator shall refund to subscribers in the franchise area referenced above that portion of the amount paid in excess of the maximum permitted CPST rate of $9.75 per month (plus franchise fees), plus interest to the date of the refund, for the period May 15, 1994 through July 13, 1994. 9. IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges to CPST subscribers for the stated period, and shall within 30 day of the release of this Order, file a report with the Chief, Cable Services Bureau, stating the cumulative refund amount so determined (including franchise fees and interest), describing the calculation thereof, and describing its plan to implement the refund with 60 days of the approval of the plan. 10. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R. Section 0.321, that the complaints referenced herein against the rates charged by Operator in the community referenced above ARE GRANTED TO THE EXTENT INDICATED HEREIN. FEDERAL COMMUNICATIONS COMMISSION Kathleen F. Costello, Acting Chief Financial Analysis and Compliance Division Cable Services Bureau