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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. PA1319 (West Hempfield) ) Suburban Cable TV Company, Inc. ) ) Complaint Regarding ) Cable Programming Services Tier Rates ) ORDER Adopted: February 11, 2000 Released: February 15, 2000 By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider a complaint against the rates charged by the above-referenced Operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. We have previously resolved complaints filed against Operator's CPST rates in effect through May 14, 1994 ("Prior Order"). In our Prior Order, we stated that our findings "do not in any way prejudge the reasonableness of the price for CPS service after May 14, 1994 under our new rate regulations." Accordingly, this Order addresses only the reasonableness of Operators CPST rates effective 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 an 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 $11.87 to be reasonable. Because Operator's actual CPST rate of $11.98 exceeds its calculated MPR, we find Operator's actual CPST rate of $11.98, effective May 15, 1994 through February 14, 1995, to be unreasonable. 5. Upon review of Operator's FCC Form 1210 covering the period April 1, 1994 through December 31, 1994, we find Operator's calculated MPR of $13.21, effective February 15, 1995, to be reasonable. Because Operator's actual CPST rate of $14.31, effective February 15, 1995, exceeds its calculated MPR, we find Operator's actual CPST rate of $14.31, effective February 15, 1995 through March 31, 1995, to be unreasonable. 6. Upon review of Operator's FCC Form 1210 covering the period January 1, 1995 through March 31, 1995, we disallowed Operator's $0.03 adjustment on Line G7 (Per Channel Adjustment per Tier) under the "markup method" because Operator elected the "CAPS method" in its previous FCC Form 1210. We further adjusted Operator's entry on Lines I5 and J5 (Inflation Adjustment Factor) to 1.0219 because, for the time periods under review, Operator was only entitled to claim a total inflation adjustment amount of 1.0521, pursuant to the Ninth Reconsideration Order, and we allowed Operator a 1.0296 adjustment in the previous FCC Form 1210. Our adjustments reduced Operator MPR from $14.56 to $14.45. Because Operator's actual CPST rate of $14.31 does not exceed its revised MPR, we find Operator's actual CPST rate of $14.31, effective April 1, 1995, to be reasonable. 7. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rate of $11.98, charged by Operator in the franchise area referenced above, effective May 15, 1994 through February 14, 1995, IS UNREASONABLE. 8. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rate of $14.31, charged by Operator in the franchise area referenced above, effective February 15, 1995 through March 31, 1995, IS UNREASONABLE . 9. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rate of $14.31, charged by Operator in the franchise area referenced above, effective April 1, 1995, IS REASONABLE. 10. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission rules, 47 C.F.R. 76.961, that Operator shall refund to subscribers in the community referenced above that portion of the amount paid in excess of the maximum permitted CPST rate of $11.87 per month (plus franchise fees), plus interest to the date of the refund, for the period May 15, 1994 through February 14, 1995. 11. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission rules, 47 C.F.R. 76.961, that Operator shall refund to subscribers in the community referenced above that portion of the amount paid in excess of the maximum permitted CPST rate of $13.21 per month (plus franchise fees), plus interest to the date of the refund, for the period February 15, 1995 through March 31, 1995. 12. IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges to CPST subscribers for the stated periods, and shall within 30 days 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 within 60 days of Commission approval of the plan. 13. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R. Section 0.321, that the complaint referenced herein against the rates charged by Operator in the franchise area referenced above, IS GRANTED. FEDERAL COMMUNICATIONS COMMISSION Kathleen F. Costello, Acting Chief Financial Analysis and Compliance Division Cable Services Bureau