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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 ) ) Comcast SCH Holdings, Inc. ) CUID No. FL0616 (Umatilla) ) Complaint Regarding Cable Programming ) Service Tier Rates ) RATE ORDER AND REFUND PLAN Adopted: October 18, 2000 Released: October 23, 2000 By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider a complaint 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 rates in effect prior to May 15, 1994 to be unreasonable ("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 regulations." On June 2, 1995, Operator filed a refund plan in response to our Prior Order ("1995 Refund Plan"). This Order will address Operator's 1995 Refund Plan and 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 CPST 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. We first review Operator's 1995 Refund Plan, filed in accordance with our Prior Order. Our review reveals that the 1995 Refund Plan fulfills the requirements of the Prior Order provided Operator accrues interest up to the date of the refund. 5. Upon review of Operator's FCC Form 1200, we find Operator's calculated maximum permitted rate ("MPR") of $13.73 to be reasonable. Operator elected to defer refund liability for overcharges associated with its FCC Form 1200, for the period May 15, 1994 through July 14, 1994, pursuant to the Commission's Rules. In our Prior Order, we found that Operator had justified an FCC Form 393 MPR of $14.20. Because Operator's actual CPST rate of $14.40, effective May 15, 1994 through July 14, 1994, exceeds its FCC Form 393 MPR of $14.20, we find Operator's actual CPST rate of $14.40, effective May 15, 1994 through July 14, 1994, to be unreasonable. Because Operator's actual CPST rate of $13.85, effective July 15, 1994 through December 31, 1994, exceeds its FCC Form 1200 MPR of $13.73, we find Operator's actual CPST rate of $13.85, effective July 15, 1994 through December 31, 1994, to be unreasonable. 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 $15.50 to be reasonable. Because Operator's actual CPST rate of $13.85, effective January 1, 1995, does not exceed its MPR, we find Operator's actual CPST rate of $13.85, effective January 1, 1995, to be reasonable. 6. Accordingly, IT IS 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 1995 Refund Plan IS APPROVED, provided Operator modifies its refund plan to the extent indicated herein. 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 implement its refund plan within 60 days of the date 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. 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 $14.40, charged by Operator in the community referenced above, effective May 15, 1994 through July 14, 1994, IS UNREASONABLE. 10. 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 $13.85, charged by Operator in the community referenced above, effective July 15, 1994 through December 31, 1994, IS UNREASONABLE. 11. 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 $13.85, charged by the Operator in the community referenced above, effective January 1, 1995, IS REASONABLE. 12. 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 community referenced above that portion of the amount paid in excess of the maximum permitted CPST rate of $14.20 per month (plus franchise fees), plus interest to the date of the refund, for the period beginning May 15, 1994 through July 14, 1994. 13. 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 community referenced above that portion of the amount paid in excess of the maximum permitted CPST rate of $13.73 per month (plus franchise fees), plus interest to the date of the refund, for the period beginning July 15, 1994 through December 31, 1994. 14. 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 implement the refund within 60 days of Commission approval of the plan. 15. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the complaint referenced herein against the rates charged by Operator in the community referenced above, IS GRANTED. FEDERAL COMMUNICATIONS COMMISSION Kathleen F. Costello, Acting Chief Financial Analysis and Compliance Division Cable Services Bureau