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S-WASHINGTON, D.C. 20554`}(# DA 972180 ă  yyx) dddhy  aE#G\  P6G;YP#News media information 202/4180500 FaxOnDemand 202/4182830 Internet: http://www.fcc.gov ftp.fcc.gov  S{-#&a\  P6G;0&P#@ CABLE SERVICES ACTION ă`(# October 10, 1997 ă  S - INFLATION ADJUSTMENT FIGURES FOR CABLE OPERATORS USING FCC FORMS 1210 AND 1240 NOW AVAILABLE  S - x Under Commission rules, cable operators may adjust the nonexternal cost portion of their rates for  xinflation, 47 C.F.R.  76.922(d)(2). For operators filing FCC Form 1210, an annual adjustment may be  xmade based on inflation occurring from June 30 of the previous year to June 30 of the year in which the  xinflation adjustment is made. For operators filing FCC Form 1240, an adjustment may be made based  x\on quarterly figures. All adjustments are based on changes in the Gross National Product Price Index  x=(GNPPI) as published by the Bureau of Economic Analysis (BEA) of the United States Department of  xCommerce. The indexes used, the Gross National Product: Chaintype price indexes, were obtained from Table 4 of the BEA news release dated September 26, 1997 (BEA 9731).  S#- FCC Form 1210   xThe inflation factor for the 12 months ended June 30, 1997 is 1.0218. Operators that wish to take this  xyear's inflation adjustment using FCC Form 1210 should enter the figure 1.0218 on Lines I5 and J5 of  xMthe form. This year's inflation adjustment factor is calculated by taking the GNPPI from the second  xquarter of 1997 (112.22) and dividing by the GNPPI for the second quarter of 1996 (109.83). Operators may take this year's inflation adjustment between October 1, 1997 and August 31, 1998.  S- FCC Form 1240   xThe Second Quarter 1997 Inflation Factor for operators using FCC Form 1240 is 1.0177. The adjustment  xfactor of 1.0177 is a measure of the annualized change in prices occurring over the period from April 1,  x1997 to June 30, 1997. The inflation adjustment factor is calculated by taking the GNPPI from the  xsecond quarter of 1997 (112.22) and dividing by the GNPPI for the first quarter of 1997 (111.73). The  xkresult of this calculation is converted from a quarterly change measurement factor to an annual change measurement factor by raising it to the fourth power.  xOperators calculating the Inflation Factor for a TrueUp Period which includes some portion of the second  xquarter of 1997 should enter the inflation factor on the appropriate lines of Worksheet 1 of FCC Form  x1240 as "0.0177." Operators using this factor for calculating the Projected Period Inflation Segment of  xFCC Form 1240 should enter this number on Line C3 (January, 1996 version), or Line C5 (July, 1996 version), as "1.0177."  xTo date, the Commission has released eight quarterly inflation factors for use with FCC Form 1240. The following table lists these factors:c(,,,!*e@d;[!,L ) '#8 ) h ?Ԍ S- I#h3  `Year x` ` Quarter hhDates Covered ppInflation Factor  S-1995x` ` Third hhJul. 1, 1995 Sep. 30, 19952.22%  S-`1995x` ` Fourth hhOct. 1, 1995 Dec. 31, 19952.22%  S`-1996x` ` First hhJan. 1, 1996 Mar. 31, 19962.39%  S8-1996x` ` Second hhApr. 1, 1996 Jun. 30, 19962.22%  S-1996x` ` Third hhJul. 1, 1996 Sep. 30, 19962.21%  S-1996x` ` Fourth hhOct. 1, 1996 Dec. 31, 19961.83%  S-1997x` ` First hhJan. 1, 1997 Mar. 31, 19972.70%(#  S-1997x` ` SecondhhApr. 1, 1997 Jun. 30, 19971.77%  xjThe Commission releases a new quarterly inflation factor for operators using FCC Form 1240 four times  xeach year. The inflation factor for a given quarter is usually released between three and four months after  x[the end of the quarter, depending on the schedule of the Department of Commerce. The release of a new factor is posted on the Commission's Internet site at: http://www.fcc.gov/Bureau/Cable/WWW/csb.html. Media Contact: Morgan Broman at (202) 4182358 Cable Services Bureau Contact: Patrick Boateng at (202) 4182370 @FCC