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Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of ) File No. EB-02-TC-060
)
CableOne ) CUID No. CA0901 (Union
) City)
Complaint Regarding Cable )
Programming ) )
Services Tier Rates and Refund
Plan
ORDER
Adopted: July 16, 2002 Released:
July 17, 2002
By the Chief, Enforcement Bureau:1
1. In this Order we consider complaints filed against
the rates charged by the above-referenced operator
("Operator")2 for its cable programming services tier
("CPST") in the community referenced above. The Cable
Services Bureau has already issued an Order, DA 95-2168
("Prior Order"),3 which resolved complaints filed against
Operator's CPST rates in effect through May 14, 1994. In its
Prior Order, the Cable Services Bureau stated that its
findings "do not in any way prejudge the reasonableness of
the price for CPS service after May 14, 1994 under our new
rate regulations."4 Operator filed a refund plan in
response to the Prior Order. In this Order, we address the
reasonableness of Operator's CPST rates for the above-
referenced community beginning May 15, 1994 as well as
Operator's refund plan.
2. Under the provisions of the Communications Act5
that were in effect at the time the referenced complaints
were filed, 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 19926
("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.7 The Operator has the burden of demonstrating that
the CPST rates complained about are reasonable.8 If the
Commission finds a rate to be unreasonable, it shall
determine the correct rate and any refund liability.9
3. Operators must use the FCC Form 1200 series to
justify rates for the period beginning May 15, 1994.10
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.11 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.12 Any incurred
cost that is not projected may be accrued with interest and
added to rates at a later time.13
4. Upon review of Operator's FCC Form 1200, we accept
Operator's calculated maximum permitted rate ("MPR") of
$11.12. Because Operator's actual CPST rate of $11.75,
effective May 15, 1994 through June 30, 1994, exceeds its
calculated MPR of $11.12, we find Operator's actual CPST
rate of $11.75, effective May 15, 1994 through June 30,
1994, to be unreasonable,. Upon review of Operator's FCC
Form 1210, covering the period April 1, 1994 through June
30, 1994, we accept Operator's calculated MPR of $11.42.
Because Operator's actual CPST rate of $11.75, effective
July 1, 1994 through September 30, 1994, exceeds its
calculated MPR of $11.42, we find Operator's actual CPST
rate of $11.75, effective July 1, 1994 through September 30,
1994, to be unreasonable. Upon review of Operator's FCC
Form 1210, covering the period July 1, 1994 through
September 30, 1994, we accept Operator's calculated MPR of
$11.65. Because Operator's actual CPST rate of $11.75,
effective October 1, 1994 through December 31, 1994, exceeds
its calculated MPR of $11.65, we find Operator's actual CPST
rate of $11.75, effective October 1, 1994 through December
31, 1994, to be unreasonable. Upon review of Operator's FCC
Form 1210, covering the period October 1, 1994 through
December 31, 1994, we find Operator's actual CPST rate of
$11.75, effective January 1, 1995, to be reasonable.
5. Our review of Operator's refund plan for Order, DA
95-2168, reveals that Operator's total overcharges for the
period under review are de minimis and it would not be in
the public interest to order refunds. We dismiss Operator's
refund plan for Order, DA 95-2168, as moot.
6. Accordingly, IT IS ORDERED, pursuant to Sections
0.111 and 0.311 of the Commission's rules, 47 C.F.R. §§
0.111 and 0.311, that the CPST rate of $11.75, charged by
Operator in the community referenced above, effective May
15, 1994 through December 31, 1994, IS UNREASONABLE.
7. IT IS FURTHER ORDERED, pursuant to Sections 0.111
and 0.311 of the Commission's rules, 47 C.F.R. §§ 0.111 and
0.311, that the CPST rate of $11.75, charged by Operator in
the community referenced above, effective January 1, 1995,
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 community referenced
above that portion of the amount paid in excess of the
maximum permitted CPST rate of $11.12 per month (plus
franchise fees), plus interest to the date of the refund,
for the period May 15, 1994, through June 30, 1994.
9. 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 $11.42 per month (plus
franchise fees), plus interest to the date of the refund,
for the period July 1, 1994, through September 30, 1994.
10. 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 $11.65 per month (plus
franchise fees), plus interest to the date of the refund,
for the period October 1, 1994 through December 31, 1994.
11. 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, Enforcement 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.
12. IT IS FURTHER ORDERED, pursuant to Section 76.961
of the Commission's rules, 47 C.F.R. § 76.961, that
Operator's refund plan for Order, DA 95-2168, IS DISMISSED.
13. IT IS FURTHER ORDERED, pursuant to Sections 0.111
and 0.311 of the Commission's rules, 47 C.F.R. §§ 0.111 and
0.311, that the complaints referenced herein against the
CPST rates charged by Operator in the community referenced
above ARE GRANTED.
FEDERAL COMMUNICATIONS
COMMISSION
David H. Solomon
Chief, Enforcement Bureau
_________________________
1 Effective March 25, 2002, the Commission transferred
responsibility for resolving cable programming services tier
rate complaints from the former Cable Services Bureau to the
Enforcement Bureau. See Establishment of the Media Bureau,
the Wireline Competition Bureau and the Consumer and
Governmental Affairs Bureau, Reorganization of the
International Bureau and Other Organizational Changes, FCC
02-10, 17 FCC Rcd 4672 (2002).
2 The term "Operator" includes Operator's successors and
predecessors in interest.
3 In the Matter of Post-Newsweek Cable, Inc., DA 95-2168, 10
FCC Rcd 11559 (CSB 1995).
4 Id. at n. 1.
5 Communications Act, Section 623(c), as amended, 47 U.S.C.
§ 543(c) (1996).
6 Pub. L. No. 102-385, 106 Stat. 1460 (1992).
7 See Section 76.956 of the Commission's rules, 47 C.F.R. §
76.956.
8 Id.
9 See Section 76.957 of the Commission's rules, 47 C.F.R. §
76.957.
10 See Section 76.922 of the Commission's rules, 47 C.F.R. §
76.922.
11 Id.
12 Id.
13 Id.