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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** B efore the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Comcast Cablevision of West Florida, Inc. ) CUID No. FL0055 (Punta Gorda) ) ) ) Petition for Reconsideration ) ORDER ON RECONSIDERATION Adopted: February 2, 1998 Released: February 4, 1998 By the Deputy Chief, Cable Services Bureau: 1. In this Order we consider a Petition for Reconsideration ("Petition") filed by the above- captioned Operator. We have issued an order ("Prior Order") which found that Operator's cable programming service tier ("CPST") rate increase effective November 1, 1996 was unreasonable. Operator filed a Petition for Reconsideration of our Prior Order on April 24, 1997. The Commission has received no opposition to the Petition. 2. The Communications Act authorizes the Federal Communications Commission ("Commission") to review the CPST rates of cable systems not subject to effective competition to ensure that rates charged are not unreasonable. If the Commission finds the rate unreasonable, it shall determine the correct rate and any refund liability. The Telecommunications Act of 1996 ("1996 Act") and our rules implementing the new legislation ("Interim Rules"), require that complaints against the CPST rates be filed with the Commission by a local franchising authority ("LFA") that has received subscriber complaints. An LFA may not file a CPST rate complaint unless, within 90 days after such increase becomes effective, it receives more than one subscriber complaint. 3. To justify rates for the period beginning May 15, 1994 through a benchmark showing, operators must use the FCC Form 1200 series. Operators may justify adjustments to 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. If actual and projected costs are different during the rate year a "true-up" mechanism is available to correct estimated costs with actual cost changes. 4. In the Prior Order, we found that Operator did not correctly calculate its maximum permitted rate ("MPR"). We concluded that, in order to arrive at a proper MPR, adjustments would be necessary. We adjusted Operator's FCC Form 1240 for the projected period November 1, 1996 to October 31, 1997, Module D, Line D3, (Current Caps Method Segment), to reflect previous rate increases of $1.07 pursuant to the Caps methodology that Operator reported in Line 201, Column 9 of Worksheet 2. This adjustment reduced Operator's MPR for the projected period (Line I9) from $17.59 to $16.50. 5. In its Petition, Operator states that its CPST rate in the community referenced above was unregulated prior to the complaint concerning its November 1, 1996 rate increase. Operator asks that we reconsider our finding that it had already included the $1.07 Caps Method increase in its CPST rate prior to its November 1, 1996 rate increase. Operator states that, between December 31, 1994 and September 30, 1995, it added six channels to its CPST with a corresponding rate increase of $0.43 on November 1, 1995. Operator further states that pursuant to the FCC Form 1240 instructions regarding systems whose CPST rates were previously unregulated, it entered $1.07 on Worksheet 2, Line 201 (Caps Method - True-Up Period) because the $1.07 represented the total Caps Method adjustments Operator was entitled to but had not yet added to its CPST rate. Operator also states that it did not enter $1.07 on Module D, Line D3 because the FCC Form 1240 instructions require operators whose CPST rates were previously unregulated to place "0" on Module D, Line D3. Upon review, we find that Operator was correct in entering "0" on Module D, Line D3 and we accept Operator's FCC Form 1240 for the projected period November 1, 1996 to October 31, 1997 as filed. We also find that Operator's CPST rate of $17.48, effective November 1, 1996, is not unreasonable. 6. Accordingly, IT IS ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R.  0.321, that the monthly CPST rate of $17.48 charged by Operator in the community referenced above, effective November 1, 1996, IS NOT UNREASONABLE. 7. IT IS FURTHER ORDERED, that the complaint referenced in Comcast Cablevision of West Florida, Inc, DA 97-606 (released March 26, 1997), IS DENIED. 8. IT IS FURTHER ORDERED, pursuant to Section 1.106 of the Commission's rules, 47 C.F.R.  1.106 that the Petition for Reconsideration for reversal of Comcast Cablevision of West Florida, Inc, DA 97-606 (released March 26, 1997), IS GRANTED. 9. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R.  0.321, Comcast Cablevision of West Florida, Inc, DA 97-606 (released March 26, 1997) IS VACATED. FEDERAL COMMUNICATIONS COMMISSION John E. Logan Deputy Chief, Cable Services Bureau